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Jun 30, 2021

Neuropace Q2 2021 Earnings Report

NeuroPace's revenue increased significantly, driven by initial implant sales.

Key Takeaways

NeuroPace reported a strong second quarter with a 65% increase in total revenue, driven by a 100% increase in initial implant revenue. The company is progressing with its plans to expand the indication of its RNS System and is on track to begin enrolling patients before the end of the year.

Total revenue reached $12.6 million, a 65% increase year-over-year.

Initial implant revenue was $9.2 million, a 100% increase year-over-year.

Gross margin improved to 74.1% compared to 71.0% in the prior year period.

Net loss was $8.5 million, slightly better than the $8.8 million loss in the prior year period.

Total Revenue
$12.6M
Previous year: $7.64M
+65.3%
EPS
-$0.48
Previous year: $9.88
-104.9%
Gross Profit Margin
74.1%
Previous year: 71%
+4.4%
Gross Profit
$9.36M
Previous year: $5.42M
+72.6%
Cash and Equivalents
$31.2M
Previous year: $10M
+212.5%
Free Cash Flow
-$6.03M
Previous year: -$3.21M
+87.8%
Total Assets
$147M

Neuropace

Neuropace

Neuropace Revenue by Segment

Forward Guidance

Management continues to take a measured approach given the uncertainty surrounding COVID-19. The company reiterates full year 2021 guidance.

Positive Outlook

  • Total revenue of approximately $47 million, representing growth of 14% compared to prior year.
  • Initial implant revenue of approximately $36 million, representing growth of 29% compared to prior year.
  • Initial implant revenue guidance of $36 million includes minimal clinical study revenue.

Challenges Ahead

  • Uncertainty surrounding COVID-19, including the risk posed by new variants and the potential impact on hospital, physician and patient behavior.
  • Replacement implant revenue of approximately $11 million, representing a decline of 16% compared to prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income