ClearPoint Neuro Reports Fourth Quarter and Full-Year 2023 Results
- Strong financial performance in Q4 2023 and full-year 2023 with revenue of $6.8 million and $24.0 million respectively.
- 32% year-over-year increase in Q4 2023 revenue and 17% increase for the full year.
- Biologics and drug delivery revenue increased by 49% to $13.6 million in 2023.
- Operational highlights include FDA clearances, first-in-human cases, and completion of a public stock offering.
- Reaffirmed 2024 revenue guidance to be between $28.0 million and $32.0 million.
- Gross margin decreased to 57% in 2023 from 66% in 2022.
- Functional neurosurgery navigation and therapy revenue decreased by 7% in 2023.
- Capital equipment and software revenue decreased by 21% in 2023.
- Operating expenses increased to $36.1 million for 2023 from $29.9 million in 2022.
- Cash and cash equivalents decreased to $23.1 million at December 31, 2023, from $37.5 million at December 31, 2022.
Insights
The reported financial results from ClearPoint Neuro, Inc. for the fourth quarter and full-year ended December 31, 2023, reflect a significant year-over-year revenue growth of 32% for the quarter and 17% for the full year. This continued growth trajectory, marking the ninth consecutive year of increase, is indicative of a robust business model and potential market confidence in the company's offerings, which include device, cell and gene therapy-enabling technologies.
The biologics and drug delivery segment's revenue surge by 49% is particularly noteworthy, as it suggests a growing demand for the company's services in preclinical and clinical trials. This segment's expansion is a positive sign for investors, as it may lead to a diversified revenue stream and reduced dependency on any single product line. However, the reported decrease in gross margin from 66% to 57% raises concerns about the cost efficiency of the company's operations, particularly as it scales up its services. This could be a point of focus for investors assessing the sustainability of profit margins in the long term.
The operational highlights of ClearPoint Neuro for early 2024, including the addition of six new hospital customers and multiple FDA clearances, signify a strong start to the year and suggest potential for market expansion. The first-in-human procedures and first product approved under European MDR indicate the company's commitment to innovation and regulatory compliance, which are critical factors for long-term success in the medical device and biologics sectors.
Furthermore, the successful completion of a public offering resulting in gross proceeds of approximately $15 million not only strengthens the company's balance sheet but also highlights investor enthusiasm in the biotech sector. The ability to retire outstanding debt within the next 12 months could improve the company's financial flexibility and attractiveness to potential partners. These operational milestones could have a favorable impact on investor sentiment and the company's stock performance.
The publication of validation papers for ClearPoint's Maestro and PRISM products in peer-reviewed journals serves as an important endorsement of the company's technology and can enhance its scientific credibility. Such publications are critical in the medical community for establishing the efficacy and safety of new medical technologies. This can lead to increased adoption in clinical settings and potentially catalyze further revenue growth.
Additionally, the 510(k) clearance for the Smartframe OR™ Stereotactic System signifies regulatory approval for market entry, which is a key hurdle in the medical device industry. This clearance, along with the first product shipments to the EU under the new MDR certification, indicates ClearPoint Neuro's ability to navigate complex regulatory environments, a significant competitive advantage in the global market.
Release Includes Commentary on Early 2024 Progress
SOLANA BEACH, Calif., March 12, 2024 (GLOBE NEWSWIRE) -- ClearPoint Neuro, Inc. (Nasdaq: CLPT) (the “Company”), a global device, cell, and gene therapy-enabling company offering precise navigation to the brain and spine, today announced financial results for its fourth quarter and full-year ended December 31, 2023.
2023 Full Year and Fourth Quarter Highlights
- Reported fourth quarter 2023 revenue of
$6.8 million , a32% year-over-year increase compared with the fourth quarter of 2022; - Reported revenue of
$24.0 million for the full year 2023, an increase of17% over 2022 and representing the ninth consecutive year of growth; - Increased biologics and drug delivery revenue to
$13.6 million for the full year 2023, a49% increase over 2022; - Completed Certification of Carlsbad development and manufacturing facility and shut down of Irvine manufacturing facility; and
- Cash burn of
$1.2 million in the fourth quarter, bringing cash and cash equivalents to$23.1 million as of December 31, 2023.
2024 Operational Highlights
- Six new hospital customers already added since the beginning of the year;
- Received 510(k) clearance for Smartframe OR™ Stereotactic System;
- First-in-Human cases performed using ClearPoint 2.2 Software and ClearPoint Array 1.2 Parallel Trajectory Software;
- First product approved under European MDR and products shipped to Europe from new Carlsbad development and manufacturing facility;
- Validation Papers for ClearPoint Maestro and ClearPoint PRISM products published in peer-reviewed journals;
- Completed a public offering of common stock, resulting in gross proceeds of approximately
$15 million ; and - Reaffirming 2024 revenue guidance to be between
$28.0 million and$32.0 million .
