“Given the trade environment, financial pressures faced by hospitals and risks to the macro, we may see customers globally reprioritize capital budgets or extend timelines to invest in robotic programs.”

In context

“r, we placed 88 systems in Europe, 16 in China and 10 in Japan compared with 84 in Europe, 10 in China and 20 in Japan in Q1 of last year. OUS placement performance reflects financial pressures and healthcare spending constraints in several key markets including Japan, Germany and the U.K. Customers with existing da Vinci capacity have opportunities to increase utilization, which we actively support. The environment in China continues to reflect the ongoing impact of domestic competition and policy-driven pressure on pricing. With respect to the previously mentioned tariffs of 125% on imports of excise systems and excise subassemblies into China, these tariffs have a material impact to the product cost of excise systems in China, and may adversely impact our ability to win future tenders. Given the trade environment, financial pressures faced by hospitals and risks to the macro, we may see customers globally reprioritize capital budgets or extend timelines to invest in robotic programs. First quarter revenue was $2.25 billion, a 19% increase over last year. On a constant currency basis, revenue growth was 20% and Systems revenue grew 25% year-over-year, driven by a 17% increase in da Vinci system placements and higher system ASP, reflecting a higher mix of da Vinci 5 placements. Recurring revenue grew 19% in Q1, representing 85% of total revenue. Additional revenue statistics and trends are as follows leading represented 54% of Q1 placements, compared with 51% last year, driven by a higher mix of U.S. placements where given customer preference the greater proportion of systems are placed under lease arrangements. While leasing may fluctuate quarter-to-quarter, we continue to expect the rate of leasing to increase overtime. Q1 system average selling prices were $1.62 mill”