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Dec 31, 2024
Neuropace Q4 2024 Earnings Report
NeuroPace reported record revenue growth in Q4 2024 with improved operating results.
Key Takeaways
NeuroPace achieved record Q4 2024 revenue of $21.5 million, reflecting a 19% year-over-year increase, primarily driven by strong sales of the RNS System. The company reported a net loss of $5.3 million, an improvement from the $6.2 million loss in Q4 2023. Operating expenses increased slightly due to higher investments in R&D and sales efforts. Gross margin reached 75.4%, exceeding guidance. The company completed a $74.8 million public offering in February 2025 to strengthen its balance sheet and fund future growth initiatives.
Q4 2024 revenue increased 19% year-over-year to $21.5 million.
Net loss improved to $5.3 million from $6.2 million in Q4 2023.
Gross margin was 75.4%, exceeding the company’s 72-74% guidance range.
Completed a $74.8 million public offering in February 2025.
Neuropace
Neuropace
Forward Guidance
NeuroPace expects revenue to grow between 15% and 20% in 2025, with an anticipated range of $92M to $96M. The company aims to improve operational efficiency while continuing investments in AI-powered software and new product developments.
Positive Outlook
- 2025 revenue guidance of $92M to $96M, reflecting 15-20% growth.
- Gross margin expected to remain strong between 73% and 75%.
- R&D investments in AI-enabled software and next-gen platform expected to drive long-term growth.
- FDA submission for expanded RNS therapy indication expected in the second half of 2025.
- Public offering proceeds will provide capital to support operational goals and cash flow breakeven.
Challenges Ahead
- Continued net losses expected in the near term.
- Higher operating expenses may impact short-term profitability.
- Regulatory approvals for new indications remain uncertain.
- Competition in the neuromodulation space could pressure growth.
- Potential reimbursement challenges may affect revenue projections.