Neuronetics (STIM) reported a net loss of 33 cents per share in second-quarter 2024, wider than the year-ago quarter's reported loss of 17 cents. The figure also lagged the Zacks Consensus Estimate of a loss of 27 cents per share. Q2 Revenues Consolidated revenues amounted to $16.5 million, down 6.3% from $17.6 million recorded in the second quarter of 2023. The figure missed the Zacks Consensus Estimate by 12.2%. Segments in Detail Neuronetics reports under two primary markets, based on the geographic loca ...

Financial Data and Key Metrics - Revenue for Q2 2024 was $16.5 million, down 7% year-over-year, primarily due to lower Treatment Session revenue [5] - US Treatment Session revenue was $11.7 million, a decrease of 5% year-over-year [9] - Gross margin improved to 74%, up 150 basis points from 72.5% in Q2 2023, driven by the shift to a new contract manufacturer [9] - Net loss for the quarter was $9.8 million, or $0.33 per share, compared to a net loss of $4.9 million, or $0.17 per share, in Q2 2023 [10] - EBITDA for Q2 2024 was negative $8 million, compared to negative $3.3 million in Q2 2023 [10] - Cash and cash equivalents stood at $42.6 million as of June 30, 2024, with a new debt facility of up to $90 million secured in late July [11] Business Line Performance - Utilization in the local consumable segment increased by 18%, but Treatment Session revenue declined by 5% due to cash flow constraints caused by the Change Healthcare cybersecurity breach [5] - Revenue from US NeuroStar Advanced Therapy Systems was $4 million, with 50 systems recognized, meeting the high end of the quarterly guidance [9] - The Better Me program (BMP) showed significant improvements, with participating practices increasing 24-hour follow-up rates by 6.4 times and providers treating 61% more patients after advanced clinical training [6] Market Performance - The company launched NeuroStar TMS therapy for adolescents, with over 425 adolescent patients treated since April 2024 [7] - Insurance coverage for adolescents aged 15-21 expanded, with major providers like Blue Cross Blue Shield of Michigan and Aetna updating their policies [7] - A TV advertising campaign in Tampa, Florida, is being piloted to increase awareness of NeuroStar TMS and drive patient engagement [6] Strategic Direction and Industry Competition - The company announced a definitive agreement to acquire Greenbrook TMS, the largest TMS provider in the US, creating a vertically integrated mental health company [13][15] - The merger is expected to accelerate the path to profitability, with pro forma revenue of $145 million for the combined entity in 2023 and mid-teens revenue growth expected in 2025 and 2026 [21] - Cost synergies of at least $15 million annually are anticipated, primarily from marketing and back-office optimizations [21] Management Commentary on Operating Environment and Future Outlook - Management believes the negative impact from the Change Healthcare cybersecurity breach is transient and expects revenue patterns to normalize in the second half of 2024 [5] - The company remains confident in achieving cash flow positivity in Q4 2024 and expects full-year revenue in the range of $78 million to $80 million [12] - The merger with Greenbrook is seen as a transformative opportunity to expand access to mental health therapies and improve operational efficiencies [17][18] Other Important Information - The company secured a new debt facility of up to $90 million with Perceptive Advisors, providing financial flexibility for commercial initiatives and clinical expansion [11] - The Better Me program (BMP) has been fully launched nationwide, with significant improvements in patient follow-up rates and treatment accessibility [6] - The company plans to pilot a TV advertising campaign in Tampa, Florida, to test the effectiveness of TV as a medium for increasing NeuroStar TMS awareness [6] Q&A Session Summary Question: Impact of Change Healthcare Cybersecurity Breach - The breach impacted revenue by approximately $2 million in Q2 2024, with customers delaying orders due to cash flow constraints [30] - Management expects the situation to normalize by the end of 2024, with positive trends in utilization and inventory levels [23] Question: Timing and Rationale for Greenbrook Merger - The merger was accelerated due to Greenbrook's lenders converting $140 million in debt to common shares, significantly improving the financial profile of the combined entity [27] - The focus post-merger will be on increasing utilization in existing Greenbrook centers rather than expanding brick-and-mortar locations [28] Question: Revenue and Cost Synergies from Greenbrook Merger - The combined company expects mid-teens revenue growth in 2025 and 2026, driven by expanded Spravato offerings and marketing efficiencies [33] - Cost synergies of at least $15 million annually are anticipated, primarily from G&A and marketing optimizations [33] Question: Guidance and Inventory Management - Q3 revenue guidance of $18.5 million to $19.5 million is based on a return to normalized Treatment Session ordering patterns [32] - The company expects a rebound in Q4 as customers replenish inventory levels [35] Question: Roadmap for Greenbrook Integration - The immediate focus post-merger will be on achieving $15 million in cost synergies and increasing utilization in Greenbrook's 120 treatment centers [39] - The company will also expand the Better Me program (BMP) and leverage Greenbrook's expertise in patient referral and education [40] Question: Long-Term Revenue per Active Site - The company aims to achieve revenue per active site of $15,000 to $17,000 per quarter, driven by increased utilization and operational efficiencies [42]

