Neuronetics Reports Preliminary Fourth Quarter and Fiscal Year 2023 Financial Results
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Insights
Neuronetics' preliminary unaudited financial results for the fourth quarter and full year of 2023 indicate a positive performance trajectory, with total revenue exceeding the lower end of the guidance range. The reported revenue growth, particularly the 20% year-over-year increase in U.S. Treatment Session revenue and the 33% increase in local consumable revenue, reflect a robust demand for the company's services and products. The shipment of 59 NeuroStar Advanced Therapy Systems, although a raw figure, can be contextualized against industry benchmarks for medical technology sales to gauge market penetration and sales effectiveness.
The company's ability to generate over $1 million in positive cash flow during the fourth quarter is a significant achievement, suggesting improved operational efficiency and effective cost management. Ending the year with approximately $59 million in cash and cash equivalents provides a substantial buffer for operational needs and potential strategic investments. This financial stability is crucial for sustaining growth and weathering potential market uncertainties.
Investors should consider the implications of these results on the company's valuation and future growth prospects. Sustained revenue growth and positive cash flow generation could signal a strengthening of the company's market position, which may positively influence investor sentiment and stock performance in the short to medium term.
The data from Neuronetics suggests an increasing adoption of the NeuroStar Advanced Therapy System and a growing customer base for treatment sessions. The reported 20% increase in treatment session revenue indicates not only a growing acceptance of their neurohealth therapies but also an expansion in the customer base, which includes entities like Greenbrook. Understanding the market dynamics, such as the drivers behind the increased utilization of Neuronetics' products and services, is essential for forecasting future sales and market share.
Analyzing the competitive landscape, it's important to note how Neuronetics' growth compares to that of its peers within the medical technology sector. The company's performance must be evaluated in the context of overall sector growth, technological advancements and market saturation. The significant growth in consumable revenue suggests a successful strategy in customer retention and recurring revenue streams, which are vital for long-term sustainability.
For stakeholders, the emphasis on operating leverage and expense management by the company's CEO underscores a strategic focus on profitability. This approach could enhance investor confidence and attract potential partnerships or acquisition interest. However, it's crucial to continue monitoring market trends and potential regulatory changes that could impact the neurohealth therapy segment.
The shipment of 59 NeuroStar Advanced Therapy Systems within the fourth quarter indicates an active demand for non-invasive treatment options in neurohealth. This demand is likely driven by the growing recognition of mental health issues and the need for innovative treatment modalities. The increase in utilization rates reported by Neuronetics is reflective of broader industry trends towards personalized and technology-driven healthcare solutions.
For healthcare providers and patients, the increased adoption of NeuroStar therapies could represent a shift towards more accessible and potentially cost-effective treatment options compared to traditional pharmacological approaches. The reported growth in local consumable revenue suggests that existing customers are not only continuing to use the NeuroStar system but are potentially increasing their usage, which could imply high levels of satisfaction with the therapy's outcomes.
From a medical research perspective, the long-term impact of such therapies on patient outcomes and healthcare costs will be critical. As the company progresses, the collection and analysis of clinical data will be paramount in validating the efficacy of their treatments and supporting broader adoption. Stakeholders should consider the potential for future research and development initiatives to further enhance the company's offerings and maintain its competitive edge in the neurohealth space.
MALVERN, Pa., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM) (the “Company” or “Neuronetics”) a commercial stage medical technology company with a strategic vision of transforming the lives of patients whenever and wherever they need help, with the best neurohealth therapies in the world, today announced certain preliminary unaudited fourth quarter and full year 2023 results.
Fourth Quarter 2023
Preliminary unaudited total revenue is expected to be over
Preliminary unaudited U.S. NeuroStar Advanced Therapy System revenue is expected to be approximately
Preliminary unaudited U.S. Treatment Session revenue is expected to be over
Local consumable revenue increased by over
The Company generated positive cash flow of over
Full Year 2023
Preliminary unaudited total revenue is expected to be over
“2023 was an exciting year at Neuronetics. The momentum we built throughout the year resulted in a record fourth quarter. From a commercial perspective, we are seeing sustained improvement in utilization trends across key customer segments. Our local consumable customers grew utilization by over
Mr. Sullivan concluded, “As we look to 2024, we are very enthusiastic about our opportunity to continue to expand the widespread use of NeuroStar. We are particularly excited about the launch of the next phase of our Better Me Guarantee Provider pilot program in January of 2024. We have approximately 100 customer sites who will be included in the next cohort which begins on January 22, and over 275 sites who are on track to be eligible to participate in the next phase of the pilot program later in 2024. Practices accepted into the BMGP pilot agree, and are required, to meet specific standards of patient care and responsiveness, which we believe will help identify patients in need who would benefit from NeuroStar.”
About Neuronetics
Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is redefining patient and physician expectations with its NeuroStar Advanced Therapy for Mental Health. NeuroStar is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication hasn’t helped. NeuroStar is FDA-cleared for adults with major depressive disorder (“MDD”), as an adjunct for adults with obsessive-compulsive disorder, and to decrease anxiety symptoms in adult patients with MDD that may exhibit comorbid anxiety symptoms (anxious depression). NeuroStar Advanced Therapy is the leading TMS treatment for MDD in adults with over 5.9 million treatments delivered. NeuroStar is backed by the largest clinical data set of any TMS treatment system for depression, including the world’s largest depression outcomes registry. Neuronetics is committed to transforming lives by offering an exceptional treatment that produces extraordinary results. For safety information and indications for use, visit NeuroStar.com.
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
Statements in the press release regarding the Company that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as “outlook,” “potential,” “believe,” “expect,” “plan,” “anticipate,” “predict,” “may,” “will,” “could,” “would” and “should” as well as the negative of these terms and similar expressions. These statements include those relating to the Company’s unaudited financial and operating results for the fourth quarter and full year 2023, including with respect to revenue, expenses, growth, system placements, utilization, cash balance and any statements of assumptions underlying any of the foregoing items. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, risks and uncertainties related to: application of the Company’s revenue recognition policies, the impact of public health crises on the Company’s operations, manufacturing and supply chain interruptions or delays; the Company’s ability to execute its business strategy; the Company’s ability to achieve or sustain profitable operations due to its history of losses; the Company’s reliance on the sale and use of its NeuroStar Advanced Therapy system to generate revenues; the scale and efficacy of the Company’s salesforce; the Company’s ability to retain talent; availability of coverage and reimbursement from third-party payors for treatments using the Company’s products; physician and patient demand for treatments using the Company’s products; developments in competing technologies and therapies for the indications that the Company’s products treat; product defects; the Company’s ability to obtain and maintain intellectual property protection for its technology; developments in clinical trials or regulatory review of NeuroStar Advanced Therapy system for additional indications; developments in regulation in the U.S. and other applicable jurisdictions; our ability to successfully roll-out our Better Me Guarantee Provider Program on the planned timeline; our self-sustainability and existing cash balances; and our ability to achieve cash flow break-even in the fourth quarter of 2024 and on a full-year basis in 2025. For a discussion of these and other related risks, please refer to the Company’s recent filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this press release. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, or changes in the Company’s expectations.
Investor Contact:
Mike Vallie or Mark Klausner
Westwicke Partners
443-213-0499
ir@neuronetics.com
Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com
FAQ
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