NASDAQ$NPCE

Neuropace Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

NeuroPace achieved strong revenue growth and cashflow performance, demonstrated progress in market penetration efforts, and advanced market development, product, and clinical initiatives.

NeuroPace reported a 47% year-over-year increase in revenue for Q3 2023, reaching $16.4 million. The company reduced cash burn to $2.2 million and increased full-year revenue guidance to $62.5-$63.5 million.

  • Achieved total revenue of $16.4 million for the third quarter of 2023, representing a 47% increase over the third quarter of 2022
  • Reduced cash burn to $2.2 million, down from $4 million in the second quarter and $9.8 million in the first quarter, further extending cash runway
  • Implanted first patients with the RNS System in the community setting as part of the Project CARE initiative
  • Received FDA approval of the Tablet Remote Monitor (TRM), which simplifies patients’ experience through seamless transfer of data to the clinician

Headline financials

Total Revenue

$16.4M

Previous: $11.2M+47.2%
EPS (adj)

-$0.28

Previous: -$0.48+41.7%
Gross Profit Margin

74.5%

Previous: 71.0%+4.9%
Capital Expenditures

-$141K

Previous: -$501K+71.9%
Free Cash Flow

-$7.4M

Previous: -$12.3M+39.8%
Net Income

-$7.26M

Previous: -$11.8M+38.4%
Operating Income

-$5.95M

Previous: -$10.2M+41.7%
Gross Profit

$12.2M

Previous: $7.97M+53.6%
Cash & Equivalents

$9.72M

Previous: $5.69M+70.8%
Total Assets

$99.3M

Previous: $120M-17.6%
R&D Expense

$4.8M

No prior period
Stock-Based Comp

$2.42M

Previous: $2.18M+11.0%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$16.4M

Q3 2023+47.2%vs Q3 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 increased its full-year revenue guidance to range between $62.5 million and $63.5 million, representing growth of 37% to 39% over 2022. Increased gross margin to range between 71% and 73%. Revised total operating expenses to range between $75 million and $76 million, including $9 million to $10 million of non-cash expenses

Tailwinds

  • Revenue growth to be primarily driven by increasing adoption and utilization of its RNS System
  • Full year impact of the sale of DIXI Medical stereo EEG products
  • Gross margin to range between 71% and 73%
  • Operating expenses to range between $75 million and $76 million
  • Company believes it has sufficient capital to fund its planned operations into 2026

Headwinds

  • Continuing decline in revenue from replacement device implants
  • Transition to the third generation RNS System, with an extended battery life, to be largely complete
  • Substantially all of the prior generation RNS devices to have been replaced
  • Revenue growth to be partially offset by decline in revenue from replacement device implants
  • Non-cash expenses of $9 million to $10 million

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 2023

Historical avgQ3 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro