Stereotaxis, Inc. (AMEX:STXS) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
Despite a 39% increase in Q4 revenue, operating losses have widened, and there are significant supply chain challenges. The absence of a share repurchase program and conservative guidance further dampen sentiment. While there are promising product developments, regulatory and market uncertainties, especially in China, pose risks. The Q&A session highlighted management's inability to provide clear timelines for key product approvals, adding to investor concerns. Overall, the negative financial indicators and uncertainties outweigh the positive revenue growth.
Key Financial Performance
Revenue for Q4 2024 $6.3 million, a 39% increase from $4.6 million in Q4 2023.
System Revenue for Q4 2024 $1.4 million, compared to $0.1 million in Q4 2023.
Recurring Revenue for Q4 2024 $4.9 million, compared to $4.5 million in Q4 2023, reflecting a full quarter’s contribution from the acquisition of APT.
Revenue for Full Year 2024 $26.9 million, compared to $26.8 million in 2023.
System Revenue for Full Year 2024 $8.6 million, compared to $8.7 million in 2023.
Recurring Revenue for Full Year 2024 $18.3 million, compared to $18 million in 2023, with catheter shortages offset by APT's contribution.
Gross Margin for Q4 2024 Approximately 51% of revenue.
Gross Margin for Full Year 2024 Approximately 54% of revenue.
Recurring Revenue Gross Margin for Full Year 2024 70%.
System Gross Margin for Full Year 2024 20%.
Operating Expenses for Q4 2024 $10.8 million, including $2.5 million in noncash stock compensation and $1.1 million in noncash adjustments.
Adjusted Operating Expenses for Full Year 2024 $27.4 million, compared to $26.2 million in 2023.
Operating Loss for Q4 2024 $7.6 million, compared to $5.3 million in Q4 2023.
Net Loss for Q4 2024 $7.5 million, compared to $5 million in Q4 2023.
Adjusted Operating Loss for Full Year 2024 $12.8 million, compared to $11.3 million in 2023.
Adjusted Net Loss for Full Year 2024 $12.1 million, compared to $10.2 million in 2023.
Free Cash Flow for Q4 2024 Positive $1.3 million.
Free Cash Flow for Full Year 2024 Negative $8.5 million, compared to negative $9.5 million in 2023.
Cash and Cash Equivalents at December 31, 2024 $12.4 million with no debt.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
MAGIC ablation catheter: Received European CE Mark approval and expected first sales in March, targeting $1 million in quarterly revenue by year-end.
MAGIC Sweep catheter: Regulatory submission made; expected approvals in Europe and the US by Q3, with revenue potential similar to MAGIC ablation catheter.
EMAGIN vascular catheter: First in a new family of interventional guidewires and catheters; regulatory submission made, with expected approvals in Q3.
GenesisX robot: Received CE Mark in Europe; first installation expected in summer 2025, with potential sales scaling to double digits next year.
Digital surgery platform (SynX): Plans to unveil at HRS in April; expected modest revenue of $1 million this year, with significant growth anticipated in 2026.
Market expansion in China: Partner MicroPort received regulatory approval for Genesis robot and related systems, with a pipeline of hospitals interested in the technology.
Operational efficiencies from APT acquisition: Contributed to recurring revenue growth; expected to improve gross margins as inventory issues are resolved.
Strategic transformation: Focus on four pillars: robot availability, catheter ecosystem, interventional devices, and AI connectivity.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Earnings Expectations: Stereotaxis, Inc. missed earnings expectations with a reported EPS of $-0.09, compared to expectations of $-0.06.
Regulatory Risks: The company faces regulatory scrutiny from the FDA, particularly regarding cybersecurity issues related to their technology, which could delay product approvals.
Supply Chain Challenges: There are ongoing catheter shortages from Johnson & Johnson, which have impacted the company's ability to meet demand.
Market Competition: Stereotaxis is shielded from competitive dynamics in the cardiac ablation market due to its focus on complex procedures, but the overall market dynamics could still pose risks.
Economic Factors in China: The macroeconomic environment and anti-corruption campaigns in China present significant headwinds for the company's commercial efforts in that region.
Operational Risks: The company has faced structural and strategic limitations in the past, which have created dependencies and operational stress, potentially impacting future growth.
Financial Performance: The company reported an operating loss of $7.6 million for Q4 2024, which is an increase from the previous year's loss, indicating ongoing financial challenges.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Strategic Transformation: Stereotaxis is undergoing a major strategic transformation to improve endovascular surgery with robotics, aiming to become a leader in minimally invasive interventions.
Four Pillars of Strategy: 1. Making the robot widely available without construction requirements. 2. Building an ecosystem of catheters to reduce dependencies. 3. Developing interventional devices for broader applications. 4. Establishing connectivity and AI capabilities in the cath lab.
Acquisition of APT: The acquisition of APT has enhanced Stereotaxis' catheter development and manufacturing capabilities.
Regulatory Milestones: Key regulatory submissions for the GenesisX robot and MAGIC catheter have been made, with expectations for approvals in the near term.
