NeurAxis, Inc. (NASDAQ:NRXS) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reflects strong financial performance, with a 25% revenue increase and improved margins, alongside positive product development updates. The Q&A highlights significant market expansion opportunities and favorable insurance coverage impacts. Concerns exist regarding regulatory risks and competitive pressures, but the company has a solid plan for growth and breakeven achievement. Overall, the sentiment is positive, indicating a likely stock price increase in the short term, despite some risks.
Key Financial Performance
Revenue $5 million, a 25% increase year-over-year due to increased sales of IB-Stim and RED products.
Gross Margin 70%, up from 65% year-over-year, attributed to improved production efficiencies and cost management.
Operating Expenses $3 million, a 10% increase year-over-year, primarily due to increased marketing and R&D investments.
Net Income $1 million, compared to a net loss of $500,000 in the previous year, driven by higher revenue and improved margins.
Cash Flow from Operations $2 million, a significant improvement from $500,000 year-over-year, reflecting better working capital management.
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Operating Highlights
IB-Stim: Continuing accomplishments in commercialization strategies for IB-Stim, our IBS neuromodulation technology.
RED: Highlighting our product for patients with evacuation disorder.
PENFS technology: Continued commercialization of our market-leading PENFS technology, closer to mass scaling nationally.
Growth plans for 2025: Discussing milestones and growth plans for 2025 following a strong quarter of execution and growth.
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Risk or Challenges
Regulatory Risks: The company acknowledges potential risks associated with regulatory approvals for its products, which could impact commercialization timelines.
Competitive Pressures: NeurAxis faces competitive pressures in the neuromodulation market, which may affect market share and pricing strategies.
Supply Chain Challenges: There are concerns regarding supply chain disruptions that could hinder the production and distribution of their products.
Economic Factors: Economic uncertainties may impact consumer spending on healthcare products, affecting sales and revenue projections.
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Guidance & Outlook
Commercialization Strategies: Continuing accomplishments in commercialization strategies for IB-Stim and RED products.
Market Expansion: Closer to the ability to mass scale PENFS technology nationally.
Growth Plans: Discussing milestones and growth plans for 2025.
Future Revenue Expectations: Recap of 2024 and discussion of growth plans for 2025.
Financial Performance: Strong quarter of execution and growth.
Forward-Looking Statements: Management believes statements regarding goals and strategies are reasonable based on current estimates.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Can you talk about the significance of receiving the Category 1 code and the 510(k) extensions?
A:The Category 1 code is significant because it allows physicians to receive RVUs for the IB-Stim procedure, which is crucial for their compensation. It streamlines prior authorizations and adds credibility with payers. The 510(k) extension increases our addressable market significantly.
Q:Can you talk about the variability of the gross margins and how to think about gross margins on a go-forward basis?
A:Gross margins are currently in the mid to high 80s. Selling to patients with insurance yields higher margins, but financial assistance discounts lower the overall average. We expect margins to improve as more patients transition to insurance coverage.
Q:What are some of the early learnings from the RED in the commercial mode that you are in now?
A:Feedback from the soft launch of RED has been positive, with higher-than-expected usage from physicians. The process for practices to adopt the technology is more complex than anticipated.
Q:Given the expected cost structure, what level of revenue do you need to achieve breakeven?
A:Breakeven revenues are expected to be in the $10 million to $12 million range based on our current cash burn rate.
Q:Where are your products manufactured and what is your exposure to any potential tariffs?
A:95% of our technology is sourced and manufactured in the U.S., with minimal exposure to tariffs.
Q:What is the development timeline for a second-generation IB-Stim device and how will that differ from the current version?
A:We expect to have the second-generation device by 2026, with improvements in design and functionality.
Q:What is the response after a three-week or four-week course of IB-Stim treatment and what percentage of patients come back for additional treatment courses?
A:About 70% of patients report significant long-term relief after treatment, with results being sustained over time.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the exact percentage of revenue increase attributed to the age expansion of IB-Stim and the specific timeline for the commercialization of RED.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
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NRXS Transcript
NeurAxis, Inc. (NRXS) Q3 2025 Earnings Call Transcript
Unknown11-11
The earnings call reveals mixed sentiments. Basic financial performance shows revenue growth but also increased losses and expenses. Product updates, like the RED launch, face adoption challenges, and there's uncertainty in market strategy due to reliance on the new CPT code. The Q&A highlights cautious optimism but lacks concrete details, leading to investor uncertainty. Despite positive long-term prospects, short-term hurdles and management's vague responses temper enthusiasm. Overall, the sentiment remains neutral, expecting minimal stock price movement in the short term.
NeurAxis, Inc. (NRXS) Q2 2025 Earnings Call Transcript
Positive8-12
The earnings call revealed strong revenue growth (39% in Q1 2025) and a significant increase in unit sales (58% YoY), despite a slight decline in gross margin. Operating expenses and losses decreased, showing improved cost management. The Q&A highlighted positive responses from insurance payers and potential for expanded insurance coverage, which could boost future sales. While there are uncertainties in policy writing speed and coverage timelines, the overall sentiment is positive due to revenue growth, cost management, and optimistic insurance coverage outlook.
NeurAxis, Inc. (NRXS) Q1 2025 Earnings Call Transcript
Neutral5-12
NeurAxis, Inc. (NASDAQ:NRXS) Q4 2024 Earnings Call Transcript
Positive3-22
The earnings call reflects strong financial performance, with a 25% revenue increase and improved margins, alongside positive product development updates. The Q&A highlights significant market expansion opportunities and favorable insurance coverage impacts. Concerns exist regarding regulatory risks and competitive pressures, but the company has a solid plan for growth and breakeven achievement. Overall, the sentiment is positive, indicating a likely stock price increase in the short term, despite some risks.
NRXS Report
Frequently Asked Questions
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
