NeuroPace, Inc. (NASDAQ:NPCE) Q4 2024 Earnings Conference Call March 4, 2025 4:30 PM ET Company Participants Jeremy Feffer - Investor Relations Joel Becker - Chief Executive Officer and Board Member Rebecca Kuhn - Chief Financial Officer, Vice President, Finance and Administration Conference Call Participants Priya Sachdeva - UBS Rohin Patel - JP Morgan Frank Takkinen - Lake Street Capital Markets Mike Kratky - Leerink Partners Vik Chopra - Wells Fargo Matthew Park - Cantor Fitzgerald Michael Pollard - Wolf ...

Financial Data and Key Metrics Changes - Total revenue for 2024 increased by 22% to $79.9 million compared to $65.4 million in 2023, with record quarterly revenue reported in Q4 [10][31] - Q4 2024 revenue was $21.5 million, representing a 19% growth compared to $18 million in Q4 2023, driven primarily by increased sales of the RNS system [30][31] - Gross margins for Q4 2024 were 75.4%, slightly up from 75.2% in Q4 2023, with improvements attributed to increased RNS product sales [31][34] Business Line Data and Key Metrics Changes - RNS system sales grew by 27% in Q4 2024, excluding contributions from Nautilus study cases in Q4 2023 [30] - Revenue from Dixie Medical products accounted for approximately 17% of total revenue in 2024, up from 15% in 2023 [31] Market Data and Key Metrics Changes - The core market opportunity within level four comprehensive epilepsy centers is estimated at approximately $2 billion annually [12] - The Project CARE initiative has begun to show positive trends, with increased implants and referrals contributing to revenue growth in the second half of 2024 [13][14] Company Strategy and Development Direction - The company’s growth strategy focuses on expanding adoption within level four comprehensive epilepsy centers, enhancing service delivery through Project CARE, and broadening indications for the RNS system [11] - Key development programs include ongoing clinical studies for idiopathic generalized epilepsy and pediatric focal epilepsy, with positive safety and effectiveness data expected to support regulatory approvals [15][17][20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue growth rate of over 20% annually over the next three years while aiming for cash flow breakeven [41] - The company anticipates total revenue for 2025 to be in the range of $92 million to $96 million, representing a 15% to 20% increase over 2024 [37] Other Important Information - The company completed a public offering that raised approximately $69.8 million, with $49.5 million used to repurchase shares from an early investor [35][26] - The cash and short-term investments balance as of February 28, 2025, is approximately $68.6 million, expected to support operations until achieving cash flow breakeven [36] Q&A Session Summary Question: Guidance for 2025 - Management discussed factors influencing revenue guidance, including execution of the three-part strategy and expansion of Project CARE [44][45] Question: Impact of Project CARE - Management noted meaningful impacts from Project CARE, with increased referrals and implants observed in Q4 [48] Question: Capital Prioritization - Management emphasized investment in expanding adoption within level four centers and direct-to-consumer efforts as key priorities for 2025 [52][54] Question: Gross Margin Trends - Management highlighted ongoing volume increases and pricing opportunities as primary drivers for gross margin improvement [58][61] Question: Indication Expansion and Reimbursement - Management confirmed established reimbursement for current indications and plans to work with payers to expand coverage for new indications [66] Question: Revenue Cadence for 2025 - Management expects a steady progression of growth throughout the year, similar to previous years [70] Question: Multiple Implants from New Accounts - Management confirmed seeing multiple implants and referrals from new accounts, indicating strong economic viability for RNS outside level four centers [75][76] Question: Pediatric Treatment Dynamics - Management explained that pediatric treatment dynamics would be similar to adult patients, focusing on the type of epilepsy rather than age [96] Question: Manufacturing Capacity - Management stated that manufacturing capacity is sufficient to meet anticipated demand [99] Question: Nautilus Study Data Presentation - Management plans to coordinate the publication and presentation of Nautilus data with relevant agencies and societies [105][108]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ___________ Commission File Number 001-40337 NEUROPACE, INC. (Exact name of registrant as specified in its charter) Delaware 22-3550230 (State or Other Jurisd ...

Investor Presentation March 2025 1 Joel Becker Chief Executive Officer Martha Morrell, MD Chief Medical Officer Rebecca Kuhn Chief Financial Officer Kelley Nicholas Vice President, Sales Previous Experience *Recent additions to leadership team in Research and Development, Marketing and Human Resources 4 Disclaimer This presentation may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by ...

