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Sep 30, 2023
Neuropace Q3 2023 Earnings Report
NeuroPace achieved strong revenue growth and cashflow performance, demonstrated progress in market penetration efforts, and advanced market development, product, and clinical initiatives.
Key Takeaways
NeuroPace reported a 47% year-over-year increase in revenue for Q3 2023, reaching $16.4 million. The company reduced cash burn to $2.2 million and increased full-year revenue guidance to $62.5-$63.5 million.
Achieved total revenue of $16.4 million for the third quarter of 2023, representing a 47% increase over the third quarter of 2022
Reduced cash burn to $2.2 million, down from $4 million in the second quarter and $9.8 million in the first quarter, further extending cash runway
Implanted first patients with the RNS System in the community setting as part of the Project CARE initiative
Received FDA approval of the Tablet Remote Monitor (TRM), which simplifies patients’ experience through seamless transfer of data to the clinician
Neuropace
Neuropace
Forward Guidance
NeuroPace increased its full-year revenue guidance to range between $62.5 million and $63.5 million, representing growth of 37% to 39% over 2022. Increased gross margin to range between 71% and 73%. Revised total operating expenses to range between $75 million and $76 million, including $9 million to $10 million of non-cash expenses
Positive Outlook
- Revenue growth to be primarily driven by increasing adoption and utilization of its RNS System
- Full year impact of the sale of DIXI Medical stereo EEG products
- Gross margin to range between 71% and 73%
- Operating expenses to range between $75 million and $76 million
- Company believes it has sufficient capital to fund its planned operations into 2026
Challenges Ahead
- Continuing decline in revenue from replacement device implants
- Transition to the third generation RNS System, with an extended battery life, to be largely complete
- Substantially all of the prior generation RNS devices to have been replaced
- Revenue growth to be partially offset by decline in revenue from replacement device implants
- Non-cash expenses of $9 million to $10 million