NASDAQ$NPCE

Neuropace Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

NeuroPace reported a 41% increase in revenue to $18.0 million for Q4 2023, driven by increased RNS System sales and DIXI Medical product revenue, while reducing cash burn to $3.4 million.

NeuroPace announced record full year 2023 revenue of $65.4 million. Revenue increased to $18.0 million in Q4 2023, a 41% increase over Q4 2022. The company provides full-year 2024 revenue guidance of between $73-$77 million.

  • Total revenue in Q4 2023 grew 41% to $18.0 million compared to Q4 2022.
  • Full year 2023 revenue increased 44% to $65.4 million compared to 2022.
  • Gross margin for Q4 2023 was 75.2% compared to 68.8% in Q4 2022.
  • Cash burn in Q4 2023 was $3.4 million, compared to $7.9 million in Q4 2022.

Headline financials

Total Revenue

$18M

Previous: $12.8M+40.8%
EPS (adj)

-$0.23

Previous: -$0.45+48.9%
Gross Profit Margin

75.2%

Previous: 69.0%+9.0%
Capital Expenditures

$32K

Previous: $102K-68.6%
Net Income

-$6.2M

Previous: -$11.1M+44.4%
Operating Income

-$5.05M

Previous: -$9.86M+48.8%
Gross Profit

$13.5M

Previous: $8.8M+53.9%
R&D Expense

$5.38M

No prior period
Stock-Based Comp

$2.36M

Previous: $2.08M+13.5%

Revenue & EPS history

Neuropace · Revenue · Quarterly

$18M

Q4 2023+40.8%vs Q4 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 expects revenue growth to be primarily driven by increasing sales of its RNS System and higher sales of DIXI Medical stereo EEG products, while replacement implant revenue is expected to decline in 2024 versus 2023.

Tailwinds

  • Total revenue to range between $73 million and $77 million, representing growth of 12% to 18% over 2023
  • Gross margin to range between 72% and 74%
  • Increasing sales of its RNS System
  • Higher sales of DIXI Medical stereo EEG products
  • Focus on operating discipline

Headwinds

  • Replacement implant revenue is expected to decline in 2024 versus 2023
  • Total operating expenses to range between $80 million and $84 million, including approximately $12 million in stock-based compensation, a noncash expense
  • Inherent uncertainties, risks, and assumptions that are difficult to predict
  • Actual outcomes and results could differ materially due to a number of factors
  • Market expansion depends on clinical trial results and indication expansion

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 2023

Historical avgQ4 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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