Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 8.1million,a415.8 million in Q3 2023, marking the fourth consecutive quarter of growth above 30% [10][6] - Gross margin improved to 60% in Q3 2024 from 57% in Q3 2023, attributed to increased volume and lower manufacturing costs [14] - Operational cash burn reduced to 1.2millioninQ32024,a334.4 million, driven by a 353% increase in product revenue, despite a decrease in service revenue [11] - Neurosurgery Navigation and Therapy revenue increased 49% to 2.9million,supportedbynewaccountactivationsandproductintroductions[12]−CapitalEquipmentandSoftwarerevenuerose1330.8 million, up from 0.4millioninQ32023[13]MarketDataandKeyMetricsChanges−Thecompanyactivated19newcustomersitesin2024,withexpectationstoreach100bythefirsthalfof2025,aheadofthepreviousgoal[31][44]−Thedemandforlasertherapyisincreasing,particularlyfortumorprocedures,ashospitalsrecognizethebenefitsofquickerpatientdischarge[39]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusingonfourgrowthpillars:biologicsanddrugdelivery,neurosurgerynavigation,therapyandaccessproducts,andachievingglobalscale[6][21]−Strategicagreementswithpharmaceuticalpartnershavebeenexecuted,indicatingastrongpositioninthecellandgenetherapymarket[26]−Thecompanyaimsforcashflowbreakevenbytheendof2025,supportedbyastrongcashpositionandnodebt[35]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutgrowthprospects,citingnosignificantheadwindsinmarketdevelopmentandanexpectedincreaseinsurgeriesrelatedtodeepbrainstimulation[37]−Thecompanyanticipatescontinuedprogresswithcellandgenetherapypartners,whichcoulddrivesignificantrevenueevenbeforecommercialapprovals[40][41]−ThepotentialinclusionintheRussell2000indexcouldprovideatailwindforthestockin2025[42]OtherImportantInformation−Thecompanyheldcashandcashequivalentsof21.6 million as of September 30, 2024, down from 32.8millioninJune2024,followingtheearlyrepaymentofaconvertibleloan[18]−Researchanddevelopmentcostsincreasedby363.3 million, reflecting expanded initiatives and investments in innovation [15] Q&A Session Summary Question: What are the general headwinds/tailwinds for 2025? - Management noted positive factors for growth, including increased surgeries due to new DBS procedures and progress with cell and gene therapy partners [37][38] Question: Is the new activation rate of 20 placements a new normal? - Management expects double-digit new activations moving forward, with advanced conversations ongoing with many hospitals [43][44] Question: How many of the new activations are from SmartFrame OR? - Out of 19 activations, only 2 or 3 were new activations from SmartFrame OR, indicating significant room for growth [46][49] Question: What are the expectations for gross margins with new products? - Management believes gross margins could reach 70% at scale, particularly for disposable products [53]
