Neuronetics, Inc. (STIM) recently announced a definitive agreement with Greenbrook TMS Inc. to acquire its outstanding common shares in an all-stock transaction. Following the merger's completion, Greenbrook will be able to improve its existing sites to provide the benefits of NeuroStar to any practice across the country. It will do so using Neuronetics' innovative NeuroStar platform as well as its education and training expertise. The merger agreement will help Neuronetics strengthen its position in the me ...

Core Viewpoint - Neuronetics reported weaker-than-expected financial results for Q2 2024, with both revenues and net loss exceeding prior year figures and missing consensus estimates [10] Financial Performance - The net loss for Q2 2024 was $0.33 per share, wider than the loss of $0.17 per share in the same quarter last year and also missing the Zacks Consensus Estimate of a loss of $0.27 per share [1] - Consolidated revenues were $16.5 million, down 6.3% from $17.6 million in Q2 2023, and missed the Zacks Consensus Estimate by 12.2% [2] - Total U.S. revenues were $16.1 million, a decrease of 7% year-over-year, primarily due to a drop in treatment sessions and NeuroStar Advanced Therapy System sales [3] - Revenues from the U.S. NeuroStar Advanced Therapy System totaled $4 million, down 11% from $4.5 million in Q2 2023, while U.S. treatment session revenues were $11.7 million, down 5% from $12.3 million [4] Margins and Expenses - Gross profit for the quarter was $12.2 million, down 4.7% year-over-year, but gross margin expanded by 150 basis points to 74% due to an 11.7% decline in the cost of revenues [5] - Sales and marketing expenses increased by 6.4% to $12.3 million, while general and administrative expenses decreased by 0.8% to $6.1 million, and R&D expenses fell by 5.5% to $2.2 million [5] Adjusted Operating Loss - The adjusted operating loss was $8.5 million in Q2 2024, compared to a loss of $7.3 million in the same period last year [6] Cash Position - At the end of Q2 2024, Neuronetics had cash and cash equivalents of $42.6 million, down from $47.7 million at the end of Q1 2024 [7] Guidance - The company expects total worldwide revenues for the full year 2024 to be in the range of $78-$80 million, with the Zacks Consensus Estimate at $78.9 million [8] - For Q3 2024, total worldwide revenues are expected to be in the range of $18.5-$19.5 million [9] Operational Milestones - Neuronetics achieved a milestone with over 182,000 global patients having undergone 6.6 million treatment sessions in the quarter [11] - The company secured a $50 million Initial Tranche of Debt Facility with Perceptive Advisors, reducing net debt by $10 million [11]

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 ...

Company Performance - Neuronetics reported a quarterly loss of $0.33 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.27, and compared to a loss of $0.17 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $16.45 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 12.29% and down from $17.61 million in the same quarter last year [2] - Neuronetics has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Stock Performance - Neuronetics shares have declined approximately 38.6% since the beginning of the year, contrasting with the S&P 500's gain of 12% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.24 on revenues of $20.04 million, and for the current fiscal year, it is -$0.91 on revenues of $78.99 million [7] Industry Outlook - The Medical - Instruments industry, to which Neuronetics belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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 ...

Core Insights - Neuronetics, Inc. is a medical technology company focused on improving the quality of life for patients with neurohealth disorders through innovative treatments [4][5] - The company will present at the Canaccord Genuity 44th Annual Growth Conference on August 14, 2024, highlighting its commitment to investor engagement [4] Company Overview - Neuronetics is a global leader in neuroscience, emphasizing the importance of mental health alongside physical health [5] - The company's flagship product, NeuroStar Advanced Therapy, is a non-drug, noninvasive treatment designed for patients with major depressive disorder (MDD) and anxiety symptoms [5] - NeuroStar has delivered over 6.4 million treatments, establishing itself as the leading transcranial magnetic stimulation (TMS) treatment for MDD in adults [5] Product Details - NeuroStar is indicated for treating depressive episodes and reducing anxiety symptoms in adults who have not responded satisfactorily to previous antidepressant medications [5] - The treatment is also FDA-cleared as an adjunct for adults with obsessive-compulsive disorder and for adolescents aged 15-21 with MDD [5] - The company is dedicated to transforming lives through exceptional treatment outcomes [5]

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 ...