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Jun 30, 2023
Neuropace Q2 2023 Earnings Report
NeuroPace's revenue increased significantly, driven by RNS System utilization and DIXI Medical products, while operating expenses were managed effectively.
Key Takeaways
NeuroPace reported a strong second quarter with a 62% increase in revenue year-over-year, driven by increased utilization of the RNS System and meaningful revenue from DIXI Medical products. The company also reduced its cash burn and increased its full-year revenue guidance.
Total revenue reached $16.5 million, a 62% increase compared to Q2 2022.
Cash burn was reduced to $4 million, a significant decrease from $9.8 million in Q1 2023.
Full-year revenue guidance was increased to $59-$61 million, up from $52-$54 million.
NAUTILUS trial enrollment remains on track, with completion anticipated in Q1 2024.
Neuropace
Neuropace
Forward Guidance
NeuroPace has increased its full year revenue guidance to $59 million to $61 million and gross margin guidance to 70% to 72%.
Positive Outlook
- Revenue growth is expected to be primarily driven by increasing utilization of the RNS System.
- The full year impact of distributing DIXI Medical stereo EEG products is expected to contribute to revenue.
- NeuroPace is focused on bringing its RNS System to more patients through existing CECs and an expanded group of epileptologists and functional neurosurgeons.
- The company expects to complete enrollment in the NAUTILUS trial in the first quarter of 2024.
- The company is committed to advancing its mission of transforming the lives of patients living with epilepsy while delivering shareholder value.
Challenges Ahead
- A continuing decline in revenue from replacement device implants is expected through the end of the year.
- The decline is due to the company completing its transition to its second-generation device with a longer-lasting battery.
- Uncertainties, risks, and assumptions could affect actual outcomes and results.
- The ongoing uncertainty of the impact of COVID-19, as well as COVID recovery impact, on NeuroPace’s business could affect results.
- The company's long term debt is $54.9 million with the full principal due on September 30, 2025.