NASDAQ$NPCE

Neuropace Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

NeuroPace's revenue increased significantly, driven by RNS System utilization and DIXI Medical products, while operating expenses were managed effectively.

NeuroPace reported a strong second quarter with a 62% increase in revenue year-over-year, driven by increased utilization of the RNS System and meaningful revenue from DIXI Medical products. The company also reduced its cash burn and increased its full-year revenue guidance.

  • Total revenue reached $16.5 million, a 62% increase compared to Q2 2022.
  • Cash burn was reduced to $4 million, a significant decrease from $9.8 million in Q1 2023.
  • Full-year revenue guidance was increased to $59-$61 million, up from $52-$54 million.
  • NAUTILUS trial enrollment remains on track, with completion anticipated in Q1 2024.

Headline financials

Total Revenue

$16.5M

Previous: $10.2M+61.9%
EPS (adj)

-$0.36

Previous: -$0.52+30.8%
Capital Expenditures

-$132K

Previous: -$470K+71.9%
Free Cash Flow

-$9.26M

Previous: -$13.2M+29.7%
Net Income

-$9.12M

Previous: -$12.7M+28.1%
Operating Income

-$7.85M

Previous: -$11M+28.4%
Gross Profit

$12M

Previous: $7.47M+60.4%
Cash & Equivalents

$7.86M

Previous: $5.7M+37.8%
Total Assets

$102M

Previous: $119M-13.8%
Stock-Based Comp

$2.66M

Previous: $2.6M+2.0%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$16.5M

Q2 2023+61.9%vs Q2 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 has increased its full year revenue guidance to $59 million to $61 million and gross margin guidance to 70% to 72%.

Tailwinds

  • Revenue growth is expected to be primarily driven by increasing utilization of the RNS System.
  • The full year impact of distributing DIXI Medical stereo EEG products is expected to contribute to revenue.
  • NeuroPace is focused on bringing its RNS System to more patients through existing CECs and an expanded group of epileptologists and functional neurosurgeons.
  • The company expects to complete enrollment in the NAUTILUS trial in the first quarter of 2024.
  • The company is committed to advancing its mission of transforming the lives of patients living with epilepsy while delivering shareholder value.

Headwinds

  • A continuing decline in revenue from replacement device implants is expected through the end of the year.
  • The decline is due to the company completing its transition to its second-generation device with a longer-lasting battery.
  • Uncertainties, risks, and assumptions could affect actual outcomes and results.
  • The ongoing uncertainty of the impact of COVID-19, as well as COVID recovery impact, on NeuroPace’s business could affect results.
  • The company's long term debt is $54.9 million with the full principal due on September 30, 2025.

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 Q2 2023

Historical avgQ2 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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