Q4 2023 BrainsWay Ltd Earnings Call
[music].
Operator: Good morning everyone. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to Brainsway's fourth quarter and full year 2023 financial results conference. All lines have been placed on mute to prevent any... After the speakers' remarks, there will be a question and answer session.
Good morning, everyone. My name is Chris and I'll be your conference operator today.
At this time I would like to welcome everyone to brain's ways fourth quarter and full year 2023 financial results conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session.
Roy Williams: Thank you. Roy Williams, Investor Relations from Lifesign Investors, you may begin. Welcome to Brainsway's fourth quarter and full year 2023 earnings conference call. With us today are Brainsway's Chief Executive Officer, Hadar Levy, and Chief Financial Officer, Ido Marom. The format for today's call will be a discussion of recent trends and business updates from Hadar, followed by a detailed discussion of the financials. Then we will open up the call to your questions.
The way, we Didnt Investor relations from not signed by the investors you may begin.
[music].
Welcome to <unk> fourth quarter, and full year 2023 earnings conference call.
Today, our brains wage Chief Executive Officer.
And Chief Financial Officer.
Yeah.
The format for today's call will be a discussion of recent trends and business updates from Dara followed by a detailed discussion of the financials.
And then we will open up the call for your questions.
Roy Williams: Earlier today, Brainsway released financial results for the 3 and 12 months ending December 31, 2023. A copy of the press release is available on the company's investor relations website. Before I turn the call over to Hadar, I would like to remind you that this conference call, including both management's prepared remarks and the questions and answer session, may contain projections or other forward-looking statements regarding, among other things, Brainsway's anticipated future operating and financial performance, business plans and prospects, and expectations for its products and pipeline, which are all subject to risks and uncertainties, including shifting market conditions resulting from geopolitical, supply chain, Additional information regarding these and other risks is available in the company's earnings release and in its other filings with the SEC, including the Risk Factors section contained in Brainsway's Form 20-F. I would like to turn the call over to Hadar.
Earlier today <unk> released financial results for the three and 12 months December 31 2023 copy.
A copy of the press release is available on the company's Investor Relations website.
Before I turn the call over to the dark I would like to remind you that this conference call, including both management's prepared remarks, and the question and answer session may contain projections or other forward looking statements regarding among other topics brings with anticipated future operating and financial performance business plans and prospects and X.
The patients for its products and pipeline.
Which are all subject to risks and uncertainties, including shifting market conditions, resulting from geopolitical supply chain and other factors as well as the use of non-GAAP financial information.
Information regarding these and other risks are available in the company's earnings release and in its other filings with the SEC, including the risk factors section contained in <unk> form 20-F.
I would like to turn the call over to Dr. <unk>.
Hadar Levy: Thank you, Troy. Welcome, everyone, and thank you for joining us today. I'm excited to discuss the strong momentum that currently exists throughout our entire business, as well as our positive outlook for 2024. As a reminder, we previously set a goal to grow the company's 2023 top line by 20% over 2022, while targeting break-even operating income and positive adjusted EBITDA in the fourth quarter. I am thrilled to report that we significantly exceeded those expectations
Thank you Troy and welcome everyone and thank you for joining us today.
I'm excited to discuss the strong momentum not currently exist throughout our entire business as well as our positive outlook for 2024.
As a reminder.
Obviously set a goal to grow the company's 2023 top line or 2022 wells targeting breakeven operating income and positive adjusted EBITDA in the fourth quarter.
I'm thrilled to report that we significantly exceeded those expectations.
Hadar Levy: Specifically, our revenues grew 17% in 2023 as compared to 2020. Most importantly, we generated positive quarterly net income in the fourth quarter. In Q4, we also recorded positive adjusted divisa and cash flow from operations for the second consecutive quarter.
Specifically, our revenues grew 17% in 2023 as compared to 2021.
Most importantly, we generated positive quarterly net income in the fourth quarter.
In Q4, we also recorded positive adjusted EBITDA and cash flow from operations for the second consecutive quarter.
Hadar Levy: While we have not historically done so, based on our strong performance in 2023 and the expectation that this significant momentum will continue throughout 2024, we are providing specific top-line annual financial guidance. For full year 2024, we expect revenue in the range of $37 million to $40 million. This would represent growth of 16% to 26% over full year 2023.
