Financial Data and Key Metrics Changes - Q1 2021 revenue was $2.2 million, representing a 19% sequential growth from Q4 2020 and approximately flat revenue compared to Q1 2020 [6] - Gross profit was $1.6 million with a margin rate of 73.3%, an improvement of 190 basis points from the previous year [7] - Net loss for the quarter was approximately $60,000, significantly improved from a net loss of $657,000 in Q1 of the previous year [9] Business Line Data and Key Metrics Changes - DPNCheck was the lead revenue generator, with domestic Medicare Advantage sales increasing both sequentially and year-on-year [7] - ADVANCE sales also saw sequential and year-on-year growth due to higher volume and improved pricing [7] - Quell maintained a positive operating margin, with 60% of revenue coming from reusable components [32] Market Data and Key Metrics Changes - The Medicare Advantage market is growing at nearly 10% annually, providing a favorable environment for DPNCheck [21] - The global fibromyalgia treatment market is several billion dollars, with the U.S. representing a significant portion [15] Company Strategy and Development Direction - The company’s strategy focuses on R&D investment in DPNCheck and Quell technologies, transitioning to profitability, and establishing consistent top-line growth [10] - Upcoming product launches include a second-generation DPNCheck and a prescription treatment for fibromyalgia based on Quell technology, expected to launch by the end of 2022 [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the growth of the DPNCheck business and regulatory timelines for new products, indicating that the path to profitability may not be linear [20] - The company anticipates continued progress towards profitability in 2021, with a potential crossover in 2022 [19] Other Important Information - Operating expenses totaled $1.6 million, reduced by 26% from the previous year, aided by a one-time credit of $450,000 [8] - The company ended the quarter with $5.1 million in cash, sufficient to fund operations well into Q2 of the following year [9] Q&A Session Summary Question: Comment on management taking salary in stock - Management appreciated the support for the company and shareholders [27] Question: Revenue breakdown between DPN and Quell - Management indicated that DPNCheck is the dominant revenue source, while Quell operates at a lower level but is still profitable [31] Question: Revenue from reusable components in Quell - Approximately 60% of Quell's revenue comes from reusable components [32] Question: Opportunities for Quell in acute pain management - Management stated that while Quell technology could have utility in acute settings, the focus remains on chronic conditions [36] Question: Driving greater persistence with consumables - Management mentioned ongoing programs to enhance user engagement and retention through the mobile app [42] Question: Long-term benefits of Quell usage - Management noted that it typically takes two to three weeks for Quell to show effects for chronic pain conditions [48]
NeuroMetrix(NURO) - 2021 Q1 - Earnings Call Transcript