Neuronetics Reports Second Quarter 2021 Financial and Operating Results
Second Quarter 2021 Highlights
- Second quarter 2021 revenue of
$14.2 million , an increase of 46% over second quarter 2020 primarily due to an increase inU.S. treatment session revenue - Second quarter 2021 treatment session revenue of
$10.8 million comparable to second quarter 2019 revenue - At the June
Clinical TMS Society meeting, Dr.Harold Sackeim , Ph.D. presented the outstanding, and previously published, outcomes data of 83% response and 62% remission rates from NeuroStar’s Outcomes Registry - Over 50 prospective practices attended the NeuroStar Summit in June
“We have had a very productive first half of the year capped off by a strong second quarter. Given the early success with our new commercial strategy and the positive response from customers and patients, I am confident we are executing on the right initiatives,” said
Second Quarter 2021 Financial and Operating Results for the Three Months Ended
Revenues by Geography | |||||||||
Three Months Ended |
|||||||||
2021 | 2020 | ||||||||
Amount | Amount | % Change | |||||||
(in thousands, except percentages) | |||||||||
$ | 13,809 | $ | 9,267 | 49 | % | ||||
International | 394 | 474 | (17 | ) | % | ||||
Total revenues | $ | 14,203 | $ | 9,741 | 46 | % |
Total revenue for the three months ended
U.S. Revenues by Product Category | ||||||||
Three Months Ended |
||||||||
2021 | 2020 | |||||||
Amount | Amount | % Change | ||||||
(in thousands, except percentages) | ||||||||
NeuroStar Advanced Therapy System | $ | 2,577 | $ | 2,338 | 10 | % | ||
Treatment sessions | 10,801 | $ | 6,547 | 65 | % | |||
Other | 431 | $ | 382 | 13 | % | |||
Total |
$ | 13,809 | $ | 9,267 | 49 | % |
United States NeuroStar Advanced Therapy System | |||||||||
Revenues by Type | |||||||||
Three Months Ended |
|||||||||
2021 | 2020 | ||||||||
Amount | Amount | % Change | |||||||
(in thousands, except percentages) | |||||||||
$ | 2,441 | $ | 2,224 | 10 | % | ||||
Operating lease | 55 | $ | 114 | (51 | ) | % | |||
Other | 81 | $ | — | 100 | % | ||||
Total United States NeuroStar Advanced Therapy System revenues | $ | 2,577 | $ | 2,338 | 10 | % |
In the second quarter,
Gross margin for the second quarter of 2021 was 80.6%, an increase of approximately 440 basis points from the second quarter of 2020 gross margin of 76.2%. The increase was primarily a result of a higher mix of treatment session revenues compared to the prior year quarter.
Operating expenses during the second quarter of 2021 were
Net loss for the second quarter of 2021 was
EBITDA for the second quarter of 2021 was
Cash and cash equivalents were
On
June NeuroStar Summit
In June in
Business Outlook
For the full year 2021, the Company continues to expect to report total worldwide revenue between
For the full year 2021, the Company expects operating expenses to be between
For the third quarter of 2021, the Company expects to report total worldwide revenue of between
Webcast and Conference Call Information
Neuronetics’ management team will host a conference call on
About
Neuronetics, Inc. is a commercial-stage medical technology company focused on designing, developing, and marketing products that improve the quality of life for patients who suffer from psychiatric disorders. Our first commercial product, the NeuroStar® Advanced Therapy System, is a non-invasive and non-systemic office-based treatment that uses transcranial magnetic stimulation, or TMS, to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The system is cleared by the
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
Statements in the press release regarding Neuronetics, Inc. (the “Company”) that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as “outlook,” “potential,” “believe,” “expect,” “plan,” “anticipate,” “predict,” “may,” “will,” “could,” “would” and “should” as well as the negative of these terms and similar expressions. These statements include those relating to: the Company’s business outlook and current expectations for upcoming quarter and fiscal year 2021, including with respect to revenue, operating expense, growth, and any statements of assumptions underlying any of the foregoing items. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, risks and uncertainties related to: the impact of COVID-19 on the Company’s operational and budget plans as well as general political and economic conditions, including as a result of efforts by governmental authorities to mitigate COVID-19, such as travel bans, shelter in place orders and third-party business closures and the related impact on resource allocations, manufacturing and supply chains and patient access to commercial products; the Company’s ability to execute its business continuity; the Company’s ability to achieve or sustain profitable operations due to its history of losses; the Company’s reliance on the sale and usage of its NeuroStar Advanced Therapy for
Investor Contact:
443-213-0501
ir@neuronetics.com
Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com
NEURONETICS, INC.
Statements of Operations
(Unaudited; In thousands, except per share data)
Three Months ended | Six months ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | $ | 14,203 | $ | 9,741 | $ | 26,491 | $ | 21,217 | |||||||
Cost of revenues | 2,750 | 2,323 | 4,971 | 5,134 | |||||||||||
Gross Profit | 11,453 | 7,418 | 21,520 | 16,083 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 9,042 | 8,151 | 17,604 | 18,874 | |||||||||||
General and administrative | 6,681 | 4,010 | 12,785 | 9,298 | |||||||||||
Research and development | 2,294 | 2,116 | 4,604 | 5,137 | |||||||||||
Total operating expenses | 18,017 | 14,277 | 34,993 | 33,309 | |||||||||||
Loss from Operations | (6,564 | ) | (6,859 | ) | (13,473 | ) | (17,226 | ) | |||||||
Other (income) expense: | |||||||||||||||
Interest expense | 977 | 986 | 1,962 | 2,509 | |||||||||||
Loss on extinguishment of debt | — | — | — | 924 | |||||||||||
Other income, net | (16 | ) | (80 | ) | (29 | ) | (281 | ) | |||||||
Net Loss | $ | (7,525 | ) | $ | (7,765 | ) | $ | (15,406 | ) | $ | (20,378 | ) | |||
Net loss per share of common stock outstanding, basic and diluted | $ | (0.29 | ) | $ | (0.41 | ) | $ | (0.63 | ) | $ | (1.09 | ) | |||
Weighted-average common shares outstanding, basic and diluted | 25,903 | 18,747 | 24,608 | 18,714 |
NEURONETICS, INC.
