Ceribell Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Ceribell (NASDAQ: CBLL) reported strong financial results for Q4 and full year 2024. Q4 revenue reached $18.5 million, up 41% year-over-year, while full-year revenue grew 45% to $65.4 million. The company maintained robust gross margins of 88% in Q4 and 87% for the full year.

Key highlights include reaching 529 total active accounts and treating over 200,000 patients. However, operating expenses increased 49% to $29.1 million in Q4, resulting in a net loss of $12.6 million ($0.40 per share). Full-year net loss was $40.5 million ($3.39 per share).

The company ended 2024 with $194.4 million in cash and cash equivalents. Looking ahead, Ceribell projects 2025 revenue between $81-85 million, representing 24-30% growth. The company also submitted a 510(k) application for its pediatric Clarity™ algorithm to the FDA.

Positive

• Revenue grew 45% YoY to $65.4M in 2024
• High gross margin of 87-88%
• Strong cash position of $194.4M
• 529 active accounts and 200,000 patients treated
• 24-30% projected revenue growth for 2025

Negative

• Net loss increased to $40.5M from $29.5M YoY
• Operating expenses grew 49% to $29.1M in Q4
• Net loss per share worsened to $3.39 from $0.40 QoQ

Insights

Financial Analyst

Ceribell's Q4 and full-year 2024 results reveal a company executing strongly on its commercial strategy while investing aggressively for future growth. The 41% year-over-year Q4 revenue growth to $18.5 million and 45% full-year growth to $65.4 million demonstrate exceptional market traction for a medical technology company at this stage.

What stands out most impressively is Ceribell's gross margin of 88% in Q4 and 87% for the full year - figures that rank among the highest in the medical device industry and more closely resemble software company economics. This margin profile suggests their EEG technology platform delivers exceptional value relative to manufacturing costs, creating substantial leverage in their business model as they scale.

The company's dual revenue streams provide stability and growth potential. Product revenue ($50.1 million, +45% YoY) likely represents their hardware sales, while subscription revenue ($15.4 million, +44% YoY) provides recurring cash flow and higher customer lifetime value. This 77%/23% product-to-subscription revenue mix bears watching, as increasing the subscription component could further enhance long-term value.

The milestone of treating over 200,000 patients indicates significant clinical adoption and data collection, which strengthens their competitive moat and supports their regulatory strategy for expanded indications.

However, investors should note several caution signals. Operating expenses grew 49% year-over-year in Q4, outpacing revenue growth and leading to widening losses. While some of this increase relates to one-time IPO expenses, the company's net loss expanded to $40.5 million for 2024, up from $29.5 million in 2023. The 2025 revenue guidance of $81-85 million implies a growth deceleration to 24-30%, down significantly from 45% in 2024.

With $194.4 million in cash and a quarterly burn rate of approximately $10-13 million, Ceribell has roughly 4-5 quarters of runway before needing to significantly improve its cash flow profile or raise additional capital, assuming current trends continue.

The 510(k) submission for their pediatric Clarity™ algorithm represents an important potential catalyst, as pediatric neurological monitoring presents a substantial market opportunity with competition. Their stated goal of "making EEG a vital sign" suggests a massive addressable market expansion beyond current applications.

For 2025, investors should monitor: 1) account growth and penetration within existing accounts, 2) regulatory progress on expanded indications, 3) improvements in operating leverage, and 4) potential strategic partnerships that could accelerate adoption.

Healthcare Technology Specialist

Ceribell's Q4 and 2024 annual results demonstrate strong commercial momentum for a technology that's fundamentally changing how neurological conditions are diagnosed and managed in acute care settings. The company's rapid-deploy EEG system represents a paradigm shift from traditional electroencephalography, which typically requires specialized technicians, complex setup, and significant interpretation time - all problematic in emergency situations where minutes matter for neurological injuries.

The milestone of treating over 200,000 patients is particularly significant for two reasons. First, it validates clinical adoption across their 529 active accounts. Second, and perhaps more valuable long-term, this creates an enormous proprietary dataset for algorithm development and validation. In neurological diagnostics, where pattern recognition is crucial, this data advantage creates a substantial competitive moat against potential market entrants.

Their FDA submission for the pediatric Clarity™ algorithm represents a strategic expansion into an underserved and technically challenging market. Pediatric patients present unique EEG patterns and interpretation challenges, while also being particularly vulnerable to seizures that may go undetected with conventional monitoring. If approved, this would likely accelerate adoption in children's hospitals and pediatric departments, opening a significant new revenue stream.

