“As a reminder, given recent and ongoing capital investments, we expect a significant increase in depreciation expense in 2025 as we bring online additional facilities.”

In context

“e grew 54% from the year ago quarter to 243 systems. Moving on to the rest of the P&L, pro forma gross margin for the third quarter of 2024 was 69.1%, compared with 68.8% for the third quarter of 2023 and 70% last quarter. The year-over-year improvement in pro forma gross margin primarily reflects leveraged or fixed overhead, lower component costs, and lower logistics costs, partially offset by higher inventory reserves. During the quarter we opened our new system manufacturing facility at our East Coast Hub in Peachtree Corners, Georgia, commencing production of X and Xi systems at that site. We also opened our new Global Capability Centre in Bangalore, India, where we are co-locating our local commercial and training teams and the global center for IT and other shared service resources. As a reminder, given recent and ongoing capital investments, we expect a significant increase in depreciation expense in 2025 as we bring online additional facilities. Third quarter pro forma operating expenses increased 13%, compared with last year, driven by higher headcount, increased legal expenses, and higher customer facing activities. Consistent with the last couple of years, we have held pro forma R&D expenses at roughly 11% of revenue given our prioritization of investments in innovation that drive the quintuple aim and our growth. SG&A expenses continue to leverage as we benefit from prior investments that allow us to scale efficiently with growth. During the quarter we added approximately 617 employees, of which just over half were in our high volume I&A manufacturing facility in Mexicali to support procedure growth. On a year-to-date basis, through Q3 2024, pro forma operating margin was 36% of revenue, an increase of 184 basis points, compa”