Neuronetics Provides Business Update and Issues 2025 Guidance

Core Insights - Neuronetics, Inc. announced preliminary fourth quarter and full year 2024 revenue, reporting $22.1 million and $74.5 million respectively, reflecting both standalone performance and combined performance with Greenbrook TMS [2][6] - The company expects a pro forma year-over-year revenue growth of 12% to 19% for full year 2025, alongside anticipated annualized cost synergies exceeding $22 million [6][13] - Neuronetics aims to achieve cash flow breakeven by the third quarter of 2025, with reduced cash burn expected in the first half of 2025 [8][6] Financial Performance - Preliminary unaudited revenue for 4Q 2024 was $22.1 million, while full year revenue was $74.5 million [2] - Adjusted gross pro forma revenue for 4Q 2024 was $19.5 million, and for FY 2024 it was $71.9 million [5] - The company reported adjusted net pro forma revenue of $17.1 million for 4Q 2024 and $62.0 million for FY 2024 [5] Acquisition Impact - The acquisition of Greenbrook TMS was completed on December 9, 2024, creating a significant combination in mental health therapy delivery [9] - The integration of Greenbrook's network of over 95 treatment clinics with Neuronetics' NeuroStar technology platform is expected to drive profitable growth and operational cost synergies [9][6] - Over 90% of the identified annual cost synergies of $22 million have already been implemented [7] Business Initiatives - Neuronetics launched the Better Me Provider program in July 2024, enhancing patient care and accessibility, with over 350 active sites and more than 125 additional sites committed to joining [10] - The company received FDA clearance for its NeuroStar Advanced Therapy as a first-line adjunct treatment for adolescents with major depressive disorder, expanding its total addressable market by approximately 35% [11] Future Outlook - For fiscal year 2025, Neuronetics anticipates total revenue between $145 million and $155 million, with a gross margin of approximately 55% [13] - Operating expenses are projected to be between $90 million and $98 million [13]