Neuronetics(US:STIM)2024-03-05 17:19Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was $20.3 million, a 12% increase from $18.2 million in Q4 2022, primarily driven by increased Treatment Session sales [12][36] - U.S. Treatment Session revenue reached a record $14.9 million, representing a 20% year-over-year increase [15][36] - Gross margins improved to 77.6%, up from 75.9% in the prior year, reflecting a favorable revenue mix [38] - Net loss for Q4 2023 was $5.4 million, or $0.19 per share, compared to a net loss of $8.3 million, or $0.30 per share, in the prior year [39] - EBITDA loss decreased to negative $3 million from negative $6.5 million in the prior year [40] - Cash and cash equivalents as of December 31, 2023, were $59.7 million, with positive cash flow of $1.5 million generated for the first time in company history [41] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $4.5 million, with 59 systems shipped, exceeding the plan of 45 to 50 systems per quarter [12][36] - Revenue per active site increased to approximately $13,200, compared to $11,500 in the prior year quarter [37] - Local consumable revenue saw a more than 33% year-over-year increase, contributing significantly to Treatment Session revenue growth [15] Market Data and Key Metrics Changes - The company observed a 20% increase in Treatment Session revenue, driven by strong performance in local consumable customer segments [15][36] - The Better Me Guarantee Provider Program has shown promising early results, with participating practices seeing five to six times more potential patient requests compared to pre-pilot levels [19][20] Company Strategy and Development Direction - The Better Me Guarantee Provider Program aims to establish a nationwide network of accounts to enhance patient care and responsiveness [17] - The company plans to continue expanding the Better Me Guarantee program, with additional phases launching in April and June 2024 [18][76] - The focus remains on increasing Treatment Session utilization and expanding educational initiatives like NeuroStar University [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability and predictability of capital sales moving forward, supported by successful educational initiatives [14] - The company anticipates revenue for the full year 2024 to be in the range of $78 million to $80 million, with Q1 2024 expected revenue between $16.7 million and $17.7 million [42][43] - Management is confident in achieving cash flow positivity again in Q4 2024 and maintaining a path to profitability [41][46] Other Important Information - The company received FDA clearance for the NeuroSite Coil Placement Accessory, aimed at improving treatment efficacy [31] - Regulatory changes have improved patient access to NeuroStar, reducing the required number of antidepressant medication attempts for TMS eligibility [28][29] Q&A Session Summary Question: Guidance construction and growth assumptions - Management confirmed targeting 45 to 50 systems per quarter, with the majority of growth expected from Treatment Session revenue [49][50] Question: Better Me Guaranteed Program metrics - Management indicated it is early to provide specific metrics but noted positive early signs from the program [55][56] Question: ROI assumptions for Better Me Guaranteed Program - Management stated that it is premature to include ROI in the 2024 guidance [58][59] Question: Treatment revenue mix and growth drivers - Management explained that local consumable customers represent about 70% of the installed base and are the primary focus for growth [72][73] Question: Cash flow expectations for 2025 - Management indicated that Q1 2025 is not expected to be cash flow positive, with consistent cash flow positivity anticipated by 2026 or 2027 [78] Question: Capital sales breakdown between new and existing customers - Management noted a roughly 50-50 split between new customer ads and existing users adding systems in Q4 [80][81]