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NeurAxis Stock Surges After Strong Q3 Earnings and Expanded Coverage
NRXSNeuraxis(NRXS) ZACKS·2024-11-15 17:50

Core Viewpoint - NeurAxis, Inc. (NRXS) has demonstrated significant stock performance and financial improvement following its third-quarter 2024 earnings report, with a notable increase in revenues and a substantial reduction in net losses compared to the previous year [1][3]. Financial Performance - NeurAxis reported revenues of 0.7millionforQ32024,a39.60.7 million for Q3 2024, a 39.6% increase from 0.5 million in Q3 2023 [2] - Gross profit rose 38.9% year-over-year to 0.6million,withaslightdeclineingrossmarginfrom85.90.6 million, with a slight decline in gross margin from 85.9% to 85.4% due to increased financial assistance programs [2] - Operating loss improved to 1.7 million in Q3 2024 from 3millioninQ32023[2]NetLossandEarningsPerShare−Thenetlossforthequarterwas3 million in Q3 2023 [2] Net Loss and Earnings Per Share - The net loss for the quarter was 1.8 million, significantly better than the 8.6millionlossinQ32023[3]−Losspersharedecreasedto8.6 million loss in Q3 2023 [3] - Loss per share decreased to 0.25 in Q3 2024 from 2.38inQ32023,attributedtoincreasedsalesandtheabsenceofIPO−relatedcosts[3]KeyBusinessMetrics−UnitsalesoftheIB−Stimdeviceincreasedby502.38 in Q3 2023, attributed to increased sales and the absence of IPO-related costs [3] Key Business Metrics - Unit sales of the IB-Stim device increased by 50% during the quarter, supported by expanded insurance coverage and patient access [4] - The total covered lives expanded to approximately 35 million, a significant increase from 4.5 million in October 2023, including coverage from major insurers [5] Financial Position - As of September 30, 2024, NeurAxis reported 0.3 million in cash and 147,688inshort−termdebt,alongwitha147,688 in short-term debt, along with a 5.0 million investment agreement to enhance liquidity [6] Management Commentary - CEO Brian Carrico emphasized strong operational progress, highlighting a 40% year-over-year revenue growth and the expansion of insurance coverage [7] Factors Influencing Results - Revenue growth was driven by increased volume from both new and existing full insurance reimbursement customers and growth in financial assistance programs [8] - The improvement in operating losses was due to the absence of 2023 post-IPO costs and higher sales and gross profit in 2024 [8] Guidance and Outlook - While specific forward-looking financial guidance was not provided, management expressed confidence in ongoing operational momentum, with expectations for further adoption of IB-Stim due to recent FDA approvals and insurance policy expansions [9] Other Developments - NeurAxis achieved FDA clearance to expand IB-Stim's target demographic and increased the allowable devices per patient [10] - The company submitted a rectal expulsion device for FDA approval, with anticipated clearance by the end of 2024 [10]