Neuronetics(STIM) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $15 million, slightly down from $15.6 million in Q4 2020 [24] - U.S. NeuroStar Advanced Therapy revenue was $2.8 million, with a sequential growth of 8% over Q3 2021 [11] - U.S. treatment session revenue reached $11.2 million, a 2% increase year-over-year and a 10% increase sequentially [12] - Gross margin improved to 76.4% from 75.8% in the prior year, driven by higher average selling prices and a higher mix of treatment session revenues [26] - Operating expenses increased to $18.4 million, up $3.9 million compared to the prior year, primarily due to new marketing initiatives and personnel costs [27] - Net loss was $7.6 million or $0.29 per share, compared to a net loss of $3.7 million or $0.19 per share in 2020 [28] - EBITDA was negative $6.3 million, worsening from negative $2.4 million in 2020 [28] Business Line Data and Key Metrics Changes - The company shipped 48 systems in Q4 2021, up from 23, 36, and 40 systems in the previous three quarters [25] - Revenue per active site was approximately $12,200, compared to $12,100 in the prior year [26] Market Data and Key Metrics Changes - The company experienced a slower start in January 2022 due to Omicron, but trends improved in February [30] - The company anticipates year-over-year growth in each quarter of 2022, with a typical seasonal pattern expected [30] Company Strategy and Development Direction - The company has focused on overhauling its commercial organization and enhancing patient education to drive awareness of NeuroStar [9][22] - Exclusive commercial partnerships were established with three leading TMS providers, expected to have a material impact in 2022 [13] - The company plans to accelerate investments in sales, marketing, and R&D to support long-term growth [31] - The company aims to achieve EBIT breakeven by 2024 through moderated operating expense growth and accelerated top-line growth [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position to execute its strategy despite challenges from the pandemic [36] - The company is focused on increasing awareness among customers and patients, optimizing its commercial organization, leveraging exclusive partnerships, and executing its clinical and regulatory strategy [37] - Management highlighted the importance of recent marketing initiatives and partnerships with influencers to drive awareness [40][41] Other Important Information - The company received 510(k) clearance for the MT Cap technology, which simplifies the motor threshold process for patients [18] - The company plans to launch a state-of-the-art training center, NeuroStar University, to educate practices on operationalizing their NeuroStar business [46] Q&A Session Summary Question: Guidance for 2022 revenue - Management provided guidance of $58 million to $62 million for 2022, with no staffing constraints impacting revenue [56][57] Question: Pipeline and indication expansion - The company expects FDA approval for OCD in Q2 2022, with other indications potentially following later [64][66] Question: Commercial strategy changes - Management discussed changes in marketing strategy to target a broader audience, including caregivers and family members [83] Question: Capital sales vs. leasing - The company is moving away from internally financing transactions and expects a decrease in leasing in 2022 [86] Question: Long-term growth outlook - Management expressed optimism about the company's strategy and investments, anticipating growth acceleration in 2023 and beyond [92][93]