Q3 2024 NeuroPace Inc Earnings Call
Speaker Change: Greetings, and welcome to the Norah Pacific Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.
Speaker Change: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Speaker Change: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeremy Feffer, Investor Relations. Thank you, sir. You may begin. Good afternoon. Thank you for joining us for Neuropace's third quarter 2024 financial and operating results conference call.
Speaker Change: On today's call we will hear from Joel Becker, Chief Executive Officer, and Rebecca Kuhn, Chief Financial Officer.
Speaker Change: Before we begin, I would like to remind you that throughout this call, we will make statements that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Speaker Change: Any statements made during this call that relate to expectations or predictions of future events, results, or performance, or forward-looking statements.
Speaker Change: All forward-looking statements, including those around Neuropace's projections, business opportunities, commercial expansion, market conditions, clinical trials, and those relating to our operating trends and future financial performance, expense management, estimates of market opportunity, and forecasts of market and revenue growth, are based on current estimates and various assumptions.
Speaker Change: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those implied by these forward-looking statements.
Accordingly, you should not place undue reliance on these statements.
Speaker Change: For more detailed descriptions of the risks and uncertainties associated with our business, please refer to the risk factors section of our public filings with the SEC, including our latest annual report on Form 10-K for the year ended December 31st, 2023, filed with the SEC on March 5th, 2024.
Speaker Change: This conference call contains time-sensitive information, which we believe is accurate only as of this live broadcast on November 12, 2024.
Speaker Change: Neuropastis claims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.
Speaker Change: And with that, I will now turn the call over to Neuropace's Chief Executive Officer, Joel Becker. Joel?
Thank you, Jeremy, and good afternoon, everyone.
Joel Becker: I will start out today's call by reviewing our performance in the third quarter, as well as providing additional insights around our key business priorities for the remainder of the year.
Joel Becker: Before turning the call over to our CFO, Rebecca Kuhn, to present the details of our financial performance for the quarter ended September 30th, 2024, which will be followed by a Q&A session. Let's get started.
Joel Becker: We are very pleased with the performance of the business in the third quarter of 2024 as we generated record revenue.
Joel Becker: delivered on track gross margins and demonstrated disciplined operating expense management as we continue to execute against our multi-phase growth strategy.
Joel Becker: For the third quarter of 2024, we reported total revenue of $21.1 million, an increase of 28% compared to the same period last year.
Joel Becker: Revenue growth for the quarter included contributions from sales of the RNS system and Dixie Medical SEEG products, with the majority of the year-over-year growth coming from sales of the RNS system.
Joel Becker: This Q3 2024 performance was driven by execution in a number of areas across the business.
Joel Becker: Adding to RNS system growth, we began to see a meaningful increase in the number of implants at centers that are part of our Project CARE pilot program and in the number of referrals for RNS implants from these centers to level 4 CECs.
Joel Becker: We also continued to expand the market penetration and utilization of Dixie medical products, which contributed to our revenue growth in Q3.
Joel Becker: In the middle part of the income statement, we delivered a gross margin that was on track with our target range.
Joel Becker: And, when combined with a disciplined investment strategy in our key growth and development priorities, reduced our cash burn to $1.8 million for the quarter.
Joel Becker: Combined with opportunistic use of our ATM facility, our cash balance increased in the quarter from $55.5 million at the end of the second quarter to $56.8 million at the end of the third quarter.
Joel Becker: We believe that our current cash position is sufficient to fund operations for the foreseeable future.
Joel Becker: We also focused on leveraging and developing our organization to increase our level of current performance, as well as prepare for the significant opportunities in front of us.
Joel Becker: The placement of additional sales representatives in the U.S. has helped build momentum in the launch of the Project CARE program this year, which has contributed to our revenue growth over the past several months.
Joel Becker: While also increasing our field capacity so that we will be well positioned to take advantage of the multiple market development and indication expansion opportunities to come. Additionally, given the significant opportunities in the business, we've also been focused on strengthening our leadership team.
Joel Becker: We recently announced the hiring of new senior leaders, including Katie Teller to lead our marketing function, Brett Wingard to lead our research and development team, and Amy Treadwell to head up human resources. I would like to take a moment to touch on each valuable new team member's background.
