How did PRCT's Q4 earnings surprise investors?

PROCEPT BioRobotics Corp. (PRCT) delivered a strong Q4 2024 earnings report, surpassing investor expectations in several key areas, as evidenced by the following points:

1. **Revenue Growth**: PROCEPT BioRobotics achieved a total revenue of $68.2 million in Q4 2024, marking a significant 57% increase year-over-year. This growth was driven by robust performance across various segments, including a 67% increase in U.S. system revenue and a 137% surge in international revenue.
2. **Gross Margin Improvement**: Despite operating expenses rising due to expansion efforts, the company improved its gross margin to 64% in Q4 2024, up from 49% in the previous year. This improvement reflects enhanced operational efficiency and a stronger financial foundation.
3. **Financial Performance**: PROCEPT BioRobotics reported a net loss of $18.9 million for Q4 2024, which is a significant improvement compared to the $27.5 million net loss in the same period the previous year. This narrowing of the net loss indicates effective cost management and a path towards profitability.
4. **Market Outlook**: The company issued a revenue guidance for 2025, projecting approximately $320 million in total revenue, indicating a 42% growth over 2024. This optimistic outlook reflects confidence in its long-term growth strategy and innovative product pipeline.

Overall, PRCT's Q4 earnings report showcased the company's ability to drive revenue growth, improve operational efficiency, and move closer to profitability, thereby exceeding investor expectations.