The company's dual revenue model mirrors successful healthcare technology platforms like Intuitive Surgical and Dexcom, combining upfront hardware sales ($50.1 million, +45% YoY) with recurring subscription revenue ($15.4 million, +44% YoY). The near-identical growth rates suggest consistent implementation of their full platform rather than hardware-only adoptions, which bodes well for customer retention and lifetime value.

Their exceptional gross margins of 87-88% reflect the high-value clinical decision support their technology provides relative to manufacturing costs. These margins significantly exceed typical medical device companies (usually 60-75%) and approach software economics, creating substantial operating leverage potential as they scale.

CEO Jane Chao's vision of making "EEG a vital sign" represents a fundamental expansion of the addressable market. Currently, EEG is typically used reactively for suspected seizures or encephalopathy. Positioning it as a routine vital sign would dramatically increase utilization, similar to how pulse oximetry evolved from specialized use to standard monitoring. The clinical rationale exists - undetected non-convulsive seizures occur in approximately 10-20% of critically ill patients and are associated with worse outcomes.

However, significant challenges remain. The widening operational losses ($40.5 million in 2024 vs. $29.5 million in 2023) indicate substantial ongoing investment in commercial expansion and R&D. While appropriate for their growth stage, investors should monitor the efficiency of these investments in generating new accounts and expanding within existing facilities.

The 2025 revenue guidance of $81-85 million (24-30% growth) suggests a deceleration from 2024's 45% growth rate. This could reflect either conservative guidance, market penetration challenges, or the need for new catalysts like the pediatric indication approval to maintain momentum. The technology's clinical value proposition remains compelling, but hospital budget constraints and competing priorities represent ongoing adoption hurdles.

SUNNYVALE, Calif., Feb. 25, 2025 (GLOBE NEWSWIRE) -- CeriBell, Inc. (Nasdaq: CBLL) (“Ceribell”), a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions, today reported financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 & Recent Highlights

• Reported total revenue of $18.5 million in the fourth quarter of 2024, a 41% increase compared to the same period in 2023
• Delivered total revenue of $65.4 million for the full year of 2024, a 45% increase over the prior year
• Ended the year with 529 total active accounts 
• Achieved gross margin of 88% in the fourth quarter of 2024 and 87% for the full year of 2024
• Submitted 510(k) application for pediatric Clarity™ algorithm to U.S. Food and Drug Administration
• Announced that Senior Vice President of Sales, Sean Manni, will be promoted to Chief Revenue Officer
• Achieved new milestone in treating over 200,000 patients

“2024 was a transformative year for Ceribell, as we advanced our mission to become the standard of care for seizure management while executing key strategic initiatives, including our recent initial public offering.  Our team meaningfully expanded adoption of the Ceribell System across new and existing accounts, raised awareness of seizures in the acute care setting within the medical community, and continued to cement our position as the category leader through clinical innovation and data generation,” said co-founder and CEO Jane Chao, Ph.D. “Looking to 2025, we are committed to enabling better clinical outcomes for a record number of neurology patients while advancing several strategies designed to expand our indications so that we can address the unmet needs of many more patients and achieve our goal of making EEG a vital sign.”

Fourth Quarter 2024 Financial Results
Total revenue in the fourth quarter of 2024 was $18.5 million, a 41% increase from $13.1 million in the fourth quarter of 2023. The increase was primarily driven by continued commercial traction, resulting from adoption by new accounts and continued expansion within the company’s active account base. Product revenue for the fourth quarter of 2024 was $14.1 million, representing an increase of 41% from $10.0 million in the fourth quarter of 2023. Subscription revenue for the fourth quarter of 2024 was $4.4 million, representing an increase of 40% from $3.1 million in the fourth quarter of 2023.

Gross profit in the fourth quarter of 2024 was $16.2 million, compared to $11.1 million for the fourth quarter of 2023. Gross margin for the fourth quarter of 2024 was 88%, compared to 85% for the same period in 2023.

Operating expenses in the fourth quarter of 2024 were $29.1 million, compared to $19.5 million for the fourth quarter of 2023, representing an increase of 49%. The increase in operating expenses was primarily attributable to investments in the company’s commercial organization, increased headcount to support the growth of the business, and legal, accounting, and professional service fees related to the transition to becoming a public company.   

Net loss in the fourth quarter of 2024 was $12.6 million, or $0.40 net loss per share, compared to a net loss of $8.3 million, or $1.53 net loss per share, for the same period in 2023.

