Neuronetics(US:STIM)2021-11-09 19:31Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $13.8 million, an increase of 11% compared to $12.4 million in Q3 2020 [19] - US revenue increased by 10%, while international revenue rose by 24% [19] - Gross margin decreased to 77.2% from 78.7% in the prior year, primarily due to increased supply chain costs [20] - Net loss was $8.2 million or $0.31 per share, compared to a net loss of $3.4 million or $0.18 per share in 2020 [20] - EBITDA was negative $6.9 million, worsening from negative $2.2 million in 2020 [20] Business Line Data and Key Metrics Changes - US NeuroStar Advanced Therapy System revenue was $2.6 million, up 3% from the prior year [19] - US treatment session revenue increased by 13% to $10.3 million from $9.1 million in the previous year [19] - Revenue per active site was approximately $11,100, compared to $10,200 in the prior year [20] Market Data and Key Metrics Changes - The company sold 40 systems in the quarter, up from 39 in the prior year [19] - The expansion into new accounts was slower than expected due to a longer sales cycle [9][10] Company Strategy and Development Direction - The company is focusing on expanding relationships with national accounts and has recently signed exclusive agreements with Zion Healing and River Region Psychiatry [12][13] - The company aims to drive awareness and adoption of NeuroStar Advanced Therapy through marketing initiatives and partnerships [14][26] - The company is optimistic about future growth opportunities as the demand for non-drug alternatives for depression treatment rises [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that revenue performance was below expectations but emphasized progress on strategic initiatives [18] - The company expects continued COVID-related challenges and seasonality to impact new patient starts during the holidays [22] - Management is encouraged by ongoing discussions with the FDA regarding potential label expansion [17][27] Other Important Information - The company incurred approximately $1.9 million in non-cash stock-based compensation expenses during the quarter [20] - Cash and cash equivalents as of September 30, 2021, were $99.4 million [21] Q&A Session Summary Question: How quickly can fundraising translate to new clinic openings and patient starts? - Management indicated that it typically takes about three months to get a clinic up and running [32] Question: What are the key metrics for Q4 guidance? - Management discussed the impact of a new financing program and anticipated seasonality effects on treatment sessions [36] Question: What revenue contribution can be expected from new partnerships? - Management noted that these partnerships could contribute significantly, with expectations of growth in revenue from national accounts [39] Question: What is the expected sales recovery for 2022? - Management expressed optimism about returning to 2019 levels for treatment session revenue and capital sales [44] Question: What is the nature of the new contracts signed? - The new contracts with Zion and River Region Psychiatry are based on a per-click model, moving away from fixed pricing [51] Question: What is the resistance to getting identified patients into treatment? - Management acknowledged the challenges in the patient onboarding process but expressed optimism about the effectiveness of their new screening tool [54]