Balance Sheets
(Unaudited; In thousands, except per share data)
2021 | 2020 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 115,783 | $ | 48,957 | |||
Accounts receivable, net | 9,002 | 7,166 | |||||
Inventory | 5,393 | 3,720 | |||||
Current portion of net investments in sales-type leases | 2,034 | 1,887 | |||||
Current portion of prepaid commission expense | 1,219 | 1,096 | |||||
Prepaid expenses and other current assets | 1,447 | 2,186 | |||||
Total current assets | 134,878 | 65,012 | |||||
Property and equipment, net | 708 | 730 | |||||
Operating lease right-of-use assets | 3,228 | 3,418 | |||||
Net investments in sales-type leases | 1,854 | 2,331 | |||||
Prepaid commission expense | 5,454 | 5,300 | |||||
Other assets | 1,976 | 1,866 | |||||
Total Assets | $ | 148,098 | $ | 78,657 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,425 | $ | 3,749 | |||
Accrued expenses | 6,604 | 7,319 | |||||
Deferred revenue | 1,937 | 2,020 | |||||
Current portion of operating lease liabilities | 612 | 594 | |||||
Current portion of long-term debt, net | — | — | |||||
Total current liabilities | 11,578 | 13,682 | |||||
Long-term debt, net | 34,944 | 34,620 | |||||
Deferred revenue | 1,488 | 1,741 | |||||
Operating lease liabilities | 2,922 | 3,121 | |||||
Total Liabilities | 50,932 | 53,164 | |||||
Commitments and contingencies (Note 16) | — | — | |||||
Stockholders’ Equity: | |||||||
Preferred stock, |
|||||||
outstanding at |
— | — | |||||
Common stock, |
|||||||
shares issued and outstanding at |
262 | 191 | |||||
Additional paid-in capital | 389,850 | 302,842 | |||||
Accumulated deficit | (292,946 | ) | (277,540 | ) | |||
Total Stockholders’ Equity | 97,166 | 25,493 | |||||
Total Liabilities and Stockholders’ Equity | $ | 148,098 | $ | 78,657 |
NEURONETICS, INC.
Statements of Cash Flows
(Unaudited; In thousands)
Six months ended |
|||||||
2021 |
2020 |
||||||
Cash Flows from Operating Activities: | |||||||
Net loss | $ | (15,406 | ) | $ | (20,378 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 552 | 534 | |||||
Share-based compensation | 4,205 | 1,842 | |||||
Non-cash interest expense | 324 | 944 | |||||
Cost of rental units purchased by customers | 137 | 122 | |||||
Loss on extinguishment of debt | — | 622 | |||||
Changes in certain assets and liabilities: | |||||||
Accounts receivable, net | (1,835 | ) | (66 | ) | |||
Inventory | (1,673 | ) | (557 | ) | |||
Net investment in sales-type leases | 330 | (777 | ) | ||||
Leasehold reimbursement | — | 836 | |||||
Prepaid commission expense | (278 | ) | (723 | ) | |||
Prepaid expenses and other assets | 1,120 | 356 | |||||
Accounts payable | (1,365 | ) | (2,408 | ) | |||
Accrued expenses | (715 | ) | (3,492 | ) | |||
Deferred revenue | (336 | ) | 14 | ||||
(14,940 | ) | (23,131 | ) | ||||
Cash Flows from Investing Activities: | |||||||
Purchases of property and equipment and capitalized software | (1,108 | ) | (484 | ) | |||
(1,108 | ) | (484 | ) | ||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | — | 41,360 | |||||
Repayment of long-term debt | — | (38,860 | ) | ||||
Payments of debt issuance costs | — | (721 | ) | ||||
Proceeds from exercises of stock options | 2,303 | 124 | |||||
Proceeds from common stock offering | 80,972 | — | |||||
Payments of common stock offering issuance costs | (401 | ) | — | ||||
Net Cash Provided by Financing Activities | 82,874 | 1,903 | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | 66,826 | (21,711 | ) | ||||
Cash and Cash Equivalents, Beginning of Period | 48,957 | 75,708 | |||||
Cash and Cash Equivalents, End of Period | $ | 115,783 | $ | 53,997 |
Non-GAAP Financial Measures (Unaudited)
EBITDA is not a measure of financial performance under generally accepted accounting principles in
The following table reconciles reported net loss to EBITDA:
Three Months ended | Six months ended | ||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
Net loss | $ | (7,525 | ) | $ | (7,765 | ) | $ | (15,406 | ) | $ | (20,378 | ) | |||
Interest expense | 977 | 986 | 1,962 | 2,509 | |||||||||||
Income taxes | — | — | — | — | |||||||||||
Depreciation and amortization | 271 | 233 | 552 | 534 | |||||||||||
EBITDA | $ | (6,277 | ) | $ | (6,546 | ) | $ | (12,892 | ) | $ | (17,335 | ) |
Source: Neuronetics