NeuroPace Reports First Quarter 2024 Financial Results and Provides Corporate Update
-- Revenue increased to
-- Extended the maturity date of the Company’s term loan by one year to
-- Maintained full-year 2024 revenue guidance of
-- Management scheduled to host a conference call today at
Recent Highlights
- Reported total revenue of
$18.1 million in the first quarter of 2024, a 25% increase compared with$14.5 million for the first quarter of 2023 - Generated strong revenue growth from both RNS System and DIXI Medical sales compared to the prior year quarter
- Extended the maturity date of its term loan by one year to
September 30, 2026 , increasing the Company’s financial flexibility - Achieved an agreement milestone in its strategic biotechnology company collaboration to leverage the RNS System’s unique data monitoring and analysis capabilities
- Expanded Project CARE pilot program activities targeting clinicians outside of Level 4 comprehensive epilepsy centers in order to increase access to the RNS System for drug-resistant epilepsy patients
- Increased its commercial organization in support of RNS and DIXI sales growth and Project CARE pilot program
“We are pleased with the revenue growth and overall financial performance demonstrated in the first quarter of 2024,” said
“Over the past year, we have worked to find a balance between investing in topline growth and maintaining financial discipline across our business. We are proud of the success we have achieved on both of these fronts," added
First Quarter 2024 Financial Results
Total revenue in the first quarter of 2024 grew 25% year-over-year to
Gross margin for the first quarter of 2024 was 73.6% compared to 71.7% in the first quarter of 2023. The Company’s gross margin increased primarily due to the increase in RNS products produced and sold, thereby spreading its fixed manufacturing overhead costs across more units, and some incremental benefit from service revenue from our strategic collaboration with Rapport, partially offset by the lower gross margin for distribution of DIXI Medical products.
Total operating expenses in the first quarter of 2024 were
Loss from operations was
The Company’s cash, cash equivalents and short-term investments balance as of
Full Year 2024 Financial Guidance
- Total revenue to range between
$73 million and$77 million , representing growth of 12% to 18% over 2023 - Gross margin to range between 72% and 74%
- Total operating expenses to range between
$80 million and$84 million , including approximately$12 million in stock-based compensation, a noncash expense
Webcast and Conference Call Information
Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at https://viavid.webcasts.com/starthere.jsp?ei=1666802&tp_key=ec469bbb1b. Individuals interested in participating in the call via telephone may access the call by dialing +1-888-886-7786 and referencing Conference ID 48339803. The webcast will be archived on the Company’s investor relations website at https://investors.neuropace.com/news-and-events/events and will be available for replay for at least 90 days after the event.
About
Based in
Forward Looking Statements
This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding: NeuroPace’s current expectations, forecasts and beliefs; the extension of the maturity date of the Company’s term loan and its impact on our financial position; future financial performance, including management’s outlook for fiscal year 2024; the Company’s commitment to effectively managing its operating expenses; ability to capitalize on increased market opportunities by expanding access to treatments; and clinical trial results and indication expansion.
Condensed Statements of Operations (unaudited) |
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Three Months Ended |
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(in thousands, except share and per share amounts) | 2024 | 2023 | ||||||
Revenue | $ | 18,124 | $ | 14,472 | ||||
Cost of goods sold | 4,781 | 4,100 | ||||||
Gross profit | 13,343 | 10,372 | ||||||
Operating expenses | ||||||||
Research and development | 5,784 | 5,263 | ||||||
Selling, general and administrative | 15,104 | 13,428 | ||||||
Total operating expenses | 20,888 | 18,691 | ||||||
Loss from operations | (7,545 | ) | (8,319 | ) | ||||
Interest income | 827 | 726 | ||||||
Interest expense | (2,258 | ) | (1,965 | ) | ||||
Other income (expense), net | 51 | (817 | ) | |||||
Net loss and comprehensive loss | $ | (8,925 | ) | $ | (10,375 | ) | ||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.32 | ) | $ | (0.41 | ) | ||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 28,285,176 | 25,097,262 | ||||||
Condensed Balance Sheets (unaudited) |
|||||||
(in thousands, except share and per share amounts) | 2024 | 2023 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 12,998 | $ | 18,058 | |||
Short-term investments | 45,947 | 48,396 | |||||
Accounts receivable | 11,631 | 12,314 | |||||
Inventory | 11,416 | 11,214 | |||||
Prepaid expenses and other current assets | 2,262 | 2,737 | |||||
Total current assets | 84,254 | 92,719 | |||||
Property and equipment, net | 1,048 | 1,003 | |||||
Operating lease right-of-use asset | 13,027 | 13,405 | |||||
Restricted cash | 122 | 122 | |||||
Deferred offering costs | 387 | 387 | |||||
Other assets | 15 | 15 | |||||
Total assets | $ | 98,853 | $ | 107,651 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,268 | $ | 2,332 | |||
Accrued liabilities | 7,290 | 11,180 | |||||
Operating lease liability | 1,683 | 1,627 | |||||
Deferred revenue | 869 | 1,090 | |||||
Total current liabilities | 13,110 | 16,229 | |||||
Long-term debt | 58,039 | 56,954 | |||||
Operating lease liability, net of current portion | 13,363 | 13,814 | |||||
Total liabilities | 84,512 | 86,997 | |||||
Stockholders’ equity | |||||||
Common stock, |
29 | 28 | |||||
Additional paid-in capital | 527,046 | 524,435 | |||||
Accumulated deficit | (512,734 | ) | (503,809 | ) | |||
Total stockholders’ equity | 14,341 | 20,654 | |||||
Total liabilities and stockholders’ equity | $ | 98,853 | $ | 107,651 |
Investor Contact:Jeremy Feffer Managing DirectorLifeSci Advisors jfeffer@lifesciadvisors.com
Source: NeuroPace, Inc