– 2025 revenue guidance of $92 million to $96 million – – 2025 gross margin guidance of 73% to 75% – – Three-year targets of 20% revenue CAGR and achievement of cash flow breakeven – MOUNTAIN VIEW, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) -- NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today issued 2025 financial guidance targets at an in-person and virtual Investor Day today in New York, New York (a replay can be viewed virtually h ...

NeuroPace, Inc. (NPCE) shares soared 9.1% in the last trading session to close at $13.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.6% gain over the past four weeks.NeuroPace recorded a strong price rise on investors’ optimism surrounding the company’s announcement of preliminary fourth quarter and full year 2024 financial results. The company expects total revenue for fourth quarter to be between $21.0 million and $21.5 ...

Core Insights - NeuroPace, Inc. announced preliminary unaudited revenue expectations for Q4 2024 between $21.0 million and $21.5 million, and for the full year 2024 between $79.4 million and $79.9 million, indicating growth of 17% to 19% for Q4 and 21% to 22% for the full year compared to 2023 [1][8] Financial Performance - The company achieved over 20% revenue growth in 2024, with strong gross margin performance and reduced cash burn while investing in long-term growth [4] - Cash and short-term investments as of December 31, 2024, are expected to be $52.8 million, with total shares of common stock outstanding anticipated to be 30,145,039 [8] Management and Board Updates - Scott Huennekens was appointed to the Board of Directors effective January 6, 2025, bringing extensive management and investment experience in the medtech sector [5][6] - Huennekens has a successful track record with over 20 medical device companies, contributing to significant shareholder value [7] Upcoming Events - The company will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 15, 2025, and will host an Investor Day on January 28, 2025, in New York City [14]

Core Viewpoint - The upgrade of NeuroPace to a Zacks Rank 2 (Buy) reflects an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [6][12]. Earnings Estimates - Analysts have raised their earnings estimates for NeuroPace, with the Zacks Consensus Estimate increasing by 7.9% over the past three months [4]. - The company is expected to earn -$1 per share for the fiscal year ending December 2024, representing a year-over-year change of 21.3% [10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [3]. - NeuroPace's upgrade places it in the top 20% of Zacks-covered stocks, indicating its strong earnings estimate revision feature [5][12]. - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating [11]. Market Implications - The change in earnings estimates is strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [8]. - Tracking earnings estimate revisions can be beneficial for investment decisions, as empirical research shows a strong correlation between these revisions and stock movements [9].

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 offers 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 43rd Annual J.P. Morgan Healthcare Conference on January 15, 2025, at 4:30 PM PT (7:30 PM ET) in San Francisco, CA [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]

Core Insights - NeuroPace, Inc. will host an Investor Day on January 28, 2025, in New York City to discuss its vision for RNS technology and future plans [1][2] - The event will feature management presentations on recent results, market strategies, and clinical development for the RNS System, along with guest speakers including clinical experts and an RNS patient [2] Company Overview - NeuroPace is a medical device company based in Mountain View, California, focused on improving the lives of individuals with epilepsy by reducing or eliminating seizures [3] - The RNS System is the first commercially available brain-responsive platform that provides personalized, real-time treatment at the source of seizures, aiming to enhance care for patients with drug-resistant epilepsy [3]

Core Insights - NeuroPace, Inc. has completed enrollment and implant procedures in its feasibility investigational device exemption (IDE) study of the RNS® System for treating Lennox-Gastaut Syndrome (LGS), a severe form of childhood-onset epilepsy [1][4] - The IDE study aims to evaluate the safety and effectiveness of the RNS System, which has previously shown success in treating medically intractable focal onset seizures in adults [2][3] - The study is funded by a $9.3 million NIH grant and involves 20 patients aged 12 and older with LGS and drug-resistant generalized onset seizures [3] Company Overview - NeuroPace is a commercial-stage medical device company based in Mountain View, California, focused on transforming the lives of individuals with epilepsy through innovative treatments [6] - The RNS® System is the first and only FDA-approved brain-responsive neuromodulation system, designed to provide personalized, real-time treatment by continuously monitoring brain activity [5][6] - The system has demonstrated significant reductions in seizure frequency and improvements in quality of life and cognition without stimulation-related side effects [5] Industry Context - LGS is a debilitating seizure disorder with 85% of affected individuals continuing to experience seizures into adulthood despite aggressive treatment, highlighting the urgent need for innovative treatment options [4] - The RNS System's technology represents a paradigm shift in the treatment of drug-resistant epilepsy, potentially offering better outcomes for a large population suffering from various brain disorders [5][6]

