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  "documentTitle": "PROCEPT BioRobotics Corporation (PRCT)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "Includes a quote from a former executive to support the claim of an expensive, high-touch sales model.",
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      "text": "Procept is currently targeting the highest procedure volume hospitals, which are likely both the most aggressive early adopters of new technology and those most likely to achieve an attractive ROI. We expect Procept's sales efficiency will suffer markedly as it transitions to targeting smaller, lower volume, more geographically dispersed customers.",
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      "text": "S&M Expense per System Sold: $0.799",
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      "text": "Procept currently requires a sales rep to sit in the operating room during every Aquablation procedure in case the surgeon encounters any difficulties with the system. While not uncommon in the medical device sector, we believe the high cost burden (maybe $1,000/day fully loaded) compares unfavorably to the approximate $2,000 gross profit earned per handpiece ($3,200 x ~60% gross margin). As Procept's new customer base becomes larger and more geographically dispersed and comprised of proportionately more lower volume hospitals, this expense will grow disproportionately.",
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      "text": "Over the past three-plus years, it has cost Procept about $700,000 to sell an average $350,000 ASP system. In addition, Procept's current practice of having sales reps in the operating room for every Aquablation procedure adds tremendous expense that, we believe, is likely to outgrow consumable sales.",
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      "text": "There is a company representative in every single one of the Aquablation cases across the US...no medical training is required, but Procept has a very rigorous and expensive training program...",
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      "text": "\"There is a company representative in every single one of the Aquablation cases across the US...no medical training is required, but Procept has a very rigorous and expensive training program...\" — Spruce Point Interview with Former Procept Executive, Nov 2024",
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      "text": "(1) 2021 system unit sales estimated by Spruce Point. Note: Stock based compensation accounts for the difference between GAAP and non-GAAP S&M expense. Source: Procept SEC filings, Spruce Point research",
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      "text": "Procept's Sales Function Is Lacking Efficiencies",
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