Market Launches: Initial commercial launch of the GenesisX robot is expected in Europe this summer, with a full launch anticipated in the second half of the year.
Revenue Expectations: Revenue for 2025 is expected to remain flat compared to 2024, with system revenue projected at $2 million to $3 million per quarter.
Recurring Revenue Growth: Recurring revenue is expected to grow from $5 million in Q1 to $7 million in Q4 of 2025.
Long-term Growth Outlook: Double-digit annual growth is anticipated in 2025, with substantial growth expected in 2026.
Cash Use Projections: Reduced cash use is expected in 2025, with a focus on maintaining flat adjusted operating expenses.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Program: None
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you just walk us through where we are today and what needs to occur between then and now to be on time with the second half approval of MAGIC?
A:We are continuing to enroll patients in Europe and responding to FDA questions regarding our PMA submission. The FDA is conducting a detailed review, and there may be an audit of our manufacturing facility in Germany.
Q:Can you just talk a little bit about how MAGIC Sweep fits into the broader ecosystem and its impact on your relationship with Abbott?
A:MAGIC Sweep is a high-density mapping catheter that will be used in robotic procedures. It enhances the workflow and safety of procedures, and our partners are aware of this development.
Q:Can you help us better understand the system revenue guidance for 2025?
A:We are being conservative in our guidance due to the volatility in revenue recognition and focusing on our backlog and confirmed shipments.
Q:What is the timing for GenesisX commercial approval in the US?
A:We expect to respond to FDA questions soon and anticipate approval before compatible catheters are approved.
Q:What’s assumed in the guidance for the EMAGIN 5F catheter?
A:There is no real expectation of revenue from EMAGIN 5F in our guidance due to uncertainty in regulatory approval.
Q:Is there capacity constraints related to MAGIC, or are you ramping up manufacturing?
A:We are ramping up manufacturing in Europe and working through administrative processes with hospitals.
Q:What kind of frequency do you anticipate the mapping catheter being used with MAGIC?
A:Approximately two-thirds to 75% of procedures currently use a high-density mapping catheter, and we expect good uptake of the robotic version.
Q:What is the math behind the assumption that the two catheters combined should increase catheter sales fivefold?
A:The average selling prices are similar, and adding MAGIC and MAGIC Sweep increases revenue per procedure significantly.
Q:Review of Unclear Management Responses
A:Management did not provide a clear answer regarding the specific timeline for the US MAGIC revenue in the guidance, stating they do not know the exact approval timeline.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
EMAGIN catheter
EP
GenesisX robot
Heart Rhythm
Johnson
MAGIC Sweep
MAGIC ablation
MAGIC approval
Magbot catheter
MicroPort
PSA
SynX
ablation market
acquisition APT
anatomy
approval Europe
availability
capability
cath lab
catheter MAGIC
catheter benefit
catheter innovation
connectivity AI
cybersecurity
dependency
disease
environment
issue
mission
noncash
platform
portfolio
press release
razor
room
surgery
transformation
update
STXS Transcript
Stereotaxis, Inc. (STXS) Q3 2025 Earnings Call Transcript
Unknown11-11
The earnings call presented mixed signals: while product development with GenesisX and new catheters is promising, financials show consistent losses and a negative cash flow. The Q&A reveals a cautious approach to new launches and regulatory approvals, indicating uncertainty. No strong catalysts like partnerships or guidance changes were mentioned. Therefore, the stock is likely to remain stable in the short term.
Stereotaxis, Inc. (STXS) Q1 2025 Earnings Call Transcript
Unknown5-12
The earnings call presents mixed signals: while product development and business updates show promise, especially in Europe, financial performance is concerning with declining system revenue and increasing operating losses. The Q&A reveals positive reception of new products but highlights uncertainties in U.S. regulatory approvals and market adoption challenges. The lack of a share repurchase program and structural challenges further dampen sentiment. Overall, the mixed guidance and financials, coupled with regional uncertainties, suggest a neutral stock price movement.
Stereotaxis, Inc. (AMEX:STXS) Q4 2024 Earnings Call Transcript
Unknown3-4
Despite a 39% increase in Q4 revenue, operating losses have widened, and there are significant supply chain challenges. The absence of a share repurchase program and conservative guidance further dampen sentiment. While there are promising product developments, regulatory and market uncertainties, especially in China, pose risks. The Q&A session highlighted management's inability to provide clear timelines for key product approvals, adding to investor concerns. Overall, the negative financial indicators and uncertainties outweigh the positive revenue growth.
Earnings call transcript: Stereotaxis Q4 2024 misses forecasts, stock dips
Unknown3-3
The earnings call reveals mixed signals: strong revenue growth in Q4 2024 and positive free cash flow, but financial losses and dependency on Johnson & Johnson pose risks. The Q&A shows uncertainty in revenue guidance and regulatory approvals, with vague responses from management. The lack of shareholder return plans and the company's financial strain further balance the positive aspects, resulting in a neutral sentiment.
STXS Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
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.
