Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-40797

PROCEPT BioRobotics Corporation

(Exact name of registrant as specified in its charter)


Delaware			26-0199180
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

150 Baytech Drive	San Jose	CA	95134
(Address of Principal Executive Offices)			(Zip Code)

(650) 232-7200

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.00001 par value per share	PRCT	Nasdaq Global Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The registrant had outstanding 51,932,262 shares of common stock as of July 26, 2024.

PROCEPT BioRobotics Corporation

Form 10-Q – QUARTERLY REPORT

For the Quarter Ended June 30, 2024

TABLE OF CONTENTS


		Page
Part I. Financial Information
Item 1.	Condensed Consolidated Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations and Comprehensive Loss	5
	Condensed Consolidated Statements of Stockholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	24
Item 4.	Controls and Procedures	25

Part II. Other Information
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	28
	Signatures

__________________

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “can”, “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. All statements other than statements of historical facts contained in this Quarterly Report, including without limitation statements regarding our business model and strategic plans for our products, technologies and business, including our implementation thereof, the timing of and our ability to obtain and maintain regulatory approvals, our commercialization, marketing and manufacturing capabilities and strategy, our expectations about the commercial success and market acceptance of our products, the sufficiency of our cash, cash equivalents and short-term investments, and the plans and objectives of management for future operations and capital expenditures are forward-looking statements.

The forward-looking statements in this Quarterly Report are only predictions and are based largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of known and unknown risks, uncertainties, and assumptions, including those described under the sections in this Quarterly Report entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Quarterly Report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon these forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. We intend the forward-looking statements contained in this Quarterly Report to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

PROCEPT BioRobotics Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)


	June 30,		December 31,
	2024		2023

Assets
Current assets:
Cash and cash equivalents	$	214,093	$	257,222
Accounts receivable, net	58,917		48,376
Inventory	43,865		39,756
Prepaid expenses and other current assets	5,017		5,213
Total current assets	321,892		350,567
Restricted cash, non-current	3,038		3,038
Property and equipment, net	27,675		28,748
Operating lease right-of-use assets, net	19,584		20,241
Intangible assets, net	1,068		1,204
Other assets	1,093		919

Total assets	$	374,350	$	404,717
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	9,950	$	13,499
Accrued compensation	14,882		16,885
Deferred revenue	6,552		5,656

Operating lease, current	1,769		1,683
Loan facility derivative liability	1,942		1,886
Other current liabilities	7,750		6,318
Total current liabilities	42,845		45,927
Long-term debt	51,404		51,339
Operating lease, non-current	27,843		26,182
Other liabilities	479		517

Total liabilities	122,571		123,965
Commitments and contingencies (see Note 11)




Stockholders’ equity:
Preferred stock, $0.00001 par value;
Authorized shares: 10,000 at June 30, 2024 and December 31, 2023
Issued and outstanding shares: none at June 30, 2024 and December 31, 2023	—		—
Common stock, $0.00001 par value;
Authorized shares: 300,000 at June 30, 2024 and December 31, 2023
Issued and outstanding shares: 51,900 and 50,771 at June 30, 2024 and December 31, 2023, respectively	—		—
Additional paid-in capital	757,935		735,240
Accumulated other comprehensive gain (loss)	(1)		84
Accumulated deficit	(506,155)		(454,572)
Total stockholders’ equity	251,779		280,752
Total liabilities and stockholders’ equity	$	374,350	$	404,717

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROCEPT BioRobotics Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Revenue	$	53,353	$	33,104	$	97,892	$	57,508
Cost of sales	21,871		14,675		41,376		26,588
Gross profit	31,482		18,429		56,516		30,920
Operating expenses:
Research and development	17,501		11,613		30,585		22,350
Selling, general and administrative	40,809		32,441		80,408		62,574
Total operating expenses	58,310		44,054		110,993		84,924
Loss from operations	(26,828)		(25,625)		(54,477)		(54,004)
Interest expense	(1,030)		(965)		(2,075)		(1,851)
Interest and other income, net	2,232		1,305		4,969		2,084
Net loss	$	(25,626)	$	(25,285)	$	(51,583)	$	(53,771)
Net loss per share, basic and diluted	$	(0.50)	$	(0.56)	$	(1.01)	$	(1.19)
Weighted-average common shares used to
compute net loss per share attributable to
common shareholders, basic and diluted	51,622		45,160		51,316		45,023
Other comprehensive gain (loss):
Unrealized gain (loss) on cash equivalents	(114)		(21)		(85)		—
Comprehensive loss	$	(25,740)	$	(25,306)	$	(51,668)	$	(53,771)

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROCEPT BioRobotics Corporation

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Gain (Loss)		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2023	50,771	$	—	$	735,240	$	84	$	(454,572)	$	280,752
Issuance of common stock under stock plans	622	—		2,586		—		—		2,586
Stock-based compensation expense	—	—		6,637		—		—		6,637
Unrealized gain (loss) on cash equivalents	—	—		—		29		—		29
Net loss	—	—		—		—		(25,957)		(25,957)
Balance at March 31, 2024	51,393	$	—	$	744,463	$	113	$	(480,529)	$	264,047
Issuance of common stock under stock plans	507	—		5,296		—		—		5,296
Stock-based compensation expense	—	—		8,176		—		—		8,176
Unrealized gain (loss) on cash equivalents	—	—		—		(114)		—		(114)
Net loss	—	—		—		—		(25,626)		(25,626)
Balance at June 30, 2024	51,900	$	—	$	757,935	$	(1)	$	(506,155)	$	251,779

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROCEPT BioRobotics Corporation

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Gain (Loss)		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2022	44,828	$	—	$	545,753	$	(6)	$	(348,675)	$	197,072
Issuance of common stock under stock plans	181	—		380		—		—		380
Stock-based compensation expense	—	—		4,137		—		—		4,137
Unrealized gain (loss) on cash equivalents	—	—		—		21		—		21
Net loss	—	—		—		—		(28,484)		(28,484)
Balance at March 31, 2023	45,009	$	—	$	550,270	$	15	$	(377,159)	$	173,126
Issuance of common stock under stock plans	262	—		2,430		—		—		2,430
Stock-based compensation expense	—	—		5,652		—		—		5,652
Unrealized gain (loss) on cash equivalents	—	—		—		(21)		—		(21)
Net loss	—	—		—		—		(25,285)		(25,285)
Balance at June 30, 2023	45,271	$	—	$	558,352	$	(6)	$	(402,444)	$	155,902

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROCEPT BioRobotics Corporation

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Six Months Ended June 30,
	2024		2023

Cash flows from operating activities:
Net loss	$	(51,583)	$	(53,771)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	2,453		1,435
Stock-based compensation expense	14,242		8,827
Change in fair value of derivative liability	56		53
Non-cash lease adjustment	(191)		315



Inventory write-down	905		414
Changes in operating assets and liabilities:
Accounts receivable, net	(10,541)		(17,901)
Inventory	(4,280)		(13,422)
Prepaid expenses and other current assets	110		2,435
Other assets	(174)		(81)
Accounts payable	(1,967)		2,234
Accrued compensation	(2,003)		(3,497)
Accrued interest expense	66		61
Deferred revenue	858		2,219
Reimbursements for leasehold improvements from operating leases	2,596		4,989

Other liabilities	1,431		1,423
Net cash used in operating activities	(48,022)		(64,267)
Cash flows from investing activities:



Purchases of property and equipment	(2,989)		(10,711)
Net cash used in investing activities	(2,989)		(10,711)
Cash flows from financing activities:
Proceeds from issuance of common stock from the exercise of stock options	5,759		1,093
Proceeds from issuance of common stock under employee stock purchase plan	2,123		1,717





Net cash provided by financing activities	7,882		2,810
Net decrease in cash, cash equivalents and restricted cash	(43,129)		(72,168)
Cash, cash equivalents and restricted cash
Beginning of the period	260,260		225,674
End of the period	$	217,131	$	153,506
Reconciliation of cash, cash equivalents and restricted cash to balance sheets:
Cash and cash equivalents	$	214,093	$	149,691
Restricted cash	3,038		3,815
Cash, cash equivalents and restricted cash in balance sheets	$	217,131	$	153,506
Supplemental cash flow information
Interest paid	$	2,035	$	2,064
Non-cash investing and financing activities

Transfer of evaluation or rental units from inventory to property and equipment, net	$	13	$	(123)
Property and equipment included in accounts payable and accrued expenses	$	81	$	1,956

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROCEPT BioRobotics Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Organization

Description of Business

PROCEPT BioRobotics Corporation (the “Company”) is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. It develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery, with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. The AquaBeam Robotic System employs a single-use disposable handpiece to deliver the Company’s proprietary Aquablation therapy, which combines real-time, multi-dimensional imaging, personalized treatment planning, automated robotics and heat-free waterjet ablation for targeted and rapid removal of prostate tissue. The Company received U.S. Food and Drug Administration clearance in December 2017 to market its AquaBeam Robotic System pursuant to a de novo classification. On August 30 2023,the Company received 510(k) clearance from FDA to remove the contraindication from its labeling that restricted Aquablation therapy from treating BPH in patients that also have an active diagnosis of prostate cancer.

2. Summary of Significant Accounting Policies

Basis of Preparation

The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and pursuant to the rules and regulations of the United States Securities and Exchange Commission or SEC. These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.

Unaudited Interim Financial Statements

The accompanying balance sheet as of June 30, 2024, the statements of operations and comprehensive loss and cash flows for the three and six months ended June 30, 2024 and 2023, and the statements of stockholders’ equity as of June 30, 2024 and 2023, are unaudited. The financial data and other information disclosed in these notes to the financial statements related to June 30, 2024, and the three and six months ended June 30, 2024 and 2023, are also unaudited. The accompanying balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission.

The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair statement of the Company’s financial position as of June 30, 2024, and the results of its operations and cash flows for the three and six months ended June 30, 2024 and 2023. The results for the three and six months ended June 30, 2024, are not necessarily indicative of results to be expected for the year ending December 31, 2024, or for any other interim period or for any future year and should be read in conjunction with the annual consolidated financial statements included in the Company’s Annual Report.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the condensed consolidated financial statements. Management uses significant judgment when making estimates related to its valuation of inventory and accounts receivable, stock-based compensation expense, right-of-use lease asset, lease liability, valuations of loan facility derivative liability, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the

circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, that requires disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker and included within each reported measure of segment profit or loss. The standard also requires disclosure of the composition of other segment items included in the measure of segment profit or loss that are not separately disclosed. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the adoption of this ASU to have an impact on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for all public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted and should be applied either prospectively or retrospectively. The Company plans to adopt the ASU and related updates on January 1, 2025. The Company is evaluating the impact of this ASU will have on its financial statement disclosures.

3. Fair Value Measurements

The following is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands):


	June 30, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Cash and cash equivalents:
Cash	$	8,909	$	—	$	—	$	8,909	$	6,609	$	—	$	—	$	6,609
Cash equivalents	205,184		—		—		205,184		250,613		—		—		250,613
Total cash and cash equivalents	$	214,093	$	—	$	—	$	214,093	$	257,222	$	—	$	—	$	257,222

Loan facility derivative liability	$	—	$	—	$	1,942	$	1,942	$	—	$	—	$	1,886	$	1,886

Cash equivalents consist primarily of money market deposit funds and U.S. treasury bills.

There were no transfers in and out of Level 3 during the six months ended June 30, 2024 and year ended December 31, 2023.

