Neuronetics(US:STIM)2025-08-05 13:30Financial Data and Key Metrics Changes - Total revenue for the second quarter was $38.1 million, an 18% year-over-year increase on an adjusted pro forma basis [7][25] - Revenue from the NeuroStar business was $15.1 million, with U.S. treatment session revenue increasing by 13% on a pro forma basis [7][27] - Gross margin decreased to 46.6% compared to 74% in the prior year quarter, primarily due to the inclusion of Green Brook's lower-margin clinic business [28] - Net loss for the quarter was $9.8 million, or $0.15 per share, compared to a net loss of $9.8 million, or $0.33 per share, in the prior year quarter [29] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $3.5 million with 41 systems shipped, demonstrating a strong average selling price [27] - U.S. clinic revenue reached $23 million, marking the strongest quarterly performance for Green Brook [28] - The Better Me Provider (BMP) program has 395 active sites, treating three times more patients per site compared to non-BMP practices [13][14] Market Data and Key Metrics Changes - The company has seen a 25% growth in adolescent new patient starts in 2025 compared to 2024, driven by increased insurance coverage [20] - The publication of clinical data in a reputable journal highlighted the effectiveness of the NeuroStar TMS system in adolescents, with nearly 70% experiencing clinically meaningful improvement [21] Company Strategy and Development Direction - The company is focusing on three strategic priorities: executing the Green Brook growth strategy, scaling the BMP program, and improving operational efficiencies [8][9] - The Green Brook growth strategy has exceeded expectations, with improved patient conversion rates through enhanced patient connection capabilities [10] - The company is taking a thoughtful approach to expanding the buy and bill model for SPRAVATO, focusing on opportunities that deliver good margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by the end of 2025, supported by operational improvements and strategic initiatives [35] - The integration of Neuronetics and Green Brook is creating significant value, positioning the company for sustainable growth and profitability [36] Other Important Information - Cash used in operations for the second quarter was $3.5 million, better than the previously guided target of under $5 million [31] - The company has received additional funding under its existing debt agreement, enhancing financial flexibility [30] Q&A Session Summary Question: Dynamics of traditional NeuroStar business vs. Green Brook - Management indicated that the shift in strategy towards provider connections is expected to improve conversion rates over time, despite a slower growth in traditional NeuroStar business [40][42] Question: Impact of marketing strategy on long-term spending - The new strategy is anticipated to make marketing dollars more efficient, potentially lowering overall marketing spend while still requiring some investment in educational efforts [43][44] Question: Resubmitted claims and reimbursement timing - Management is focused on improving revenue cycle management and expects to see a tailwind from catching up on aged claims while enhancing the efficiency of new claims [46][48] Question: Clinical sales per site and long-term expectations - Management did not provide a specific target for clinical sales per site but indicated that revenue trends and site performance would continue to improve [53][55] Question: Marketing strategy for adolescent patients - The company is targeting providers who care for adolescent patients through the Provider Connection program, which has shown positive results in driving awareness and adoption [59]