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Sep 30, 2021

Neuropace Q3 2021 Earnings Report

NeuroPace's revenue decreased by 19% year-over-year due to COVID headwinds, but the fundamentals of the business remained strong.

Key Takeaways

NeuroPace reported a total revenue of $10.3 million for Q3 2021, a 19% decrease compared to the prior year period. The decrease was attributed to COVID-19 related headwinds. The company continues to make progress toward increasing the market opportunity. Management provided updated full-year 2021 guidance.

Total revenue was $10.3 million, a 19% decrease year-over-year.

Initial implant revenue was $7.8 million, a 15% decrease year-over-year.

Gross margin was 72.6%, compared to 75.0% in the prior year period.

Net loss was $8.1 million, compared to a net loss of $4.1 million in the prior year period.

Total Revenue
$10.3M
Previous year: $12.8M
-19.0%
EPS
-$0.34
Previous year: -$19.3
-98.2%
Gross Profit Margin
72.6%
Previous year: 75%
-3.2%
Gross Profit
$7.51M
Previous year: $9.58M
-21.6%
Cash and Equivalents
$26.6M
Previous year: $43.1M
-38.3%
Free Cash Flow
-$4.6M
Previous year: -$5.43M
-15.2%
Total Assets
$141M

Neuropace

Neuropace

Neuropace Revenue by Segment

Forward Guidance

Management continues to take a measured approach given the uncertainty surrounding COVID-19, including the risk posed by new variants and the potential impact on hospital, physician and patient behavior.

Positive Outlook

  • Total revenue of $44 to $44.5 million, representing growth of 7% to 8% compared to prior year.
  • Initial implant revenue of $33 to $33.5 million, representing growth of 18% to 20% compared to prior year.

Challenges Ahead

  • 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