Neuronetics(STIM) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 revenue reached $18.5 million, a 4% increase compared to $17.9 million in the third quarter of 2023[2] - U.S. NeuroStar Advanced Therapy system revenue was $4.1 million, reflecting a 14% increase from $3.6 million in the same quarter last year[4] - Gross margin improved to 75.6%, up approximately 980 basis points from 65.8% in the third quarter of 2023[6] - Revenues for the three months ended September 30, 2024, increased to $18,530,000, up from $17,884,000 in the same period last year, representing a growth of 3.6%[18] - Gross profit for the nine months ended September 30, 2024, was $39,268,000, compared to $35,934,000 for the same period in 2023, reflecting an increase of 9.5%[18] Operating Expenses - Total operating expenses for the third quarter of 2024 were $21.7 million, a 5% increase from $20.6 million in the same period last year[6] - Operating expenses totaled $21,729,000 for the three months ended September 30, 2024, compared to $20,635,000 in the prior year, an increase of 5.3%[18] - Research and development expenses for the three months ended September 30, 2024, were $2,416,000, compared to $2,155,000 in the same period last year, an increase of 12.1%[18] Net Loss - Net loss for the third quarter of 2024 was $(13.3) million, or $(0.44) per share, compared to $(9.4) million, or $(0.33) per share, in the third quarter of 2023[7] - Net loss for the three months ended September 30, 2024, was $(13,341,000), compared to $(9,391,000) for the same period last year, indicating a decline of 42.5%[18] Cash Flow and Assets - Cash and cash equivalents decreased to $20,867,000 as of September 30, 2024, down from $59,677,000 at the end of 2023, a decline of 65%[19] - Total assets decreased to $74,117,000 as of September 30, 2024, from $115,831,000 at the end of 2023, a reduction of 36%[19] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(22,401,000), compared to $(34,171,000) for the same period in 2023, showing an improvement of 34.5%[20] Debt and EBITDA - Long-term debt decreased to $46,002,000 as of September 30, 2024, from $59,283,000 at the end of 2023, a reduction of 22.4%[19] - EBITDA for the nine months ended September 30, 2024, was $(25,891,000), compared to $(19,729,000) for the same period last year, indicating a worsening of 31.1%[22] Future Projections - The company expects total worldwide revenue for the fourth quarter of 2024 to be between $19.0 million and $20.0 million[12] - For the full year 2024, total worldwide revenue is projected to be between $71.0 million and $72.0 million[13] - The company aims to achieve cash flow breakeven by the second quarter of 2025 following the Greenbrook acquisition[10] Strategic Developments - Neuronetics stockholders approved the acquisition of Greenbrook TMS, which is expected to enhance access to mental health solutions and create financial benefits[9] - NeuroStar's efficacy in treating adolescent depression was highlighted, showing response and remission rates of 78% and 48% respectively[11]