The following table sets forth a summary of the changes in the estimated fair value of the Company’s loan facility derivative liability, classified as Level 3 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Beginning of the period	$	1,914	$	1,805	$	1,886	$	1,779
Change in fair value	28		27		56		53
End of the period	$	1,942	$	1,832	$	1,942	$	1,832

4. Inventory

Inventory consists of the following (in thousands):


	June 30,		December 31,
	2024		2023

Raw materials	$	18,333	$	16,737
Work-in-process	2,904		1,142
Finished goods	22,628		21,877
Total inventory	$	43,865	$	39,756

5. Property and Equipment, Net

Property and equipment, net, consist of the following (in thousands):


	June 30,		December 31,
	2024		2023

Laboratory, manufacturing and computer equipment, and furniture and fixtures	$	20,427	$	15,610
Rental equipment	785		897
Leasehold improvements	12,398		12,362
Construction in progress	—		3,548
Total property and equipment	33,610		32,417
Less: accumulated depreciation and amortization	(5,935)		(3,669)
Total property and equipment, net	$	27,675	$	28,748

6. Long-Term Debt

In October 2022, the Company entered into a loan and security agreement (“the Loan Agreement”) with Canadian Imperial Bank of Commerce, or CIBC. The Agreement provides for a senior secured term loan facility in the aggregate principal amount of $52.0 million (the "Term Loan Facility") which was borrowed in full.

The Term Loan Facility is scheduled to mature on the fifth anniversary of the closing date (the “Maturity Date”). The Agreement provides for interest-only payments on the Term Loan Facility for the first thirty-six months following the Maturity Date (the “Initial Interest-Only Period”). The Initial Interest-Only Period will be extended to an additional twelve months if the Company achieves either (i) $200.0 million or greater in revenue in any twelve-month period or (ii) $0 or greater in EBITDA (as defined in the Loan Agreement) in any six-month period. Thereafter, amortization payments on the Term Loan Facility will be payable monthly until the Maturity Date in monthly installments equal to 20% of the then outstanding principal amount of the Term Loan Facility divided by 12 plus any accrued and unpaid interest. The Company has the option to prepay the Term Loan Facility without any prepayment charge or fee.

The loan borrowed under the Term Loan Facility bears interest at an annual rate equal to the secured overnight financing rate or SOFR (calculated based on an adjustment of .10%, .15% and .25%, respectively, for one-month, three-month or six-month term SOFR as of a specified date, subject to a floor of 1.5%) plus an applicable margin of 2.25%.

The obligations under the Loan Agreement are secured by substantially all of the Company's assets, including its intellectual property and by a pledge all of the Company's equity interests in its U.S. subsidiaries and 65% of the Company's equity interests in its non-U.S. subsidiaries that are directly owned by the Company. The Company is obligated to maintain in deposit accounts held at the lender the lesser of (i) $90.0 million or (ii) all of its non-operating cash and allow the Company to maintain cash or cash equivalents in excess of that amount with other financial institutions.

7. Stock-Based Compensation

Total stock-based compensation recognized, before taxes, are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Cost of sales	$	1,686	$	609	$	2,998	$	1,070
Research and development	2,088		1,245		3,300		2,132
Sales, general and administrative	5,149		3,798		9,728		6,587
Stock-based compensation capitalized in inventory	(937)		(548)		(1,784)		(962)
Total stock-based compensation	$	7,986	$	5,104	$	14,242	$	8,827

Stock Options

The Company had 6.8 million shares available for grant as of June 30, 2024 under the 2021 Equity Incentive Award Plan or 2021 Plan.

A summary of the Company’s stock option activity and related information are as follows (options in thousands):


	Six Months Ended
	June 30, 2024

	Number of Shares	Weighted-Average Exercise Price
Outstanding, beginning of period	5,215	$	9.42
Granted	169	49.73
Exercised	(718)	8.02
Forfeited	(135)	20.68
Outstanding, end of period	4,531	10.81
Vested and expected to vest	4,531	10.81
Exercisable	3,759	7.40

As of June 30, 2024 and December 31, 2023, the aggregate pre-tax intrinsic value of options outstanding and exercisable was $203.7 million and $144.0 million, respectively, and the aggregate pre-tax intrinsic value of options outstanding were $228.0 million and $169.5 million, respectively. The aggregate pre-tax intrinsic value of options exercised was $34.7 million and $6.4 million during the six months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024, there was a total of $11.3 million of unrecognized stock-based compensation expense related to stock options.

The fair value of the options granted to employees or directors was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023

Expected life (years)	5.6			5.5			6.0			5.9
Expected volatility	57		%	58		%	57		%	57		%
Risk-free interest rate	4.4		%	3.9		%	4.1		%	4.0		%
Expected dividend rate	—		%	—		%	—		%	—		%
Weighted-average fair value	$	35.57		$	19.48		$	28.28		$	21.02

Restricted Stock Units

A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands):


	Six Months Ended
	June 30, 2024

	Number of Shares	Weighted-Average Fair Value
Outstanding, beginning of period	1,565	$	36.27
Awarded	933	49.93
Forfeited	(162)	38.30

Vested	(334)	35.81
Outstanding, end of period	2,002	42.55

As of June 30, 2024, there was a total of $75.9 million of unrecognized stock-based compensation expense related to RSUs.

Performance Stock Units

The 2021 Plan provides for issuance of performance stock units or PSUs. PSUs granted are contingent upon the achievement of predetermined market, performance, and service conditions. PSUs are awarded to executives of the Company and generally time vest over two and three years. Vesting is also generally contingent upon achievement of applicable performance metrics. PSU expense is recognized over the requisite service period.

During the six months ended June 30, 2024, the Company awarded approximately 61,000 PSU shares with both a performance and service condition. A certain performance condition will be defined at a later date. Per ASC 718 – Compensation, Stock Compensation, these grants have not met the definition of having a grant date, and therefore, no expense has been recognized for these PSUs. Expense will be recognized when the performance condition becomes defined.

During the six months ended June 30, 2024, the Company awarded approximately 20,000 PSU shares with both a market and service condition.

No PSU shares were forfeited or released during the three and six months ended June 30, 2024. As of June 30, 2024, unrecognized compensation expense related to PSUs was not material.

Employee Stock Purchase Plan

As of June 30, 2024, there was approximately $1.8 million of unrecognized cost related to the Employee Stock Purchase Plan or ESPP. This cost is expected to be recognized over a weighted average period of 0.8 years. As of June 30, 2024, a total of 1.5 million shares were available for issuance under the ESPP.

The fair value of the options granted to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:


	Six Months Ended June 30,
	2024			2023

Expected life (years)	0.8			0.8
Expected volatility	53		%	55		%
Risk-free interest rate	5.3		%	5.0		%
Expected dividend rate	—		%	—		%
Weighted-average fair value	$	22.09		$	11.28

8. Net Loss Per Share

Net loss per share was determined as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss	$	(25,626)	$	(25,285)	$	(51,583)	$	(53,771)
Weighted-average common stock outstanding	51,622		45,160		51,316		45,023
Net loss per share, basic and diluted	$	(0.50)	$	(0.56)	$	(1.01)	$	(1.19)

The following potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands):


	June 30,
	2024	2023


Stock options	4,531	5,505
Restricted and performance stock units	2,083	1,461
Employee stock purchase plan	54	177
Total	6,668	7,143

9. Revenue

The following table presents revenue disaggregated by type and geography (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

U.S.
System sales and rentals	$	17,819	$	14,828	$	32,055	$	23,598
Handpieces and other consumables	27,260		13,601		50,878		25,371
Service	2,589		1,499		4,936		2,734
Total U.S. revenue	47,668		29,928		87,869		51,703
Outside of U.S.
System sales and rentals	3,078		1,599		4,818		3,068
Handpieces and other consumables	2,271		1,269		4,614		2,175
Service	336		308		591		562
Total outside of U.S. revenue	5,685		3,176		10,023		5,805
Total revenue	$	53,353	$	33,104	$	97,892	$	57,508

10. Segment, Geographical, and Customer Concentration

The Company operates as a single operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, reviews financial information on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The Company’s assets are primarily based in the United States.

No customers accounted for more than 10% of revenue during the three and six months ended June 30, 2024 and 2023.

No customer accounted for more than 10% of accounts receivable at June 30, 2024 and December 31, 2023.

The following table presents revenue by significant geographical locations for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	89	%	90	%	90	%	90	%
Outside the United States	11	%	10	%	10	%	10	%

11. Commitments and Contingencies

Guarantees and Indemnifications

In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any material claims or been required to defend any action related to its indemnification obligations. As of June 30, 2024 and December 31, 2023, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.

Facility Lease

In December 2021, the Company entered into a lease for two existing buildings, comprising approximately 158,221 square feet of space, located in San Jose, California. The lease commenced in July 2022, and will continue for 122 months following thereafter, with two five year options to extend the term of the lease.

Rent expense recognized under the lease, including additional rent charges for utilities, parking, maintenance, and real estate taxes, was $1.8 million and $1.9 million for the three months ended June 30, 2024 and 2023, and was $3.4 million and 4.0 million for the six months ended June 30, 2024 and 2023.

Future minimum annual operating lease and debt repayments are as follows (in thousands):


As of June 30, 2024	Minimum Lease Payments		Debt Repayments		Total
2024	$	2,086	$	—	$	2,086
2025	4,297		4,333		8,630
2026	4,426		26,000		30,426
2027	4,808		21,667		26,475
2028	4,952		—		4,952
Thereafter	22,297		—		22,297
Total minimum payments	42,866		52,000		94,866
Less: amount representing interest/unamortized debt discount	(13,254)		(596)		(13,850)
Present value of future payments	29,612		51,404		81,016
Less: current portion	(1,769)		—		(1,769)
Non-current portion	$	27,843	$	51,404	$	79,247

As of June 30, 2024 and December 31, 2023, the Company’s security deposit is in the form of, and recorded as, restricted cash.

12. Defined Contribution Plan

The Company has a defined contribution retirement savings plan under Section 401(k) of the Internal Revenue Code. This plan allows eligible employees to defer a portion of their annual compensation on a pre-tax basis. Employer contributions were $0.7 million and $0.4 million for the three months ended June 30, 2024 and 2023, and $1.3 million and $0.9 million for the six months ended June 30, 2024 and 2023.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes included elsewhere in this report. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed in the section titled “Risk Factors” and elsewhere in this report. Please also see the section titled “Cautionary Note Regarding Forward-Looking Statements.”

Overview

We are a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. We develop, manufacture and sell the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery, with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. By 2060, it is expected that the number of men over 65 years old in the United States will double and include a corresponding increase in the number of men with enlarged prostates. The AquaBeam Robotic System employs a single-use disposable handpiece to deliver our proprietary Aquablation therapy, which combines real-time, multi-dimensional imaging, personalized treatment planning, automated robotics and heat-free waterjet ablation for targeted and rapid removal of prostate tissue. We believe that Aquablation therapy represents a paradigm shift in the surgical treatment of BPH by addressing compromises associated with alternative surgical interventions. We designed Aquablation therapy to deliver effective, safe and durable outcomes for males suffering from lower urinary tract symptoms, or LUTS, due to BPH that are independent of prostate size and shape. We have developed a significant and growing body of clinical evidence, which includes approximately 150 peer-reviewed publications, supporting the benefits and clinical advantages of Aquablation therapy. As of June 30, 2024, we had an install base of 516 AquaBeam Robotic Systems globally, including 400 in the United States.

Our U.S. pivotal trial, the WATER study, is the only FDA pivotal study randomized against transurethral resection of prostate, or TURP, which is the historical standard of care for the surgical treatment of BPH. In this study, Aquablation therapy demonstrated superior safety and non-inferior efficacy compared to TURP across prostate sizes between 30 ml and 80 ml, and superior efficacy in a subset of patients with prostates larger than 50 ml. We have established strong relationships with key opinion leaders, or KOLs, within the urology community and collaborated with key urological societies in global markets. This support has been instrumental in facilitating broader acceptance and adoption of Aquablation therapy. As a result of our strong KOL network and our compelling clinical evidence, Aquablation therapy has been added to clinical guidelines of various professional associations, including the American Urological Association.

