Substitute Surgical Reports Third Quarter 2023 Financial Results
WALTHAM, Mass., November 13, 2023–(BUSINESS WIRE)–Vicarious Surgical Inc. (“Vicarious Surgical” or the “Company”) (NYSE: RBOT, RBOT WS), a next-generation robotics technology company committed to improving patient outcomes, as well as both the cost and efficiency of surgical procedures, today announced financial results for the quarter ended September 30, 2023. Management will host a corresponding conference call today, November 13, 2023, at 4:30 PM ET.
“The third quarter brought several successes for our company, but also introduced new challenges as we focused on building and integrating our version 1.0 system,” said Adam Sachs, co-founder and Chief Executive Officer. “While we were pleased with our ability to expand our cash runway through a follow-on equity offering and make meaningful progress on our individual subsystem builds, the impact of recent market-driven cost savings initiatives coupled with certain integration challenges has forced us to adjust our development schedule revised. We now expect to complete build and integration of the Version 1.0 system in Fall 2024 and therefore anticipate a De Novo submission around early to mid 2026. While there is still work to be done, we remain confident that our differentiated technology will allow us to revolutionize surgical robotics and transform the standard of care.”
Financial results third quarter 2023
- Operating expenses were $21.4 million for the third quarter of 2023, compared to $22.2 million in the corresponding period last year, a decrease of 4%.
- R&D expenditures for the third quarter of 2023 were $13.0 million, compared to $12.1 million in the third quarter of 2022.
- General and administrative expenses for the third quarter of 2023 were $6.9 million, compared to $8.1 million in the third quarter of 2022.
- Sales and marketing expenses for the third quarter of 2023 were $1.4 million, compared to $1.9 million in the third quarter of 2022.
- GAAP net loss for the third quarter was $15.7 million, representing a net loss per share of $0.10, compared to a GAAP net loss of $24.7 million, representing a net loss per share of $0.20 for the same period of the previous year. Adjusted net loss for the third quarter was $20.4 million, representing a net loss of $0.12 per share, compared to an adjusted net loss of $21.7 million, or a net loss of $0.18 per share, for the same period of the previous year.
- The company had $110 million in cash, cash equivalents and short-term investments as of September 30, 2023, including $47 million in gross proceeds from the August follow-on equity offering. Excluding these gross revenues, cash burn for the third quarter of 2023 was $16.8 million.
- The company reduced fiscal 2023 cash burn guidance to $60-$65 million and initiated a preliminary fiscal 2024 cash burn guidance of $40-$55 million.
Conference call
Vicarious Surgical will hold a conference call to discuss its third quarter 2023 financial results on Monday, November 13, 2023 at 4:30 PM ET. Investors wishing to listen to the conference call can do so by dialing +1 (404) 975 4839 for domestic callers or +1 (929) 526 1599 for international callers and using the access code: 083118. A live and archived webcast of the event will be available at https://investor.vicarioussurgical.com.
About vicarious surgery
Founded in 2014, Vicarious Surgical is a next-generation robotics company developing a unique disruptive technology with multiple objectives: significantly increasing the efficiency of surgical procedures, improving patient outcomes and reducing healthcare costs. The company’s new surgical approach uses patented humanoid surgical robots to transport surgeons inside the patient to perform minimally invasive surgery. The company is led by an experienced team of technologists, medical device professionals and physicians, and is backed by technology luminaries including Bill Gates, Vinod Khosla’s Khosla Ventures, Innovation Endeavors, Jerry Yang’s AME Cloud Ventures, Sun Hung Kai & Co. Ltd and Philip Liang’s E15 VC. The company is headquartered in Waltham, Massachusetts. More information can be found at www.vicarioussurgical.com.
