Summary of CeriBell Conference Call Company Overview - **Company**: CeriBell - **Industry**: EEG Monitoring in Acute Care - **Market Size**: $2 billion US market for acute care EEG monitoring [2][3] Key Points and Arguments Product and Technology - CeriBell has developed a novel EEG monitoring device that simplifies brainwave monitoring, particularly in acute care settings like emergency rooms and ICUs [2][3] - The device allows for continuous monitoring and can be set up in about five minutes, contrasting with conventional EEG setups that take 30 to 45 minutes [6][9] - The technology addresses limitations of conventional EEG, which is primarily designed for outpatient settings and is not suitable for acute care where rapid response is critical [3][4] Market Performance - CeriBell reported a revenue of $22.6 million in the last quarter, with an annual run rate of approximately $90 million [2][9] - The company is experiencing rapid growth, with a year-over-year increase of 31% in Q3 [3] - CeriBell operates in 615 hospitals, representing about 10% of the US target market, indicating significant room for growth [2][9] Business Model - The revenue model consists of approximately 25% from SaaS subscriptions and 75% from device sales [9] - The business model is characterized by predictability and consistent usage patterns, which supports the company's confidence in its growth trajectory [9] Pipeline and Future Opportunities - CeriBell aims to expand its applications beyond seizure detection to include conditions like delirium and stroke, which could significantly increase its total addressable market (TAM) [2][10] - The company is also exploring brain biomarkers and other care settings outside of acute care, indicating a long-term growth strategy [10][11] Financial Guidance - Current revenue guidance for the upcoming quarter is set between $87 million and $89 million, with expectations of seasonal fluctuations impacting performance [15][16] - The company is managing tariff impacts by transitioning manufacturing to Vietnam and diversifying its supply chain [18][19] Sales and Marketing Strategy - CeriBell has expanded its sales force significantly post-IPO, increasing the number of territories from mid-30s to mid-50s [22][23] - The sales cycle for new representatives is about a year, with a typical sales cycle of four to six months for new opportunities [23][30] - The company is focusing on both deepening existing account penetration and acquiring new accounts [32][33] Competitive Landscape - CeriBell believes its algorithm and data assets provide a competitive advantage, with over 200,000 EEGs in its database and multiple clinical publications supporting its technology [42][44] - The company emphasizes the importance of its established presence in the market, with 600 hospitals currently using its technology [44] Financial Health and Profitability - Despite increased net losses since the IPO, CeriBell maintains a strong gross margin of 88% and is focused on balancing growth with profitability [45][46] - The company is committed to achieving profitability without seeking additional capital [46] Additional Important Insights - The pilot program with the VA was successful, leading to plans for expansion, although it will not cover all 200 hospitals immediately [37][38] - CeriBell is actively working to influence hospital protocols to align with EEG guidelines, which varies based on patient populations [35][36] - The company is optimistic about growth opportunities with large integrated delivery networks (IDNs) and purchasing groups [39][41]

Core Insights - CeriBell, Inc. is focused on transforming the diagnosis and management of serious neurological conditions [3] - The company will present at the Piper Sandler 37 Annual Healthcare Conference on December 3, 2025 [2] Company Overview - CeriBell has developed the Ceribell System, a point-of-care electroencephalography (EEG) platform designed for acute care settings [3] - The Ceribell System combines portable hardware with AI-powered algorithms for rapid diagnosis and continuous monitoring of neurological conditions [3] - The system is FDA-cleared for detecting suspected seizure activity and is currently used in intensive care units and emergency rooms across the U.S. [3] - CeriBell is headquartered in Sunnyvale, California [3]