We manufacture the AquaBeam Robotic System, the handpiece, integrated scope and other accessories at our facility in San Jose, California. This includes supporting the supply chain distribution and logistics of the various components. Components, sub-assemblies and services required to manufacture our products are purchased from numerous global suppliers. Each AquaBeam Robotic System is shipped to our customers with a third-party manufactured ultrasound system and probe. We utilize a well-known third-party logistics provider located in the United States and the Netherlands to ship our products to our customers globally.

We generated revenue of $97.9 million and incurred a net loss of $51.6 million for the six months ended June 30, 2024, compared to revenue of $57.5 million and a net loss of $53.8 million for the six months ended June 30, 2023. As of June 30, 2024, we had cash and cash equivalents of $214.1 million and an accumulated deficit of $506.2 million.

Factors Affecting Our Performance

We believe there are several important factors that have impacted and that we expect will impact our operating performance and results of operations for the foreseeable future. While these factors may present significant

opportunities for us, they also pose significant risks and challenges that we must address. See the section titled “Risk Factors” for more information. These factors include:

•Grow our install base of AquaBeam Robotic Systems. As of June 30, 2024, we had an install base of 516 AquaBeam Robotic Systems globally, including 400 in the United States. In the United States, we are initially focused on driving adoption of Aquablation therapy among urologists that perform hospital-based resective BPH surgery. We are initially targeting 860 high-volume hospitals that we estimate perform, on average, more than 200 resective procedures annually and account for approximately 70% of all hospital-based resective procedures. Additionally, there are approximately 1,840 additional U.S. hospitals that perform the remaining 30% of resective BPH procedures that we are targeting. To penetrate these hospitals, we expect to continue to increase our direct team of capital sales representatives, who are focused on driving system placement within hospitals by engaging with key surgeons and decision makers to educate them about the compelling value proposition of Aquablation therapy. As we increase our install base of AquaBeam Robotic systems we expect our revenue to increase as a result of the system sale and resulting utilization.

•Increase system utilization. Our revenue is significantly impacted by the utilization of our AquaBeam robotic system. Once we place a system within a hospital our objective is to establish Aquablation therapy as the surgical treatment of choice for BPH. Within each hospital we are initially focused on targeting urologists who perform medium-to-high volumes of resective procedures and converting their resective cases to Aquablation therapy. To accomplish this, we will continue expanding our team of highly trained Aquablation representatives and clinical specialists who are focused on driving system utilization within the hospital, providing education and training support and ensuring excellent user experiences. As urologists gain experience with Aquablation therapy we expect to leverage their experiences to capture more surgical volumes and establish Aquablation therapy as the surgical standard of care.

•Reimbursement and coverage decisions by third-party payors. Healthcare providers in the United States generally rely on third-party payors, principally federal Medicare, state Medicaid and private health insurance plans, to cover all or part of the cost of procedures using our AquaBeam Robotic System. The revenue we are able to generate from sales of our products depends in large part on the availability of sufficient reimbursement from such payors. Effective in 2021, all local MACs, representing 100% of eligible Medicare patients, issued final positive local coverage determinations to provide Medicare beneficiaries with access to Aquablation therapy in all 50 states. We believe that these favorable coverage decisions have been a catalyst for hospital adoption of our AquaBeam Robotic System. We believe our strong body of clinical evidence and support from key societies, supplemented by the momentum from Medicare coverage, have led to favorable coverage decisions from many large commercial payors. We plan to leverage these recent successes in our active discussions with commercial payors to establish additional positive national and regional coverage policies. Outside of the United States, we have ongoing efforts in key markets to expand established coverage and further improve patient access to Aquablation therapy.

•Cost of sales. The results of our operations will depend, in part, on our ability to increase our gross margins by more effectively managing our costs to produce our AquaBeam Robotic System and single-use disposable handpieces, and to scale our manufacturing operations efficiently. We anticipate that as we expand our sales and marketing efforts and drive further sales growth, our purchasing costs on a per unit basis may decrease, and in turn improve our gross margin. As our commercial operations continue to grow, we expect to continue to realize operating leverage through increased scale efficiencies.

•Investment in research and development to drive continuous improvements and innovation. We are currently developing additional and next generation technologies to support and improve Aquablation therapy to further satisfy the evolving needs of surgeons and their patients as well as to further enhance the usability and scalability of the AquaBeam Robotic System. We also plan to leverage our treatment data and software development capabilities to integrate artificial intelligence and machine learning to enable computer-assisted anatomy recognition and improved treatment planning and personalization. Our future growth is dependent on these continuous improvements which require significant resources and investment.

Components of Our Results of Operations

Revenue

We generate our revenue primarily from recurring revenue associated with sales of our single-use disposable handpieces that are used during each surgery performed with our system. Additionally, there is a non-recurring portion of our business, which includes sales of our AquaBeam Robotic System. Other revenue is derived from service and repair, other consumables, and extended service contracts with new and existing customers. We expect our revenue to increase in absolute dollars for the foreseeable future as we continue to focus on driving adoption of Aquablation therapy, and increased system utilization, though it may fluctuate from quarter to quarter.

The following table presents revenue by significant geographical locations for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

United States	89	%	90	%	90	%	90	%
Outside the United States	11	%	10	%	10	%	10	%

We expect that both our U.S. and international revenue will increase in the near term as we continue to expand the install base of AquaBeam Robotic Systems and increase the units sold of our single-use disposable handpieces. We expect our increase in revenue in absolute dollars to be larger in the United States.

Cost of Sales and Gross Margin

Cost of sales consists primarily of manufacturing overhead costs, material costs, warranty and service costs, direct labor, scrap and other direct costs such as shipping costs. A significant portion of our cost of sales currently consists of manufacturing overhead costs. These overhead costs include compensation for personnel, including stock-based compensation, facilities, equipment and operations supervision, quality assurance and material procurement. We expect our cost of sales to increase in absolute dollars for the foreseeable future primarily as, and to the extent, our revenue grows, or we make additional investments in our manufacturing capabilities, though it may fluctuate from period to period.

We calculate gross margin percentage as gross profit divided by revenue. Our gross margin has been and will continue to be affected by a variety of factors, primarily, product and geographic mix and the resulting average selling prices, production volumes, manufacturing costs and product yields, and to a lesser extent the implementation of cost reduction strategies. We expect our gross margin to increase over the long term as our production volume increases and as we spread the fixed portion of our manufacturing overhead costs over a larger number of units produced, thereby significantly reducing our per unit manufacturing costs, though it may fluctuate from quarter to quarter. Our gross margins can fluctuate due to geographic mix. To the extent we sell more systems and handpieces in the United States, we expect our margins will increase due to the higher average selling prices as compared to sales outside of the United States.

Operating Expenses

Research and Development

Research and development, or R&D, expenses consist primarily of engineering, product development, regulatory affairs, consulting services, materials, depreciation and other costs associated with products and technologies being developed. These expenses include employee and non-employee compensation, including stock-based compensation, supplies, materials, quality assurance expenses, consulting, related travel expenses and facilities expenses. We expect our R&D expenses to increase in absolute dollars for the foreseeable future as we make strategic investments in R&D, continue to develop, enhance and commercialize new products and technologies, though it may fluctuate from quarter to quarter. However, over time, we expect our R&D expenses to decrease as a percentage of revenue.

Selling, General and Administrative

Selling, general and administrative, or SG&A, expenses consist primarily of compensation for personnel, including stock-based compensation, related to selling, marketing, clinical affairs, professional education, finance, information technology, and human resource functions. SG&A expenses also include commissions, training, travel expenses, promotional activities, conferences, trade shows, professional services fees, audit fees, legal fees, insurance costs and general corporate expenses including allocated facilities-related expenses. Clinical study expenses include trial design, site reimbursement, data management and travel expenses. We expect our SG&A expenses to increase in absolute dollars for the foreseeable future as we expand our commercial infrastructure in order for us to execute on our long-term growth plan, though it may fluctuate from quarter to quarter. However, over time, we expect our SG&A expenses to decrease as a percentage of revenue.

Interest and Other Income, Net

Interest Expense

Interest expense consists primarily of interest expense from our long-term debt.

Interest and Other Income, Net

Interest and other income, net, consists primarily of interest income from our cash and cash equivalents balances, and fair value adjustments from our loan facility derivative liability.

Results of Operations

The following tables show our results of operations for the periods indicated:


	Three Months Ended June 30,						Change
	2024			2023			$		%
	(in thousands, except percentages)

Revenue	$	53,353		$	33,104		$	20,249	61	%
Cost of sales	21,871			14,675			7,196		49
Gross profit	31,482			18,429			13,053		71
Gross margin	59		%	56		%

Operating expenses:
Research and development	17,501			11,613			5,888		51
Selling, general and administrative	40,809			32,441			8,368		26
Total operating expenses	58,310			44,054			14,256		32
Loss from operations	(26,828)			(25,625)			(1,203)		(5)
Interest expense	(1,030)			(965)			(65)		(7)
Interest and other income, net	2,232			1,305			927		71
Net loss	$	(25,626)		$	(25,285)		$	(341)	(1)


	Six Months Ended June 30,						Change
	2024			2023			$		%
	(in thousands, except percentages)

Revenue	$	97,892		$	57,508		$	40,384	70	%
Cost of sales	41,376			26,588			14,788		56
Gross profit	56,516			30,920			25,596		83
Gross margin	58		%	54		%

Operating expenses:
Research and development	30,585			22,350			8,235		37
Selling, general and administrative	80,408			62,574			17,834		29
Total operating expenses	110,993			84,924			26,069		31
Loss from operations	(54,477)			(54,004)			(473)		(1)
Interest expense	(2,075)			(1,851)			(224)		(12)
Interest and other income, net	4,969			2,084			2,885		138
Net loss	$	(51,583)		$	(53,771)		$	2,188	4

Comparison of Three and Six Months Ended June 30, 2024 and 2023

Revenue


	Three Months Ended June 30,				Change
	2024		2023		$		%
	(in thousands, except percentages)

System sales and rentals	$	20,897	$	16,427	$	4,470	27	%
Handpieces and other consumables	29,531		14,870		14,661		99
Service	2,925		1,807		1,118		62
Total revenue	$	53,353	$	33,104	$	20,249	61


	Six Months Ended June 30,				Change
	2024		2023		$		%
	(in thousands, except percentages)

System sales and rentals	$	36,873	$	26,666	$	10,207	38	%
Handpieces and other consumables	55,492		27,546		27,946		101
Service	5,527		3,296		2,231		68
Total revenue	$	97,892	$	57,508	$	40,384	70

Revenue increased $20.2 million, or 61%, to $53.4 million during the three months ended June 30, 2024, compared to $33.1 million during the three months ended June 30, 2023, and increased $40.4 million or 70% to $97.9 million during the six months ended June 30, 2024, compared to $57.5 million during the six months ended June 30, 2023. The growth in revenue was primarily attributable to an increase of $17.7 million and $36.2 million in revenue derived from the United States for the three and six months ended June 30, 2024, respectively. The increase was due to higher sales volumes of system sales, handpieces, other consumables, and service contracts.

Cost of Sales and Gross Margin

Cost of sales increased $7.2 million, or 49%, to $21.9 million during the three months ended June 30, 2024, compared to $14.7 million during the three months ended June 30, 2023, and increased $14.8 million or 56%, to

$41.4 million during the six months ended June 30, 2024 compared to $26.6 million for the six months ended June 30, 2023. The increase in cost of sales was primarily attributable to the growth in the number of units sold.

