{
  "docId": "019dd923-622c-750b-8b99-9ee2a1e788fb",
  "docSlug": "1233d0b05ad9",
  "documentTitle": "PROCEPT BioRobotics Corporation (PRCT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-01-16 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 9,
  "pageCount": 100,
  "prevPage": 8,
  "nextPage": 10,
  "slideType": "executive_summary",
  "function": "summarize",
  "density": "dense",
  "nDataPoints": 8,
  "notes": "The slide uses a narrative structure to build a case for 'channel stuffing' and 'low confidence' in the business.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-9ee2a1e788fb/9",
  "deckHref": "/decks/019dd923-622c-750b-8b99-9ee2a1e788fb",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-9ee2a1e788fb.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-9ee2a1e788fb#slide-9",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "When we put the pieces together, including all-time high DSOs, all-time high finished goods inventory (equating to as much as 2.6 quarters of handpieces), generally flat utilization, and a smaller than estimated procedure market size, we can only surmise that Procept and its customers are stuffed with excess handpieces.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee35-7258-b4d8-13c4e85b1ca3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Days Sales Outstanding (DSO): 130 days",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee35-7258-b4d8-15c6c3256936",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.3,
        "w": 0.9,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "Beyond the niceties of prognosticating about market size and potential share capture, we believe Procept's business might be about to hit a wall. Despite consumables increasing from 33% to 51% of revenue over the past three years...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7078a4fb-f4e1-4da6-8fdd-250cffe1ac09",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.9,
        "x": 0.05,
        "y": 0.76
      },
      "kind": "paragraph",
      "text": "To make matters worse, we found a datapoint that calls into question the credibility of a focus KPI for Procept: utilization. When we solve for “US procedures” from Procept’s proxy disclosures, we find that US handpieces sold were 12% higher than implied...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c1856a4c-e261-450e-b824-3a21c172e91f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.9,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Beyond a smaller than represented addressable market, we find numerous structural inhibitors to growth. Based on Procept disclosures, the Company has already penetrated 52% of high volume (BPH procedure) hospitals in the US, which perform 71% of total procedures...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fc6b44f4-b435-4518-9c0d-29ebae8cf954",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.38,
        "x": 0.31,
        "y": 0.05
      },
      "kind": "title",
      "text": "Executive Summary, Continued",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f6181c29-9443-42b6-9032-36e20d55a617",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Thesis: Activist defense (for management)",
      "slug": "activist-defense",
      "agent": "storyteller",
      "layer": "slide",
      "matchId": "02dad07e-7129-46d5-83a8-f15b57bba1a5",
      "evidence": "When we put the pieces together, including all-time high DSOs, all-time high finished goods inventory (equating to as much as 2.6 quarters of handpieces), generally flat utilization, and a smaller than estimated",
      "confidence": 0.8
    }
  ],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "188bb029-2475-48ac-b04b-eca3a11c189a",
      "evidence": "The slide explicitly links rising DSOs and inventory levels to historical patterns of fraudulent sales transactions.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}