ClearPoint Neuro Q2 2020 Earnings Report
Key Takeaways
ClearPoint Neuro reported a decrease in total revenue by 5% compared to the same quarter last year, reaching $2.5 million. The decrease was primarily driven by the COVID-19 pandemic, which led to the postponement or cancellation of elective surgical procedures. However, the biologics and drug delivery business increased by 183%.
Total revenues decreased by 5% to $2.5 million compared to Q2 2019.
Functional neurosurgery revenue decreased by 38% due to the postponement of elective surgical procedures amid COVID-19.
Biologics and drug delivery revenues increased by 183%, demonstrating diversification in the revenue stream.
Operating loss was $1.5 million, compared to $1.3 million for the same period in 2019.
ClearPoint Neuro
ClearPoint Neuro
ClearPoint Neuro Revenue by Segment
Forward Guidance
Due to the uncertainty caused by the COVID-19 pandemic regarding the timing of the resumption to pre-pandemic levels of elective procedures, capital placements, and customer-sponsored clinical trials, the company is not providing a forecast for the balance of 2020.
Positive Outlook
- Clinical support team stood shoulder-to-shoulder with hospital customers.
- Biologics and drug delivery business increased 183%.
Challenges Ahead
- COVID-19 pandemic adversely impacted sales across all business lines.
- More than 80% of procedures are deemed 'elective,' resulting in postponement or cancellation.
- New capital placements and evaluations were effectively put on hold in the 2020 second quarter.
- Hospitals in cities struggling with COVID-19 cases will suspend elective procedures.
- Diagnostic work-ups delayed in March and April will cause the resulting surgeries to be similarly delayed.