Stereotaxis (STXS) Q3 Earnings call transcript Nov 11, 2024
2min read In the recent third-quarter earnings call for Stereotaxis Inc., CEO David Fischel provided a comprehensive update on the company's financial performance and strategic initiatives, highlighting solid commercial execution and the successful integration of the APT acquisition. The call underscored the company's commitment to innovation and regulatory efforts, which are strategically transformational for its business.
Financial Highlights
Stereotaxis reported a revenue growth in the third quarter, driven by the partial revenue recognition of 3 Genesis systems delivered to European hospitals. The company's capital backlog stands at $15.5 million, indicating a robust pipeline of interested customers. The recent CE mark for GenesisX has allowed the company to start building a pipeline of GenesisX customers, which is expected to significantly dwarf the Genesis pipeline in the future.
The financial results were primarily driven by Europe, where the most advanced product ecosystem is coming into fruition. The company anticipates that capital orders and revenue from the United States and China will increasingly contribute to its growth as regulatory approvals are obtained. Recurring revenue in the third quarter was boosted by the acquisition of APT, which has led to a return to growth in this area. The acquisition has also paved the way for the commercial launch of robotically navigated ablation and mapping catheters and vascular guidance catheters and wires, which are expected to be significant growth drivers.
Strategic Innovation and Regulatory Milestones
Stereotaxis is aggressively driving broad-based progress across a comprehensive innovation strategy. The company is on the cusp of achieving significant milestones, including the upcoming CE Mark approval for MAGIC, its proprietary robotically navigated cardiac ablation catheter. This approval is expected to lead to significant commercial adoption, given the positive clinical experience from the ongoing European study and the positive feedback from the community of robotic customers. The company's regulatory efforts are also focused on gaining approval for the Genesis robot, mapping integration, and a novel ablation catheter in China, where a successful on-site audit has set the stage for near-term approvals.
Market Opportunities and Competitive Landscape
The earnings call provided insights into the company's market position and competitive landscape. Stereotaxis is focusing on expanding its robotically-guided endovascular devices, with the acquisition of APT's catheter portfolio playing a pivotal role. The company's broad-based progress in Europe, where it has the most advanced product ecosystem, is driving commercial success. The recent CE mark for GenesisX is expected to significantly expand the company's opportunities in the robotic field.
Investor and Analyst Interactions
The Q&A session during the earnings call provided valuable insights into the concerns and priorities of key shareholders and investors. Frank Takkinen, an analyst from Lake Street Capital Markets, sought clarification on the timeline for MAGIC approval in the U.S., highlighting its potential impact on the company's growth trajectory. David Fischel provided a detailed response, expressing confidence in the regulatory approval process and the strategic importance of MAGIC in driving growth.
Conclusion
The Stereotaxis third-quarter earnings call underscored the company's strong financial performance and strategic focus on innovation and regulatory milestones. The successful integration of the APT acquisition and the anticipation of key regulatory approvals bode well for the company's future growth prospects. The robust pipeline of interested customers and the positive reception to APT's catheters are clear indicators of the company's potential for continued success. As Stereotaxis moves towards the commercial launch of robotically navigated ablation and mapping catheters and vascular guidance catheters and wires, it is poised to capitalize on the opportunities in the expanding robotic field.