“Given that, and our procedure guidance of 13% to 16% growth, we also expect total system placements for 2024 to be lower than 2023.”

In context

“tified on our website. We ended the year with cash investments of $7.3 billion compared with $7.5 billion at the end of Q3. The sequential reduction in cash and investments reflected capital expenditures of $435 million, partially offset by cash generated from operating activities. Let me take a moment to address the new multiple system that Gary highlighted and certain assumptions that may impact 2024 modeling. First, since we have not received FDA clearance for da Vinci 5, we cannot provide specificity on launch timing and pricing. Second, once cleared, we are planning a phased launch period over several quarters. Noting that we are at the end of the Si trading cycle and that da Vinci 5 will be in a phased rollout, we expect total trading volumes to be lower in 2024 than the prior year. Given that, and our procedure guidance of 13% to 16% growth, we also expect total system placements for 2024 to be lower than 2023. As a result of the phased rollout of da Vinci 5, we expect a higher proportion of Gen 4 systems will be leased as customers seek flexibility to upgrade to da Vinci 5 when supply allows. For those customers that prefer to purchase a Gen 4 system, we will offer a future trading right that can be exercised when there is sufficient da Vinci 5 supply. Purchase contracts containing a trading right result in a deferral of a portion of the purchase price negatively impacting systems revenue. Finally, consistent with our experience bringing four generations of platforms to market, new systems typically start at lower gross margins and rise over a multiyear period as we build volume and optimize design, manufacturing and supply chains. Brian will describe our gross margin guidance in more detail la”