While we have not historically done so based on our strong performance in 2023 and the expectation that this significant momentum will continue throughout 2020 full we are providing specific topline I knew all the financial guidance.
For full year 2024, we expect revenue in the range of 37 million to $40 million.
This would represent growth of 16% to 26% over the full year of 2023 revenue.
Hadar Levy: In addition, we anticipate that our profitability momentum and positive cash generation will continue throughout the remainder of 2025. As you can see from our most recent results and expectations for 2024, we are confident in the upward trajectory of our overall business, as well as the current market dynamics and the opportunities that lie ahead. I'd now like to take a few moments to articulate exactly why we are so excited and what we are doing to leverage the momentum that so clearly exists. We continue to optimize our existing commercial process, including enhancing our emphasis on larger institutional and enterprise customers that are playing an increasingly important role within the industry.
In addition, I anticipate that our profitability momentum and positive cash generation will continue throughout the remainder of 2024.
As you can tell from our most recent results and expectations for 2020 full we are confident in the upward trajectory of our overall business as well as the current market dynamics and the opportunities that lay ahead.
I'd now like to take a few moments to articulate exactly why we're so excited in what we're doing to leverage the momentum that so clearly exist.
We continue to optimize our existing commercial process, including enhancing our emphasize on larger institutional and <unk>.
Enterprise customers that are playing an increasingly important role within the industry.
Hadar Levy: We remain focused on adding our Deep TMS technology to this expanding large mental health group or network. As our results indicate, we continue to execute well on this strategy. Recent key agreements include increased collaboration with growing mental health treatment providers based in the western region of the United States.
We remain focused on adding our deep Tms technology into this expanding large mental health group all the networks.
As our results indicate we continue to execute well on this strategy.
Recent key agreement include increased collaboration with growing mental health treatment provider based in the Western region of the United States. After a series of successive order.
Hadar Levy: After a series of successive orders, Brainsway's most recent delivery brought this provider's install base to a total of seven deep TMS. Moreover, our international business continues to perform extremely well. To this end, we expanded the availability of our DeepTMS technology in South Korea, where the most recent delivery of systems increased the installed base in this important country to over 20 systems. In the fourth quarter, revenue increased 50% year over year, and we shipped a net total of 60 systems.
<unk> is the most recent delivery brought this provide our installed base to a total of seven deep Tms system.
Moreover, our international business continued to perform extremely well.
And we extended the availability of our deep Tms technology in South Korea, what are the most recent delivery of system increased the installed base in this important country towards our 20 systems.
In the fourth quarter revenue increased 50% year over year, and we shipped a net total of six to systems. Moreover, demand for the OCD treatment indications continues to grow as we shipped 64 OCD coils.
Hadar Levy: Moreover, demand for the OCD treatment indication continued to grow, as we shipped 64 OCD coils as add-on helmets to certain new and existing facilities. Approximately 50% of our total installed base now includes OCD treatment capability. We expect further bottom-line improvement in 2024. In addition, we continue to be supported by an extremely strong balance sheet, having added 46.3 million in cash with no debt. Importantly, the commercial trends in our business continue to appear favorable. From a reimbursement standpoint, there is a growing list of payers that have reduced the patient eligibility requirements for TMS treatment. Most recently, a major private insurer in Louisiana, covering 1.9 million lives, went from four failed medication trials to two. In order to attain further growth, we continue to achieve significant progress in expanding the clinical and real-world evidence in support of deep TMS in multiple large disease areas. Most recently, we published two important papers highlighting deep TMS in future potential applications.
Oh, much to certain new and existing systems.
Proximately, 50% of our total installed base now includes OCD treatment capability.
We expect further bottom line improvement in 2024.
In addition, we continue to be supported by an extremely strong balance sheet.
How do you get the 2023 with $46 3 million in cash with no debt.
Importantly, the commercial trends in our business continue to appear favorable.
From a reimbursement standpoint, there is a growing list of pairs that have reduced the patient eligibility requirements for Tms treatment. Most recently, a major private insurer in Louisiana, covering $1 9 million.
Went from full self medication 12 Q2.
In order to obtain further growth we continued to achieve significant progress in expanding the clinical and real world evidence in support of deep Tms in multiple large disease areas.
Most recently, we published two important papers, highlighting deep Tms in future potential applications.
The first published in human Neuroscience and included the results from multiple trials demonstrating deep Tms.
Novel therapeutic approach for Parkinson's disease.