Use of Non-GAAP Financial Measures
In addition to providing financial measures prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), Vicarious Surgical provides additional financial measures not prepared in accordance with US GAAP (“non-GAAP ”). ”). The non-GAAP financial measures included in this press release are adjusted net loss and adjusted net loss per share (“adjusted earnings per share,” and together with adjusted net loss “non-GAAP financial measures”). The company presents non-GAAP financial measures to help readers of its consolidated financial statements understand key operating results that management uses to evaluate the business and for financial planning purposes. Vicarious Surgical’s non-GAAP financial measures provide investors with an additional tool to compare financial performance over multiple periods.
Adjusted net loss and adjusted earnings per share are key performance measures that Vicarious Surgical management uses to assess operating performance. These non-GAAP financial measures facilitate internal comparisons of Vicarious Surgical’s operating performance on a more consistent basis. Vicarious Surgical uses these performance measures for business planning purposes and forecasting. Vicarious Surgical believes that the non-GAAP financial measures enhance an investor’s understanding of Vicarious Surgical’s financial performance as it is useful in assessing its operating performance from period to period by excluding certain items from which Vicarious Surgical believes they are not representative of its core business. .
The non-GAAP financial measures may not be comparable to similar measures of other companies because they may not calculate this measure in the same way. Adjusted net loss and adjusted earnings per share are not prepared in accordance with US GAAP and should not be considered separately from, or as an alternative to, measures prepared in accordance with US GAAP. When evaluating Vicarious Surgical’s performance, you should consider its non-GAAP financial measures in addition to other financial performance measures prepared in accordance with US GAAP, including net loss.
The non-GAAP financial measures do not replace the presentation of Vicarious Surgical’s financial results in accordance with US GAAP and should only be used in addition to, and not as a substitute for, Vicarious Surgical’s financial results presented in accordance with US GAAP. In this press release, Vicarious Surgical has provided a reconciliation between adjusted net loss and net loss, the most directly comparable financial measure under US GAAP, and the adjusted earnings per share calculation.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from expectations, estimates and projections and, accordingly, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical fact contained herein, including but not limited to quotes from our Chief Executive Officer regarding, among other things, Vicarious Surgical’s opportunities, are forward-looking statements that reflect management’s current beliefs and expectations. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are beyond Vicarious Surgical’s control and are difficult to predict. Factors that could cause such differences include, but are not limited to: changes in applicable laws or regulations; Vicarious Surgical’s ability to obtain future financing; the success, cost and timing of Vicarious Surgical’s product and service development activities; the potential features and benefits of Vicarious Surgical’s product candidates and services; Vicarious Surgical’s ability to obtain and maintain regulatory approval for the Vicarious System within the expected timeline, and any related restrictions and limitations of any approved product; the size and duration of human clinical trials for replacement surgery; Vicarious Surgical’s ability to identify, license or acquire additional technology; Vicarious Surgical’s ability to maintain its existing licensing, manufacturing, supply and distribution agreements and scale production of the Vicarious Surgical System and any future product candidates to commercial quantities; Vicarious Surgical’s ability to compete with other companies that currently market or engage in products and services that Vicarious Surgical currently markets or develops, as well as the use of open operations; the size and growth potential of the markets for Vicarious Surgical’s product candidates and services, and its ability to serve those markets, alone or in collaboration with others; the pricing of Vicarious Surgical’s product candidates and services and reimbursement for medical procedures performed using the product candidates and services; the company’s ability to meet its estimates regarding expenses, revenues, capital requirements, cash runway and additional financing needs; Vicarious Surgical’s financial performance; Vicarious Surgical’s intellectual property rights, its ability to protect or enforce those rights, and the impact on its business, results of operations and financial condition if it fails to do so; economic downturn, political and market conditions and their potential to adversely affect Vicarious Surgical’s business, financial condition and results of operations; the impact of COVID-19 on Vicarious Surgical’s operations; and other risks and uncertainties identified from time to time in Vicarious Surgical’s filings with the SEC. Vicarious Surgical cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Vicarious Surgical disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
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