Neuronetics(US:STIM)2025-03-04 14:52Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $22.5 million, an increase of 11% compared to $20.3 million in Q4 2023 [22][8] - U.S. NeuroStar Advanced Therapy System revenue was $3.8 million with 46 systems shipped [22][23] - U.S. treatment session revenue decreased by 14% year-over-year to $12.9 million, primarily due to the removal of Greenbrook treatment session revenues [23] - Gross margin was 66.2%, down from 77.6% in the prior year, primarily due to the inclusion of Greenbrook Clinics business [24] - Operating expenses increased by 28% to $25.8 million compared to $20.2 million in Q4 2023 [24] - Net loss for Q4 was $12.1 million or $0.33 per share, compared to a net loss of $5.4 million or $0.19 per share in the prior year [25] - EBITDA was negative $10.5 million, including approximately $10.6 million in non-recurring expenses related to the Greenbrook acquisition [25] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $3.8 million, with 46 systems shipped [22][23] - U.S. clinic revenue, representing Greenbrook's revenues post-acquisition, was $4.4 million [23] Market Data and Key Metrics Changes - The company received FDA clearance for the NeuroStar system to treat adolescents aged 15 to 21, expanding the total addressable market for major depressive disorder [18] - There was an 18% increase in customer sites treating adolescent patients, now including more than half of the customer base [19] Company Strategy and Development Direction - The company aims to rapidly scale the Better Me Provider Program across its customer base, targeting over 500 sites by year-end 2025 [34][32] - The acquisition of Greenbrook TMS is seen as a transformative step, creating a leading TMS supplier and provider in the U.S. [14][15] - The company has identified significant cost synergies, capturing over 90% of the identified $22 million in annualized cost synergies by the end of 2024 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by Q3 2025, supported by enhanced scale and operational efficiencies [41] - The company anticipates full-year revenue in the range of $145 million to $155 million for 2025, with a focus on improving utilization and expanding the SPRAVATO rollout [29][30] Other Important Information - The company raised $18.9 million in capital to support its growth trajectory [10] - The Better Me Provider Program has shown that practices implementing its standards treat three times more patients per site per quarter compared to those not in the program [13] Q&A Session Summary Question: Status of Greenbrook integration and BMP implementation - Management indicated ongoing training and implementation of BMP standards across clinics, with changes expected to continue throughout the year [46] Question: Guidance on revenue and operating expenses - The revenue guidance of $145 million to $155 million is based on contributions from both Neuronetics and Greenbrook, with a focus on improving utilization and expanding SPRAVATO [51][53] Question: Margin profile and improvement opportunities - Management acknowledged opportunities for margin improvement, particularly by eliminating underperforming clinics and optimizing operations [62] Question: SPRAVATO rollout and capital requirements - The capital outlay for SPRAVATO rollout is minimal, with inventory commitments potentially reaching $5 million [84] Question: Current productivity levels and future expectations - Current average patient treatments per day at Greenbrook are about four, with expectations to increase to five or six by the end of 2025 [88]