Group 1 - CeriBell, Inc. reported a quarterly loss of $0.37 per share, better than the Zacks Consensus Estimate of a loss of $0.43, and an improvement from a loss of $1.85 per share a year ago, resulting in an earnings surprise of +13.95% [1] - The company posted revenues of $22.59 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.65%, and showing an increase from $17.19 million in the same quarter last year [2] - CeriBell, Inc. has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Group 2 - The stock has underperformed, losing about 56.2% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.42 on revenues of $23.33 million, and for the current fiscal year, it is -$1.55 on revenues of $86.82 million [7] - The Zacks Industry Rank for Medical - Products is in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $22.6 million, reflecting a 31% growth compared to $17.2 million in Q3 2024, marking the 30th consecutive quarter of sequential revenue growth [3][17] - Product revenue for Q3 2025 was $17 million, representing a 28% increase from $13.3 million in Q3 2024 [17] - Subscription revenue for Q3 2025 was $5.6 million, a 44% increase from $3.9 million in Q3 2024 [18] - Gross margin for Q3 2025 was 88%, up from 87% in the prior year [18] - Net loss for Q3 2025 was $13.5 million, or a loss of $0.37 per share, compared to a loss of $10.4 million, or a loss of $1.85 per share in Q3 2024 [20] Business Line Data and Key Metrics Changes - The company had 615 active accounts as of September 30, 2025, an increase of 31 accounts over the prior quarter, the largest sequential increase since going public [6][7] - Utilization per account has increased nearly threefold over the past five years, indicating strong growth potential within the existing account base [8] Market Data and Key Metrics Changes - The company estimates an immediately addressable market opportunity of $2 billion for point-of-care EEG in the U.S., with potential expansion into pediatric and neonatal markets adding approximately $400 million [4][11] - The company is currently used by roughly 10% of U.S. acute care hospitals, indicating significant room for growth [16] Company Strategy and Development Direction - The primary focus is on establishing point-of-care EEG as the new standard of care for seizure management in acute care settings [4][12] - The company aims to expand its detection capabilities into new conditions such as delirium and stroke, positioning EEG as a new vital sign in acute care [12][17] - Investments are being made in evidence generation, product improvements, and provider education to replicate best practices from top-performing centers [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core commercial strategy and raised full-year 2025 revenue guidance to $87-$89 million, representing 34% year-over-year growth at the midpoint [4][21] - The company anticipates continued growth driven by account acquisition and increased utilization, despite potential challenges from competition [47] Other Important Information - The company received FedRAMP high authorization, allowing access to nearly 200 hospitals within the VA system, with plans for further expansion [7][8] - A new 510(k) clearance for the neonatal headcap was received, enhancing the product's market readiness [38] Q&A Session Summary Question: Thoughts on 2026 account adds and utilization - Management is not providing commentary on 2026 but expects consistent drivers of growth from adding new accounts and driving usage [24] Question: Neonatal opportunity launch details - The launch will involve both new accounts and deeper penetration into existing accounts, with significant interest from NICUs [25] Question: Progress in account penetration and education - The company continues to drive account acquisition and utilization through initiatives that encourage additional recorders in existing accounts [27][28] Question: Revenue versus OpEx growth outlook - Investments in commercial infrastructure are expected to yield delayed impacts, with a focus on maintaining a cash cushion [30] Question: Competition and market position - Competition has increased but has not significantly impacted performance, with the company continuing to raise guidance [47] Question: VA channel growth expectations - Successful pilots in the VA system are leading to larger rollouts, which are expected to contribute to growth [51] Question: Utilization trends across departments - Utilization growth is broad, with stronger growth seen in emergency departments compared to ICUs [55]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $22.6 million, a 31% increase from $17.2 million in the same period of 2024[141]. - Product revenue increased by $3.7 million (28%) for the three months and $12.6 million (35%) for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by new customer additions and increased product utilization[142]. - Subscription revenue rose by $1.7 million (44%) for the three months and $4.8 million (43%) for the nine months ended September 30, 2025, primarily due to increased subscription adoption[143]. - Gross profit for the three months ended September 30, 2025, was $19.9 million, a 33% increase from $15.0 million in 2024, with a gross margin of 88%[146]. - Net loss for the three months ended September 30, 2025, was $13.5 million, a 29% increase from a net