-- Record quarterly revenue of $21.5 million in Q4 2024 -- -- Full-year 2025 revenue guidance of $92 to $96 million -- -- Completed an underwritten public offering of $74.8 million, using $49.5 million of the net proceeds to repurchase 100% of KCK holdings and $20.2 million to strengthen its balance sheet to support planned operations to reach cash flow breakeven -- -- Management scheduled to host a conference call today at 4:30 p.m. ET -- MOUNTAIN VIEW, Calif., March 04, 2025 (GLOBE NEWSWIRE) -- NeuroPace, ...

Company Overview - NeuroPace, Inc. is a commercial-stage medical device company based in Mountain View, California, focused on transforming the lives of people living with epilepsy by reducing or eliminating debilitating seizures [3] - The company’s RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source, aiming to improve care for patients with drug-resistant epilepsy [3] Upcoming Events - NeuroPace's management team will present at the Leerink Partners 2025 Global Healthcare Conference on March 10, 2025, at 4:20pm ET in Miami, FL, and will also host investor meetings during the conference [1] - The presentation will be accessible via live webcast, with a replay available for two weeks following the event on NeuroPace's Investor website [2]

Company Overview - NeuroPace, Inc. is a commercial-stage medical device company based in Mountain View, California, focused on transforming the lives of people living with epilepsy by reducing or eliminating debilitating seizures [3] - The company has developed the RNS System, which is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source [3] - The RNS System aims to improve the standard of care for patients with drug-resistant epilepsy and has potential applications for other brain disorders [3] Upcoming Events - NeuroPace's management team will present at the Leerink Partners 2025 Global Healthcare Conference on January 10, 2025, at 4:20 PM ET in Miami, FL [1] - The presentation will be accessible via live webcast, with a replay available for two weeks following the event on NeuroPace's Investor website [2]

Company Overview - NeuroPace, Inc. (NPCE) shares increased by 5.8% to $14.23 in the last trading session, following a higher-than-average trading volume, contrasting with a 4.2% loss over the past four weeks [1] - The company is set to release its fourth-quarter 2024 financial results on March 4, 2025, after the market closes [2] Financial Performance Expectations - The Zacks Consensus Estimate anticipates a revenue growth of 19.2% for the fourth quarter, projecting revenues of $21.46 million compared to the same quarter last year [2] - The expected quarterly loss is $0.25 per share, reflecting an 8.7% decrease year-over-year [2] Earnings Estimate Trends - The consensus EPS estimate for NeuroPace has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] - The stock's recent price increase may not sustain without a trend in earnings estimate revisions, suggesting the need for close monitoring of NPCE's performance [4] Industry Context - NeuroPace operates within the Zacks Medical - Instruments industry, where Tandem Diabetes Care, Inc. (TNDM) also resides, having closed 1.3% higher at $32.12, but with a -9.4% return over the past month [4] - Tandem Diabetes Care's consensus EPS estimate has remained unchanged at -$0.21, representing a 22.2% increase compared to the previous year's EPS [5]

Core Insights - NeuroPace, Inc. has completed the repurchase of 5,270,845 shares from KCK Ltd., allowing KCK to sell all remaining shares it held in the company [1] - The repurchase was funded using proceeds from a recent underwritten public offering, which has strengthened NeuroPace's balance sheet and is expected to support operations until cash flow breakeven is achieved [1][2] - The company has terminated its current at-the-market offering program following the completion of the public offering [1] Financial Position - The recent financing has provided sufficient cash runway for NeuroPace to execute its long-range plan and achieve cash flow breakeven [2] - The company expressed gratitude to KCK Ltd. for its support over the years [2] Product and Market Focus - NeuroPace is dedicated to transforming the lives of individuals with epilepsy through its RNS System, which is the first commercially available brain-responsive platform that delivers personalized, real-time treatment at the seizure source [3] - The RNS System aims to improve care standards for patients with drug-resistant epilepsy and has potential applications for other brain disorders [3]

Company Overview - NeuroPace, Inc. is a medical device company based in Mountain View, California, focused on transforming the lives of people living with epilepsy by reducing or eliminating debilitating seizures [3] - The company has developed the RNS System, which is the first and only commercially available brain-responsive platform that delivers personalized, real-time treatment at the seizure source [3] - This platform aims to improve the standard of care for patients with drug-resistant epilepsy and has potential applications for other brain disorders [3] Financial Reporting - NeuroPace will report its financial results for the fourth quarter and full year of 2024 after market close on March 4, 2025 [1] - A conference call will be held at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss these results [1] Investor Engagement - Investors can access the conference call via a live and archived webcast [2] - For those wishing to participate by telephone, the call can be accessed by dialing +1-877-407-3982 and referencing Conference ID 13751530 [2] - The webcast will be available for replay for at least 90 days after the event [2]