Thank you. Thank you. Thank you.
Joel Becker: We are excited to now have Katie Keller leading our marketing function. Katie brings specific experience in the neurostimulation market and expertise in market development that position her well to manage our market development efforts around key strategic initiatives, namely expansion of the CARE program,
Joel Becker: planning for launch of our indication expansions, guiding our direct-to-patient outreach and digital marketing efforts, and working with our research and development team on our product pipeline.
Joel Becker: We are pleased to welcome Brett Wingeyer back to Neuropace to lead our research and development team. With his significant experience and expertise in neuromodulation and medical device development,
Joel Becker: Brett is uniquely well-suited to oversee the exciting work underway to both enhance the efficiency and ease of use of the R&S system and to amplify our focus on device and data innovation and the use of R&S to continue to advance our technology leadership position.
Joel Becker: We continue to make progress in the quarter on the third phase of our growth strategy, expanding the approved indications for the RNS system.
Joel Becker: The primary focus for this element of our strategy is the Nautilus study. As previously mentioned, all implants are complete. The trial is in the patient follow-up phase and remains on track to complete the required one-year follow-up in Q1 2025.
Joel Becker: As a reminder, if approved, our RNS system would be the first device with an FDA-approved indication for idiopathic generalized epilepsy.
Joel Becker: We were also pleased to submit positive three-year safety and effectiveness data from our ongoing five-year prospective post-approval study of the RNS system in adults with drug-resistant focal epilepsy.
Joel Becker: We look forward to publishing and presenting the full study results pending the expiration of a publication embargo.
Speaker Change: With that as an overview of our operational progress in Q3, let me now turn the call over to Rebecca to review our financial results for the third quarter of 2024.
Thank you, Joel.
Rebecca Kuhn: The reach we now have through a network of physicians educated, trained, and prescribing RNS therapy is extraordinary compared to just a couple years ago.
Rebecca Kuhn: We also continue to generate meaningful revenue growth from sales of Dixie medical products.
Rebecca Kuhn: Gross margin continues to be in line with our target range of 72 to 74 percent.
Rebecca Kuhn: R&D expense was $5.8 million in the third quarter of 2024 compared with $4.8 million in the same period of 2023.
Rebecca Kuhn: This increase was primarily driven by an increase in personnel and program expenses for product development including AI software and next generation device platform projects and clinical studies.
Rebecca Kuhn: SG&A expense was $13.9 million in the third quarter of 2024 compared with $13.4 million in the prior year period.
Rebecca Kuhn: This increase was primarily due to an increase in sales and marketing personnel related expenses partially offset by a decrease in general and administrative expenses.
Rebecca Kuhn: With revenue growing by 28% for the quarter, we demonstrated strong operating leverage resulting from our focus on driving revenue growth while also effectively managing our operating expenses and cash.
We plan to continue to focus on balancing these objectives.
Rebecca Kuhn: Loss from operations was $4.2 million in the third quarter of 2024 compared with $6 million in the prior year period.
Rebecca Kuhn: We recorded 2.2 million dollars of interest expense in the third quarter of 2024 compared to 2.2 million dollars in the prior year period.
Rebecca Kuhn: Net loss was $5.5 million for the third quarter of 2024 compared with $7.3 million in the third quarter of 2023.
Rebecca Kuhn: As discussed previously, we have maintained a disciplined expense management strategy resulting in cash burn in the third quarter of 2024 of $1.8 million compared to $2.3 million in the prior year period.
Rebecca Kuhn: In the third quarter of 2024, we paid coupon interest expense entirely in cash, whereas in the prior year quarter,
Rebecca Kuhn: 0.7 million dollars of interest was paid in kind by increasing the principal of our debt. If we adjust cash burn for this difference, the year over year improvement was even greater.
Rebecca Kuhn: Our cash and short-term investments balance as of September 30, 2024, was $56.8 million, an increase of $1.3 million compared to the end of the prior quarter.
Rebecca Kuhn: Our long-term borrowings totaled $59.3 million as of September 30th, 2024. As a reminder, the final maturity of our debt is September 30th, 2026.
