MALVERN, Pa., March 05, 2024 (GLOBE NEWSWIRE) — Neuronetics, Inc. (NASDAQ:STIM) (the “Company” or “Neuronetics”) a commercial stage medical technology company with a strategic vision of transforming the lives of patients whenever and wherever they need help, with the best neurohealth therapies in the world, today announced its financial and operating results for the fourth quarter and full year of 2023.
Fourth Quarter 2023 Highlights
Fourth quarter 2023 revenue of $20.3 million, a 12% increase as compared to the fourth quarter 2022
U.S. NeuroStar Advanced Therapy system revenue of $4.5 million, in the quarter, the Company shipped 59 systems
Achieved record U.S. treatment session revenue of $14.9 million in the fourth quarter 2023
Local consumable treatment session revenue increased by over 33% versus the fourth quarter 2022
The Company generated positive cash flow of approximately $1.5 million in the fourth quarter 2023, ending 2023 with cash and cash equivalents at approximately $60 million
Full Year 2023 Highlights
Full year 2023 revenue of $71.3 million, a 9% increase as compared to full year 2022
Full year 2023 U.S. treatment session revenue of $50.9 million
Recent Operational and Marketing Highlights
Launched first cohort within the “Better Me Guarantee Provider” pilot program in January 2024
Magellan, BlueCross BlueShield of Kansas City, Dean Health Plan, and Lucet Health updated their healthcare policies, reducing the number of antidepressant medication attempts from four down to two prior to transcranial magnetic stimulation (TMS) treatment eligibility
Achieved milestone of over 169,000 global patients treated with 6.1 million treatment sessions
“We wrapped up an exciting 2023 with a strong fourth quarter. We continued to see improving utilization trends coming as a direct results of the many educational and training initiatives we have instituted over the past 18 months. Importantly, the utilization within our local consumable customers grew by over 20% in the quarter, and we saw improving performance at Greenbrook sites,” said Keith J. Sullivan, President and Chief Executive Officer of Neuronetics. “We are very excited about 2024. Beyond the maturation of our existing commercial intiatives, we officially launched our first Better Me Guarantee Provider pilot cohort in late January. With 100 customer sites included in this cohort, we have over 160 sites who are on track to be eligible to participate in the next phases of the program in April 2024. We believe the rigiourous set of standards that BMGP participants agree to will help these sites identify more patients in need, who can ultimately benefit from treatment using NeuroStar.”
Fourth Quarter 2023 Financial and Operating Results for the Three Months Ended December 31, 2023
Revenues by Geography
Three Months Ended December 31,
2023
2022
Amount
Amount
% Change
(in thousands, except percentages)
U.S.
$
19,872
$
17,513
13
%
International
442
685
(35
)
%
Total revenues
$
20,314
$
18,198
12
%
Total revenue for the three months ended December 31, 2023, was $20.3 million, an increase of 12% compared to the revenue of $18.2 million in the fourth quarter of 2022. During the quarter, total U.S. revenue increased by 13% and international revenue decreased by 35% over the fourth quarter of 2022. The U.S. growth was primarily driven by an increase in NeuroStar treatment session sales.
U.S. Revenues by Product Category
Three Months Ended December 31,
2023
2022
Amount
Amount
% Change
(in thousands, except percentages)
NeuroStar Advanced Therapy System
$
4,524
$
4,616
(2
)
%
Treatment sessions
14,878
$
12,450
20
%
Other
470
$
447
5
%
Total U.S. revenues
$
19,872
$
17,513
13
%
U.S. NeuroStar Advanced Therapy System
Revenues by Type
Three Months Ended December 31,
2023
2022
Amount
Amount
% Change
(in thousands, except percentages)
NeuroStar capital
$
4,376
$
4,371
0
%
Operating lease
38
43
(12
)
%
Other
110
202
(46
)
%
Total U.S. NeuroStar Advanced Therapy system revenues
$
4,524
$
4,616
(2
)
%
U.S. NeuroStar Advanced Therapy system revenue for the three months ended December 31, 2023, was $4.5 million. For the three months ended December 31, 2023, and 2022, the Company shipped 59 and 58 systems, respectively.
U.S. treatment session revenue for the three months ended December 31, 2023, was $14.9 million, an increase of 20% compared to the revenue of $12.5 million in the fourth quarter of 2022. The revenue growth was primarily driven by an increase in utilization, in particular within our local consumable customer division.
In the fourth quarter of 2023, U.S. treatment session revenue per active site was $13,238 compared to $11,500 in the fourth quarter of 2022.
Gross margin for the fourth quarter of 2023 was 77.6%, an increase of approximately 170 basis points from the fourth quarter of 2022 gross margin of 75.9%.
Operating expenses during the fourth quarter of 2023 were $20.2 million, a decrease of $1.3 million, or 6.2%, compared to $21.5 million in the fourth quarter of 2022.
Net loss for the fourth quarter of 2023 was $(5.4) million, or $(0.19) per share, as compared to the fourth quarter 2022 net loss of $(8.3) million, or $(0.30) per share. Net loss per share was based on 29,048,367 and 27,207,184 weighted-average common shares outstanding for the fourth quarters of 2023 and 2022, respectively.
EBITDA for the fourth quarter of 2023 was $(3.0) million as compared to the fourth quarter of 2022 EBITDA of $(6.5) million. See the accompanying financial table that reconciles EBITDA, which is a non-GAAP financial measure, to net loss.
In the fourth quarter, the Company achieved a significant milestone by generating positive cash flow for the first time in company history. The Company generated $1.5 million in cash, which was achieved earlier than previously expected as the company continued to reap the benefits of strong revenue growth combined with improving margins and expense management efforts.
Full year Financial and Operating Results
Revenues by Geography
Year ended December 31,
2023
2022
Amount
Amount
% Change
(in thousands, except percentages)
U.S.
$
69,336
$
63,406
9
%
International
2,012
1,800
12
%
Total revenues
$
71,348
$
65,206
9
%
Total revenue increased by $6.1 million or 9%, from $65.2 million of the year ended December 31, 2022 to $71.3 million for the year ended December 31, 2023. For the period ended December 31, 2023, U.S.revenue increased by 9% and international revenue increased by 12% over the comparative period year period. The U.S. revenue growth was primarily due to an increase in U.S. treatment session revenue and the international revenue growth was primarily driven by an increase in treatment session revenue.
U.S. Revenues by Product Category
Year ended December 31,
2023
2022
Amount
Amount
% Change
(in thousands, except percentages)
NeuroStar Advanced Therapy System
$
16,460
$
16,575
(1
)
%
Treatment sessions
50,896
45,077
13
%
Other
1,980
1,754
13
%
Total U.S. revenues
$
69,336
$
63,406
9
%
U.S. NeuroStar Advanced Therapy System
Revenues by Type
Year ended December 31,
2023
2022
Amount
Amount
% Change
(in thousands, except percentages)
NeuroStar capital
$
15,805
$
15,792
0
%
Operating lease
162
$
222
(27
)
%
Other
493
$
561
(12
)
%
Total U.S. NeuroStar Advanced Therapy system revenues
$
16,460
$
16,575
(1