Gross margin increased to 59% during the three months ended June 30, 2024, compared to 56% for the three months ended June 30, 2023, and increased to 58% during the six months ended June 30, 2024 compared to 54% during the six months ended June 30, 2023. The increase in gross margin was primarily attributable to the growth in unit sales, which allowed us to spread the fixed portion of our manufacturing overhead costs over more production units, and to a lesser extent, an increase in average selling prices on both our system sales and handpieces.

Research and Development Expenses

R&D expenses increased $5.9 million, or 51%, to $17.5 million during the three months ended June 30, 2024, compared to $11.6 million during the three months ended June 30, 2023, and increased $8.2 million or 37%, to $30.6 million during the six months ended June 30, 2024, compared to $22.4 million for the six months ended June 30, 2023. The increase in R&D expenses was primarily due to employee-related expenses of our R&D organization such as salaries and wages, along with an increase in consultant expenses and tooling. These expenses support ongoing product improvements and the development of additional and next generation technologies.

Selling, General and Administrative Expenses

SG&A expenses increased $8.4 million, or 26%, to $40.8 million during the three months ended June 30, 2024, compared to $32.4 million during the three months ended June 30, 2023, and increased $17.8 million or 29%, to $80.4 million for the six months ended June 30, 2024 compared to $62.6 million for the six months ended June 30, 2023. The increase in SG&A expenses was primarily due to employee-related expenses of our sales and marketing organization such as salaries and wages and stock-based compensation expense, primarily to expand the commercial organization, and employee-related expenses of our administrative organization such as salaries and wages and stock-based compensation expense, to drive and support our growth in revenue.

Interest Expense

Interest expense increase was not material during the three months ended June 30, 2024, compared to the prior period.

Interest expense increased $0.2 million, or 12% to $2.1 million during the six months ended June 30, 2024, compared to $1.9 million during the six months ended June 30, 2023. The increase in interest expense was primarily due to an increase in the interest rate as compared to the prior period.

Interest and Other Income, Net

Interest and other income, net, increased $0.9 million and $2.9 million for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023. The increase was primarily due to an increase in interest income, which was due to our increase cash balance with increases in interest rates.

Liquidity and Capital Resources

Overview

As of June 30, 2024, we had cash and cash equivalents of $214.1 million, an accumulated deficit of $506.2 million, and $52.0 million outstanding on our loan facility. We expect our expenses will increase for the foreseeable future, in particular as we continue to make substantial investments in sales and marketing, operations and research and development. Our future funding requirements will depend on many factors, including:

•the degree and rate of market acceptance of our products and Aquablation therapy;

•the scope and timing of investment in our sales force and expansion of our commercial organization;

•the scope, rate of progress and cost of our current or future clinical trials and registries;

•the cost of our research and development activities;

•the cost and timing of additional regulatory clearances or approvals;

•the costs associated with any product recall that may occur;

•the costs associated with a regulatory or government action or other litigation;

•the costs associated with the manufacturing of our products at increased production levels;

•the costs of attaining, defending and enforcing our intellectual property rights;

•whether we acquire third-party companies, products or technologies;

•the terms and timing of any other collaborative, licensing and other arrangements that we may establish;

•the emergence of competing technologies or other adverse market developments; and

•the rate at which we expand internationally.

Based on our operating plan, we currently believe that our existing cash and cash equivalents and anticipated revenue will be sufficient to meet our capital requirements and fund our operations through at least the next twelve months from the issuance date of the financial statements included in the Quarterly Report on Form 10-Q. We have based this estimate on assumptions that may prove to be wrong, and we may need to utilize additional available capital resources. If these sources are insufficient to satisfy our liquidity requirements, we may seek to sell additional equity or debt securities or obtain an additional credit facility. We may also consider raising additional capital to expand our business, to pursue strategic investments, to take advantage of financing opportunities or for other reasons. The sale of equity and convertible debt securities may result in dilution to our stockholders and, in the case of preferred equity securities or convertible debt, those securities could provide for rights, preferences or privileges senior to those of our common stock. Debt financing, if available, may involve financial covenants or covenants restricting our operations or our ability to incur additional debt. Any debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders. Additional financing may not be available at all, or in amounts or on terms unacceptable to us. If we are unable to obtain additional financing, we may be required to delay the development, commercialization and marketing of our products. Additionally, we maintain cash balances with financial institutions in excess of insured limits.

Indebtedness

In October 2022, we entered into a loan and security agreement with Canadian Imperial Bank of Commerce. The agreement provides for a senior secured term loan facility in the aggregate principal amount of $52.0 million, which was borrowed in full.

The term loan facility is scheduled to mature on October 6, 2027, the fifth anniversary of the closing date (the “Maturity Date”). The loan and security agreement provides for interest-only payments on the term loan facility for the first thirty-six months following the closing date (the “Initial Interest-Only Period”). The Initial Interest-Only Period will be extended to an additional twelve months if we achieve either (i) $200.0 million or greater in revenue in any twelve-month period or (ii) $0 or greater in EBITDA (as defined in the loan and security agreement) in any six-month period. Thereafter, amortization payments on the loan facility will be payable monthly until the Maturity Date in monthly installments equal to 20% of the then outstanding principal amount of the loan facility divided by 12 plus any accrued and unpaid interest. We have the option to prepay the loan facility without any prepayment charge or fee.

The loan borrowed under the loan facility bears interest at an annual rate equal to the secured overnight financing rate (“SOFR”) (calculated based on an adjustment of 0.10%, 0.15% and 0.25%, respectively, for one-month, three-month or six-month term SOFR as of a specified date, subject to a floor of 1.5%) plus an applicable margin of 2.25%.

The obligations under the loan and security agreement are secured by substantially all of our assets, including its intellectual property and by a pledge all of our equity interests in its U.S. subsidiaries and 65% of our equity interests in its non-U.S. subsidiaries that are directly owned by us. We are obligated to maintain in deposit accounts held at the lender equal to at least the lesser of (i) $90.0 million or (ii) all of our non-operating cash and allow us to maintain cash or cash equivalents in excess of that amount with other financial institutions.

The loan and security agreement contains certain customary representations and warranties, affirmative and negative covenants, and events of default. Under the loan and security agreement, if we maintain less than $100.0 million in available cash, then we are required to meet either one of two financial covenants: a minimum unrestricted cash covenant or a minimum revenue and growth covenant. The minimum unrestricted cash covenant requires that we to maintain cash reserve not less than the greater of (i) $20.0 million, (ii) the absolute value of EBITDA losses (if any) for the most recent consecutive four-month period then ended or (iii) the aggregate outstanding principal amount of $52.0 million. The minimum revenue and growth covenant requires our revenue, for the consecutive twelve-month period as of each measurement date, of not less than $50.0 million and of at least 115% as of the last day of the consecutive twelve-month period of the immediately preceding year. If we maintain at least $100.0 million in available cash, then we are not required to meet such financial covenants.

Cash Flows

The following table summarizes our cash flows for the periods presented:


	Six Months Ended June 30,
	2024		2023
	(in thousands)

Net cash (used in) provided by:
Operating activities	$	(48,022)	$	(64,267)
Investing activities	(2,989)		(10,711)
Financing activities	7,882		2,810
Net decrease in cash, cash equivalents and restricted cash	$	(43,129)	$	(72,168)

Net Cash Used in Operating Activities

During the six months ended June 30, 2024, net cash used in operating activities was $48.0 million, consisting primarily of a net loss of $51.6 million and an increase in net operating assets of $13.9 million, partially offset by non-cash charges of $17.5 million. The cash used in operations was primarily due to our net loss due to the increase in operating expenses to support our commercialization and development activities. The expansion of our commercialization activities resulted in an increase in accounts receivable and inventory, partially offset by reimbursements for leasehold improvements made related to our San Jose, California corporate headquarters and an increase to other liabilities. Non-cash charges consisted primarily of stock-based compensation, non-cash lease expense, and depreciation.

During the six months ended June 30, 2023, net cash used in operating activities was $64.3 million, consisting primarily of a net loss of $53.8 million and an increase in net operating assets of $21.5 million, partially offset by non-cash charges of $11.0 million. The cash used in operations was primarily due to our net loss due to the increase in operating expenses to support our commercialization and development activities. The expansion of our commercialization resulted in an increase in accounts receivable, inventory, and accounts payable, partially offset by reimbursements for leasehold improvements made related to our San Jose, California corporate headquarters, and an increase to other liabilities. Non-cash charges consisted primarily of stock-based compensation, non-cash lease expense and depreciation.

Net Cash Used in by Investing Activities

During the six months ended June 30, 2024, net cash used in investing activities was $3.0 million, consisting of purchases of property and equipment. During the six months ended June 30, 2023, net cash used in investing activities was $10.7 million, consisting of purchases of property and equipment.

Net Cash Provided by Financing Activities

During the six months ended June 30, 2024, net cash provided by financing activities was $7.9 million, consisting of proceeds from exercises of stock options and proceeds from the issuance of common stock under the ESPP. During the six months ended June 30, 2023, net cash provided by financing activities was $2.8 million, consisting of proceeds from exercises of stock options and proceeds from the issuance of common stock under the ESPP.

Contractual Commitments and Contingencies

The information included in Note 11 to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.

Off-Balance Sheet Arrangements

We did not have during the periods presented, and we do not currently have any off-balance sheet arrangements, such as structured finance, special purpose entities or variable interest entities.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and assumptions for the reported amounts of assets, liabilities, revenue, expenses and related disclosures. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions and any such differences may be material.

The significant accounting policies and estimates used in preparation of the unaudited condensed consolidated financial statements are described in our audited consolidated financial statements as of and for the year ended December 31, 2023, and the notes thereto, which are included in our Annual Report on Form 10-K dated February 28, 2024, or Annual Report, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report. There have been no material changes to our significant accounting policies during the three months ended June 30, 2024.

Recent Accounting Pronouncements

The information included in Note 2 to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Cash and cash equivalents of $214.1 million as of June 30, 2024, consisted of securities carried at quoted market prices with an original maturity of three months or less and therefore there is minimal risk associated with fluctuating interest rates. We do not currently use or plan to use financial derivatives in our investment portfolio.

In addition, as described above under the subsection titled “Indebtedness,” amounts outstanding under our loan facility bears interest at an annual rate equal to the secured overnight financing rate ("SOFR") (calculated based on an adjustment of .10%, .15% and .25%, respectively, for one-month, three-month or six-month term SOFR as of a specified date, subject to a floor of 1.5%) plus an applicable margin of 2.25%. As a result, we are exposed to risks from changes in interest rates. We do not believe that a hypothetical 100 basis point increase or decrease in interest rates or 30-day SOFR would have had a material impact on our financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Credit Risk

We maintain our cash and cash equivalents with financial institutions in the United States, and our current deposits are in excess of insured limits. We have reviewed the financial statements of these institutions and believe they have sufficient assets and liquidity to conduct its operations in the ordinary course of business with little or no credit risk to us.

Our accounts receivable primarily relate to revenue from the sale or rental of our products. No customer accounted for greater than 10% of accounts receivable at June 30, 2024 and December 31, 2023. We believe that credit risk in our accounts receivable is mitigated by our credit evaluation process, relatively short collection terms and diversity of our customer base.

Foreign Currency Risk

A portion of our net sales and expenses are denominated in foreign currencies, most notably the Euro. Future fluctuations in the value of the U.S. Dollar may affect the price competitiveness of our products outside the United States. For direct sales outside the United States, we sell in both U.S. Dollars and local currencies, which could expose us to additional foreign currency risks, including changes in currency exchange rates. Our operating expenses in countries outside the United States, are payable in foreign currencies and therefore expose us to currency risk. We do not believe that a hypothetical 10% increase or decrease in the relative value of the U.S. dollar to other currencies would have had a material impact on our financial statements included elsewhere in this Quarterly Report on Form 10-Q.

We do not currently maintain a program to hedge exposures to non-U.S. dollar currencies.