The compelling data from these studies involving a total of 220 Parkinson's disease patients.
Hadar Levy: The first, published in Human Neuroscience, included the results from multiple trials demonstrating deep TMS as a novel therapeutic approach for Parkinson's disease. The compelling data from these studies, involving a total of 220 Parkinson's disease patients, showed that deep TMS treatment led to significant improvement in moral symptoms, as well as a meaningful impact on non-moral aspects of daily living and mood symptoms. A second paper published in the Journal of Clinical Medicine highlighted deep TMS for the treatment of late-life depression and included the positive result of a post-marketing study of 247 older adults suffering from major depressive disorder. The results showed a 79.4% response rate and 60.3% remission rate for patients receiving at least 30 treatment sessions. While the current FDA labeling does not extend to these older patients and further analysis is needed, we are very excited about these results as they suggest that Brainsway Deep TMS can potentially treat depression in older adult patients.
The deep Tms treatment led to significant improvement in motor symptoms.
Well as meaningful impact on non moral aspects of daily living and motor symptoms.
A second paper published in the journal of clinical Medicine highlighted deep Tms for the treatment of fleet left depression and included the positive result of our post marketing study.
247 older adults suffering from major depressive disorder. The result showed a 79, 4% response rate and 63% remission rate for patients receiving at least 30 treatment sessions.
While the current FDA labeling does not extend to this older patients and further analysis is needed. We are very excited about these results.
They suggest that brain slate deep Tms can potentially treat depression in older adult patients.
Moving on we also recently initiated the clinical evaluation of <unk> exclusive patent rotational field Tms all deep Tms $3 60 in two new feasibility trials.
<unk> 360 employees the method of stimulation that enable activation of greater numbers of neurons in the brain that currently available forms of T. M S.
Hadar Levy: Moving on, we also recently initiated the clinical evaluation of Brainsway's exclusive patented rotational field TMS, or DeepTMS 360, in two new feasibility trials. Deep TMS 360 employs a method of stimulation that enables the activation of greater numbers of neurons in the brain than currently available forms of TMS. One study will test the safety and efficacy of this technology in the field of rehabilitation following stroke.
One study will test the safety and efficacy of this technology in the field of rehabilitation. Following stroke. The second study will evaluate deep Tms for 60 in OCD utilizing an accelerated protocol.
We believe that our rotation of shelf technology holds significant potential to change the current Tms paradigm and look forward to generating clinical data from this important studies.
In closing, we believe brain sway is in the strongest position it has ever been in.
Hadar Levy: The second study will evaluate DeepTMS 360 in OCD utilizing an accelerated protocol. We believe that our rotational field technology holds significant potential to change the current TMS paradigm and look forward to generating clinical data from these important studies. In closing, we believe Brainsway is in the strongest position it has ever been in. We are coming off a very strong 2023 and are now focusing on 2024 top line growth of at least 16%. In addition, looking even further ahead, we remain focused on leading innovation within the TMS industry, increasing our confidence in Brainsway's ability to continue capturing significant market share both in the U.S. and internationally. With that, I will now turn the call over to Ido for his review of our fourth quarter and full year 2023 financial results. Ido?
We're coming off very strong 2023 and are now forecasting 2020 for topline growth of at least 16%. In addition, looking even further ahead, we remain focused on leading innovation within the Tms industry.
I think our confidence and brain through our ability to continue capturing significant market share both in the U S and internationally.
With that I will now turn the call over to adult for his review of our fourth quarter and full year of 2023 financial results at all.
Thank you Dara.
Revenue for the fourth quarter of 2023 was $9 million, a 50% increase compared to the prior year period revenue of $6 million.
On a sequential basis revenue in the fourth quarter grew 9% as compared to the third quarter of 2023.
We placed 60 deep Tms systems in the fourth quarter.
Our total installed base was 1101 system as of December 31, 2023, compared to 884 systems at the same point in the prior year.
Ido Marom: Thank you Hadar. Revenue for the fourth quarter of 2023 was $9 million, a 50% increase compared to the prior year period revenue of $6 million. On a sequential basis, revenue in the fourth quarter grew 9% as compared to the third quarter of 2026. We placed 60 DIPTI MS systems in the fourth quarter. Our total installed base was 1,101 systems as of December 31, 2023, compared to 884 systems at the same point in the prior year.
