Brainsway(BWAY) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $11.4 million, a 27$9 million [26] - Full year 2024 revenue reached $41 million, representing a 29$31.8 million in 2023 [27] - Gross profit for Q4 2024 was $8.5 million, maintaining a gross margin of 75$6.7 million in the prior year [28] - Full year 2024 gross profit was $30.6 million, also at a 75$23.5 million in 2023 [28] - Net income for Q4 2024 was $1.5 million, compared to$127,000 in Q4 2023 [33] - Full year 2024 net income was approximately $2.9 million, a significant improvement from a net loss of$4.2 million in 2023 [33] Business Line Data and Key Metrics Changes - A total of 75 Deep TMS systems were shipped in Q4 2024, a 25% increase compared to the same period last year [9] - The total installed base of Deep TMS systems reached 1,353 as of December 31, 2024, up from 1,101 a year earlier [26] Market Data and Key Metrics Changes - The company is expanding its market presence across key regions including Canada, Asia, India, and Europe [11] - Anticipated revenue for full year 2025 is projected to be between $49 million and$51 million, indicating a growth of 20% to 24% over 2024 [12][34] Company Strategy and Development Direction - The company aims to solidify its market leadership by advancing the next-generation Deep TMS 360 system, conducting clinical trials, and enhancing commercial presence through targeted sales and marketing initiatives [13] - Focus on increasing sales for OCD treatment, which has a substantial potential market of approximately 400,000 patients annually [15] - Plans to expand reimbursement for PTSD treatment in Israel and explore new treatment avenues for adolescent depression [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining gross margins around 75% for 2025, with expectations for continued profitability [44] - Positive trends in treatment paradigms for MDD and OCD were noted, with expectations for increased payer coverage [52][54] - The company does not foresee significant impacts from macroeconomic changes on its operations [72] Other Important Information - The company reported a strong balance sheet with $69.4 million in cash as of December 31, 2024, including$20 million from equity financing [23][33] - Management is focused on organic growth while exploring collaborations with mental health and addiction centers [66] Q&A Session Summary Question: What were the standout drivers for the 75 placements this quarter? - Management highlighted enterprise accounts as a significant driver, along with increased demand for OCD treatment and utilization for MDD and elderly patients [38] Question: What is the latest on the accelerated treatment protocol? - The recruitment for the protocol is in the final stage, with data analysis expected to begin in Q3 2025 [41] Question: What are the expectations for gross margin in 2025? - Management expects gross margin to remain around 75% for 2025, with potential for improvement [44] Question: Are current centers increasing the use of psychedelic therapy? - There is a growing demand from psychedelic clinics to incorporate Deep TMS technology into their offerings [49] Question: What changes are seen in the treatment paradigm for MDD and OCD? - The treatment paradigm for MDD has improved, with reduced failure requirements for treatment eligibility, while OCD coverage is steadily increasing [52][54] Question: What is the plan for the next-gen TMS 360 system? - A multi-center trial for the TMS 360 system is planned for the second half of 2025, with feasibility studies for Alzheimer’s and Parkinson’s diseases also in consideration [56][57] Question: Will there be any impact from NIH funding cutbacks? - Management confirmed no current impact from NIH funding cutbacks on ongoing projects [75]