NASDAQ$NPCE

Neuropace Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

NeuroPace's Q1 2023 revenue increased, driven by RNS System utilization and DIXI Medical product distribution, while operating leverage improved through expense management.

NeuroPace reported a 27% year-over-year increase in revenue for Q1 2023, reaching $14.5 million. The growth was attributed to increased utilization of the RNS System and contributions from DIXI Medical products. The company increased its full-year revenue guidance to $52-$54 million.

  • Total revenue reached $14.5 million, a 27% increase year-over-year.
  • Gross margin was 72%, slightly down from 73% in Q1 2022 due to product mix changes.
  • Operating expenses totaled $18.7 million, compared to $18.0 million in the prior year period.
  • Full-year revenue guidance was increased to $52 million to $54 million.

Headline financials

Total Revenue

$14.5M

Previous: $11.4M+27.2%
EPS (adj)

-$0.41

Previous: -$0.47+12.8%
Gross Profit Margin

72.0%

Previous: 73.0%-1.4%
Capital Expenditures

-$132K

Previous: -$306K+56.9%
Free Cash Flow

-$10.5M

Previous: -$11.8M+10.7%
Net Income

-$10.4M

Previous: -$11.5M+9.5%
Operating Income

-$8.32M

Previous: -$9.76M+14.8%
Gross Profit

$10.4M

Previous: $8.26M+25.6%
Cash & Equivalents

$6.72M

Previous: $7.49M-10.3%
Total Assets

$106M

Previous: $129M-17.6%
Stock-Based Comp

$2.13M

Previous: $1.49M+42.8%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$14.5M

Q1 2023+27.2%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Neuropace · $1.6M total across 1 segment · Q4 2022

  • DIXI Medical
    $1.6M

Forward guidance

NeuroPace anticipates revenue growth will be primarily driven by increasing utilization of its RNS System and the full year impact of the sale of DIXI Medical stereo EEG products, partially offset by declining revenue from replacement device implants. The company expects gross margin to range between 69% and 71% and total operating expenses to range between $75 million and $77 million.

Tailwinds

  • Revenue growth driven by increasing RNS System utilization
  • Full year impact of DIXI Medical stereo EEG products
  • Gross margin expected to range between 69% and 71%
  • Focus on expanding addressable market
  • Delivering clinical benefits of RNS System

Headwinds

  • Declining revenue from replacement device implants
  • Replacement implant revenue expected to decrease through 2023
  • Uncertainty of COVID-19 pandemic impact
  • Risks described in SEC filings
  • Based on information available as of the report date

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.7%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.1%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+37.4%

Q3 2025

Best reaction

-40.1%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-1.8%
Q4 2025+1.1%+1.6%+5.9%
Q3 2025+37.4%+43.1%+74.5%
Q1 2025+21.6%+31.3%-14.5%
Q4 2024-2.4%-15.8%+2.6%
Q3 2024+25.7%+23.4%+49.9%
Q2 2024-1.9%-0.4%+4.8%
Q1 2024-40.1%-35.9%-51.4%
Q4 2023+0.8%+2.5%-8.4%
Q3 2023-1.4%+9.5%+14.6%
Q2 2023+9.8%+9.8%+103.4%
Q1 2023+1.9%-3.5%-15.4%
Q4 2022-13.3%-7.8%-1.9%
Q3 2022-9.9%-17.6%-29.6%
Q2 2022-3.5%-10.2%-26.6%
Q1 2022+1.2%-3.6%-3.8%
Q4 2021-0.9%-7.7%-1.2%
Q3 2020-15.2%-22.2%-47.7%
Q3 2021-15.2%-22.2%-47.7%
Q2 2021-7.6%-10.7%-8.0%
Q2 2020-7.6%-10.7%-8.0%
Q1 2020+0.8%+8.7%+2.2%
Q1 2021+0.8%+8.7%+2.2%
Q4 2020+0.8%+8.7%+2.2%

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