For the full 12 months of 2023 revenues were $31 $8 million, an increase of 17% as compared to full year revenues of $27 $2 million in 2022.
Gross profit for the fourth quarter of 2023 was $6 7 million or 75% gross margin.
This is compared to $4 3 million or 71% gross margin during the prior year period.
Gross profit for the full year, 2023 was $23 $5 million or 74% margin.
Ido Marom: For the full 12 months of 2023, revenues were $31.8 million, an increase of 17% as compared to full-year revenues of $27.2 million in 2022. Gross profit for the fourth quarter of 2023 was $6.7 million, or a 75% gross margin. This is compared to $4.3 million, or 71% gross margin, during the prior year period. Gross profit for the full year 2023 was $23.5 million, or 74%, compared to $20 million, or 74%, in the prior year period.
Compared to a $20 $20 million or 74% margin in the prior year period.
Yeah.
Moving onto operating expenses.
For the fourth quarter of 2023 sales and marketing expenses were $4 million compared to $4 8 million for the fourth quarter of 2022.
Research and development expenses were $1 4 million compared to $2 $2 million in the fourth quarter of 2022.
General and administrative expenses for the fourth quarter of 2023 were $1 $1 million compared to $1 $7 million for the fourth quarter of 2022.
Operating profit for the fourth quarter was eight $184000 compared to an operating loss of $4 $3 million for the same period in 2022.
Ido Marom: Moving on to operating expenses, for the fourth quarter of 2023, sales and marketing expenses were $4 million, compared to $4.8 million for the fourth quarter of 2022. Research and development expenses were $1.4 million compared to $2.2 million in the fourth quarter of 2022. General and administrative expenses for the 4th quarter of 2023 were $1.1 million compared to $1.7 million for the 4th quarter of 2022. Operating profit for the fourth quarter was $184,000 compared to an operating loss of $4.3 million for the same period in 2022.
Adjusted EBITDA.
$757000 representing consecutive quarter of positive adjusted EBITDA and compared to a loss of $3 $6 million for the fourth quarter of 2022.
For the fourth quarter ended December 31st 2023.
<unk> recorded net income of $127000 compared to a net loss of $3 9 million in the same period of 2022.
We ended the fourth quarter with cash cash equivalents and short term deposits of $46 $3 million.
As compared to $47 $9 million.
Timber 31st 2022.
However, when compared to the cash balance of $44 $2 million at September 32023, we achieved positive cash flow from operating activities for the second consecutive quarter during the fourth quarter.
Ido Marom: Adjusted EBITDA was $757,000, representing consecutive quarters of positive adjusted EBITDA, and compared to a loss of $3.6 million for the fourth quarter of 2022. For the fourth quarter ended December 31st, 2023, we recorded net income of $127,000, compared to a net loss of $3.9 million in the same period of 2022. We ended the fourth quarter with cash, cash equivalents, and short-term deposits of $46.3 million, as compared to $47.9 million at December 31, 2022.
Based on our robust pipeline and continued momentum internationally for full year 2024, we expect revenue in the range of $37 million to $40 million and anticipate that our profitability momentum and positive cash generation will continue throughout the year.
This concludes our preferred remarks, I will now ask the operator to please open up the call for questions.
Operator.
Thank you very much sir.
Ladies and gentlemen, we will now begin the question and answer session.
If you'd like to ask a question. Please press star and then one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
You May press Star and then two if you would like to remove your question from the Q.
Ido Marom: However, compared to the cash balance of $44.2 million at September 30, 2023, we achieved positive cash flow from operating activities for the second consecutive quarter during the fourth quarter. Based on our robust U.S. pipeline and continued momentum internationally, for full year 2024, we expect revenue in the range of $37 million to $40 million and anticipate that our profitability momentum and positive cash generation will continue throughout the year. This concludes our prepared remarks. I will now ask the operator to please open up the call for questions. Operator, Thank you very much. Ladies and gentlemen, we will now begin the... If you'd like to ask a question, please press star and then 1 on your telephone. A confirmation term will indicate your line is in the correct order. You may press star and then 2 if you would like to remove your question from the chat.
For participants using speaker equipment, it might be necessary to pick up your handset before pressing the star keys.
Our first question is from J P. Cohen of Ladenburg Thalmann. Please go ahead.
So hello, her door and Ido how are you.
Very good. Thank you good morning, Jeff. Thank you very much.
Just a few a questions from era and so.
