Brainsway(US:BWAY)2021-03-25 17:54Financial Data and Key Metrics Changes - BrainsWay achieved record quarterly revenues of $7.1 million in Q4 2020, a 17% increase from Q3 2020 and a 12% increase from Q4 2019 [9][29] - Full year 2020 revenue was $22.1 million, down 5% compared to 2019, primarily due to the pandemic's impact on customer operations [29] - Gross profit for Q4 2020 was $5.5 million, with a gross margin of 78%, compared to 77% in Q4 2019 [30] - The company reported a net loss of $267,000 in Q4 2020, an improvement from a net loss of $1.7 million in Q4 2019 [33] Business Line Data and Key Metrics Changes - The install base of Deep TMS systems increased to 629 by the end of 2020, reflecting a 19% increase from the end of 2019 [30] - Recurring revenue for Q4 2020 was $3.4 million, consistent with Q4 2019 [29] - The company plans to expand its sales force from 13 to 18 territories, a nearly 40% increase, to enhance market penetration [20] Market Data and Key Metrics Changes - Over 60 commercial insurers and all seven MACs provided nationwide Medicare coverage for Deep TMS for depression by the end of 2020, covering over 275 million lives [19] - The pandemic has led to an increase in depression and OCD trends, with one in three adults affected by pandemic-related anxiety [12][13] Company Strategy and Development Direction - The company intends to utilize proceeds from a recent financing to expand its sales force and invest in commercialization and marketing initiatives [10] - BrainsWay is focused on securing reimbursement for OCD treatments and expanding its digital marketing strategy [15][23] - The introduction of Deep TMS for smoking addiction represents a new commercial offering, with initial treatments already underway [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for steady business progression in 2021, anticipating better performance in the second half of the year [12][37] - The company is monitoring the ongoing impact of the pandemic on operations and expects to see increased patient treatment volumes as conditions stabilize [11][12] Other Important Information - The company has a strong balance sheet with cash and equivalents of $17.2 million as of December 31, 2020, not including $41.9 million in net proceeds from a follow-on offering closed in March 2021 [34] - BrainsWay's Deep TMS system has been the subject of 32 completed randomized control clinical trials, more than any other company in the field [26] Q&A Session Summary Question: Can you comment on first half trends? - Management indicated that first half trends are similar to Q4 2020, with expectations for continued progression as COVID-19 conditions improve [37] Question: How many systems sold in Q4 went to existing users versus new customers? - Approximately 40% of the 36 systems sold went to existing customers, with the remaining 60% to new customers [39] Question: What is the confidence level regarding OCD reimbursement? - Management expressed improved confidence due to positive meetings with payers and the complexity of OCD treatment options [40] Question: What are the expectations for operating expenses in 2021? - Operating expenses are expected to increase, particularly in sales and marketing, but not dramatically compared to 2020 [43] Question: Can you provide insights on lease versus purchase trends? - The company expects lease versus purchase trends to remain stable, with a preference for leasing among customers [62] Question: What is the outlook for the smoking cessation program? - The rollout of the smoking cessation program is expected to be gradual, with a focus on data collection and market understanding [75] Question: What are the plans for new indications? - Management indicated plans to launch new studies for potential indications later in the year, including addiction and neurological conditions [77]