NeuroPace (NPCE) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $21.1 million, up 28% year-over-year, driven by RNS System and DIXI Medical product sales.

• Gross margin remained strong at 73.2%, within guidance range.

• Net loss narrowed to $5.5 million in Q3 2024 from $7.3 million in Q3 2023, reflecting higher sales and improved gross margin.

• Cash and short-term investments totaled $56.8 million as of September 30, 2024, supporting operations and growth initiatives.

• Increased full-year 2024 revenue guidance to $78–$80 million, reflecting 19–22% growth over 2023.

Financial highlights

• Q3 2024 revenue: $21.1 million (+28% YoY); nine-month revenue: $58.4 million (+23% YoY).

• Gross margin: 73.2% in Q3 2024, within the target range of 72%-74%.

• Operating expenses: $19.7 million in Q3 2024, up 8% year-over-year.

• Net loss: $5.5 million in Q3 2024 ($0.19/share), improved from $7.3 million ($0.28/share) in Q3 2023.

• Cash and short-term investments: $56.8 million as of September 30, 2024.

Outlook and guidance

• 2024 revenue guidance raised to $78–$80 million (+19%–22% YoY), led by RNS System and DIXI Medical product sales.

• Gross margin expected at 72%–74% for 2024; operating expenses projected at $80–$84 million, including ~$10 million in stock-based compensation.

• Sufficient capital to support operations and growth initiatives through at least 2026.

• Project CARE and indication expansion expected to drive further growth in 2025.