Full Year 2024 Financial Results
Total revenue in the full year of 2024 was $65.4 million, a 45% increase from $45.2 million in the full year of 2023. The increase was primarily driven by continued commercial traction, resulting from adoption by new accounts and continued expansion within the company’s active account base. Product revenue for the full year of 2024 was $50.1 million, representing an increase of 45% from $34.6 million in the full year of 2023. Subscription revenue for the full year of 2024 was $15.4 million, representing an increase of 44% from $10.7 million in the full year of 2023.

Gross profit in the full year of 2024 was $56.8 million, compared to $38.2 million for the full year of 2023. Gross margin for the full year of 2024 was 87% compared to 84% for the same period in 2023.

Operating expenses in the full year of 2024 were $96.5 million, compared to $68.2 million for the full year of 2023, representing an increase of 41%. The increase in operating expenses was primarily attributable to investments in the company’s commercial organization, increased headcount to support the growth of the business, and legal, accounting, and professional service fees related to our transition to a public company.   

Net loss in the full year of 2024 was $40.5 million, or $3.39 net loss per share, compared to a net loss of $29.5 million, or $5.56 net loss per share, for the same period in 2023.

Cash and cash equivalents totaled $194.4 million as of December 31, 2024.

2025 Financial Outlook
Ceribell expects revenue for the full year 2025 to be in the range of $81 million to $85 million, representing growth of approximately 24% to 30% over the company’s prior year revenue.

Webcast and Conference Call Details
Ceribell will host a conference call today, February 25, 2025, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its fourth quarter and full year 2024 financial results. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 3782735. A live and archived webcast of the event will be available on the “Investor Relations” section of the Ceribell website at https://investors.ceribell.com/.    

Forward-Looking Statements
Except where otherwise noted, the information contained in this earnings release and the related attachments is as of February 25, 2025. We assume no obligation to update any forward-looking statements contained in this earnings release and the related attachments as a result of new information or future events or developments. This earnings release and the related attachments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, our anticipated operating and financial performance, including financial guidance and projections; business plans, strategy, goals and prospects; and expectations for our products.  Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions, and we cannot ensure that any outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they use future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning. Ceribell’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: risks related to our limited operating history and history of net losses; our ability to successfully achieve substantial market acceptance and adoption of our products; competitive pressures; our ability to adapt our manufacturing and production capacities to evolving patterns of demand, governmental actions and customer trends; the manufacturing of a substantial number of our product components and their assembly in China; product defects or complaints and related liability; the complexity, timing, expense, and outcomes of clinical studies; our ability to obtain and maintain adequate coverage and reimbursement levels for our products; our ability to comply with changing laws and regulatory requirements and resulting costs; our dependence on a limited number of suppliers; and other risks and uncertainties, including those described under the heading “Risk Factors” in our Registration Statement on Form S-1, Quarterly Report on Form 10-Q, and other reports filed with the U.S. Securities and Exchange Commission (“SEC”). These filings, when made, are available on the Investor Relations section of our website at https://investors.ceribell.com/ and on the SEC’s website at https://sec.gov/.

About CeriBell, Inc. 
Ceribell is a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions. Ceribell has developed the Ceribell System, a novel, point-of-care electroencephalography (“EEG”) platform specifically designed to address the unmet needs of patients in the acute care setting. By combining proprietary, highly portable, and rapidly deployable hardware with sophisticated artificial intelligence (“AI”)-powered algorithms, the Ceribell System enables rapid diagnosis and continuous monitoring of patients with neurological conditions. The Ceribell System is FDA-cleared (510(k)) for indicating suspected seizure activity and currently utilized in intensive care units and emergency rooms across the U.S. Ceribell is headquartered in Sunnyvale, California. For more information, please visit www.ceribell.com or follow the company on LinkedIn. 

