NeuroMetrix Inc Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
NeuroMetrix, Inc. Reports Q2 2024 Financial Results
NeuroMetrix, Inc. (NASDAQ: NURO), a company dedicated to reducing the impact of neurological disorders and pain syndromes through innovative non-invasive medical devices, has reported its financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $0.8 million | $1.7 million | -54% |
| Earnings Per Share | -$0.74 | -$1.56 | - |
| Gross Margin Rate | 64% | 68% | -4% |
| Operating Expenses | $2.3 million | $2.7 million | -15% |
| Net Loss | $1.5 million | $1.5 million | N/A |
Interpretation: NeuroMetrix reported a significant year-over-year decline in total revenue, primarily driven by a drop in DPNCheck sales due to changes in Medicare Advantage risk-adjustment compensation. However, the company managed to reduce its net loss per share, demonstrating some control over operating expenses.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Quell® | $192,000 | $131,000 | +47% |
| DPNCheck® | $536,000 | $1,405,000 | -62% |
Interpretation: Quell® displayed robust growth, with a 47% increase in revenue driven by the fibromyalgia indication, despite a commercial pause in OTC sales. Conversely, DPNCheck® experienced a significant contraction, attributed to the ongoing CMS phase-out of risk-adjustment compensation.
Operational Data
| Data Point | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Quell Starter Kits Sold | 540 | 204 | +165% |
| Quell 1-Month Refills Ordered | 3,682 | 3,256 | +13% |
Executive Comments
Shai N. Gozani, M.D., Ph.D., Chairman and CEO, highlighted the strategic initiatives and operational optimizations undertaken by the company. He emphasized the growth potential for Quell in both prescription and OTC markets and noted efforts to revitalize the DPNCheck business beyond Medicare Advantage.
Dividends and Share Repurchase Program
No new announcements on dividends or share repurchase programs were mentioned.
Forward Guidance
The company provided an optimistic outlook on continuing its strategic review process, exploring additional markets for DPNCheck, and planning for a Quell technology De Novo submission for CIPN indication.
Stock Price Movement
Following the earnings release, NeuroMetrix's stock price experienced an increase of approximately 2.38%.
In summary, NeuroMetrix, Inc. faced challenges with declining revenues in its DPNCheck segment but managed to achieve notable growth in its Quell product line. The company's ongoing strategic review and operational adjustments reflect a proactive approach to navigating market challenges and pursuing future growth opportunities.