NASDAQ$NPCE

Neuropace Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

NeuroPace's revenue decreased by 19% year-over-year due to COVID headwinds, but the fundamentals of the business remained strong.

NeuroPace reported a total revenue of $10.3 million for Q3 2021, a 19% decrease compared to the prior year period. The decrease was attributed to COVID-19 related headwinds. The company continues to make progress toward increasing the market opportunity. Management provided updated full-year 2021 guidance.

  • Total revenue was $10.3 million, a 19% decrease year-over-year.
  • Initial implant revenue was $7.8 million, a 15% decrease year-over-year.
  • Gross margin was 72.6%, compared to 75.0% in the prior year period.
  • Net loss was $8.1 million, compared to a net loss of $4.1 million in the prior year period.

Headline financials

Total Revenue

$10.3M

Previous: $12.8M-19.0%
EPS (adj)

-$0.34

Previous: -$19.26+98.2%
Gross Profit Margin

72.6%

Previous: 75.0%-3.2%
Capital Expenditures

-$230K

No prior period
Free Cash Flow

-$8.31M

Previous: -$5.43M-53.2%
Net Income

-$8.08M

Previous: -$4.13M-95.9%
Operating Income

-$6.24M

Previous: -$1.17M-435.4%
Gross Profit

$7.51M

Previous: $9.58M-21.6%
Cash & Equivalents

$26.6M

Previous: $43.1M-38.3%
Total Assets

$141M

No prior period
Stock-Based Comp

$1.11M

Previous: $301K+267.8%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$10.3M

Q3 2021-19%vs Q3 2020
Beat estimate in 10 of 12 quarters(83%)
ActualEstimate

Revenue by segment

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

  • DIXI Medical
    $1.6M

Forward guidance

Management continues to take a measured approach given the uncertainty surrounding COVID-19, including the risk posed by new variants and the potential impact on hospital, physician and patient behavior.

Tailwinds

  • Total revenue of $44 to $44.5 million, representing growth of 7% to 8% compared to prior year.
  • Initial implant revenue of $33 to $33.5 million, representing growth of 18% to 20% compared to prior year.

Headwinds

  • Replacement implant revenue of approximately $11 million, representing a decline of 16% compared to prior year.

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 Q3 2021

Historical avgQ3 2021

-0.7%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.0%

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%+0.8%
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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