For more information, visit www.fema.gov
Rebecca Kuhn: Regarding annual guidance for 2024, we now expect our total revenue to be in a range of 78 to 80 million dollars, an increase of approximately 19 to 22 percent over 2023.
Rebecca Kuhn: This growth is expected to be mostly driven by an increase in sales of our RNS system with growth from sales of Dixie Medical Products continuing to make a meaningful contribution.
Rebecca Kuhn: We expect our gross margin to be in a range of 72 to 74% for 2024, although we may see some small variability due to fluctuations in the proportion of Dixie medical revenue to total revenue and other factors.
Rebecca Kuhn: We expect operating expenses for 2024 to range between $80 and $84 million, including approximately $10 million in stock-based compensation and non-cash expense.
Speaker Change: I would now like to turn the call back over to Joel for closing remarks. Joel?
Joel Becker: Thank you, Rebecca. We are pleased with the rate of revenue growth, demonstration of financial discipline, and execution of operating priorities during the quarter.
Joel Becker: The momentum in the quarter is the result of the hard work that's been taking place over the entire year and we are focused on building on it further through the end of the year and beyond.
Joel Becker: Before we end today's call, I want to call attention to two upcoming events. First,
Joel Becker: We will be at the upcoming 78th American Epilepsy Society Annual Meeting, which is taking place in Los Angeles from December 6th through the 10th.
Joel Becker: We are very excited by the data that will be presented during the meeting, including several investigator-sponsored and initiated studies.
Joel Becker: We invite any of you attending the show to stop by and visit us at Booth 2119.
Joel Becker: As we get closer to the meeting date, we plan on issuing additional details about our poster presentations and presence at AES. Second, we are planning to host an Investor Day in New York during the first quarter of 2025, with more details to come.
Joel Becker: I look forward to updating everyone on our continued progress through the fourth quarter of 2024 and into 2025.
This concludes our prepared remarks.
Speaker Change: I would now like to turn the call over to the operator, who will open the call for questions.
Operator.
Speaker Change: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue.
Speaker Change: You may press star 2 if you would like to remove your question from the queue.
Speaker Change: We ask that you limit your questions to one and a follow-up so that others may have an opportunity to ask questions.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment, please, while we poll for questions.
Speaker Change: Our first question comes from Frank Takkinen with Lake Street Capital Market. Please proceed with your question.
Frank Takkinen: All right. Thanks for taking the questions. Congrats on the really solid results.
Speaker Change: Maybe I'll start with just a bigger picture one. Joel, you've been on board obviously for a number of quarters now and execution has been really solid, but as you look back at the
Speaker Change: previous quarters, maybe just parse out where you feel the primary growth is coming from in the core R&S growth. Is it the Project CARE initiative? Is it market share taking? Is it expanding the market? And then maybe touch on kind of the durability of where that primary growth is coming from. Unknown Speaker
Speaker Change: Great. Thanks for the question, Frank. Nice to hear from you.
Speaker Change: of executing the strategy that we've laid out. So, as you know, three key planks in our strategy. One, increasing adoption and utilization within our core level four centers. Two, expanding site of service beyond the level four centers and increasing access to R&S for people who are site level four centers. And then three, expanding indications. And if we look at where we're seeing growth,
It's both.
Speaker Change: Adoption as well as utilization within the level four centers. So as I mentioned in my prepared comments there, you know, continuing to increase the number of prescribers.
It has been great to see.
Speaker Change: And then starting, as I also mentioned, starting to see some meaningful contributions from site of service in the work that we're doing on the care side. So I think we've got a good diversification of some of those growth drivers that's now starting to come to fruition and really we've been working on over the past number of quarters.
Speaker Change: Sales reps, I think last quarter you called out some of your your newly hired reps had completed training and they're placed in kind of geographies where you identify expansion opportunities outside of the Level four centers maybe touch on that cohort of reps and then Talk about any hiring plans that you as you think about the the next couple quarters and years
and many more. Thank you. Thank you.
Speaker Change: So, so that's been great. With regard to further hiring plans, we're not, we're not talking about that specifically here today, other than to say that...
Got it. That's helpful. Thanks for taking the questions.
Thank you, Frank.
