ClearPoint Neuro(US:CLPT)2023-03-02 00:25Financial Data and Key Metrics Changes - ClearPoint Neuro reported total revenues of $20.6 million for the year ended December 31, 2022, representing a 26% increase from $16.3 million in 2021 [11] - Gross margin for the full year 2022 was 66%, down from 68% in 2021, primarily due to increased indirect labor costs and higher inventory reserves [28] - Net interest expense decreased to $0.1 million in 2022 from $1 million in 2021 due to the conversion of convertible debt into equity [30] Business Line Data and Key Metrics Changes - Functional neurosurgery navigation revenue increased 13% to $9.1 million in 2022 from $8.1 million in 2021 [12] - Biologics and drug delivery revenue rose 34% to $9.1 million in 2022, up from $6.8 million in 2021, driven by increased commitments from existing partners and new pharmaceutical partners [27] - Capital equipment and software revenue increased 61% to $2.3 million in 2022 compared to 2021 [28] Market Data and Key Metrics Changes - The company ended 2022 with cash, cash equivalents, and short-term investments of $37.5 million, down from $54.1 million at the end of 2021, primarily due to operating cash needs [33] - The company expects revenue in the range of $25 million to $27 million for 2023, representing growth between 21% and 31% year-over-year [58] Company Strategy and Development Direction - The company is focused on a four-pillar growth strategy, which includes biologics and drug delivery, functional neurosurgery navigation, therapy and access products, and achieving global scale [25] - The company plans to continue adding new partners in 2023, aiming to achieve more than 20% growth across all four growth pillars [25][40] - A new 20,000 square foot manufacturing and development facility in Carlsbad, California, is expected to be operational by the end of 2023, aimed at improving product flow and margin [39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging global environment but emphasized their commitment to helping patients and executing their growth strategy [6] - The company anticipates achieving operational cash breakeven by the fourth quarter of 2025 and full-year cash breakeven in 2026, contingent on maintaining patient demand and timely product launches [43] - Management noted that the cancellation and postponement rates for procedures have been elevated, currently sitting in the 25% to 28% range, compared to historical rates of 10% to 15% [82] Other Important Information - Research and development costs increased to $10.9 million in 2022 from $9.3 million in 2021, primarily due to personnel costs and regulatory fees [13] - Sales and marketing expenses rose to $9.4 million in 2022 from $7.2 million in 2021, driven by increased personnel costs and marketing activities [29] Q&A Session Summary Question: What is the status of clinical trials and their potential revenue impact? - Management indicated that several trials are expected to continue in 2023, particularly in rare childhood genetic disorders, which may require less rigorous protocols [45][46] Question: How has the initial commercial launch of the laser therapy system been received? - Feedback has been strong, with initial cases performed under clinical trial protocols in Europe showing positive results [48] Question: What are the expectations for revenue growth across different segments in 2023? - Management expects biologics and drug delivery to be the largest growth contributor, with functional neurosurgery and capital software also experiencing growth in the 15% to 20% range [74]