“Given customer preference for our usage-based models in the U.S. and the launch of da Vinci 5, we continue to expect the proportion of systems placed under lease arrangements to grow over time.”

In context

“nts included 84 into Europe, 20 into Japan, and 10 into China, compared with 101 into Europe, 16 into Japan, and 18 into China in Q1 of last year. Placements in the U.K. were below our expectations and lower than Q1 last year, because of the reallocation of NHS Capital Funding to help address industrial actions in the NHS. Placements in China continue to reflect the impact of domestic robotic competition and delayed tenders due to a broader central government focus on systematic governance across sectors, including healthcare. First quarter revenue was $1.89 billion, an increase of 11% from last year. On a constant currency basis, revenue growth was 12%. Additional revenue statistics and trends are as follows: Leasing represented 51% of Q1 placements, compared with 42% in Q1 of last year. Given customer preference for our usage-based models in the U.S. and the launch of da Vinci 5, we continue to expect the proportion of systems placed under lease arrangements to grow over time. Q1 system average selling prices were $1.39 million as compared to $1.47 million last year. System ASPs were negatively impacted by regional and platform mix and lower pricing in China, partially offset by lower trade-ins. We recognized $29 million of leased buyout revenue in the first quarter, compared with $21 million last quarter and $24 million last year. da Vinci instrument and accessory revenue per procedure was approximately $1,780, flat to last year and down $20, compared to the last quarter. The sequential decline in I&A per procedure is primarily a result of procedure mix in the U.S., given strong growth in cholecystectomy and the moderation of growth in bariatrics. We have also seen larger IDNs in the U.S. look for operational efficiencies by reducing inventory. Turning to Ion.”