Stereotaxis(US:STXS)2025-08-07 21:30Financial Data and Key Metrics Changes - Revenue for Q2 2025 totaled $8.8 million, a growth of 95% from $4.5 million in Q2 2024 and an 18% sequential growth compared to $7.5 million in Q1 2025 [15][16] - System revenue for Q2 was $3 million, while recurring revenue was $5.8 million, compared to $200,000 and $4.3 million in the prior year's second quarter [15][16] - Gross margin for Q2 2025 was 52% of revenue, with recurring revenue gross margin at 68% and system gross margin at 22% [17] - Operating loss and net loss for Q2 2025 were $4 million and $3.8 million, respectively, compared to $6 million and $5.8 million in the previous year [18] Business Line Data and Key Metrics Changes - The Genesis X system was successfully transferred to manufacturing, with the first commercial system expected to be installed in Europe [6][14] - The MAGIC ablation catheter contributed approximately $200,000 in revenue from initial European customers during Q2 2025, with usage at about 30% of EU accounts [7][10] - The FDA clearance of the MAGIC Sweep high-density mapping catheter was a significant milestone, expected to enhance robotic utilization and disposable revenue per procedure [9][10] Market Data and Key Metrics Changes - The company anticipates a gradual increase in the utilization of MAGIC catheters across various procedures, with a broad label for ablation in all four chambers of the heart [35] - The company expects to launch new technologies with a focus on accelerating growth while improving margins and achieving profitability [20] Company Strategy and Development Direction - The innovation strategy is based on four pillars: making robots widely available, building an ecosystem of catheters, developing interventional devices, and establishing a digital backbone [4] - The transition from a single-application robot to a platform for endovascular surgery is expected to significantly increase the total addressable market [12] - The company plans to gradually shift to a model of having one clinical representative per hospital to enhance support and utilization [28][30] Management's Comments on Operating Environment and Future Outlook - Management reiterated revenue guidance of double-digit growth for the full year 2025, with expectations of system revenue fluctuating between $2 million to $3 million per quarter [20] - The company is preparing for a full launch of Genesis X and expects to see significant growth in capital sales next year [30] - Management expressed confidence in achieving regulatory approvals and the collaborative nature of interactions with the FDA [43] Other Important Information - The company had cash and cash equivalents of $7 million as of June 30, 2025, with no debt, and announced a registered direct financing for the sale of $12.5 million in shares [18][19] - Following the financing, the company expects to have $18.8 million in cash, which will support the acceleration of its innovation strategy [19] Q&A Session Summary Question: Discussion on financing and commercial strategy - Management indicated plans to build out the sales force to support new product launches, with a current commercial team of about 40 people [26][28] Question: Progress of MAGIC RF catheter in Europe - Approximately 30% of European accounts have started using MAGIC, with usage across a broad range of procedures [35] Question: FDA interactions regarding MAGIC - Management described ongoing collaborative interactions with the FDA, with expectations for approval in the second half of the year [43]