The razor-and-blades business models of Intuitive Surgical and MAKO Surgical have some features we love here at The Motley Fool. One of those is the high-margin recurring revenue generated from existing system installations. For both companies, that comes in the form of ongoing service contracts and accessory sales -- implants for MAKO, instruments for Intuitive -- driven by the number of procedures being performed. This is why system utilization is another key metric that investors should follow, and one driving force behind utilization is expansion into new procedural areas.
In the following video, Brenton discusses some new procedures that these companies are targeting, including a recent gaffe from an Intuitive Surgical representative related to its new gall bladder procedure.
The recent market sell-off of MAKO Surgical shares has many wondering whether the potential growth prospects of the robotic surgery company make it a buy today or a stock to stay away from. Read our premium report to read up on the details of MAKO's story. Click here to access it now.
The article 1 Key Area to Watch in Robotic Surgery originally appeared on Fool.com.
Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Intuitive Surgical and MAKO Surgical. Motley Fool newsletter services recommend Intuitive Surgical and MAKO Surgical . Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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