electroCore(US:ECOR)2024-08-10 08:27Financial Data and Key Metrics Changes - The company reported record revenue of $6.1 million for Q2 2024, a 73% increase compared to $3.6 million in Q2 2023, reflecting a 69% five-year compound annual growth rate [6][16] - Gross margins improved to 86% in Q2 2024 from 84% in Q2 2023, with a gross profit increase of $2.3 million [16][17] - The net loss for Q2 2024 was $2.7 million, significantly reduced from a net loss of $4.9 million in Q2 2023 [17][18] - Cash used from operations was approximately $1.8 million for the quarter, with cash and equivalents totaling about $14.5 million as of June 30, 2024 [23][20] Business Line Data and Key Metrics Changes - The prescription gammaCore therapy sales in the VA channel grew 120% to $4.6 million in Q2 2024 from $2.1 million in Q2 2023 [8][9] - Truvaga sales reached approximately $572,000 in Q2 2024, up from $290,000 in Q2 2023, indicating strong market acceptance [9][10] - TAC-STIM sales were $55,000 in Q2 2024, down from $311,000 in the same period last year, attributed to anticipation of the new handset launch [12][33] Market Data and Key Metrics Changes - Revenue from channels outside the U.S. increased by 9% to $464,000 in Q2 2024, primarily driven by prescription gammaCore sales in the UK [14] - The VA hospital system remains the largest revenue channel, with approximately 600,000 patients treated for headaches [9] Company Strategy and Development Direction - The company is focused on expanding its presence in the VA hospital system and developing clinical champions within managed care systems [32][37] - Plans to establish additional indications for prescription gammaCore to treat PTSD and opioid use disorder are underway [20][34] - The launch of Truvaga Plus has been positively received, with expectations for further product offerings and channels to enhance customer lifetime value [19][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow early next year, supported by the current financial resources [20][21] - The company anticipates that TAC-STIM revenue will increase in the latter half of 2024 as active-duty units evaluate and purchase in bulk [19][12] - There is optimism regarding the growth potential of the Truvaga brand as a direct-to-consumer wellness product [19][10] Other Important Information - The company raised approximately $9 million through a registered direct offering and private placements in June 2024 [20][18] - The VA hospital system's gammaCore therapy is free for patients covered by veterans administration benefits, representing about 9 million covered lives [8] Q&A Session Summary Question: Current shares outstanding - The company has 4.6 million shares outstanding, with an average of 7.05 million used for the quarter [21][22] Question: Cash loss for the quarter - Cash used from operations was about a little under $1.8 million [23] Question: Expectations for TAC-STIM sales - Sales are expected to be stronger in the back half of the year, with a large commitment for delivery in October [24] Question: Growth expectations in the UK and other territories - The UK is expected to grow in the mid-single digits, while other geographies are more of a 2025 story [25] Question: Update on commercial payers - The focus is on developing clinical champions within the Joerns managed care system before directing resources to other national payers [32] Question: Effectiveness of vagus nerve stimulation for language learning - The trial was conducted with gammaCore handsets, and results could be inferred for TAC-STIM and Truvaga [38] Question: Updated VA DoD facility count - The current count is 160 facilities [39] Question: Comments on new indications or studies - The company is supportive of the research interest in new indications, which could lead to future opportunities [40]