Effects of Inflation

Inflation generally affects us by increasing our cost of labor and research and development contract costs. We do not believe that inflation had a material effect on our financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of June 30, 2024, our disclosure controls and procedures were effective at the reasonable assurance level.

Limitations on Effectiveness of Disclosure Controls and Procedures

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

Item 1. Legal Proceeding

We are not subject to any material legal proceedings.

Item 1A. Risk Factors

Our business, financial condition and operating results are affected by a number of factors, whether currently known or unknown, including risks specific to us or the healthcare industry as well as risks that affect businesses in general. In addition to the information set forth in this Quarterly Report on Form 10-Q, you should consider carefully the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 28, 2024. The risks and uncertainties disclosed in such Annual Report and in this Quarterly Report could materially adversely affect our business, financial condition, cash flows or results of operations and thus our stock price. During the three months ended June 30, 2024, there were no material changes to our previously disclosed risk factors. Besides risk factors disclosed in the Annual Report and this Quarterly Report, additional risks and uncertainties not currently known or we currently deem to be immaterial may also materially adversely affect our business, financial condition or results of operations.

These risk factors may be important to understanding other statements in this Quarterly Report and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes in Part I, Item 1, “Financial Statements” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report. Because of such risk factors, as well as other factors affecting our financial condition and operating results, past financial performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the quarter ended June 30, 2024, no director or officer of the Company informed us of the adoption or termination of a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (as each term is defined in Item 408 of Regulation S-K), except as follows:

On May 30, 2024, Antal Desai, a member of the Company’s Board of Directors, adopted a pre-arranged written stock sale plan in accordance with Rule 10b5-1 (the “Desai Rule 10b5-1 Plan”) under the Exchange Act, for the sale of shares of the Company’s common stock held by Mr. Desai and by the 2:22 DNA Trust. The Desai Rule 10b5-1 Plan was entered into during an open trading window in accordance with the Company’s policies regarding transactions in the Company’s securities and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Desai Rule 10b5-1 Plan provides for the potential sale of up to 322,222 shares of the Company’s common stock during various specified trading periods through December 12, 2024.

On June 13, 2024, Kevin Waters, the Company’s Chief Financial Officer, adopted a pre-arranged written stock sale plan in accordance with Rule 10b5-1 (the “Waters Rule 10b5-1 Plan”) under the Exchange Act, for the sale of

shares of the Company’s common stock. The Waters Rule 10b5-1 Plan was entered into during an open trading window in accordance with the Company’s policies regarding transactions in the Company’s securities and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Waters Rule 10b5-1 Plan provides for the potential sale of up to 109,127 shares of the Company’s common stock during various specified trading periods through September 15, 2025.

Item 6. Exhibits

The following exhibits are filed or furnished as a part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.


Exhibit No.						Exhibit Description
3.1						Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on September 21, 2021)

3.2						Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed on September 21, 2021)



















31.1*						Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*						Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**						Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**						Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS						Inline XBRL Instance Document – the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document.
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*						Cover Page Interactive Data File (embedded within the Inline XBRL document)

__________________

*Filed herewith.

** Furnished herewith.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 2, 2024


						PROCEPT BIOROBOTICS CORPORATION
						(Registrant)



						/s/ Reza Zadno
						Reza Zadno, Ph.D.
						President and Chief Executive Officer
						(principal executive officer)

						/s/ Kevin Waters
						Kevin Waters
						EVP, Chief Financial Officer
						(principal financial and accounting officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Reza Zadno, Ph.D., certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of PROCEPT BioRobotics Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: August 2, 2024	By:	/s/ Reza Zadno
		Reza Zadno, Ph.D.
		Chief Executive Officer (Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kevin Waters, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of PROCEPT BioRobotics Corporation;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: August 2, 2024	By:	/s/ Kevin Waters
		Kevin Waters
		Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PROCEPT BioRobotics Corporation (the “Company”) on Form 10-Q for the period ending June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


Date: August 2, 2024	By:	/s/ Reza Zadno
		Reza Zadno, Ph.D.
		Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


Date: August 2, 2024	By:	/s/ Kevin Waters
		Kevin Waters
		Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Cover page - shares	6 Months Ended
Cover page - shares	Jun. 30, 2024	Jul. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-40797
Entity Registrant Name	PROCEPT BioRobotics Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0199180
Entity Address, Address Line One	150 Baytech Drive
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	650
Local Phone Number	232-7200
Title of 12(b) Security	Common stock, $0.00001 par value per share
Trading Symbol	PRCT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		51,932,262
Entity Central Index Key	0001588978
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Amendment Flag	false
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 214,093	$ 257,222
Accounts receivable, net	58,917	48,376
Inventory	43,865	39,756
Prepaid expenses and other current assets	5,017	5,213
Total current assets	321,892	350,567
Restricted cash, non-current	3,038	3,038
Property and equipment, net	27,675	28,748
Operating lease right-of-use assets, net	19,584	20,241
Intangible assets, net	1,068	1,204
Other assets	1,093	919
Total assets	374,350	404,717
Current liabilities:
Accounts payable	9,950	13,499
Accrued compensation	14,882	16,885
Deferred revenue	6,552	5,656
Operating lease, current	1,769	1,683
Loan facility derivative liability	1,942	1,886
Other current liabilities	7,750	6,318
Total current liabilities	42,845	45,927
Long-term debt	51,404	51,339
Operating lease, non-current	27,843	26,182
Other liabilities	479	517
Total liabilities	122,571	123,965
Commitments and contingencies (see Note 11)
Stockholders’ equity:
Preferred stock, $0.00001 par value; Authorized shares: 10,000 at March 31, 2024 and December 31, 2023, Issued and outstanding shares: none at March 31, 2024 and December 31, 2023	0	0
Common stock, $0.00001 par value; Authorized shares: 300,000 at March 31, 2024 and December 31, 2023 Issued and outstanding shares: 51,898 and 50,771 at March 31, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	757,935	735,240
Accumulated other comprehensive gain (loss)	(1)	84
Accumulated deficit	(506,155)	(454,572)
Total stockholders’ equity	251,779	280,752
Total liabilities and stockholders’ equity	$ 374,350	$ 404,717

Condensed Consolidated Balance Sheets - Parentheticals - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred Stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred Stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	51,900,000	50,771,000
Common stock, shares, outstanding (in shares)	51,900,000	50,771,000

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 53,353	$ 33,104	$ 97,892	$ 57,508
Cost of sales	21,871	14,675	41,376	26,588
Gross profit	31,482	18,429	56,516	30,920
Operating expenses:
Research and development	17,501	11,613	30,585	22,350
Selling, general and administrative	40,809	32,441	80,408	62,574
Total operating expenses	58,310	44,054	110,993	84,924
Loss from operations	(26,828)	(25,625)	(54,477)	(54,004)
Interest expense	1,030	965	2,075	1,851
Interest and other income, net	2,232	1,305	4,969	2,084
Net loss	$ (25,626)	$ (25,285)	$ (51,583)	$ (53,771)
Net loss per share, basic (in dollars per share)	$ (0.50)	$ (0.56)	$ (1.01)	$ (1.19)
Net loss per share, diluted (in dollars per share)	$ (0.50)	$ (0.56)	$ (1.01)	$ (1.19)
Weighted-average common shares used to compute net loss per share attributable to
Common shareholders, Basic (in shares)	51,622,000	45,160,000	51,316,000	45,023,000
Common shareholders, Diluted (in shares)	51,622,000	45,160,000	51,316,000	45,023,000
Other comprehensive gain (loss):
Unrealized gain (loss) on cash equivalents	$ (114)	$ (21)	$ (85)	$ 0
Comprehensive loss	$ (25,740)	$ (25,306)	$ (51,668)	$ (53,771)

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Gain (Loss)	Accumulated Deficit
Balance at the beginning of the period (in shares) at Dec. 31, 2022		44,828
Balance at the beginning of the period at Dec. 31, 2022	$ 197,072	$ 0	$ 545,753	$ (6)	$ (348,675)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans (in shares)		181
Issuance of common stock under stock plans	380		380
Stock-based compensation expense	4,137		4,137
Unrealized gain (loss) on cash equivalents	21			21
Net loss	(28,484)				(28,484)
Balance at the end of the period (in shares) at Mar. 31, 2023		45,009
Balance at the end of the period at Mar. 31, 2023	173,126	$ 0	550,270	15	(377,159)
Balance at the beginning of the period (in shares) at Dec. 31, 2022		44,828
Balance at the beginning of the period at Dec. 31, 2022	197,072	$ 0	545,753	(6)	(348,675)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrealized gain (loss) on cash equivalents	0
Net loss	(53,771)
Balance at the end of the period (in shares) at Jun. 30, 2023		45,271
Balance at the end of the period at Jun. 30, 2023	155,902	$ 0	558,352	(6)	(402,444)
Balance at the beginning of the period (in shares) at Mar. 31, 2023		45,009
Balance at the beginning of the period at Mar. 31, 2023	173,126	$ 0	550,270	15	(377,159)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans (in shares)		262
Issuance of common stock under stock plans	2,430		2,430
Stock-based compensation expense	5,652		5,652
Unrealized gain (loss) on cash equivalents	(21)			(21)
Net loss	(25,285)				(25,285)
Balance at the end of the period (in shares) at Jun. 30, 2023		45,271
Balance at the end of the period at Jun. 30, 2023	$ 155,902	$ 0	558,352	(6)	(402,444)
Balance at the beginning of the period (in shares) at Dec. 31, 2023	50,771	50,771
Balance at the beginning of the period at Dec. 31, 2023	$ 280,752	$ 0	735,240	84	(454,572)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans (in shares)		622
Issuance of common stock under stock plans	2,586		2,586
Stock-based compensation expense	6,637		6,637
Unrealized gain (loss) on cash equivalents	29			29
Net loss	(25,957)				(25,957)
Balance at the end of the period (in shares) at Mar. 31, 2024		51,393
Balance at the end of the period at Mar. 31, 2024	$ 264,047	$ 0	744,463	113	(480,529)
Balance at the beginning of the period (in shares) at Dec. 31, 2023	50,771	50,771
Balance at the beginning of the period at Dec. 31, 2023	$ 280,752	$ 0	735,240	84	(454,572)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrealized gain (loss) on cash equivalents	(85)
Net loss	$ (51,583)
Balance at the end of the period (in shares) at Jun. 30, 2024	51,900	51,900
Balance at the end of the period at Jun. 30, 2024	$ 251,779	$ 0	757,935	(1)	(506,155)
Balance at the beginning of the period (in shares) at Mar. 31, 2024		51,393
Balance at the beginning of the period at Mar. 31, 2024	264,047	$ 0	744,463	113	(480,529)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans	5,296	$ 507	5,296
Stock-based compensation expense	8,176		8,176
Unrealized gain (loss) on cash equivalents	(114)			(114)
Net loss	$ (25,626)				(25,626)
Balance at the end of the period (in shares) at Jun. 30, 2024	51,900	51,900
Balance at the end of the period at Jun. 30, 2024	$ 251,779	$ 0	$ 757,935	$ (1)	$ (506,155)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss	$ (51,583)	$ (53,771)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	2,453	1,435
Stock-based compensation expense	14,242	8,827
Change in fair value of derivative liability	56	53
Non-cash lease adjustment	(191)	315
Inventory write-down	905	414
Changes in operating assets and liabilities:
Accounts receivable, net	(10,541)	(17,901)
Inventory	(4,280)	(13,422)
Prepaid expenses and other current assets	110	2,435
Other assets	(174)	(81)
Accounts payable	(1,967)	2,234
Accrued compensation	(2,003)	(3,497)
Accrued interest expense	66	61
Deferred revenue	858	2,219
Reimbursements for leasehold improvements from operating leases	2,596	4,989
Other liabilities	1,431	1,423
Net cash used in operating activities	(48,022)	(64,267)
Cash flows from investing activities:
Purchases of property and equipment	(2,989)	(10,711)
Net cash used in investing activities	(2,989)	(10,711)
Cash flows from financing activities:
Proceeds from issuance of common stock from the exercise of stock options	5,759	1,093
Proceeds from issuance of common stock under employee stock purchase plan	2,123	1,717
Net cash provided by financing activities	7,882	2,810
Net decrease in cash, cash equivalents and restricted cash	(43,129)	(72,168)
Beginning of the period	260,260	225,674
End of the period	217,131	153,506
Reconciliation of cash, cash equivalents and restricted cash to balance sheets:
Cash and cash equivalents	214,093	149,691
Restricted cash	3,038	3,815
Cash, cash equivalents and restricted cash in balance sheets	217,131	153,506
Supplemental cash flow information
Interest paid	2,035	2,064
Non-cash investing and financing activities
Transfer of evaluation or rental units from inventory to property and equipment, net	13	(123)
Property and equipment included in accounts payable and accrued expenses	$ 81	$ 1,956