loss of $10.4 million in the same period of 2024[141]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $34.6 million, a 39% increase from $24.9 million in 2024, with significant increases in research and development (47%) and sales and marketing (48%) expenses[141]. - Research and development expenses are expected to increase as the company continues to improve its algorithm and expand indications beyond seizures[132]. - Sales and marketing expenses are projected to rise as the company increases its sales organization and market penetration in the U.S. and seeks international opportunities[134]. - General and administrative expenses are expected to grow as the company increases headcount and incurs additional costs associated with being a public company[136]. Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2025, was $30.0 million, compared to $25.1 million in 2024[155]. - Cash used in investing activities significantly increased to $144.2 million for the nine months ended September 30, 2025, from $1.1 million in 2024, primarily due to marketable securities purchases[159]. - As of September 30, 2025, the company had $168.5 million in cash and cash equivalents and marketable securities, along with $20.0 million in term loans[163]. - The company expects to continue incurring losses and significant cash expenditures as it scales operations and invests in research and development and marketing[162]. - The company entered into a VLSA with SVB and Horizon, providing a term loan commitment of $50.0 million, of which $20.0 million was drawn at closing[164]. - A Revolving Facility was established for a line of credit of up to $10.0 million, maturing on February 6, 2026[165]. - The company believes that expected cash generated from revenue transactions and existing cash will be sufficient to fund planned operating expenses for at least the next 12 months[166]. - Future capital needs will depend on factors such as market acceptance of products and costs associated with product development and sales growth[167]. Regulatory and Market Position - The company has received a CE Mark for the Ceribell System in Europe and plans to pursue additional regulatory clearances internationally[120]. - The Ceribell System is designed to improve the detection and management of seizures in acute care settings, addressing significant delays and economic burdens associated with conventional EEG systems[118]. - As of September 30, 2025, the Ceribell System has been adopted by over 600 active accounts and has been used to care for over 200,000 patients[118]. Accounting and Estimates - Management's estimates and judgments in financial statements are based on historical experience and known trends, which may differ from actual results[169]. - There have been no material changes to significant accounting policies during the nine months ended September 30, 2025[170]. - Recent accounting pronouncements applicable to financial statements are described in the Quarterly Report on Form 10-Q[171].

Financial Performance - Total revenue for Q3 2025 was $22.6 million, a 31% increase from $17.2 million in Q3 2024[3] - Product revenue in Q3 2025 was $17.0 million, up 28% from $13.3 million in Q3 2024[3] - Subscription revenue for Q3 2025 reached $5.6 million, representing a 44% increase from $3.9 million in Q3 2024[3] - Gross profit for Q3 2025 was $19.9 million, with a gross margin of 88%, compared to 87% in Q3 2024[4] - Operating expenses in Q3 2025 were $34.6 million, a 39% increase from $24.9 million in Q3 2024[5] - Net loss for Q3 2025 was $13.5 million, or $0.37 per share, compared to a net loss of $10.4 million, or $1.85 per share, in Q3 2024[6] Cash and Guidance - Cash, cash equivalents, and marketable securities totaled $168.5 million as of September 30, 2025[6] - Ceribell raised its revenue guidance for the full year 2025 to a range of $87 million to $89 million, indicating growth of approximately 33% to 36% over the previous year[7] Market Position and Strategy - The company ended Q3 2025 with 615 total active accounts[8] - Ceribell aims to establish point-of-care EEG as a new standard of care for seizure management, targeting a $2 billion addressable market opportunity[2]

