Neuronetics(STIM)2025-03-28 00:41Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was 20.3 million in Q4 2023 [22][8] - U.S. NeuroStar Advanced Therapy System revenue was 12.9 million, primarily due to the removal of Greenbrook treatment session revenues [23] - Gross margin decreased to 66.2% from 77.6% in the prior year, a decline of 1,140 basis points [24] - Operating expenses increased by 28% to 20.2 million in Q4 2023 [24] - Net loss for Q4 was 0.33 per share, compared to a net loss of 0.19 per share in the prior year [25] - EBITDA was negative 10.6 million in non-recurring expenses [25] Business Line Data and Key Metrics Changes - NeuroStar system revenue was 4.4 million [23] Market Data and Key Metrics Changes - The company received FDA clearance for the NeuroStar system to treat adolescents, expanding the total addressable market for major depressive disorder [18] - There was an 18% increase in customer sites treating adolescent patients, now including more than half of the customer base [19] Company Strategy and Development Direction - The company aims to rapidly scale the Better Me Provider Program across its customer base, targeting over 500 sites by year-end 2025 [34] - The acquisition of Greenbrook TMS is seen as a transformative step, creating a leading TMS supplier and provider in the U.S. [14] - The company has identified significant cost synergies, capturing over 90% of the identified 145 million to 18.9 million in capital to support growth initiatives [10][27] - The Better Me Provider Program has shown that practices implementing its standards treat three times more patients per site per quarter compared to those not in the program [13] Q&A Session Summary Question: Update on Greenbrook integration and BMP implementation - Management indicated ongoing training and implementation of BMP standards across clinics, with changes expected to continue throughout the year [46] Question: Guidance on revenue and operating expenses - The revenue guidance of 155 million is based on contributions from both Neuronetics and Greenbrook, with a focus on successful program execution [51] Question: Margin profile and improvement opportunities - Management acknowledged opportunities for margin improvement, particularly by eliminating underperforming clinics and optimizing operations [62] Question: SPRAVATO rollout and revenue assumptions - The majority of growth is expected to come from SPRAVATO, with plans to increase the number of clinics offering it [75] Question: Capital outlay for SPRAVATO rollout - The capital expenditure for supporting the SPRAVATO rollout is minimal, primarily involving inventory commitments [84] Question: Current productivity metrics and future expectations - Current average treatments per day per system at Greenbrook is four, with expectations to increase to five or six by the end of 2025 [88]