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Dec 31, 2022
Neuropace Q4 2022 Earnings Report
NeuroPace's Q4 2022 financial results showed revenue growth driven by increased RNS System utilization and initial DIXI Medical product distribution.
Key Takeaways
NeuroPace reported a 16% increase in total revenue for Q4 2022, reaching $12.8 million. This growth was driven by a 15% increase in initial implant revenue and contributions from the distribution of DIXI Medical products. The company's net loss for the quarter was $11.1 million.
Total revenue reached $12.8 million, a 16% increase year-over-year.
Initial implant revenue grew by 15% to $9.8 million compared to the prior year period.
DIXI Medical product distribution contributed $1.6 million in revenue.
Gross margin was 69%, down from 73% in the prior year, due to DIXI Medical product sales.
Revenue by Segment
Forward Guidance
NeuroPace anticipates revenue growth driven by increased RNS System utilization and the full-year impact of DIXI Medical product sales, offset by declining replacement device implant revenue. They expect to substantially complete the transition to the second-generation RNS System by the end of 2023 and do not foresee needing to raise capital in the next 12 months.
Positive Outlook
- Total revenue is expected to range between $50.0 million to $52.0 million, growing approximately 10% to 14% over 2022.
- Revenue growth is expected to be primarily driven by increasing utilization of the RNS System.
- Revenue growth is expected to be driven by the full year impact of the sale of DIXI Medical stereo EEG products.
- Gross margin is projected to range between 69% to 71%.
- NeuroPace does not believe that it will have a need to raise capital in the next 12 months.
Challenges Ahead
- Revenue from replacement device implants is expected to decline.
- Replacement implant revenue will generally continue to decrease through the end of 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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