MALVERN, Pa., Nov. 06, 2018 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ:STIM), 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, today announced its financial and operating results for the third quarter ended September 30, 2018.

• Third quarter 2018 revenue of $13.7 million, an increase of 31% over the third quarter of 2017
• Third quarter 2018 U.S. treatment session revenue of $9.2 million, an increase of 28% over the third quarter of 2017
• Third quarter 2018 U.S. NeuroStar® Advanced Therapy revenue of $3.9 million, an increase of 38% over the third quarter of 2017

“Our strong third quarter performance was driven primarily by our salesforce expansion and targeted focus on high volume customer accounts,” said Chris Thatcher, President and Chief Executive Officer of Neuronetics. “As we look towards the remainder of 2018, and into 2019, we will continue to execute on our growth strategy as we seek to bring NeuroStar Advanced Therapy to a broader number of patients suffering from major depressive disorder.”

Third Quarter Financial and Operating Results

Total revenue for the third quarter of 2018 was $13.7 million, representing 31% growth over third quarter of 2017 revenue of $10.5 million. U.S. revenue for the third quarter of $13.5 million increased 30% over the third quarter of 2017 revenue of $10.4 million.

U.S. NeuroStar Advanced Therapy revenue for the third quarter of 2018 was $3.9 million, an increase of 38% over third quarter 2017 revenue of $2.8 million. The increase in U.S. NeuroStar revenue was driven by higher capital revenue growth of 58% due to higher unit sales and a 1% increase in average selling price, partially offset by lower upgrade, rent-to-own, and other related revenue.

As of September 30, 2018, the active unit installed base in the U.S. was 858. This represents an increase of 133 units over the active unit installed base as of September 30, 2017, and an increase of 42 units over the active unit installed base as of June 30, 2018.

U.S. Treatment Session revenue for the third quarter of 2018 was $9.2 million, an increase of 28% over third quarter of 2017 revenue of $7.2 million. The increase in U.S. Treatment Session revenue was primarily the result of an approximate 31% increase in the number of treatment sessions sold, partially offset by an approximate 6% decline in average selling price due to certain volume pricing discounts within our existing customer base, plus an increase in other treatment session revenue.

Gross margin for the third quarter of 2018 was 77.9%, which is higher than the third quarter of 2017 gross margin of 74.9%. The majority of the increase in gross margin was the result of increased leverage on our service and operations costs as a result of higher sales compared to the prior year period.

Operating expenses during the third quarter of 2018 were $15.0 million, an increase of $4.4 million compared to $10.7 million in the third quarter of 2017. The increase was primarily driven by sales force expansion and marketing initiatives, as well as additional general and administrative expenses incurred to report as a public company.

Net loss for the third quarter of 2018 was $5.0 million, or $0.29 per share, as compared to third quarter 2017 net loss of $3.8 million, or $19.35 per share. Net loss per share for the three months ended September 30, 2018 includes, on a weighted-average basis the 11.0 million shares of common stock issued upon the conversion of convertible preferred stock and 6.325 million shares of common stock issued upon the closing of our initial public offering.

EBITDA for the third quarter of 2018 was as compared to $(3.8) million the third quarter of 2017 EBITDA of $(2.8) million. The decrease in EBITDA compared to the third quarter of 2017 is primarily due to the increase in net loss for the same period. See the accompanying financial table that reconciles EBITDA, which is a non-GAAP measure, to net loss.

Cash and cash equivalents were $106.8 million as of September 30, 2018. This compares to cash and cash equivalents of $14.5 million as of June 30, 2018. The cash balance as of September 30, 2018 includes net proceeds from the closing of the Neuronetics’ initial public offering on July 2, 2018 of $96.5 million, after deducting underwriting discounts, commissions, and other offering expenses.

Business Outlook

For the full year 2018, the Company expects to report revenue of between $51.0 and $52.5 million, representing 26% and 30% year-over-year growth, respectively.

About Neuronetics

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 United States Food and Drug Administration, or FDA. NeuroStar Advanced TMS Therapy is indicated for the treatment of major depressive disorder in adult patients who have failed to achieve satisfactory improvement from prior antidepressant medication in the current episode. Additional information can be found at www.neuronetics.com.