NASDAQ$NPCE

Neuropace Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

NeuroPace experienced increased adoption of the RNS System and initiated distribution of DIXI Medical stereo EEG electrodes.

NeuroPace reported an $11.2 million total revenue for Q3 2022, which represents an 8% growth compared to Q3 2021. The company also initiated distribution of DIXI Medical's stereo EEG product portfolio and implanted the first patient in the NAUTILUS pivotal study.

  • Total revenue reached $11.2 million, an 8% increase year-over-year.
  • Initial implant revenue grew by 18% year-over-year, reaching $9.2 million.
  • Gross margin was 71% compared to 73% in the prior year period, due to a short-term supply chain disruption.
  • Operating expenses increased to $18.2 million, compared to $13.8 million in the prior year period.

Headline financials

Total Revenue

$11.2M

Previous: $10.3M+7.9%
EPS (adj)

-$0.48

Previous: -$0.34-41.2%
Gross Profit Margin

71.0%

Previous: 72.6%-2.2%
Capital Expenditures

-$501K

Previous: -$230K-117.8%
Free Cash Flow

-$12.3M

Previous: -$8.31M-47.8%
Net Income

-$11.8M

Previous: -$8.08M-45.8%
Operating Income

-$10.2M

Previous: -$6.24M-63.4%
Gross Profit

$7.97M

Previous: $7.51M+6.1%
Cash & Equivalents

$5.69M

Previous: $26.6M-78.6%
Total Assets

$120M

Previous: $141M-14.7%
Stock-Based Comp

$2.18M

Previous: $1.11M+97.1%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$11.2M

Q3 2022+7.9%vs Q3 2021
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 updated its 2022 financial guidance with increased expectations for total revenue, initial implant revenue, and replacement implant revenue. They also anticipate DIXI Medical revenue and provided gross margin and total operating expenses estimates.

Tailwinds

  • Total revenue of $44.5 million to $45.5 million compared to the previous expectation of $43 million to $45 million
  • Initial implant revenue of $35 million to $36 million compared to the previous expectation of $34 million to $36 million
  • Replacement implant revenue of nearly $8 million compared to the previous expectation of $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

Headwinds

  • Total operating expenses of $74 million to $75 million, which includes approximately $8 million to $9 million of non-cash stock-based compensation expense
  • Approximately $1 million of DIXI launch related expenses in the fourth quarter

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 2022

Historical avgQ3 2022

-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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