electroCore(ECOR) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, up 57% from$ 16 million in 2023 [35] - Fourth quarter revenue was $7 million, marking a 36% increase over the same quarter last year [9] - Full year gross margins improved to 85% from 83% in the previous year [10] - Net loss for 2024 narrowed by 37% to$ 11.9 million compared to $18.8 million in 2023 [38] - Cash, cash equivalents, and marketable securities totaled approximately$ 12.2 million at year-end 2024, up from $10.6 million in 2023 [39] Business Line Data and Key Metrics Changes - Sales in the VA channel grew 85% to$ 17.8 million in 2024 from $9.6 million in 2023 [14] - Truvaga net sales reached$ 2.8 million in 2024, a 174% increase over 2023 [16] - TAC-STIM sales were $1.2 million for the full year, down from$ 1.7 million in the previous year [20] - U.S. prescription gammaCore channel recorded revenue of $1.5 million, down 15% from 2023 [22] Market Data and Key Metrics Changes - Approximately 30 million covered lives in the U.S. for the prescription headache business [12] - Revenue from channels outside the U.S. was flat at$ 1.9 million for 2024 [24] - The VA Hospital System remains the largest customer, with 170 facilities purchasing gammaCore products [15] Company Strategy and Development Direction - The company aims to become a leader in the bioelectronic health and wellness sector through acquisitions like NeuroMetrix [25] - Plans to leverage existing sales channels for new products, including Quell for fibromyalgia and Sparrow for opioid withdrawal [28][32] - Focus on expanding Truvaga's market presence through e-commerce and partnerships [49] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term prospects, citing growth in prescription products and wellness offerings [42] - The company is aware of macroeconomic disruptions affecting VA hospital customers but has not seen direct impacts on business cadence [46] - Future growth is expected from prescription gammaCore sales and direct-to-consumer initiatives [118] Other Important Information - The company plans to maintain discipline around operating expenses while investing in growth [55] - The acquisition of NeuroMetrix is expected to close in Q2 2025, enhancing the product portfolio [26] - The company is exploring international expansion for Truvaga products [125] Q&A Session Summary Question: Plans for selling the Quell product post-acquisition - The company plans to integrate Quell into existing sales channels and provide training to the sales team after the acquisition closes [62][64] Question: Update on Joerns and its growth - The company acknowledges slower traction with Joerns but is seeing early signs of growth with more prescribers [80] Question: Comparison of Kaiser channel to VA system - The Kaiser channel is more challenging to penetrate but once established, it is expected to be a sticky business [89] Question: Future growth opportunities - The company sees potential in prescription gammaCore sales, direct-to-consumer growth, and new product acquisitions [118] Question: Impact of VA personnel reductions - No material impact observed yet, but the situation is being monitored closely [126] Question: Confidence in achieving mid-80s gross margin - The company expects to maintain mid-80s gross margins in 2025, primarily from existing products [129] Question: Plans for Truvaga sales growth - The company is focusing on omnichannel distribution, including e-commerce and influencer marketing [146]