Core Insights - CeriBell, Inc. reported a strong third quarter performance with total revenue of $22.6 million, marking a 31% increase from $17.2 million in the same quarter of 2024, driven by commercial traction and account expansion [4][11] - The company aims to establish point-of-care EEG as a new standard for seizure management, targeting a $2 billion addressable market opportunity [3][4] - CeriBell raised its full-year revenue guidance for 2025 to a range of $87 million to $89 million, indicating a growth of approximately 33% to 36% compared to the previous year [8] Financial Performance - Product revenue for Q3 2025 was $17.0 million, a 28% increase from $13.3 million in Q3 2024, while subscription revenue reached $5.6 million, up 44% from $3.9 million [4][11] - Gross profit for the quarter was $19.9 million, with a gross margin of 88%, slightly up from 87% in Q3 2024 [5][11] - Operating expenses increased by 39% to $34.6 million, primarily due to investments in the commercial organization and increased headcount [6][11] Net Loss and Cash Position - The net loss for Q3 2025 was $13.5 million, or $0.37 per share, compared to a net loss of $10.4 million, or $1.85 per share, in Q3 2024 [7][11] - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $168.5 million [7][11] Market Position and Strategy - CeriBell's focus is on generating robust clinical evidence to support the adoption of its technology in acute care settings [3][4] - The company ended the quarter with 615 total active accounts, reflecting its growing market presence [11]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for CeriBell, Inc. (CBLL) due to higher revenues, with a focus on how actual results will compare to estimates impacting stock price [1][2]. Earnings Expectations - CeriBell, Inc. is expected to report a quarterly loss of $0.43 per share, reflecting a year-over-year change of +76.8% [3]. - Revenues are projected to be $21.79 million, which is an increase of 26.8% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.33% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for CeriBell, Inc. is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +6.10% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a likely earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - CeriBell, Inc. currently holds a Zacks Rank of 3, indicating a potential to beat the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, CeriBell, Inc. was expected to post a loss of $0.40 per share but delivered a loss of -$0.38, resulting in a surprise of +5.00% [13]. - Over the past four quarters, the company has surpassed consensus EPS estimates two times [14]. Industry Comparison - Owens & Minor (OMI), another player in the Zacks Medical - Products industry, is expected to report an EPS of $0.23, reflecting a year-over-year change of -45.2% [18]. - Revenues for Owens & Minor are expected to be $700.91 million, down 74.2% from the previous year [18].

Company Overview - CeriBell, Inc. is a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions [3] - The company has developed the Ceribell System, a novel point-of-care electroencephalography (EEG) platform designed for acute care settings [3] - The Ceribell System combines portable hardware with AI-powered algorithms for rapid diagnosis and continuous monitoring of neurological conditions [3] - The system is FDA 510(k) cleared for indicating suspected seizure activity and is currently used in intensive care units and emergency rooms across the U.S. [3] Financial Results Announcement - CeriBell will release its financial results for the third quarter of 2025 after the close of trading on November 4, 2025 [1] - A conference call to discuss the financial results will begin at 1:30 p.m. PT / 4:30 p.m. ET on the same day [1] Investor Relations - Investors can listen to the conference call by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers, using access code 9394689 [2] - A live and archived webcast of the event will be available in the "Investor Relations" section of the Ceribell website [2]

Core Insights - CeriBell, Inc. has appointed Erica Rogers to its Board of Directors, bringing over 30 years of experience in leading high-growth medical device companies [1][2] - The company aims to expand patient access to timely brain monitoring in acute care settings, leveraging Rogers' expertise in scaling healthcare companies [1][3] Company Overview - CeriBell is a medical technology company focused on transforming the diagnosis and management of serious neurological conditions [5] - The Ceribell System is a point-of-care EEG platform designed for rapid diagnosis and continuous monitoring of patients, currently utilized in over 550 hospitals across the U.S. [5][3] - The system is FDA-cleared for detecting suspected seizure activity and combines portable hardware with AI-powered algorithms [5] Leadership Experience - Erica Rogers previously served as CEO of Silk Road Medical, leading the company from a 25-person startup to a publicly traded entity with over 500 employees and revenue exceeding $175 million [2] - Rogers has held board positions in various healthcare companies, emphasizing innovation and culture [2] Strategic Goals - The appointment of Rogers is seen as pivotal for CeriBell's growth phase, aiming to establish the Ceribell System as the standard of care in brain monitoring [3] - The company is focused on broadening access to its EEG technology to improve patient outcomes in critical care [3]