Neuropace Inc · Q2 2022 earnings

Briefing

NeuroPace's financial performance declined due to reduced EMU patient volumes and COVID-19 related cancellations.

NeuroPace reported a decrease in total revenue to $10.2 million, compared to $12.6 million in the prior year period. The company's net loss increased to $12.7 million, compared to a net loss of $8.5 million in the prior year period. Despite these challenges, the operating environment improved throughout the second quarter, with a positive trend continuing into the third quarter.

• Announced exclusive U.S. distribution agreement with DIXI Medical to sell its stereo EEG electrodes to Epilepsy Monitoring Units (EMUs).
• Completed sales team expansion initiative.
• Began enrollment in the NAUTILUS study for primary generalized epilepsy.
• Total revenue was $10.2 million for the second quarter of 2022.

Headline financials

Revenue & EPS history

NeuroPace provided financial guidance for 2022, including total revenue of $43 million to $45 million, initial implant revenue of $34 million to $36 million, replacement implant revenue of approximately $7.5 million, DIXI Medical revenue of approximately $1.5 million (expected in the fourth quarter of 2022), gross margin in the low 70% range, and total operating expenses of $74 million to $75 million.