Neuronetics' Record Q3 2024: A Deep Dive into Financial and Operational Highlights
Tuesday, Nov 12, 2024 6:55 pm ET
4min read Neuronetics, Inc., a leading medical technology company specializing in neurohealth therapies, has reported record financial and operating results for the third quarter of 2024. The company's strategic vision of transforming lives with exceptional treatments continues to drive growth and innovation in the mental health sector.
Total revenue for the quarter reached $18.5 million, marking a 4% increase compared to the same period in 2023 and a 7% increase from the previous quarter. This growth was primarily driven by a 14% increase in U.S. NeuroStar Advanced Therapy System revenue and a 2% increase in U.S. treatment session revenue. The company shipped 49 systems in Q3 2024, compared to 43 systems in Q3 2023.
U.S. NeuroStar Advanced Therapy system revenue and treatment session revenue both showed strong performance in Q3 2024. U.S. NeuroStar Advanced Therapy system revenue increased by 14% YoY and 2% QoQ to $4.1 million, representing 48 systems. U.S. treatment session revenue grew by 2% YoY and 2% QoQ to $13.3 million, with revenue per active site decreasing to $11,390 from $11,917 in Q2 2024.
Neuronetics' gross margin for Q3 2024 stood at 75.6%, an increase of approximately 980 basis points from the previous quarter and 12.8% from Q3 2023. This significant improvement was driven by a change in product mix, the absence of one-time manufacturing costs by their new contract manufacturer, and inventory impairment incurred in 2023.
Operating expenses in Q3 2024 increased by 5% YoY and 5% QoQ to $21.7 million, primarily due to investments in research and development, sales and marketing, and general and administrative expenses.
The company's net loss for the quarter was $(13.3) million, or $(0.44) per share, compared to $(9.4) million, or $(0.33) per share, in Q3 2023. EBITDA for the third quarter of 2024 was $(11.6) million, reflecting the company's continued investment in growth and innovation.
Neuronetics' strategic acquisition of Greenbrook TMS in November 2024 has significantly enhanced the company's ability to expand access to mental health solutions and improve patient outcomes. By leveraging Greenbrook's extensive presence in the U.S. and Neuronetics' industry-leading technology and training programs, the combined entity can now offer a broader range of services and reach more patients. This strategic combination enables Neuronetics to drive meaningful value for patients, providers, and stockholders while advancing mental health treatment.
In conclusion, Neuronetics' record financial and operating results for Q3 2024 demonstrate the company's continued growth and success in the mental health sector. With a strong focus on innovation, strategic acquisitions, and a commitment to improving patient outcomes, Neuronetics is well-positioned to capitalize on emerging opportunities in the neurohealth therapies market.
Total revenue for the quarter reached $18.5 million, marking a 4% increase compared to the same period in 2023 and a 7% increase from the previous quarter. This growth was primarily driven by a 14% increase in U.S. NeuroStar Advanced Therapy System revenue and a 2% increase in U.S. treatment session revenue. The company shipped 49 systems in Q3 2024, compared to 43 systems in Q3 2023.
U.S. NeuroStar Advanced Therapy system revenue and treatment session revenue both showed strong performance in Q3 2024. U.S. NeuroStar Advanced Therapy system revenue increased by 14% YoY and 2% QoQ to $4.1 million, representing 48 systems. U.S. treatment session revenue grew by 2% YoY and 2% QoQ to $13.3 million, with revenue per active site decreasing to $11,390 from $11,917 in Q2 2024.
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Neuronetics' gross margin for Q3 2024 stood at 75.6%, an increase of approximately 980 basis points from the previous quarter and 12.8% from Q3 2023. This significant improvement was driven by a change in product mix, the absence of one-time manufacturing costs by their new contract manufacturer, and inventory impairment incurred in 2023.
Operating expenses in Q3 2024 increased by 5% YoY and 5% QoQ to $21.7 million, primarily due to investments in research and development, sales and marketing, and general and administrative expenses.
The company's net loss for the quarter was $(13.3) million, or $(0.44) per share, compared to $(9.4) million, or $(0.33) per share, in Q3 2023. EBITDA for the third quarter of 2024 was $(11.6) million, reflecting the company's continued investment in growth and innovation.
Neuronetics' strategic acquisition of Greenbrook TMS in November 2024 has significantly enhanced the company's ability to expand access to mental health solutions and improve patient outcomes. By leveraging Greenbrook's extensive presence in the U.S. and Neuronetics' industry-leading technology and training programs, the combined entity can now offer a broader range of services and reach more patients. This strategic combination enables Neuronetics to drive meaningful value for patients, providers, and stockholders while advancing mental health treatment.
In conclusion, Neuronetics' record financial and operating results for Q3 2024 demonstrate the company's continued growth and success in the mental health sector. With a strong focus on innovation, strategic acquisitions, and a commitment to improving patient outcomes, Neuronetics is well-positioned to capitalize on emerging opportunities in the neurohealth therapies market.
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