Could you talk about Oh, you asked a little bit I know, there's 20 placements in South Korea can you give us a sense of.
Total placements.
Oh, and you asked what specific types of treatments.
M D D R O C D.
And perhaps some sense of geography and maybe some.
It's a holiday look for 'twenty four as far as our growth in placements and geographies.
Sure.
So we believe there is a great market that is growing outside the U S on the international market.
Our main focus today is on the far east and Europe, just to remind you in Europe. We are cleared for 12 other indications.
So the demand for our product is not only around the treatment of Emdeon and Oh C. D are smoking addiction, but also for stroke rehabilitation and some Pakistani pharma in some clinics, so we see more and more demands coming from those areas.
Jeffrey Cohen: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. Our first question is from Jeffrey Cohen of Ladenburg, Tulln. Oh, hello Hadar and Ido, how are you? Very good. Thank you. Good morning.
We believe that our that we managed to sign from.
Our strategic partnership with the right distributors.
Jeffrey Cohen: Thank you very much. Just a few questions from our end. Could you talk about OUS a little bit? I know there are 20 placements in South Korea.
Internationally and I'm expecting the momentum in those areas to grow in 2024.
Hadar Levy: Can you give us a sense of... total placements that exist, OUS, what specific types of treatment, being NDD or OCD, and perhaps some sense of geography and maybe some sense of how that would look for 24 as far as growth and placements and geography are concerned? Sure, so we believe there is a great market that is growing outside the US on the international market. Our main focus today is on the Far East and Europe. Just to remind you, in Europe, we are cleared for 12 other indications. The demand for our product is not only around the treatment of MDD and OCD or smoking addiction but also for stroke rehabilitation and some Parkinson's in some clinics. So, we see more and more demand coming from those areas. We believe that we have managed to sign some strategic partnerships with the right distributors internationally, and I'm expecting the momentum in those areas to grow in 2024. Okay, fantastic. Can you give us an update on H4 helmet placements in the U.S., please?
Okay Fantastic can you give us an update on each for a whole new placements.
The U S. Please.
Yes, I think I said it also on.
On our last call, we are having an active dialogue with a potentially interested parties on iqos.
On a consistent basis.
On some business development scenario.
And they bought some partnership about the around the addiction and smoking addiction space in particular in the U S. There is no timetable related to the establishment of a formal agreement. However, we are making good progress we feel that there is a good demand, but we.
Do want to find the right partner.
For the distribution of this product.
Okay got it and then just a quick one for you on the.
Cash generation and EBITDA metrics so.
Q4 was up about 9% adjusted EBITDA.
Should we expect to see some are call it low or mid or high single digits for 2024 on the adjusted EBITDA line as well.
Hadar Levy: Yes, I think I said it also on our last call; we are having an active dialogue with potentially interested parties on a consistent basis, about some business development scenarios and about some partnership around the addiction and smoking addiction space, in particular in the U.S. There is no timetable related to the establishment of a formal agreement, but we are making progress. We feel that there is a good demand for this product, but we do want to find the right partner for the distribution of this product. Okay, I got it. And then, Ido, just a quick one for you on the... Cash Generation and Eva Dometric. So, Q4 was about 9% adjusted EBITDA.
So we currently don't give guidance.
EBITDA with profits, but we.
We definitely had a very strong momentum.
Momentum during the second half of 2023.
As Don mentioned in.
Yeah.
In each session we are expecting.
2024 to be also positive in all of the Kpis, including EBITDA.
Okay.
That also infers a positive cash flow generation at least perhaps not for every quarter, but for 2024 as a whole.
That's that's that's correct.
And if I can add Jeff I think our growth and profitability profile are unique when compared to other companies with the device space and we're very very proud of it but definitely the momentum on the AR on the growth and the profitability will remain for.
Ido Marom: Should we expect to see some low or mid or high single digits for 2024 on the adjusted EBITDA line as well? So, we currently don't give guidance on EBITDA or profits, but we definitely had a very strong momentum during the second half of 2023 and, as Hadar mentioned in this session, we are expecting 2024 to also be positive in all of the KPIs, including EBITDA. Okay, and... That also infers positive cash flow generation, at least perhaps for every quarter, but for 2024 as a whole. That's, that's, that's correct. And if I can add, Jeff, I think our growth and profitability profile is unique when compared to other companies with the devices, and we are very, very proud of it, but definitely, the momentum on growth and profitability will remain for 2024. And then, lastly for us, could you just touch upon the U.S. commercial model, what you've seen over the past 12 months as far as trends or anything of note to call out regarding selling, leasing, etc.
