MALVERN, Pa., May 07, 2019 (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 first quarter of 2019.
First Quarter 2019 Highlights
- First quarter 2019 revenue of $12.7 million, an increase of 25% over the first quarter of 2018
- First quarter 2019 U.S. treatment session revenue of $8.8 million, an increase of 21% over the first quarter of 2018
- First quarter 2019 U.S. NeuroStar® Advanced Therapy revenue of $3.4 million, an increase of 41% over the first quarter of 2018
First Quarter Financial and Operating Results
“During the first quarter, we continued to execute on our strategy to drive the adoption of NeuroStar Advanced Therapy, which resulted in strong system sales growth and total revenue in line with our expectations,” said Chris Thatcher, President and Chief Executive Officer of Neuronetics. “Looking to the balance of the year, in addition to our efforts to generate an increased number of treatment sessions from our expanded installed base of NeuroStar Advanced Therapy Systems, we plan to continue to drive growth through the expansion of our salesforce, the effective use of marketing initiatives, and the commercialization in Japan following reimbursement approval.”
U.S. NeuroStar Advanced Therapy revenue for the first quarter of 2019 was $3.4 million, an increase of 41% over first quarter 2018 revenue of $2.4 million. The increase in U.S. NeuroStar Advanced Therapy System revenue was primarily driven by higher capital and rent-to-own revenue. Capital units sold increased by 42% and average selling prices declined by 8% as compared to last year. On a sequential quarterly basis, average selling prices for capital sales were up approximately one-half of a percentage point.
As of March 31, 2019, the active unit installed base in the U.S. was 931. This represents an increase of 24 units over the active unit installed base as of December 31, 2018, and an increase of 150 units over the active unit installed base as of March 31, 2018.
U.S. Treatment Session revenue for the first quarter of 2019 was $8.8 million, an increase of 21% over first quarter of 2018 revenue of $7.2 million. The increase in U.S. Treatment Session revenue was primarily the result of an 18% increase in the number of treatment sessions sold, partially offset by a 3% decline in average selling price due to pre-determined volume pricing discounts within our existing customer base, which are triggered when those customers surpass certain high-volume thresholds, plus an increase in other treatment session revenue.
Gross margin for the first quarter of 2019 was 77.9%, which was higher than the first quarter of 2018 gross margin of 75.8%. 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 first quarter of 2019 were $17.0 million, an increase of $4.7 million compared to $12.3 million in the first quarter of 2018. The increase was primarily driven by sales force expansion and marketing initiatives, higher product and clinical development expenses, as well as additional general and administrative expenses incurred to report as a public company.
Net loss for the first quarter of 2019 was $7.5 million, or $0.42 per share, as compared to first quarter 2018 net loss of $5.5 million, or $24.43 per share. Net loss per share for the first quarter of 2019 is calculated on a weighted-average basis, and includes 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 at the closing of our initial public offering. There were 18.227 million shares of common stock outstanding as of March 31, 2019.
EBITDA for the first quarter of 2019 was $(6.4) million as compared to the first quarter of 2018 EBITDA of $(4.4) million. See the accompanying financial table that reconciles EBITDA, which is a non-GAAP measure, to net loss.
Cash and cash equivalents were $96.1 million as of March 31, 2019. This compares to cash and cash equivalents of $104.6 million as of December 31, 2018.
Business Outlook
For the second quarter of 2019, the Company expects total worldwide revenue of between $15.6 and $16.2 million, representing 18% and 22% year-over-year growth, respectively.
For the full year 2019, the Company expects to report total worldwide revenue of between $62.5 and $64.5 million, representing 18% and 22% year-over-year growth, respectively.
For the full year 2019, the Company expects gross margins to be in the mid 70% range, in line with full year 2018 margins.
For the full year 2019, the Company expects operating expenses to be between $71.5 and $76.5 million, primarily due to continued investment in our salesforce expansion efforts, research and development related to the development of our next generation NeuroStar platform and clinical spending as we pursue additional indications for use, namely PTSD and Bi-Polar disorders.
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, 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.
