CeriBell, Inc.(CBLL) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $18.5 million, reflecting a 41$13.1 million in Q4 2023 [31] - Full-year revenue totaled $65.4 million, representing a 45$12.6 million, or a loss of $0.40 per share, compared to a loss of$8.3 million, or a loss of $1.53 per share in Q4 2023 [36] Business Line Data and Key Metrics Changes - Product revenue for Q4 2024 was$14.1 million, a 41% increase from $10.0 million in Q4 2023 [32] - Subscription revenue for Q4 2024 was$4.4 million, representing a 40% increase from $3.1 million in Q4 2023 [32] - Active accounts increased to 529 as of December 31, 2024, an increase of 25 during the quarter [16] Market Data and Key Metrics Changes - The company estimates there are 6,000 acute care facilities in the U.S. that could benefit from its offerings [17] - The current market for seizure detection and management in the acute care setting is valued at$2 billion in the U.S. [29] Company Strategy and Development Direction - The company plans to expand its account acquisition team to 55 territory managers by mid-2025 [20] - Focus on optimizing algorithm performance and user experience while expanding indications beyond seizure management [22] - The company aims to make EEG a new vital sign, targeting various neurological conditions [24][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow breakeven with the current cash on hand and the strength of the balance sheet [41] - The company anticipates full-year 2025 total revenue to be in the range of $81 million to$85 million, representing annual growth of 24% to 30% over 2024 [37] - Management highlighted the importance of maintaining a strong margin profile despite increased operating expenses due to public company status [34][41] Other Important Information - The company has made significant strides in commercial growth and R&D pipeline development, impacting tens of thousands of patients [7][9] - The company has received breakthrough device designation from the FDA for its delirium detection algorithm [25] Q&A Session Summary Question: Guidance for 2025 and underlying assumptions - Management indicated that guidance reflects continued investment in sales infrastructure, expecting growth to be consistent with 2024 [46] Question: Strength of new account adds in Q4 - Management noted that the strength of account adds was due to good planning and early launches [50] Question: Thoughts on gross margin and OpEx spend in 2025 - Management expects gross margins to normalize in the mid to high 80% range and anticipates a significant increase in R&D expenses [54][56] Question: Update on stroke detection algorithm - Management reported encouraging results from the stroke study and plans to expand enrollment speed for data collection [70] Question: Utilization of headbands per account - Management expects an upward trajectory in usage, although purchasing patterns may vary [90] Question: Update on VA facilities - Management expressed optimism regarding interest from VA hospitals and hopes to share tangible milestones in the next quarter [97]