Organization	6 Months Ended
Organization	Jun. 30, 2024
Accounting Policies [Abstract]
Organization	Organization Description of Business PROCEPT BioRobotics Corporation (the “Company”) is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. It develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery, with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. The AquaBeam Robotic System employs a single-use disposable handpiece to deliver the Company’s proprietary Aquablation therapy, which combines real-time, multi-dimensional imaging, personalized treatment planning, automated robotics and heat-free waterjet ablation for targeted and rapid removal of prostate tissue. The Company received U.S. Food and Drug Administration clearance in December 2017 to market its AquaBeam Robotic System pursuant to a de novo classification. On August 30 2023,the Company received 510(k) clearance from FDA to remove the contraindication from its labeling that restricted Aquablation therapy from treating BPH in patients that also have an active diagnosis of prostate cancer.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Preparation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and pursuant to the rules and regulations of the United States Securities and Exchange Commission or SEC. These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Unaudited Interim Financial Statements The accompanying balance sheet as of June 30, 2024, the statements of operations and comprehensive loss and cash flows for the three and six months ended June 30, 2024 and 2023, and the statements of stockholders’ equity as of June 30, 2024 and 2023, are unaudited. The financial data and other information disclosed in these notes to the financial statements related to June 30, 2024, and the three and six months ended June 30, 2024 and 2023, are also unaudited. The accompanying balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair statement of the Company’s financial position as of June 30, 2024, and the results of its operations and cash flows for the three and six months ended June 30, 2024 and 2023. The results for the three and six months ended June 30, 2024, are not necessarily indicative of results to be expected for the year ending December 31, 2024, or for any other interim period or for any future year and should be read in conjunction with the annual consolidated financial statements included in the Company’s Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the condensed consolidated financial statements. Management uses significant judgment when making estimates related to its valuation of inventory and accounts receivable, stock-based compensation expense, right-of-use lease asset, lease liability, valuations of loan facility derivative liability, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, that requires disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker and included within each reported measure of segment profit or loss. The standard also requires disclosure of the composition of other segment items included in the measure of segment profit or loss that are not separately disclosed. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the adoption of this ASU to have an impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for all public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted and should be applied either prospectively or retrospectively. The Company plans to adopt the ASU and related updates on January 1, 2025. The Company is evaluating the impact of this ASU will have on its financial statement disclosures.

Fair Value Measurement

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurements

The following is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands):


	June 30, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Cash and cash equivalents:
Cash	$	8,909	$	—	$	—	$	8,909	$	6,609	$	—	$	—	$	6,609
Cash equivalents	205,184		—		—		205,184		250,613		—		—		250,613
Total cash and cash equivalents	$	214,093	$	—	$	—	$	214,093	$	257,222	$	—	$	—	$	257,222

Loan facility derivative liability	$	—	$	—	$	1,942	$	1,942	$	—	$	—	$	1,886	$	1,886

Cash equivalents consist primarily of money market deposit funds and U.S. treasury bills.

There were no transfers in and out of Level 3 during the six months ended June 30, 2024 and year ended December 31, 2023.

The following table sets forth a summary of the changes in the estimated fair value of the Company’s loan facility derivative liability, classified as Level 3 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Beginning of the period	$	1,914	$	1,805	$	1,886	$	1,779
Change in fair value	28		27		56		53
End of the period	$	1,942	$	1,832	$	1,942	$	1,832

Inventory

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	June 30,		December 31,
	2024		2023

Raw materials	$	18,333	$	16,737
Work-in-process	2,904		1,142
Finished goods	22,628		21,877
Total inventory	$	43,865	$	39,756

Property and Equipment, Net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net, consist of the following (in thousands):


	June 30,		December 31,
	2024		2023

Laboratory, manufacturing and computer equipment, and furniture and fixtures	$	20,427	$	15,610
Rental equipment	785		897
Leasehold improvements	12,398		12,362
Construction in progress	—		3,548
Total property and equipment	33,610		32,417
Less: accumulated depreciation and amortization	(5,935)		(3,669)
Total property and equipment, net	$	27,675	$	28,748

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt In October 2022, the Company entered into a loan and security agreement (“the Loan Agreement”) with Canadian Imperial Bank of Commerce, or CIBC. The Agreement provides for a senior secured term loan facility in the aggregate principal amount of $52.0 million (the "Term Loan Facility") which was borrowed in full. The Term Loan Facility is scheduled to mature on the fifth anniversary of the closing date (the “Maturity Date”). The Agreement provides for interest-only payments on the Term Loan Facility for the first thirty-six months following the Maturity Date (the “Initial Interest-Only Period”). The Initial Interest-Only Period will be extended to an additional twelve months if the Company achieves either (i) $200.0 million or greater in revenue in any twelve-month period or (ii) $0 or greater in EBITDA (as defined in the Loan Agreement) in any six-month period. Thereafter, amortization payments on the Term Loan Facility will be payable monthly until the Maturity Date in monthly installments equal to 20% of the then outstanding principal amount of the Term Loan Facility divided by 12 plus any accrued and unpaid interest. The Company has the option to prepay the Term Loan Facility without any prepayment charge or fee. The loan borrowed under the Term Loan Facility bears interest at an annual rate equal to the secured overnight financing rate or SOFR (calculated based on an adjustment of .10%, .15% and .25%, respectively, for one-month, three-month or six-month term SOFR as of a specified date, subject to a floor of 1.5%) plus an applicable margin of 2.25%. The obligations under the Loan Agreement are secured by substantially all of the Company's assets, including its intellectual property and by a pledge all of the Company's equity interests in its U.S. subsidiaries and 65% of the Company's equity interests in its non-U.S. subsidiaries that are directly owned by the Company. The Company is obligated to maintain in deposit accounts held at the lender the lesser of (i) $90.0 million or (ii) all of its non-operating cash and allow the Company to maintain cash or cash equivalents in excess of that amount with other financial institutions.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Total stock-based compensation recognized, before taxes, are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Cost of sales	$	1,686	$	609	$	2,998	$	1,070
Research and development	2,088		1,245		3,300		2,132
Sales, general and administrative	5,149		3,798		9,728		6,587
Stock-based compensation capitalized in inventory	(937)		(548)		(1,784)		(962)
Total stock-based compensation	$	7,986	$	5,104	$	14,242	$	8,827

Stock Options

The Company had 6.8 million shares available for grant as of June 30, 2024 under the 2021 Equity Incentive Award Plan or 2021 Plan.

A summary of the Company’s stock option activity and related information are as follows (options in thousands):


	Six Months Ended
	June 30, 2024

	Number of Shares	Weighted-Average Exercise Price
Outstanding, beginning of period	5,215	$	9.42
Granted	169	49.73
Exercised	(718)	8.02
Forfeited	(135)	20.68
Outstanding, end of period	4,531	10.81
Vested and expected to vest	4,531	10.81
Exercisable	3,759	7.40

As of June 30, 2024, there was a total of $11.3 million of unrecognized stock-based compensation expense related to stock options.


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023

Expected life (years)	5.6			5.5			6.0			5.9
Expected volatility	57		%	58		%	57		%	57		%
Risk-free interest rate	4.4		%	3.9		%	4.1		%	4.0		%
Expected dividend rate	—		%	—		%	—		%	—		%
Weighted-average fair value	$	35.57		$	19.48		$	28.28		$	21.02

Restricted Stock Units

A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands):


	Six Months Ended
	June 30, 2024

	Number of Shares	Weighted-Average Fair Value
Outstanding, beginning of period	1,565	$	36.27
Awarded	933	49.93
Forfeited	(162)	38.30

Vested	(334)	35.81
Outstanding, end of period	2,002	42.55

As of June 30, 2024, there was a total of $75.9 million of unrecognized stock-based compensation expense related to RSUs.

Performance Stock Units

During the six months ended June 30, 2024, the Company awarded approximately 20,000 PSU shares with both a market and service condition.

No PSU shares were forfeited or released during the three and six months ended June 30, 2024. As of June 30, 2024, unrecognized compensation expense related to PSUs was not material.

Employee Stock Purchase Plan

The fair value of the options granted to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:


	Six Months Ended June 30,
	2024			2023

Expected life (years)	0.8			0.8
Expected volatility	53		%	55		%
Risk-free interest rate	5.3		%	5.0		%
Expected dividend rate	—		%	—		%
Weighted-average fair value	$	22.09		$	11.28

Net Loss Per Share

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Net Loss Per Share

Net loss per share was determined as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss	$	(25,626)	$	(25,285)	$	(51,583)	$	(53,771)
Weighted-average common stock outstanding	51,622		45,160		51,316		45,023
Net loss per share, basic and diluted	$	(0.50)	$	(0.56)	$	(1.01)	$	(1.19)


	June 30,
	2024	2023


Stock options	4,531	5,505
Restricted and performance stock units	2,083	1,461
Employee stock purchase plan	54	177
Total	6,668	7,143

Revenue

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

The following table presents revenue disaggregated by type and geography (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

U.S.
System sales and rentals	$	17,819	$	14,828	$	32,055	$	23,598
Handpieces and other consumables	27,260		13,601		50,878		25,371
Service	2,589		1,499		4,936		2,734
Total U.S. revenue	47,668		29,928		87,869		51,703
Outside of U.S.
System sales and rentals	3,078		1,599		4,818		3,068
Handpieces and other consumables	2,271		1,269		4,614		2,175
Service	336		308		591		562
Total outside of U.S. revenue	5,685		3,176		10,023		5,805
Total revenue	$	53,353	$	33,104	$	97,892	$	57,508

Segment, Geographical, and Customer Concentration

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment, Geographical, and Customer Concentration

No customers accounted for more than 10% of revenue during the three and six months ended June 30, 2024 and 2023.

No customer accounted for more than 10% of accounts receivable at June 30, 2024 and December 31, 2023.

The following table presents revenue by significant geographical locations for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	89	%	90	%	90	%	90	%
Outside the United States	11	%	10	%	10	%	10	%

Segment, Geographical, and Customer Concentration

No customers accounted for more than 10% of revenue during the three and six months ended June 30, 2024 and 2023.

No customer accounted for more than 10% of accounts receivable at June 30, 2024 and December 31, 2023.

