NeuroPace(US:NPCE)2025-03-05 00:45Financial Data and Key Metrics Changes - Total revenue for 2024 increased by 22% to $79.9 million compared to $65.4 million in 2023, with record quarterly revenue reported in Q4 [10][31] - Q4 2024 revenue was $21.5 million, representing a growth of 19% compared to $18 million in Q4 2023 [30] - Gross margins for Q4 2024 were 75.4%, slightly up from 75.2% in Q4 2023 [31] - Net loss for Q4 2024 was $5.3 million, an improvement from $6.2 million in Q4 2023 [34] Business Line Data and Key Metrics Changes - Revenue from sales of the RNS system grew by 27% in Q4 2024, excluding contributions from Nautilus study cases [30] - Revenue from Dixie Medical products accounted for approximately 17% of total revenue in 2024, up from 15% in 2023 [31] Market Data and Key Metrics Changes - The core market opportunity within level four comprehensive epilepsy centers is estimated at approximately $2 billion annually [12] - The Project CARE initiative showed positive early trends with increased implants and referrals contributing to revenue growth in the second half of 2024 [13] Company Strategy and Development Direction - The company’s growth strategy focuses on expanding adoption within level four comprehensive epilepsy centers, expanding service delivery through Project CARE, and expanding indications for the RNS system [11] - The company is advancing several key development programs, including studies for idiopathic generalized epilepsy and pediatric focal epilepsy [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue growth rate of over 20% annually and reaching cash flow breakeven in the next three years [41] - The company anticipates total revenue for 2025 to be in the range of $92 million to $96 million, representing a growth of approximately 15% to 20% over 2024 [37] Other Important Information - The company completed a public offering with net proceeds of approximately $69.8 million, which included a repurchase of shares from an early investor [35][26] - The company plans to release its first AI-enabled software with an AI-powered seizure classifier to enhance treatment efficiency [23] Q&A Session Summary Question: Guidance for 2025 - Management discussed factors influencing revenue guidance, including execution of the three-part strategy and expansion of Project CARE [44][45] Question: Impact of Project CARE - Management noted meaningful impacts from Project CARE, with increased referrals and implants observed in Q4 [48] Question: Capital Prioritization - Management emphasized investment in expanding adoption within level four centers and direct-to-consumer efforts as key priorities for 2025 [53][54] Question: Gross Margin Trends - Management highlighted ongoing volume increases and pricing opportunities as primary drivers for gross margin improvement [58][61] Question: Indication Expansion and Reimbursement - Management confirmed established reimbursement for current indications and plans to work with payers to expand coverage for new indications [66] Question: Revenue Cadence for 2025 - Management expects a steady progression of growth, similar to previous years, with potential acceleration in the second half of the year [70] Question: Project Care and Multiple Implants - Management confirmed seeing multiple implants from new accounts and noted viable economics for RNS outside level four centers [75][76] Question: Pediatric Indication and Service Dynamics - Management explained that pediatric treatment dynamics would be similar to adult patients, focusing on the type of epilepsy rather than age [96] Question: Manufacturing Capacity - Management stated that the company is well-prepared from a manufacturing capacity perspective [99] Question: Nautilus Study Data Presentation - Management indicated plans for a high-profile publication and presentation of Nautilus study data in the second half of 2025 [106][108]