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Mar 31, 2023

Neuropace Q1 2023 Earnings Report

NeuroPace's Q1 2023 revenue increased, driven by RNS System utilization and DIXI Medical product distribution, while operating leverage improved through expense management.

Key Takeaways

NeuroPace reported a 27% year-over-year increase in revenue for Q1 2023, reaching $14.5 million. The growth was attributed to increased utilization of the RNS System and contributions from DIXI Medical products. The company increased its full-year revenue guidance to $52-$54 million.

Total revenue reached $14.5 million, a 27% increase year-over-year.

Gross margin was 72%, slightly down from 73% in Q1 2022 due to product mix changes.

Operating expenses totaled $18.7 million, compared to $18.0 million in the prior year period.

Full-year revenue guidance was increased to $52 million to $54 million.

Total Revenue
$14.5M
Previous year: $11.4M
+27.2%
EPS
-$0.41
Previous year: -$0.47
-12.8%
Gross Profit Margin
72%
Previous year: 73%
-1.4%
Gross Profit
$10.4M
Previous year: $8.26M
+25.6%
Cash and Equivalents
$6.72M
Previous year: $7.49M
-10.3%
Free Cash Flow
-$9.83M
Previous year: -$11.7M
-16.0%
Total Assets
$106M
Previous year: $129M
-17.6%

Neuropace

Neuropace

Forward Guidance

NeuroPace anticipates revenue growth will be primarily driven by increasing utilization of its RNS System and the full year impact of the sale of DIXI Medical stereo EEG products, partially offset by declining revenue from replacement device implants. The company expects gross margin to range between 69% and 71% and total operating expenses to range between $75 million and $77 million.

Positive Outlook

  • Revenue growth driven by increasing RNS System utilization
  • Full year impact of DIXI Medical stereo EEG products
  • Gross margin expected to range between 69% and 71%
  • Focus on expanding addressable market
  • Delivering clinical benefits of RNS System

Challenges Ahead

  • Declining revenue from replacement device implants
  • Replacement implant revenue expected to decrease through 2023
  • Uncertainty of COVID-19 pandemic impact
  • Risks described in SEC filings
  • Based on information available as of the report date