Core Viewpoint - NeuroPace, Inc. (NPCE) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for NeuroPace suggest an improvement in the company's underlying business, likely leading to increased stock prices as investors respond positively [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - NeuroPace's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11]. Earnings Estimate Revisions - For the fiscal year ending December 2024, NeuroPace is expected to earn -$1 per share, reflecting a year-over-year change of 21.3% [8]. - Over the past three months, the Zacks Consensus Estimate for NeuroPace has increased by 7.6%, indicating a positive trend in earnings expectations [8].

Core Viewpoint - NeuroPace, Inc. (NPCE) shares have increased by 38.8% in the past four weeks, closing at $8.98, with a mean price target of $13.86 indicating a potential upside of 54.3% according to Wall Street analysts [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $4.14, where the lowest estimate suggests a 10.9% decline to $8, while the highest estimate predicts a 100.5% increase to $18 [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Sentiment - There is growing optimism among analysts about NPCE's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 7.6%, with four estimates moving higher and no negative revisions [10] Zacks Rank and Investment Potential - NPCE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside in the near term [11] - While consensus price targets may not be reliable for predicting the extent of gains, they can provide a useful guide for the direction of price movement [12]

Financial Data and Key Metrics Changes - For Q3 2024, NeuroPace reported total revenue of $21.1 million, an increase of 28% compared to $16.4 million in Q3 2023 [10][22] - Gross margin for Q3 2024 was 73.2%, down from 74.5% in Q3 2023, remaining within the target range of 72% to 74% [22] - Net loss for Q3 2024 was $5.5 million, an improvement from a net loss of $7.3 million in Q3 2023 [25] Business Line Data and Key Metrics Changes - Revenue growth was primarily driven by increased sales of the RNS System, which grew by 36% year-over-year when excluding contributions from the NAUTILUS study cases [22] - DIXI Medical products also contributed to revenue growth, although the specific percentage was not disclosed [10] Market Data and Key Metrics Changes - The number of active prescribers of RNS therapy reached record levels, indicating increased market penetration [11] - The Project CARE pilot program has begun to show meaningful increases in the number of implants and referrals from participating centers [11] Company Strategy and Development Direction - The company is focused on a multi-phase growth strategy that includes increasing adoption and utilization of RNS Systems, expanding service sites beyond Level 4 centers, and expanding approved indications for the RNS System [19][36] - Recent leadership hires aim to strengthen the organization and support growth initiatives, particularly in marketing and research and development [15][17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's fundamentals and the trajectory of growth opportunities, expecting total revenue for 2024 to be in the range of $78 million to $80 million, representing a 19% to 22% increase over 2023 [28] - The company anticipates continued strong growth driven by RNS System sales and ongoing contributions from DIXI Medical products [28] Other Important Information - The company raised $2.9 million in net proceeds under its ATM facility during Q3 2024, increasing its cash balance to $56.8 million [27] - An Investor Day is planned for the first quarter of 2025 to provide updates on market and product development [32] Q&A Session Summary Question: What is the primary source of growth in RNS sales? - Management indicated that growth is coming from increased adoption and utilization within Level 4 centers, as well as contributions from the Project CARE initiative [35] Question: How is the Project CARE program impacting growth? - The program has begun to show meaningful contributions from both implants and referrals, with a focus on uncovering patients needing further testing [43][44] Question: What are the expectations for operating expenses moving forward? - Management noted that while R&D expenses are increasing due to investments in growth, G&A expenses are being managed effectively, leading to overall operating leverage [56] Question: How should the market expect the impact of Project CARE in 2025? - The company expects to expand the CARE initiative further in 2025, which will contribute to growth alongside ongoing efforts to increase adoption and utilization of RNS therapy [64]