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Neuronetics(STIM) - 2022 Q4 - Earnings Call Transcript
STIMNeuronetics(STIM)2023-03-07 15:18
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Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was 18.2million,anincreaseof2118.2 million, an increase of 21% compared to Q4 2021 revenue of 15 million [69] - U.S. NeuroStar Advanced Therapy System revenue was 4.6million,up644.6 million, up 64% from 2.8 million in the prior year [84] - U.S. treatment session revenue reached an all-time record of 12.5million,an1112.5 million, an 11% increase over Q4 2021 [70] - Gross margins remained consistent at 76% compared to Q4 2021 [87] - Net loss for Q4 2022 was 8.3 million, compared to a net loss of 7.6millioninQ42021[88]BusinessLineDataandKeyMetricsChanges−Theperclickconsumablesegmentandothersegmentsareperformingwell,contributingtotheanticipated207.6 million in Q4 2021 [88] Business Line Data and Key Metrics Changes - The per click consumable segment and other segments are performing well, contributing to the anticipated 20% growth in 2023 [2] - Revenue per active site was approximately 11,500 in Q4 2022, down from approximately 12,200intheprioryear[85]−Thenumberoftreatmentsessionssurpassed5.3millionacrossroughly145,000patients[67]MarketDataandKeyMetricsChanges−Thecompanyexpectstoseecontinuedstrengthfromlocalperclickcustomersdespitelowertreatmentsessionrevenuefromcertainserviceproviders[90]−TheexpansionofMedicarecoverageandchangesinUnitedHealthCare′spoliciesareexpectedtopositivelyimpactmarketaccess[81]CompanyStrategyandDevelopmentDirection−ThecompanyaimstoincreasecustomerparticipationinNeuroStarUniversityandco−opmarketingprogramstodrivegrowth[49][51]−AfocusoncreatinganetworkofaccountsthatfollowNeuroStarbestpracticesisplannedfor2023[15]−Thecompanyisworkingtosimplifypriorauthorizationprocessestoexpandmarketaccess[7]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinachieving2012,200 in the prior year [85] - The number of treatment sessions surpassed 5.3 million across roughly 145,000 patients [67] Market Data and Key Metrics Changes - The company expects to see continued strength from local per click customers despite lower treatment session revenue from certain service providers [90] - The expansion of Medicare coverage and changes in United Health Care's policies are expected to positively impact market access [81] Company Strategy and Development Direction - The company aims to increase customer participation in NeuroStar University and co-op marketing programs to drive growth [49][51] - A focus on creating a network of accounts that follow NeuroStar best practices is planned for 2023 [15] - The company is working to simplify prior authorization processes to expand market access [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% growth in 2023, driven by strong performance in non-Greenbrook segments [2][39] - The company does not anticipate recessionary impacts affecting its guidance for 2023 [39] - Management acknowledged the challenges posed by the integration of Greenbrook and Success, which may lead to revenue headwinds [78] Other Important Information - The company shipped over 210 systems in 2022, bringing total systems shipped to over 2,000 [67] - The cash and cash equivalents as of December 31, 2022, were 70.3 million [89] Q&A Session Summary Question: What do you expect out of your core business in 2023? - Management expects growth to be consistent with the second half of 2022, in the 20% range [2] Question: How do you think about the capital versus disposable? - Capital is expected to be consistent with 2022, with 45 to 50 systems anticipated for the year [57] Question: What gets you to the high and low-end of the guidance range? - Management indicated that some contribution from Greenbrook is needed, but growth from other segments should suffice to meet guidance [11] Question: How do you view the impact of coverage policy updates? - Management believes the updates will expand the market and simplify access to care [24] Question: What are the key drivers of treatment session revenue? - The practice development managers and the implementation of PHQ-10s are key drivers of increased utilization [26]