For 2024.
Got it and then lastly for US could you just touch upon the.
U S commercial model, what you've seen over the past 12 months as far as trends or anything of note to call out regarding selling leasing et cetera.
Yeah.
So the U S market.
Environment is reasonably strong.
And we have experience love large.
Commercial wins.
Both in the U S and also outside the us.
The U S. We're seeing some great demand for our service model.
Recurring model either.
On a fixed lease or on a pay per use I think a.
Our customers really really value the level of services that we provide to them and they wanted to stay with us.
This business model they are always going to be some customers that were asked to purchase the device, but I see that most of the trends are lean toward.
Lease a reoccurring revenue business model.
Okay perfect.
For taking the questions.
Thank you Jeff.
Thank you very much.
Hadar Levy: So the U.S. market environment is reasonably strong, and we have experienced large commercial wins both in the U.S. and also outside the U.S. We're seeing some great demand for our service model, recurring model, either on a fixed list or on a pay-per-use basis. I think our customers really, really value the level of services that we provide to them, and they want to stay with us because of this business model. There are always going to be some customers that will ask to purchase the device, but I see that most of the trends are leaning toward the lease or recurring revenue business model. Okay, perfect. Those are for us.
The next question is from Steve Lichtman of Oppenheimer <unk> co. Please go ahead.
Thank you.
Congrats guys on the progress in the quarter.
In August our first couple of question on deep Tms 360, <unk> Hum.
Why do you see a stroke as it particularly attractive target for this technology in and what are the clinical end points.
Evaluating.
Or stroke.
In this initial testing.
So.
Conducted some some are you know some some feasibility studies before on stroke in width, and we saw some good and and we saw some good results around this are around this area because today.
Operator: Thanks for taking the question. Thank you, Jeff. Thank you very much.
For rehabilitation Center basically.
Steven Lichtman: The next question is from Steve Lichtman of Oppenheimer & Co. Thank you. Congratulations, guys, on the progress in the quarter.
That's the only technology that can really targeted the damage area, which is the brain rather than just treating the periphery all muscles. So we have seen some significant improvement.
Hadar Levy: Hadar, I guess, first, a couple of questions on DTMS360. Why do you see stroke as a particularly attractive target for this technology? And what are the clinical endpoints you're evaluating for stroke in this initial testing? So, you know, we conducted some feasibility studies before on stroke, and we saw some good results around this area because today, for rehabilitation centers, basically, that's the only technology that can really target the damaged area, which is the brain, rather than just treating the peripheral muscle. So we have seen some significant improvement in the upper limb motors in a patient that suffered from a stroke.
On the op trolling motors.
All four patients that suffer from from stroke, and we do believe that by activating more of a neurons in the brain in a shorter time will result, with a better efficacy rates even from what we're seeing today. So that's why we definitely.
Seeing the significant.
In these unique technology, but also with our accelerated protocols.
Got it yeah, and then that was the second question here so.
With an accelerated protocol or how might it look.
For OCD.
And could that accelerated protocol apply to depression as well.
Hadar Levy: And we do believe that activating more neurons in the brain in a shorter time will result in a better efficacy rate, even from what we're seeing today. So that's why we're definitely seeing the significance in this unique technology, but also with the accelerated protocol. Now, yeah, and then the second question was, so what would an accelerated protocol, or how might it look for OCD, and could that accelerated protocol apply to depression as well?
Of course, yeah, yeah, absolutely.
I think overall there is a trend now for a while.
Moving I'm going to accelerated protocol, both for M D D and for OCD.
We know that a part of our Tms a bar.
Barriers in the market is the amount of time that the patient needs to show up into the clinic. So by short term debt from.
20 daily sessions into only six AR days can be something that can be something very significant for the patients and also for the providers. So that's exactly what we are trying now to.
Hadar Levy: Of course, yeah, yeah, absolutely. I think overall there is a trend now for moving to an accelerated protocol, both for MDD and for OCD. We know that part of our TMS barriers in the market is the amount of time that the patient needs to show up in the clinic. So they shortened it from 20 daily sessions to only 6.
To test in our feasibility studies.
In OCD and in the future also fall off for them to do.