Business Outlook
“We are pleased to confirm our fourth quarter 2023 performance which included record revenue of
“As a result,” continued Burnett, “we have been able to complete an important equity offering of approximately
Financial Results - Year Ended December 31, 2023
Total revenue was
Biologics and drug delivery revenue, which include sales of disposable products and services related to customer-sponsored preclinical and clinical trials utilizing our products, increased
Functional neurosurgery navigation and therapy revenue which primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint system, decreased
Capital equipment and software revenue, consisting of sales of ClearPoint reusable hardware and software, and of related services, decreased
The Company achieved a gross margin of
Operating expenses were
Financial Results – Quarter Ended December 31, 2023
Total revenue was
Biologics and drug delivery revenue, which includes sales of disposable products and services related to customer-sponsored preclinical and clinical trials utilizing our products, increased
Functional neurosurgery navigation and therapy revenue decreased
Capital equipment and software revenue, consisting of sales of ClearPoint reusable hardware and software, and of related services, increased
Gross margin for the three months ended December 31, 2023, was
Operating expenses for the fourth quarter of 2023 were
At December 31, 2023, the Company had cash and cash equivalents and short-term investments totaling
Teleconference Information
Investors and analysts are invited to listen to a live broadcast review of the Company's fourth quarter and full year 2023 on Tuesday, March 12, 2024 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time), which may be accessed online here: https://event.choruscall.com/mediaframe/webcast.html?webcastid=198rn5GM. Investors and analysts who would like to participate in the conference call via telephone may do so at (877) 407-9034, or at (201) 493-6737 if calling from outside the U.S. or Canada.
For those who cannot access the live broadcast, a replay will be available shortly after the completion of the call until April 12, 2024, by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S. or Canada, and then entering conference I.D. number 413671. An online archive of the broadcast will be available on the Company's Investor Relations website at https://ir.clearpointneuro.com/.
About ClearPoint Neuro
ClearPoint Neuro is a device, cell, and gene therapy-enabling company offering precise navigation to the brain and spine. The Company uniquely provides both established clinical products as well as pre-clinical development services for controlled drug and device delivery. The Company’s flagship product, the ClearPoint Neuro Navigation System, has FDA clearance and is CE-marked. ClearPoint Neuro is engaged with healthcare and research centers in North America, Europe, Asia, and South America. The Company is also partnered with the most innovative pharmaceutical/biotech companies, academic centers, and contract research organizations, providing solutions for direct CNS delivery of therapeutics in pre-clinical studies and clinical trials worldwide. To date, thousands of procedures have been performed and supported by the Company’s field-based clinical specialist team, which offers support and services to our customers and partners worldwide. For more information, please visit www.clearpointneuro.com.
Forward-Looking Statements
Statements in this press release and in the teleconference referenced above concerning the Company’s plans, growth and strategies may include forward-looking statements within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance, the size of total addressable markets or the market opportunity for the Company’s products and services, the Company’s expectation for revenues, operating expenses, the adequacy of cash and cash equivalent balances to support operations and meet future obligations, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are based on management’s current expectations and are subject to the risks inherent in the business, which may cause the Company's actual results to differ materially from those expressed in or implied by forward-looking statements. Particular uncertainties and risks include those relating to: global and political instability, supply chain disruptions, labor shortages, and macroeconomic and inflationary conditions; future revenue from sales of the Company’s products and services; the Company’s ability to market, commercialize and achieve broader market acceptance for new products and services offered by the Company; the ability of our biologics and drug delivery partners to achieve commercial success, including their use of the Company’s products and services in their delivery of therapies; the Company’s expectations, projections and estimates regarding expenses, future revenue, capital requirements, and the availability of and the need for additional financing; the Company’s ability to obtain additional funding to support its research and development programs; the ability of the Company to manage the growth of its business; the Company’s ability to attract and retain its key employees; and risks inherent in the research, development, and regulatory approval of new products. More detailed information on these and additional factors that could affect the Company’s actual results are described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2023, both of which have been filed with the Securities and Exchange Commission, and the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which the Company intends to file with the Securities and Exchange Commission on or before March 31, 2024. The Company does not assume any obligation to update these forward-looking statements.
