NASDAQ$NPCE

Neuropace Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

NeuroPace's Q4 2022 financial results showed revenue growth driven by increased RNS System utilization and initial DIXI Medical product distribution.

NeuroPace reported a 16% increase in total revenue for Q4 2022, reaching $12.8 million. This growth was driven by a 15% increase in initial implant revenue and contributions from the distribution of DIXI Medical products. The company's net loss for the quarter was $11.1 million.

  • Total revenue reached $12.8 million, a 16% increase year-over-year.
  • Initial implant revenue grew by 15% to $9.8 million compared to the prior year period.
  • DIXI Medical product distribution contributed $1.6 million in revenue.
  • Gross margin was 69%, down from 73% in the prior year, due to DIXI Medical product sales.

Headline financials

Total Revenue

$12.8M

Previous: $11M+16.3%
EPS (adj)

-$0.45

Previous: -$0.44-2.3%
Gross Profit Margin

69.0%

Previous: 73.0%-5.5%
Capital Expenditures

$102K

Previous: $154K-33.8%
Free Cash Flow

-$7.95M

Previous: -$8.36M+4.9%
Net Income

-$11.1M

Previous: -$10.7M-4.2%
Operating Income

-$9.86M

Previous: -$9.02M-9.4%
Gross Profit

$8.8M

Previous: $8.08M+9.0%
Cash & Equivalents

$6.61M

Previous: $19.2M-65.6%
Total Assets

$114M

Previous: $134M-14.6%
Stock-Based Comp

$2.08M

Previous: $1.88M+10.7%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$12.8M

Q4 2022+16.3%vs Q4 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 anticipates revenue growth driven by increased RNS System utilization and the full-year impact of DIXI Medical product sales, offset by declining replacement device implant revenue. They expect to substantially complete the transition to the second-generation RNS System by the end of 2023 and do not foresee needing to raise capital in the next 12 months.

Tailwinds

  • Total revenue is expected to range between $50.0 million to $52.0 million, growing approximately 10% to 14% over 2022.
  • Revenue growth is expected to be primarily driven by increasing utilization of the RNS System.
  • Revenue growth is expected to be driven by the full year impact of the sale of DIXI Medical stereo EEG products.
  • Gross margin is projected to range between 69% to 71%.
  • NeuroPace does not believe that it will have a need to raise capital in the next 12 months.

Headwinds

  • Revenue from replacement device implants is expected to decline.
  • Replacement implant revenue will generally continue to decrease through the end of 2023.
  • Total operating expenses are projected to range between $75.0 million to $77.0 million.
  • Ongoing uncertainty of the impact of the COVID-19 pandemic, as well as COVID recovery impact, on NeuroPace’s business.
  • Supply chain disruptions.

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 Q4 2022

Historical avgQ4 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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