The following table presents revenue by significant geographical locations for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	89	%	90	%	90	%	90	%
Outside the United States	11	%	10	%	10	%	10	%

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Guarantees and Indemnifications

Facility Lease

Future minimum annual operating lease and debt repayments are as follows (in thousands):


As of June 30, 2024	Minimum Lease Payments		Debt Repayments		Total
2024	$	2,086	$	—	$	2,086
2025	4,297		4,333		8,630
2026	4,426		26,000		30,426
2027	4,808		21,667		26,475
2028	4,952		—		4,952
Thereafter	22,297		—		22,297
Total minimum payments	42,866		52,000		94,866
Less: amount representing interest/unamortized debt discount	(13,254)		(596)		(13,850)
Present value of future payments	29,612		51,404		81,016
Less: current portion	(1,769)		—		(1,769)
Non-current portion	$	27,843	$	51,404	$	79,247

As of June 30, 2024 and December 31, 2023, the Company’s security deposit is in the form of, and recorded as, restricted cash.

Commitments and Contingencies

Guarantees and Indemnifications

Facility Lease

Future minimum annual operating lease and debt repayments are as follows (in thousands):


As of June 30, 2024	Minimum Lease Payments		Debt Repayments		Total
2024	$	2,086	$	—	$	2,086
2025	4,297		4,333		8,630
2026	4,426		26,000		30,426
2027	4,808		21,667		26,475
2028	4,952		—		4,952
Thereafter	22,297		—		22,297
Total minimum payments	42,866		52,000		94,866
Less: amount representing interest/unamortized debt discount	(13,254)		(596)		(13,850)
Present value of future payments	29,612		51,404		81,016
Less: current portion	(1,769)		—		(1,769)
Non-current portion	$	27,843	$	51,404	$	79,247

As of June 30, 2024 and December 31, 2023, the Company’s security deposit is in the form of, and recorded as, restricted cash.

Defined Contribution Plan	6 Months Ended
Defined Contribution Plan	Jun. 30, 2024
Retirement Benefits [Abstract]
Defined Contribution Plan	Defined Contribution Plan The Company has a defined contribution retirement savings plan under Section 401(k) of the Internal Revenue Code. This plan allows eligible employees to defer a portion of their annual compensation on a pre-tax basis. Employer contributions were $0.7 million and $0.4 million for the three months ended June 30, 2024 and 2023, and $1.3 million and $0.9 million for the six months ended June 30, 2024 and 2023.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (25,626)	$ (25,957)	$ (25,285)	$ (28,484)	$ (51,583)	$ (53,771)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Antal Desai [Member]
Trading Arrangements, by Individual
Name	Antal Desai
Title	Company’s Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 30, 2024
Arrangement Duration	100 days
Aggregate Available	322,222
Kevin Waters [Member]
Trading Arrangements, by Individual
Name	Kevin Waters
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 13, 2024
Arrangement Duration	364 days
Aggregate Available	109,127

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Preparation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and pursuant to the rules and regulations of the United States Securities and Exchange Commission or SEC. These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the condensed consolidated financial statements. Management uses significant judgment when making estimates related to its valuation of inventory and accounts receivable, stock-based compensation expense, right-of-use lease asset, lease liability, valuations of loan facility derivative liability, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, that requires disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker and included within each reported measure of segment profit or loss. The standard also requires disclosure of the composition of other segment items included in the measure of segment profit or loss that are not separately disclosed. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the adoption of this ASU to have an impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for all public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted and should be applied either prospectively or retrospectively. The Company plans to adopt the ASU and related updates on January 1, 2025. The Company is evaluating the impact of this ASU will have on its financial statement disclosures.

Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands):


	June 30, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Cash and cash equivalents:
Cash	$	8,909	$	—	$	—	$	8,909	$	6,609	$	—	$	—	$	6,609
Cash equivalents	205,184		—		—		205,184		250,613		—		—		250,613
Total cash and cash equivalents	$	214,093	$	—	$	—	$	214,093	$	257,222	$	—	$	—	$	257,222

Loan facility derivative liability	$	—	$	—	$	1,942	$	1,942	$	—	$	—	$	1,886	$	1,886

Schedule of Derivative Liabilities at Fair Value

The following table sets forth a summary of the changes in the estimated fair value of the Company’s loan facility derivative liability, classified as Level 3 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Beginning of the period	$	1,914	$	1,805	$	1,886	$	1,779
Change in fair value	28		27		56		53
End of the period	$	1,942	$	1,832	$	1,942	$	1,832

Inventory (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consists of the following (in thousands):


	June 30,		December 31,
	2024		2023

Raw materials	$	18,333	$	16,737
Work-in-process	2,904		1,142
Finished goods	22,628		21,877
Total inventory	$	43,865	$	39,756

Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net, consist of the following (in thousands):


	June 30,		December 31,
	2024		2023

Laboratory, manufacturing and computer equipment, and furniture and fixtures	$	20,427	$	15,610
Rental equipment	785		897
Leasehold improvements	12,398		12,362
Construction in progress	—		3,548
Total property and equipment	33,610		32,417
Less: accumulated depreciation and amortization	(5,935)		(3,669)
Total property and equipment, net	$	27,675	$	28,748

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount

Total stock-based compensation recognized, before taxes, are as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Cost of sales	$	1,686	$	609	$	2,998	$	1,070
Research and development	2,088		1,245		3,300		2,132
Sales, general and administrative	5,149		3,798		9,728		6,587
Stock-based compensation capitalized in inventory	(937)		(548)		(1,784)		(962)
Total stock-based compensation	$	7,986	$	5,104	$	14,242	$	8,827

Schedule of Stock Option Activity and Related Information

A summary of the Company’s stock option activity and related information are as follows (options in thousands):


	Six Months Ended
	June 30, 2024

	Number of Shares	Weighted-Average Exercise Price
Outstanding, beginning of period	5,215	$	9.42
Granted	169	49.73
Exercised	(718)	8.02
Forfeited	(135)	20.68
Outstanding, end of period	4,531	10.81
Vested and expected to vest	4,531	10.81
Exercisable	3,759	7.40

Schedule of Fair Value Assumptions


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023

Expected life (years)	5.6			5.5			6.0			5.9
Expected volatility	57		%	58		%	57		%	57		%
Risk-free interest rate	4.4		%	3.9		%	4.1		%	4.0		%
Expected dividend rate	—		%	—		%	—		%	—		%
Weighted-average fair value	$	35.57		$	19.48		$	28.28		$	21.02

The fair value of the options granted to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:


	Six Months Ended June 30,
	2024			2023

Expected life (years)	0.8			0.8
Expected volatility	53		%	55		%
Risk-free interest rate	5.3		%	5.0		%
Expected dividend rate	—		%	—		%
Weighted-average fair value	$	22.09		$	11.28

Schedule of Restricted Stock Unit Activity

A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands):


	Six Months Ended
	June 30, 2024

	Number of Shares	Weighted-Average Fair Value
Outstanding, beginning of period	1,565	$	36.27
Awarded	933	49.93
Forfeited	(162)	38.30

Vested	(334)	35.81
Outstanding, end of period	2,002	42.55

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Loss Per Share, Basic

Net loss per share was determined as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss	$	(25,626)	$	(25,285)	$	(51,583)	$	(53,771)
Weighted-average common stock outstanding	51,622		45,160		51,316		45,023
Net loss per share, basic and diluted	$	(0.50)	$	(0.56)	$	(1.01)	$	(1.19)

Schedule of Loss Per Share, Diluted

Net loss per share was determined as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net loss	$	(25,626)	$	(25,285)	$	(51,583)	$	(53,771)
Weighted-average common stock outstanding	51,622		45,160		51,316		45,023
Net loss per share, basic and diluted	$	(0.50)	$	(0.56)	$	(1.01)	$	(1.19)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	June 30,
	2024	2023


Stock options	4,531	5,505
Restricted and performance stock units	2,083	1,461
Employee stock purchase plan	54	177
Total	6,668	7,143

Revenue (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Revenue from External Customers by Geographic Areas

The following table presents revenue disaggregated by type and geography (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

U.S.
System sales and rentals	$	17,819	$	14,828	$	32,055	$	23,598
Handpieces and other consumables	27,260		13,601		50,878		25,371
Service	2,589		1,499		4,936		2,734
Total U.S. revenue	47,668		29,928		87,869		51,703
Outside of U.S.
System sales and rentals	3,078		1,599		4,818		3,068
Handpieces and other consumables	2,271		1,269		4,614		2,175
Service	336		308		591		562
Total outside of U.S. revenue	5,685		3,176		10,023		5,805
Total revenue	$	53,353	$	33,104	$	97,892	$	57,508

The following table presents revenue by significant geographical locations for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	89	%	90	%	90	%	90	%
Outside the United States	11	%	10	%	10	%	10	%

Schedule of Revenue from External Customers by Products and Services

The following table presents revenue disaggregated by type and geography (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

U.S.
System sales and rentals	$	17,819	$	14,828	$	32,055	$	23,598
Handpieces and other consumables	27,260		13,601		50,878		25,371
Service	2,589		1,499		4,936		2,734
Total U.S. revenue	47,668		29,928		87,869		51,703
Outside of U.S.
System sales and rentals	3,078		1,599		4,818		3,068
Handpieces and other consumables	2,271		1,269		4,614		2,175
Service	336		308		591		562
Total outside of U.S. revenue	5,685		3,176		10,023		5,805
Total revenue	$	53,353	$	33,104	$	97,892	$	57,508

Segment, Geographical, and Customer Concentration (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Revenue from External Customers by Geographic Areas

The following table presents revenue disaggregated by type and geography (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

U.S.
System sales and rentals	$	17,819	$	14,828	$	32,055	$	23,598
Handpieces and other consumables	27,260		13,601		50,878		25,371
Service	2,589		1,499		4,936		2,734
Total U.S. revenue	47,668		29,928		87,869		51,703
Outside of U.S.
System sales and rentals	3,078		1,599		4,818		3,068
Handpieces and other consumables	2,271		1,269		4,614		2,175
Service	336		308		591		562
Total outside of U.S. revenue	5,685		3,176		10,023		5,805
Total revenue	$	53,353	$	33,104	$	97,892	$	57,508

The following table presents revenue by significant geographical locations for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	89	%	90	%	90	%	90	%
Outside the United States	11	%	10	%	10	%	10	%

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments

Future minimum annual operating lease and debt repayments are as follows (in thousands):


As of June 30, 2024	Minimum Lease Payments		Debt Repayments		Total
2024	$	2,086	$	—	$	2,086
2025	4,297		4,333		8,630
2026	4,426		26,000		30,426
2027	4,808		21,667		26,475
2028	4,952		—		4,952
Thereafter	22,297		—		22,297
Total minimum payments	42,866		52,000		94,866
Less: amount representing interest/unamortized debt discount	(13,254)		(596)		(13,850)
Present value of future payments	29,612		51,404		81,016
Less: current portion	(1,769)		—		(1,769)
Non-current portion	$	27,843	$	51,404	$	79,247

Schedule of Maturities of Long-term Debt

Future minimum annual operating lease and debt repayments are as follows (in thousands):


As of June 30, 2024	Minimum Lease Payments		Debt Repayments		Total
2024	$	2,086	$	—	$	2,086
2025	4,297		4,333		8,630
2026	4,426		26,000		30,426
2027	4,808		21,667		26,475
2028	4,952		—		4,952
Thereafter	22,297		—		22,297
Total minimum payments	42,866		52,000		94,866
Less: amount representing interest/unamortized debt discount	(13,254)		(596)		(13,850)
Present value of future payments	29,612		51,404		81,016
Less: current portion	(1,769)		—		(1,769)
Non-current portion	$	27,843	$	51,404	$	79,247

Organization (Details) customer in Millions	6 Months Ended
Organization (Details) customer in Millions	Jun. 30, 2024 customer
Accounting Policies [Abstract]
Number of men impacted by BPH	40

Fair Value Measurement - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash and cash equivalents	$ 214,093	$ 257,222	$ 149,691
Derivative liability, statement of financial position	Loan facility derivative liability	Loan facility derivative liability
Fair Value, Measurements, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash	$ 8,909	$ 6,609
Cash equivalents	205,184	250,613
Total cash and cash equivalents	214,093	257,222
Loan facility derivative liability	1,942	1,886
Level 1 \| Fair Value, Measurements, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash	8,909	6,609
Cash equivalents	205,184	250,613
Total cash and cash equivalents	214,093	257,222
Loan facility derivative liability	0	0
Level 2 \| Fair Value, Measurements, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash	0	0
Cash equivalents	0	0
Total cash and cash equivalents	0	0
Loan facility derivative liability	0	0
Level 3 \| Fair Value, Measurements, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Cash	0	0
Cash equivalents	0	0
Total cash and cash equivalents	0	0
Loan facility derivative liability	$ 1,942	$ 1,886

Fair Value Measurement - Fair Value, Inputs, Level 3 - Fair Value, Measurements, Recurring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Fair value, net derivative asset (liability), recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income	Change in fair value of derivative liability	Change in fair value of derivative liability	Change in fair value of derivative liability	Change in fair value of derivative liability
Fair Value, Measurements, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Beginning of the period	$ 1,914	$ 1,805	$ 1,886	$ 1,779
Change in fair value	28	27	56	53
End of the period	$ 1,942	$ 1,832	$ 1,942	$ 1,832

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 18,333	$ 16,737
Work-in-process	2,904	1,142
Finished goods	22,628	21,877
Total inventory	$ 43,865	$ 39,756

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Construction in progress
Total property and equipment	$ 33,610	$ 32,417
Less: accumulated depreciation and amortization	(5,935)	(3,669)
Total property and equipment, net	27,675	28,748
Laboratory, manufacturing and computer equipment, and furniture and fixtures
Construction in progress
Total property and equipment	20,427	15,610
Rental equipment
Construction in progress
Total property and equipment	785	897
Leasehold improvements
Construction in progress
Total property and equipment	12,398	12,362
Construction in progress
Construction in progress
Total property and equipment	$ 0	$ 3,548

Long-Term Debt (Details) - Canadian Imperial Bank of Commerce - Senior Loans - USD ($)	1 Months Ended	9 Months Ended	21 Months Ended
	Oct. 31, 2022	Jun. 30, 2023	Jun. 30, 2024
Line of Credit Facility [Line Items]
Aggregate principal amount	$ 52,000,000
Debt instrument, covenant compliance interest-only period term	36 months
Debt instrument, covenant compliance interest-only period renewal term	12 months
Debt instrument, covenant compliance, revenue threshold amount			$ 200,000,000
Debt instrument, covenant compliance, EBITDA threshold amount		$ 0
Debt instrument, convertible, threshold percentage of stock price trigger	20.00%
Deposits	$ 90,000,000
Non-US
Line of Credit Facility [Line Items]
Pledged subsidiary equity interests in Non -US subsidiaries, percent	65.00%
Secured Overnight Financing Rate One Month Term
Line of Credit Facility [Line Items]
Facility interest, spread on base rate	0.10%
Secured Overnight Financing Rate Three Month Term
Line of Credit Facility [Line Items]
Facility interest, spread on base rate	0.15%
Secured Overnight Financing Rate Six Month Term
Line of Credit Facility [Line Items]
Facility interest, spread on base rate	0.25%
Secured Overnight Financing Rate Floor Rate
Line of Credit Facility [Line Items]
Facility interest, spread on base rate	1.50%
Secured Overnight Financing Rate Margin Rate
Line of Credit Facility [Line Items]
Facility interest, spread on base rate	2.25%

Stock-Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 7,986	$ 5,104	$ 14,242	$ 8,827
Stock-based compensation capitalized in inventory	(937)	(548)	(1,784)	(962)
Cost of sales
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,686	609	2,998	1,070
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,088	1,245	3,300	2,132
Sales, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 5,149	$ 3,798	$ 9,728	$ 6,587

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Share-based Compensation Arrangements
Options outstanding and exercisable, aggregate intrinsic value	$ 203.7	$ 203.7		$ 144.0
Options outstanding, aggregate intrinsic value	228.0	228.0		$ 169.5
Options exercised in the period, intrinsic value		34.7	$ 6.4
Unrecognized compensation cost	$ 11.3	$ 11.3
2021 Equity Incentive Award Plan
Share-based Compensation Arrangements
Shares available for grant (in shares)	6,800,000	6,800,000
2021 Equity Incentive Award Plan \| Maximum
Share-based Compensation Arrangements
Award vesting period (in years)		3 years
Employee stock purchase plan
Share-based Compensation Arrangements
Shares available for grant (in shares)	1,500,000	1,500,000
Unrecognized compensation cost	$ 1.8	$ 1.8
Average vesting period for unrecognized compensation cost (in years)		9 months 18 days
Restricted and performance stock units
Share-based Compensation Arrangements
Unrecognized compensation cost	$ 75.9	$ 75.9
Award (in shares)		933,000
Forfeited or released (in shares)		162,000
Performance Stock Units \| 2021 Equity Incentive Award Plan
Share-based Compensation Arrangements
Forfeited or released (in shares)	0	0
Performance Stock Units \| 2021 Equity Incentive Award Plan \| Minimum
Share-based Compensation Arrangements
Award vesting period (in years)		2 years

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - Stock options	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Shares
Balance at the beginning of the period (in shares) \| shares	5,215,000
Granted (in shares) \| shares	169,000
Exercised (in shares) \| shares	(718,000)
Forfeited (in shares) \| shares	(135,000)
Balance at the end of the period (in shares) \| shares	4,531,000
Vested and expected to vest (in shares) \| shares	4,531,000
Exercisable (in shares) \| shares	3,759,000
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 9.42
Granted (in dollars per share) \| $ / shares	49.73
Exercised (in dollars per share) \| $ / shares	8.02
Forfeited (in dollars per share) \| $ / shares	20.68
Balance at the end of the period (in dollars per share) \| $ / shares	10.81
Vested and expected to vest (in dollars per share) \| $ / shares	10.81
Exercisable (in dollars per share) \| $ / shares	$ 7.40

Stock-Based Compensation - Fair Value Assumptions - Stock Options (Details) - Stock options - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangements
Expected life (years)	5 years 7 months 6 days	5 years 6 months	6 years	5 years 10 months 24 days
Expected volatility	57.00%	58.00%	57.00%	57.00%
Risk-free interest rate	4.40%	3.90%	4.10%	4.00%
Expected dividend rate	0.00%	0.00%	0.00%	0.00%
Weighted-average fair value (in dollars per share)	$ 35.57	$ 19.48	$ 28.28	$ 21.02

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted and performance stock units shares in Thousands	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Shares
Outstanding, beginning of period (in shares) \| shares	1,565
Award (in shares) \| shares	933
Forfeited (in shares) \| shares	(162)
Vested (in shares) \| shares	(334)
Outstanding, end of period (in shares) \| shares	2,002
Weighted-Average Fair Value
Outstanding, beginning of period (in dollars per share) \| $ / shares	$ 36.27
Awarded (in dollars per share) \| $ / shares	49.93
Forfeited (in dollars per shares) \| $ / shares	38.30
Vested (in dollars per shares) \| $ / shares	35.81
Outstanding, endof period (in dollars per share) \| $ / shares	$ 42.55

Stock-Based Compensation - Fair Value Assumptions - Employee Stock Purchase Plan (Details) - Employee stock purchase plan - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangements
Expected life (years)	9 months 18 days	9 months 18 days
Expected volatility	53.00%	55.00%
Risk-free interest rate	5.30%	5.00%
Expected dividend rate	0.00%	0.00%
Weighted-average fair value (in dollars per share)	$ 22.09	$ 11.28

Net Loss Per Share - Net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity [Abstract]
Net loss	$ (25,626)	$ (25,957)	$ (25,285)	$ (28,484)	$ (51,583)	$ (53,771)
Weighted-average common stock outstanding, basic (in shares)	51,622,000		45,160,000		51,316,000	45,023,000
Weighted-average common stock outstanding, diluted (in shares)	51,622,000		45,160,000		51,316,000	45,023,000
Net loss per share, diluted (in dollars per share)	$ (0.50)		$ (0.56)		$ (1.01)	$ (1.19)
Net loss per share, basic (in dollars per share)	$ (0.50)		$ (0.56)		$ (1.01)	$ (1.19)

Net Loss Per Share - Potentially Dilutive Securities (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,668	7,143
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	4,531	5,505
Restricted and performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	2,083	1,461
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	54	177

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 53,353	$ 33,104	$ 97,892	$ 57,508
U.S.
Disaggregation of Revenue [Line Items]
Revenue	47,668	29,928	87,869	51,703
Outside of U.S.
Disaggregation of Revenue [Line Items]
Revenue	5,685	3,176	10,023	5,805
System sales and rentals \| U.S.
Disaggregation of Revenue [Line Items]
Revenue	17,819	14,828	32,055	23,598
System sales and rentals \| Outside of U.S.
Disaggregation of Revenue [Line Items]
Revenue	3,078	1,599	4,818	3,068
Handpieces and other consumables \| U.S.
Disaggregation of Revenue [Line Items]
Revenue	27,260	13,601	50,878	25,371
Handpieces and other consumables \| Outside of U.S.
Disaggregation of Revenue [Line Items]
Revenue	2,271	1,269	4,614	2,175
Service \| U.S.
Disaggregation of Revenue [Line Items]
Revenue	2,589	1,499	4,936	2,734
Service \| Outside of U.S.
Disaggregation of Revenue [Line Items]
Revenue	$ 336	$ 308	$ 591	$ 562

Segment, Geographical, and Customer Concentration (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenue Benchmark \| Geographic Concentration Risk \| U.S.
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue by significant geographical locations outside the United States	89.00%	90.00%	90.00%	90.00%
Revenue Benchmark \| Geographic Concentration Risk \| Outside of U.S.
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue by significant geographical locations outside the United States	11.00%	10.00%	10.00%	10.00%
Customer 1 \| Accounts Receivable \| Customer Concentration Risk
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue by significant geographical locations outside the United States			10.00%		10.00%

Commitments and Contingencies - Narrative (Details) $ in Millions		3 Months Ended		6 Months Ended
	Dec. 31, 2021 building ft² renewalOption	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)
Guarantor Obligations
Number of renewal options \| renewalOption	2
Renewal term (in years)	5 years
Rent expense \| $		$ 1.8	$ 1.9	$ 3.4	$ 4.0
Building
Guarantor Obligations
Number of square feet \| ft²	158,221
Number of buildings \| building	2
Operating lease term (in years)		122 months		122 months

Commitments and Contingencies - Future Minimum Lease Payments and Long-Term Debt Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Minimum Lease Payments
2024	$ 2,086
2025	4,297
2026	4,426
2027	4,808
2028	4,952
Thereafter	22,297
Total minimum payments	42,866
Less: amount representing interest/unamortized debt discount	(13,254)
Present value of future payments	29,612
Less: current portion	(1,769)	$ (1,683)
Non-current portion	27,843	26,182
Debt Repayments
2024	0
2025	4,333
2026	26,000
2027	21,667
2028	0
Thereafter	0
Total minimum payments	52,000
Less: amount representing interest/unamortized debt discount	(596)
Present value of future payments	51,404
Less: current portion	0
Long-term debt	51,404	$ 51,339
Total
2024	2,086
2025	8,630
2026	30,426
2027	26,475
2028	4,952
Thereafter	22,297
Total minimum payments	94,866
Less: amount representing interest/unamortized debt discount	(13,850)
Present value of future payments	81,016
Less: current portion	(1,769)
Non-current portion	$ 79,247

Defined Contribution Plan (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Defined Contribution Plan (Details) - USD ($) $ in Millions	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Retirement Benefits [Abstract]
Employer contribution amount	$ 0.7	$ 0.4	$ 1.3	$ 0.9