Brainsway(US:BWAY)2019-08-26 17:45Financial Data and Key Metrics Changes - The company reported record revenue of $5.7 million for Q2 2019, a robust increase of 53% compared to Q2 2018 [10][24] - Recurring revenue increased by 43% year-over-year, accounting for over 57% of total revenues [10][24] - Gross profit for Q2 2019 was $4.3 million, with a gross margin of 76%, slightly down from 77% in Q2 2018 [26] Business Line Data and Key Metrics Changes - The company installed 40 Deep TMS systems during the quarter and shipped 30 OCD coils, totaling 115 OCD coils shipped since receiving FDA marketing clearance [9][25] - The active installed base increased to 456 Deep TMS systems, reflecting a growth of 40 systems from the previous quarter [25] Market Data and Key Metrics Changes - There are approximately 16 million adults in the U.S. suffering from Major Depressive Disorder (MDD), with over 3 million not achieving remission after multiple antidepressant treatments [7] - The company estimates around 400,000 adults with Obsessive-Compulsive Disorder (OCD) are treatment-resistant and seeking alternatives [8] Company Strategy and Development Direction - The company aims to accelerate growth by expanding its sales force and enhancing marketing activities globally [12] - Plans to build clinical evidence for Deep TMS through key publications and studies are underway, with significant results published in reputable journals [13][15] - The company is expanding into additional territories, including exclusive distribution agreements in Taiwan and the Philippines, and has received regulatory clearance in Japan [17] Management's Comments on Operating Environment and Future Outlook - Management expressed strong confidence in business growth and highlighted the importance of insurance coverage for OCD therapy as a key growth driver [10][36] - The company is optimistic about the potential for OCD treatment and is actively working on reimbursement processes [36] Other Important Information - The company completed a successful NASDAQ IPO with gross proceeds of over $30 million [8] - Total operating expenses for Q2 2019 were $7 million, up from $3.9 million in Q2 2018, primarily due to investments in growth [29] Q&A Session Summary Question: Expectations for revenue in the second half - Management refrained from providing specific revenue guidance but noted the visibility from lease agreements and growth in additional territories [34][35] Question: Utilization of OCD systems - The company indicated that initial revenue from OCD systems is limited, with significant growth expected upon receiving insurance reimbursements [36] Question: Transition after the departure of the Head of Sales - Management assured that a strong team is in place to handle the transition smoothly and plans to expand the sales team [37] Question: Details on OCD coil sales - Approximately 50% of the 30 additional OCD coils sold were to new customers, with reimbursement being a major factor for clinics not ordering [39] Question: Features of the new stimulator - The new stimulator has been launched in the U.S. and is expected to enhance technical capabilities, with plans for further features linked to EEG [40] Question: Impact of Japan on revenue - Management does not expect a practical revenue impact from Japan in 2019, with a launch anticipated towards the end of the year [50]