Neuronetics(US:STIM)2025-05-06 12:30Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $32 million, an increase of 84% compared to $17.4 million in Q1 2024, primarily driven by the Greenbrook acquisition [6][22] - Gross margin decreased to 49% from 75% in the prior year quarter, mainly due to the inclusion of Greenbrook's lower-margin clinic business [23] - Operating expenses increased to $26.8 million, a 35% rise from $19.9 million in Q1 2024, largely due to Greenbrook's operating expenses [23] - Net loss for the quarter was $12.7 million, or $0.21 per share, compared to a net loss of $7.9 million, or $0.27 per share, in the prior year [24] - EBITDA was negative $10.1 million, worsening from negative $6.3 million in the prior year [24] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $2.8 million with 31 systems shipped [6][22] - US treatment session revenue was $9.6 million, a decrease of 26% year-over-year due to the elimination of Greenbrook treatment session revenue [22] - US clinic revenue from Greenbrook was $18.7 million for the quarter, reflecting strong performance [22] Market Data and Key Metrics Changes - Greenbrook's total clinic revenue was approximately $196,000 in Q1 2025, a 41% increase from approximately $139,000 in Q1 2024 [12] - NeuroStar TMS revenue at Greenbrook increased by 8% year-over-year [12] Company Strategy and Development Direction - The company is focused on two strategic priorities: executing the Greenbrook integration and growth strategy, and scaling the Better Meat Provider (BMP) program [7][14] - Key initiatives include optimizing Regional Account Managers, rolling out SPRAVATO in more clinics, and standardizing operations across the Greenbrook network [10][11] - The BMP program is gaining momentum, with over 385 active sites and expectations for continued growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by Q3 2025, supported by revenue growth initiatives and operational improvements [13][32] - The macro environment is expected to have a negligible impact on the business, with manageable tariff effects [27] - The company is committed to expanding access to NeuroStar TMS treatment and improving financial performance [20][30] Other Important Information - The company has identified $22.5 million of expected annualized synergies from the Greenbrook acquisition, with 95% realized by the end of 2024 [13] - A successful public offering in February raised $18.9 million in net proceeds, strengthening the company's capital position [25] Q&A Session Summary Question: Can you provide insights on BMP sites and their growth? - Management noted a natural dip in the funnel due to an influx of new accounts entering the BMP program, expecting to build the pipeline back up [36][37] Question: What drives utilization at BMP sites? - BMP sites are the focus of marketing efforts, with significant progress in driving awareness and education among patients [40][42] Question: Can you break down the revenue guidance for Greenbrook and NeuroStar? - The guidance remains at $65 million to $70 million for Neuronetics and $80 million to $85 million for Greenbrook [61] Question: What is the expected G&A spend going forward? - G&A expenses in Q1 were higher due to pulling in budgeted expenses to improve vendor relations, but no significant increases are expected for the remainder of 2025 [54][56] Question: What is the impact of SPRAVATO buy and bill transition on cash flow? - Higher SPRAVATO buy and bill expenses were incurred in Q1, but management is working to secure a credit line to manage cash flow effectively [70][72]