| CLEARPOINT NEURO, INC. Consolidated Statements of Operations (Dollars in thousands, except for share and per share data) | |||||||
| Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Revenue: | |||||||
| Product revenue | $ | 10,603 | $ | 12,789 | |||
| Service and other revenue | 13,352 | 7,762 | |||||
| Total revenue | 23,955 | 20,551 | |||||
| Cost of revenue | 10,341 | 7,020 | |||||
| Gross profit | 13,614 | 13,531 | |||||
| Research and development costs | 11,709 | 10,894 | |||||
| Sales and marketing expenses | 12,595 | 9,358 | |||||
| General and administrative expenses | 11,756 | 9,611 | |||||
| Operating loss | (22,446 | ) | (16,332 | ) | |||
| Other income (expense): | |||||||
| Other expense, net | (29 | ) | (22 | ) | |||
| Interest income (expense), net | 386 | (81 | ) | ||||
| Net loss | $ | (22,089 | ) | $ | (16,435 | ) | |
| Net loss per share attributable to common stockholders: | |||||||
| Basic and diluted | $ | (0.90 | ) | $ | (0.68 | ) | |
| Weighted average shares outstanding: | |||||||
| Basic and diluted | 24,605,212 | 24,181,854 | |||||
| CLEARPOINT NEURO, INC. Consolidated Balance Sheets (Dollars in thousands, except for share and per share data) | |||||||
| December 31, | |||||||
| 2023 | 2022 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 23,140 | $ | 27,615 | |||
| Short-term investments | — | 9,874 | |||||
| Accounts receivable, net | 3,211 | 2,665 | |||||
| Inventory, net | 7,911 | 9,303 | |||||
| Prepaid expenses and other current assets | 1,910 | 1,723 | |||||
| Total current assets | 36,172 | 51,180 | |||||
| Property and equipment, net | 1,389 | 806 | |||||
| Operating lease rights of use | 3,564 | 1,895 | |||||
| Software license inventory | 386 | 450 | |||||
| Licensing rights | 1,041 | 1,028 | |||||
| Other assets | 109 | 131 | |||||
| Total assets | $ | 42,661 | $ | 55,490 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 393 | $ | 272 | |||
| Accrued compensation | 2,947 | 2,824 | |||||
| Other accrued liabilities | 1,053 | 2,065 | |||||
| Operating lease liabilities, current portion | 424 | 561 | |||||
| Deferred product and service revenue, current portion | 2,613 | 1,066 | |||||
| Total current liabilities | 7,430 | 6,788 | |||||
| Operating lease liabilities, net of current portion | 3,568 | 1,532 | |||||
| Deferred product and service revenue, net of current portion | 541 | 390 | |||||
| 2020 senior secured convertible note payable, net | 9,949 | 9,893 | |||||
| Total liabilities | 21,488 | 18,603 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 247 | 246 | |||||
| Additional paid-in capital | 193,382 | 187,008 | |||||
| Accumulated deficit | (172,456 | ) | (150,367 | ) | |||
| Total stockholders’ equity | 21,173 | 36,887 | |||||
| Total liabilities and stockholders’ equity | $ | 42,661 | $ | 55,490 | |||
| CLEARPOINT NEURO, INC. Consolidated Statements of Cash Flows (Dollars in thousands) | |||||||
| Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (22,089 | ) | $ | (16,435 | ) | |
| Adjustments to reconcile net loss to net cash flows from operating activities: | |||||||
| Allowance for credit losses (recoveries) | 1,258 | (117 | ) | ||||
| Depreciation and amortization | 626 | 244 | |||||
| Share-based compensation | 6,079 | 4,126 | |||||
| Amortization of debt issuance costs and original issue discounts | 57 | 55 | |||||
| Amortization of lease right of use assets, net of accretion in lease liabilities | 831 | 533 | |||||
| Accretion of discounts on short-term investments | (126 | ) | (284 | ) | |||
| Increase (decrease) in cash resulting from changes in: | |||||||
| Accounts receivable | (1,804 | ) | (211 | ) | |||
| Inventory, net | 1,246 | (4,421 | ) | ||||
| Prepaid expenses and other current assets | (113 | ) | (1,216 | ) | |||
| Other assets | 22 | (6 | ) | ||||
| Accounts payable and accrued expenses | (649 | ) | 1,591 | ||||
| Lease liability | (755 | ) | (541 | ) | |||
| Deferred revenue | 1,697 | 515 | |||||
| Net cash flows from operating activities | (13,720 | ) | (16,167 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (717 | ) | (253 | ) | |||
| Acquisition of licensing rights | (334 | ) | (893 | ) | |||
| Purchase of short-term investments | — | (21,590 | ) | ||||
| Proceeds from maturities of short-term investments | 10,000 | 12,000 | |||||
| Net cash flows from investing activities | 8,949 | (10,736 | ) | ||||
| Cash flows from financing activities: | |||||||
| Proceeds from stock option and warrant exercises | — | 268 | |||||
| Proceeds from issuance of common stock under employee stock purchase plan | 506 | 477 | |||||
| Payments for taxes related to net share settlement of equity awards | (210 | ) | (336 | ) | |||
| Net cash flows from financing activities | 296 | 409 | |||||
| Net change in cash and cash equivalents | (4,475 | ) | (26,494 | ) | |||
| Cash and cash equivalents, beginning of year | 27,615 | 54,109 | |||||
| Cash and cash equivalents, end of year | $ | 23,140 | $ | 27,615 | |||
| SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
| Cash paid for: | |||||||
| Income taxes | $ | — | $ | — | |||
| Interest | $ | 743 | $ | 523 | |||
FAQ
What was ClearPoint Neuro's revenue for Q4 2023?
What was ClearPoint Neuro's revenue for the full year 2023?
What was the increase in biologics and drug delivery revenue for ClearPoint Neuro in 2023?
What operational highlights did ClearPoint Neuro achieve in 2024?
What is ClearPoint Neuro's reaffirmed revenue guidance for 2024?
