Neuronetics Reports Strong Fourth Quarter and 2023 Results, Launches Patient-Oriented Program

Neuronetics, Inc

MALVERN, PA — Neuronetics, Inc. (NASDAQ: STIM), a leading-edge medtech corporation, recently showcased robust financial results for the fourth quarter and full year of 2023, hoping to continue the upward trend into 2024.

In the fourth quarter of 2023, the Pennsylvania-based firm churned out $20.3 million in revenue – a notable 12% increase compared to the same period in 2022. This uptick was fuelled by a significant 33% surge in local consumable treatment session revenue, which topped off at an unprecedented $14.9 million for U.S. treatment sessions.

Taking the windfall further, Neuronetics managed to leverage this gain into a positive cash flow of approximately $1.5 million in the same quarter. This financial acumen allowed the company to close 2023 on a high note, with cash and equivalents approximating $60 million.

The fiscal year of 2023 was similarly rewarding for Neuronetics, which reported an overall revenue of $71.3 million, reflecting an enviable 9% increment compared to the entire fiscal year of 2022. U.S. treatment session revenue also contributed heavily to the financial haul, generating $50.9 million.

Aside from these monetary achievements, Neuronetics took strides on the operational and marketing fronts. The “Better Me Guarantee Provider” pilot program, launched in January 2024, stands out as a prime example of the firm’s commitment to patient welfare and service quality.

Additionally, Neuronetics welcomed healthcare policy updates from Magellan, BlueCross BlueShield of Kansas City, Dean Health Plan, and Lucet Health. These changes create more accessible pathways to transcranial magnetic stimulation (TMS) treatment eligibility – a process core to the company’s line of service.

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Keith J. Sullivan, the President and Chief Executive Officer of Neuronetics, expressed enthusiasm and confidence at these developments. He believes that the advancements will help identify more patients requiring NeuroStar treatments, indicating a promising future for the firm’s innovative transcranial magnetic stimulation therapy.

Examining the numbers, Neuronetics saw a fourth-quarter gross margin of 77.6%, a 170 basis point jump from 2022’s same-period figure. However, the fiscal year 2023 wasn’t as rosy, reporting a drop in gross margin to 72.5%.

Despite the hurdles, the company anticipates promising revenue for the first quarter of 2024, projecting an expected total worldwide revenue between $16.7 million and $17.7 million.

In summary, Neuronetics appears to be on a strong growth trajectory, thanks to an encouraging financial performance in 2023 and strategic operations like the launch of the Better Me Guarantee Provider program. With its fingers on the pulse of innovative patient care, industry observers await the firm’s 2024 performance with keen interest.

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