Got it okay, great and then maybe just lastly, just in terms of the overall U S environment.
Hadar Levy: This can be something that can be very significant for the patients and also for the providers. So that's exactly what we're trying now to test in our feasibility studies in OCD and in the future also for a. Lastly, just in terms of the overall U.S. environment for the market, which you noted is very positive, can you talk a little bit more about what you're seeing that gives you that confidence, whether it is the expansion of the networks? I think in the past you've talked about awareness increasing relative to ketamine treatment. Can you talk a little bit more about the market environment overall? We definitely see that the market space is evolving, and there is greater penetration and demand by institutional and enterprise accounts in the U.S. They want to seem like a one-stop shop that can offer a variety of treatments. It can be TMS, it can be ketamine, and it can also be medical management.
The market, which you.
Noted is very positive can you talk a little bit more about what youre seeing there.
It gives you that.
And that confidence and.
Whether it is the expansion of the networks I think.
In the past you've talked about.
Ernest increasing relative to ketamine treatment.
Can you talk a little bit more about the market environment overall.
Yes, so we definitely see signs that the market.
Space is evolving is evolving and there is a greater penetration in demand by institutional and enterprise account.
In the U S.
They want it seems like a one stop shop that can offer a priority off off of treatment. It can be Tms it can be ketamine and it can be also med management. So there is a good adoption, specifically fall and non invasive technology like we are offering.
Hadar Levy: So there is a good adoption specifically for a non-invasive technology like we are offering. So that's one. You said it right. We're also seeing that the market awareness around ketamine clinics is also a great opportunity for us. We do see that if a clinic is already providing the necessary rooms and staff to treat patients with ketamine, they will probably be the first one to adopt a non-invasive technology like deep TMS.
So that's why you are you said it right are we also seeing that the market awareness around ketamine clinic is also a great opportunity for us.
We do see that in fact clinic is already full.
<unk>.
The necessary rooms, and stuff to treat a patient with good I mean, they will be probably the first one to adopt also noninvasive technology.
Like deep Tms.
And I think I think the the last but not least is that I think that we are very flexible in the business in the in our business model and we're coming with boost and and a complete business model that helps our customers to grow so we're not just.
Hadar Levy: And last but not least, I think that we are very flexible in our business model, and we come with a robust and complete business model that helps our customers to grow. So we're not just bringing our technology; we also bring some additional services and support to grow their business together. So it's kind of a partnership, and with that, we are removing some barriers down the road. I think all those three factors can really, really put us in a good spot for 2024, and we see the pipeline.
Bringing our technology, we also bring some additional services and support to grow their business together. So it's kind of a partnership and we thought we are removing some barriers down the road. So I think all those three factors can really really put us in a good.
Spot or for 2020 full and we see the pipeline my confidence is around the pipeline that is continued to grow and it's a mix between enterprise account current customer Olaf brain story that continued to grow with us and that's a very good sign but also new customers that are looking.
Hadar Levy: My confidence is around the pipeline that is continuing to grow, and it's a mix between enterprise accounts, current customers of Brainsway that continue to grow with us, and that's a very good sign, but also new customers that are looking to adopt this technology. Thanks for the color, Hadar. Thank you. Ladies and gentlemen, just a reminder, if you wish to ask a question, please press star and then 1 on your touch screen. Ladies and gentlemen, we have no further questions in the queue, and I would like to turn the call back to the CEO, Mr. Hadar Levy, for closing. Thank you. I would like to thank all of the investors, analysts, and other participants for their interest in Brainsway. With that, please enjoy the rest of your day. Goodbye. Thank you. Thank you very much, ladies and gentlemen, that concludes today's conference. You may disconnect your lines at this time and thank you for your... The Ultimate Parody Site! BF-WATCH TV 2021
To adopt this technology.
Great. Thanks for the color of Dr.
Thank you Steven.
Thank you ladies and gentlemen, just a reminder, if you wish to ask a question. Please press star and then one on your touch 10 foot.
Ladies and gentlemen, we have no further questions in the queue and I would like to turn the call back to the CEO, Mr. Hadar Levy for closing remarks.
Thank you I would like to thank all of the investors analysts and other participants for their interest in brain fleet with that please enjoy the rest of your day Goodbye.
Thank you very much sir.
Ladies and gentlemen that concludes today's conference you may disconnect. Your lines at this time and thank you for your participation.
Okay.
[music].