Things are continuing to shape up at MAKO Surgical
Total revenue for the quarter soared by 67% from $12 million last year to $20 million. Gross profit jumped by 76% to $13.2 million, although operating expenses also rose, which resulted in a net loss of $9.7 million, or $0.24 per share.
During the quarter, the company launched its MAKOplasty Total Hip Arthroplasty procedure, which promises to open new recurring revenue doors, with 12 applications for the procedure sold in the quarter. It's a little too early to start banking on quite yet, but it has some serious potential to broaden MAKO's opportunities.
The installed base of the company's RIO systems continues to show healthy growth, with 11 systems sold during the period. Four of these systems were part of an 11-system commitment from Health Management Associates
This brings the worldwide commercial installed base up to 97 systems. For the first three quarters, a total of 30 systems have been sold, representing a 50% jump over the prior year.
MAKOplasty procedures performed, which generate recurring revenue after the system is installed, soared by 122% to 1,813, of which 1,752 were performed domestically.
One of the reasons I like the stock so much and own it myself is that its overall revenue is increasingly coming from recurring sources, namely procedures and service. These sources now contribute 53% of revenue, compared with just 37% a year ago and 49% last quarter.
MAKO continues to show the same signs that Foolish favorite Intuitive Surgical
This story is still in the first few chapters, but it keeps looking more and more as though it will have a happy ending.
Fool contributor Evan Niu owns shares of MAKO Surgical, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson, MAKO Surgical, Stryker, and Intuitive Surgical and creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.