BrainsWay Ltd. (BWAY) Q2 2024 Earnings Call Transcript

In BrainsWay's second quarter 2024 earnings call, the company showcased a robust financial performance and an optimistic outlook for the future. Led by CEO Hadar Levy and CFO Ido Marom, the call highlighted key growth drivers, financial metrics, and strategic initiatives.

Financial Highlights and Outlook

BrainsWay reported a 28% increase in revenues to $10 million for the second quarter of 2024, with a positive net income and adjusted EBITDA for the fourth consecutive quarter. The company also raised its guidance for full-year 2024 revenue to a range of $38.5 million to $40 million, indicating a projected growth of 21% to 25% over 2023 revenues. This positive financial momentum is underpinned by a strong balance sheet, with $48.1 million in cash and no debt as of June 30, 2024.

Growth Drivers and Strategic Initiatives

The call highlighted several growth drivers, including strong demand for BrainsWay's industry-leading Deep TMS system, expansion into new customer bases, and strategic partnerships. The company has seen a 13% increase in system shipments year-over-year, with a focus on catering to the needs of diverse customer bases and expanding into new markets, particularly Asia and Europe. Notably, the company recently signed an exclusive distribution agreement with a Canadian specialty distributor, marking a significant expansion into the Canadian market.

Clinical and Regulatory Progress

BrainsWay also shared updates on its clinical and regulatory progress, including the FDA's recent expansion of the indication for Deep TMS treatment of major depressive disorder, which now includes patients aged 22 to 86. This regulatory achievement positions BrainsWay as the first and only form of TMS indicated for treating major depressive disorder in older patients, addressing a significant unmet need in the mental health sector. The company is also exploring an accelerated depression treatment protocol for Deep TMS, which could potentially make the treatment more convenient and appealing to patients.

Investor Questions and Management Responses

During the Q&A session, investors and analysts posed questions on various topics, including international expansion, clinical trials, and profitability. Management provided detailed responses, shedding light on the company's strategic plans, financial projections, and operational dynamics.

Conclusion

BrainsWay's second quarter 2024 earnings call underscored the company's strong financial performance, strategic initiatives, and optimistic outlook for the future. With a focus on expanding into new markets, catering to diverse customer needs, and exploring innovative clinical and regulatory initiatives, BrainsWay is well-positioned to capitalize on the growing demand for TMS technology in mental health treatment. As the company continues to execute on its growth strategy, investors and stakeholders will closely watch its progress and market developments in the coming quarters.