The Malvern, Pennsylvania-based company posted losses of $10.4 million, or 39¢ per share, on sales of $16.3 million for the three months ended June 30, 2022, for a bottom-line deeper into the red on sales growth of nearly 15%.
Neuronetics’ losses per share of 39¢ came in 2¢ ahead of expectations on Wall Street, where analysts were looking for sales of $15.5 million.
Sales for the company’s flagship NeuroStar advanced therapy system — a transcranial magnetic stimulation (TMS) treatment for major depressive disorder — increased by 70% year-over-year, helping Neuronetics to exceed its second-quarter guidance for revenues between $15 million and $16 million.
“We successfully worked through macro challenges and have continued to execute, highlighted by very strong capital system sales volumes and improving utilization along with achieving multiple significant milestones, including the FDA approval for OCD and anxious depression, receiving multiple favorable reimbursement decisions, and expanding the number of exclusive commercial partnerships with national accounts,” Neuronetics President and CEO Keith J. Sullivan said in a news release. “For the remainder of the year, we will look to leverage the momentum we have built to continue to accelerate our growth and help more patients suffering from mental health disorders get the relief that they deserve.”
For the full year 2022, Neuronetics expects total worldwide revenue to range between $60 million and $62 million.
BTIG analyst Marie Thibault maintains a “neutral” rating on Neuronetics, though, due to what she described as a “slight miss on treatment revenue.”
“This quarter extended the momentum in capital equipment sales, utilization metrics were encouraging, and revenue guidance looks more than achievable to us,” Thibault wrote. “Still, with the larger installed base not yet translating directly into strong growth in treatment revenue, we continue to look for signs of consistent, broad-based treatment revenue growth. We look for growth in treatment revenue per active site to match increases in treatment utilization.”
STIM shares were up 1.6% at $4.32 per share in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.2%.