CeriBell (CBLL) 2025 Conference May 14, 2025 01:55 PM ET Speaker0 From the Vice Analyst at Bank of America. I wanted to introduce our next speaker, Jane Chao, CEO of Cerebell, a newly public company. And so Jane, welcome, and you're going to go through a slide presentation. Speaker1 Thank you, Travis. I got this mic. Good. I don't need to if you can hear me well, I don't need to be in the mic. Right? Okay. Perfect. Well, good morning, everyone. Thank you for being here. I'm very excited to share our story. ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $18.5 million, reflecting a 41% growth compared to $13.1 million in Q4 2023 [31] - Full-year revenue totaled $65.4 million, representing a 45% growth over 2023 [33] - Gross margin for Q4 2024 was 88%, up from 85% in the prior year, while full-year gross margin was 87%, compared to 84% in 2023 [34][35] - Net loss for Q4 2024 was $12.6 million, or a loss of $0.40 per share, compared to a loss of $8.3 million, or a loss of $1.53 per share in Q4 2023 [36] Business Line Data and Key Metrics Changes - Product revenue for Q4 2024 was $14.1 million, a 41% increase from $10.0 million in Q4 2023 [32] - Subscription revenue for Q4 2024 was $4.4 million, representing a 40% increase from $3.1 million in Q4 2023 [32] - Active accounts increased to 529 as of December 31, 2024, an increase of 25 accounts during the quarter [16] Market Data and Key Metrics Changes - The company estimates there are 6,000 acute care facilities in the U.S. that could benefit from its offerings, with plans to target approximately 5,500 remaining prospective accounts [17] - The company is focused on expanding its market presence within the current $2 billion market in the U.S. for seizure detection and management in acute care settings [29] Company Strategy and Development Direction - The company aims to maintain its focus on commercial growth and expand its R&D pipeline, with a goal of becoming the standard of care for seizure management in acute care settings [22] - Plans for 2025 include expanding the account acquisition team to 55 territory managers and increasing awareness of the clinical and economic benefits of rapid EEG monitoring [21] - The company envisions expanding its product indications beyond seizure detection, including developing algorithms for delirium and stroke detection [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow breakeven and highlighted the strength of the balance sheet following a successful IPO [41] - The company anticipates total revenue for 2025 to be in the range of $81 million to $85 million, representing annual growth of 24% to 30% over 2024 [37] - Management noted that while accelerated initiatives may not drive immediate revenue, they are expected to have long-term impacts [40] Other Important Information - The company has received breakthrough device designation from the FDA for its delirium detection algorithm, with plans to submit an application later this year [25] - The transition to operating as a public company has increased stock-based compensation costs, expected to contribute approximately $15 million to operating expenses for the full year 2025 [41] Q&A Session Summary Question: Can you elaborate on the guidance for this year and the underlying assumptions? - Management indicated that guidance reflects continued investment in sales infrastructure, which is expected to accelerate growth in 2026 and beyond [46] Question: What are your thoughts on gross margin and OpEx spend in 2025? - Management noted that gross margins are expected to normalize in the mid to high 80% range due to increased tariffs and that R&D expenses are expected to increase by 40% to 60% year-over-year [54][56] Question: Can you provide updates on the stroke opportunity and the algorithm development? - Management expressed satisfaction with the progress in the stroke trial and plans to expand enrollment speed to gather more data for algorithm training [70] Question: How do you see utilization picking up with the new indications? - Management explained that the new indications will work synergistically to help doctors differentiate between various neurological conditions, enhancing overall patient care [83]