Stereotaxis(STXS) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q1 2025 totaled $7.5 million, a 9% increase from $6.9 million in Q1 2024 [20] - System revenue was $2 million, while recurring revenue was $5.5 million, compared to $2.6 million and $4.3 million in the prior year [20] - Gross margin for Q1 was 54%, with recurring revenue gross margin at 68% and system gross margin at 15% [21] - Operating loss and net loss for Q1 2025 were $5.9 million and $5.8 million, respectively, compared to $4.7 million and $4.5 million in the previous year [22] Business Line Data and Key Metrics Changes - MAPIT sales exceeded $1 million in Q1, with a 30% sequential growth from Q4 [5] - The MAGIC catheter received European approval, with initial sales expected to generate a couple hundred thousand dollars this quarter, projected to reach approximately $1 million per quarter by the end of the year [8][24] - Genesis X had its first purchase order in Q1, with expectations for steady orders in the coming quarters [11][12] Market Data and Key Metrics Changes - The U.S. market remains challenging due to the lack of MAGIC approval, impacting capital equipment purchases [33] - In Europe, there is a more robust pipeline for both Genesis and Genesis X, with ongoing interest from hospitals [36] - The Chinese market presents uncertainty due to macroeconomic conditions, although there is potential upside following recent regulatory approval [25] Company Strategy and Development Direction - The company is focused on growing recurring revenue through its MAPIT portfolio and expanding the adoption of the MAGIC catheter and Genesis X [4][7] - A comprehensive innovation strategy is in place, with multiple regulatory reviews ongoing for key products [13] - The goal is to transition into a company with a significant installed base of robotic systems, enhancing the overall market presence [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, with expectations for double-digit revenue growth in 2025 [24] - The company anticipates reduced cash use in 2025 compared to 2024, supported by growing recurring revenue [26] - Management highlighted the importance of regulatory approvals for future growth, particularly for MAGIC and Genesis X [15][16] Other Important Information - The company is working on enhancing compatibility of Genesis X with various x-ray systems and preparing for a full launch in the U.S. and Europe [11] - There are ongoing efforts to finalize regulatory submissions for additional products, including the Synchrony Cath Lab technology [18] Q&A Session Summary Question: Can you provide insights on the backlog for Genesis and Genesis X systems? - Management indicated that the capital equipment environment is challenging in the U.S. due to pending approvals, but there is ongoing interest from hospitals [30][33] Question: What feedback has been received from European customers using the MAGIC catheter? - The reception has been positive, with usage across a spectrum of procedures, and management expects scaling to a $1 million run rate by the end of the year [40][42] Question: How are ordering patterns for the MAGIC catheter among active users? - Initial orders typically consist of small quantities, with hospitals gradually increasing usage as they gain confidence [46][48] Question: What is the status of the MAGIC submission process with the FDA? - The FDA is actively reviewing the submission, and management is addressing detailed questions while compiling clinical data from ongoing studies [50][52] Question: What are the plans for financing options for Genesis X systems? - Discussions are ongoing regarding various financing models, including leasing and placement, to facilitate adoption once the product is approved [60][62]