Advanced Therapy for Mental Health 2Q 2024 Earnings August 12, 2024 Forward Looking Statements This presentation contains estimates and other statistical data prepared by independent parties and by Neuronetics, Inc. (the "Company") relating to market size and growth and other data about the industry in which the Company operates. These estimates and data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and data. Certain statements in this pres ...

Neuronetics (STIM) came out with a quarterly loss of $0.33 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -22.22%. A quarter ago, it was expected that this medical device company focused on psychiatric disorders would post a loss of $0.33 per share when it actually produced a loss of $0.27, delivering a surprise of 18.18%. Over t ...

MALVERN, Pa., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM) (the "Company" or "Neuronetics") a commercial stage medical technology company with a strategic vision of transforming the lives of patients whenever and wherever they need help, with the best neurohealth therapies in the world, today announced its financial and operating results for the second quarter of 2024. Second Quarter 2024 Highlights Second quarter 2024 revenue of $16.5 million, a 7% decrease as compared to the second q ...

About Neuronetics | --- | |---------------------------------| | | | Mike Vallie or Mark Klausner | | ICR Westwicke | | 443-213-0499 ir@neuronetics.com | | Media Contact: | | EvolveMKD | | 646-517-4220 | | NeuroStar@evolvemkd.com | A live audio webcast of the presentation will be available online at the investor relations page of the Company's website at ir.neuronetics.com. Investor Contact: MALVERN, Pa., July 31, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ:STIM), a medical technology company focused ...

MALVERN, Pa., July 30, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a medical technology company focused on designing, developing, and marketing products that improve the quality of life for patients who suffer from neurohealth disorders, today announced that it entered into a debt facility of up to $90 million with Perceptive Advisors LLC (Perceptive). Under the term loan, Neuronetics received the first tranche of $50 million at closing. Part of the initial $50 million tranche will be used to ...

Group 1 - Neuronetics, Inc. plans to release its second quarter 2024 financial and operating results on August 12, 2024, prior to market open [1] - The company will host a conference call at 8:30 a.m. Eastern Time on the same day to review its results [1][4] Group 2 - Neuronetics is a leader in neuroscience, focusing on improving mental health through its NeuroStar Advanced Therapy, a non-drug, noninvasive treatment for neurohealth conditions [2] - NeuroStar is FDA-cleared for major depressive disorder (MDD) in adults and adolescents aged 15 and older, as well as for obsessive-compulsive disorder (OCD) and anxiety symptoms in adults with MDD [2] - The treatment has delivered over 6.4 million sessions and is supported by the largest clinical data set for TMS systems for depression, including the world's largest depression Outcomes Registry [2]

The coverage criteria specify that TMS treatment must be administered by an FDA-cleared device in accordance with FDA labeled indications. Aetna is one of the largest health plans in the country with over 19.4 million lives covered through its commercial policies nationwide. The TMS policy update is effective immediately. For more information about NeuroStar TMS Therapy, please visit www.neurostar.com. About Neuronetics MALVERN, Pa., July 22, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ:STIM), a medic ...

Medi-Cal is California's Medicaid healthcare program. It offers no-cost and low-cost health coverage for children and adults with limited income and resources who meet eligibility requirements. Medi-Cal policies impact 14.8 million covered lives in California. The TMS policy update will go into effect on August 1, 2024. Neuronetics is the first and only TMS company with FDA clearance for the treatment of adolescents and the only company in the industry with a dedicated health policy team that partners with ...