Investor Contacts
Brian Johnston or Laine Morgan
Gilmartin Group
Investors@ceribell.com

Media Contact
Corrie Rose
Press@ceribell.com   

Ceribell, Inc.
Statements of Operations and Comprehensive Loss
(in thousands, except share and per share data)
(unaudited)
	Three months ended December 31,								Year ended December 31,
	2024				2023				2024				2023
Revenue
Product revenue	$	14,147			$	10,007			$	50,079			$	34,568
Subscription revenue		4,387				3,124				15,365				10,657
Total revenue		18,534				13,131				65,444				45,225
Cost of revenue
Product cost of goods sold		2,136				1,868				8,209				6,630
Subscription cost of revenue		160				147				485				432
Total cost of revenue		2,296				2,015				8,694				7,062
Gross profit		16,238				11,116				56,750				38,163
Operating expenses
Research and development		3,913				2,688				13,562				8,995
Sales and marketing		15,243				10,815				49,055				38,922
General and administrative		9,966				5,994				33,842				20,287
Total operating expenses		29,122				19,497				96,459				68,204
Loss from operations		(12,884	)			(8,381	)			(39,709	)			(30,041	)
Interest expense		(499	)			(513	)			(1,992	)			(2,098	)
Change in fair value of warrant liability		(1,079	)			48				(1,496	)			48
Other income, net		1,886				572				2,742				2,638
Loss, before provision for income taxes		(12,576	)			(8,274	)			(40,455	)			(29,453	)
Provision for income tax expense		—				—				—				(11	)
Net loss and comprehensive loss	$	(12,576	)		$	(8,274	)		$	(40,455	)		$	(29,464	)
Net loss per share attributable to common stockholders:
Basic and diluted		(0.40	)			(1.53	)			(3.39	)			(5.56	)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic and diluted		31,205,891				5,395,748				11,949,973				5,303,715

Ceribell, Inc.
Balance Sheets
(in thousands, except share and per share data)
(unaudited)
	December 31,				December 31,
	2024				2023
Assets
Current assets
Cash and cash equivalents	$	194,370			$	34,495
Accounts receivable, net		10,878				7,955
Inventory		6,937				5,868
Contract costs, current		1,837				1,515
Prepaid expenses and other current assets		3,250				2,130
Total current assets		217,272				51,963
Property and equipment, net		2,313				1,577
Operating lease right-of-use assets		2,132				2,160
Contract costs, long-term		1,507				1,238
Other non-current assets		2,188				1,984
Total assets	$	225,412			$	58,922
Liabilities, redeemable convertible preferred stock and stockholders’ deficit
Current liabilities
Accounts payable	$	1,143			$	732
Accrued liabilities		10,052				7,540
Contract liabilities, current		97			206
Notes payable, current		—				11,833
Operating lease liability, current		1,088			694
Other current liabilities		609			595
Total current liabilities		12,989				21,600
Long-term liabilities
Notes payable, long-term		19,558				—
Contract liabilities, long-term		30			44
Other liabilities, long-term		356			441
Operating lease liability, long-term		1,314				1,677
Total long-term liabilities		21,258				2,162
Total liabilities	$	34,247			$	23,762
Commitments and contingencies
Redeemable convertible preferred stock, $0.001 par value;
Authorized shares: none and 46,624,838 shares as of December 31, 2024 and December 31, 2023, respectively
Issued and outstanding shares: none and 17,817,643 shares as of December 31, 2024 and December 31, 2023, respectively
Aggregate liquidation preference of none and $152,590 as of December 31, 2024 and December 31, 2023, respectively		—				147,412
Stockholders’ deficit
Preferred stock, $0.001 par value;
Authorized shares: 10,000,000 and none shares as of December 31, 2024 and December 31, 2023, respectively
Issued and outstanding shares: none as of December 31, 2024 and December 31, 2023, respectively		—				—
Common stock, $0.001 par value;
Authorized shares: 500,000,000 and 76,046,350 as of December 31, 2024 and December 31, 2023, respectively
Issued and outstanding shares: 35,850,606 and 5,430,298 as of December 31, 2024 and December 31, 2023, respectively		36				5
Additional paid-in capital		358,073				14,232
Accumulated deficit		(166,944	)			(126,489	)
Total stockholders’ deficit		191,165				(112,252	)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	$	225,412			$	58,922

FAQ

What was Ceribell's (CBLL) revenue growth in Q4 2024?

Ceribell's Q4 2024 revenue grew 41% year-over-year to $18.5 million.

How much cash does Ceribell (CBLL) have as of December 2024?

Ceribell had $194.4 million in cash and cash equivalents as of December 31, 2024.

What is Ceribell's (CBLL) revenue guidance for 2025?

Ceribell expects 2025 revenue between $81-85 million, representing 24-30% growth.

What was Ceribell's (CBLL) net loss per share in 2024?

Ceribell reported a net loss of $3.39 per share for the full year 2024.

How many active accounts does Ceribell (CBLL) have?

Ceribell ended 2024 with 529 total active accounts.