Speaker Change: Our next question comes from Mike Kratky with Lee Ring Partners. Please proceed with your question.
Hi, everyone. Thanks very much for taking our questions.
Speaker Change: Can you help unpack some of your comments on the Project CARE pilot program and how that's impacting your contribution to growth just between you know the traction you're seeing among the 1,800 epileptologists outside of level four centers versus
Speaker Change: You know any kind of uptick you're seeing in inpatient referrals. Where's that growth really coming from?
The End
Thanks Mike, I appreciate the question.
Implants within these centers.
Speaker Change: as well as then referrals back into level four centers and referrals that then further kind of bifurcate, I think, in two directions. One, we'd kind of expected where, when you're out in the community.
We found that we were uncovering patients that needed
Speaker Change: Unknown Attendee, Michael Polark, Rebecca Kuhn, Vikramjeet Chopra, Andrew Ranieri, Jeremy
but we're also seeing that
Speaker Change: Unknown Attendee, Joel Becker, Michael Polark, Rebecca Kuhn, Vikramjeet Chopra, Andrew Ranieri,
Speaker Change: They want to they want to do the patient management rather than necessarily the implants as well So we're seeing both implants as well as referrals and Again, it's really been encouraging here to see that begin to inflect in q3
Speaker Change: Beyond your prior guidance for the fourth quarter. So are you seeing any specific headwinds you'd call out so far this quarter? Yeah, maybe you just walk us through what would get you to the lower end of that guidance range for 4Q.
Speaker Change: Thanks Mike another another excellent question so if we if we just talk about the growth of the business and the rest of the year guidance first you know first of all I were really pleased with the top-line momentum that we demonstrated in the third quarter with a particularly strong growth rate at 28%
Speaker Change: More broadly, if we look at the first half of 2024, the business grew 21 percent.
Speaker Change: And at the midpoint of our raised and increased guidance here, that would also deliver 21% growth for the second half of the year, despite increasing comps in the second half of the year.
Speaker Change: Unknown Attendee, Joel Becker, Michael Polark, Rebecca Kuhn, Vikramjeet Chopra, Andrew Ranieri,
Speaker Change: So, if you think about the first half of the year, the middle of the year, and now our implied guidance.
We see the fundamentals of the business as strong.
Speaker Change: The updated guidance for the second half and for the full year, I think, shows that at plus 20%. We're focused on continuing that, and we may have quarter-to-quarter variability, but we feel good about the momentum and the direction both of the execution of the business as well as the opportunities that are in front of us here. So that's kind of how we've been thinking about 24 and how we've...
Speaker Change: thought about both the second half as well as full year guidance.
Speaker Change: We're getting that level of growth with single-digit operating expense increases.
Speaker Change: And that's resulting in significant improvements in our burn rate as well. And so, as we said in our prepared comments, and of course, we focus on top-line growth. It's the most important thing we can do is top-line growth.
But we also believe that with our current projections,
Speaker Change: We have the cash to fund our operations for the foreseeable future as well. So we think from a really through the income statement, we're pleased with the quarter from a top line OPEX and cash management perspective.
Awesome. Thanks, y'all.
Thanks, Mike.
Speaker Change: Our next question comes from Robbie Marcus with J.P. Morgan. Please proceed with your question.
Speaker Change: Hi, this is actually Rohan on for Robbie. Thanks for taking our question and congrats on a nice quarter.
Speaker Change: So I appreciated the commentary you gave on just R&S thriving the bulk of sales growth today and I just wanted to get a sense for how you're thinking about this trend versus Dixie over time and maybe some preliminary color you can provide on kind of growth contribution into 2025.
Speaker Change: Thank you. Thanks for that question. And, and yeah, we did call that out. And I just emphasize we, you know, we got growth across product lines. And that's the goal. And so it's great to see it. And, and, and we intend to continue that. But the significant majority of the growth came from R&S. And that's where the significant majority of our growth is going to come given the magnitude of that business and the magnitude of the opportunity that's in front of us. And that's in no way to slight the opportunity associated with Dixie. We we are really pleased with the growth that we're seeing there too.
Speaker Change: Unknown Attendee, Joel Becker, Michael Polark, Rebecca Kuhn, Vikramjeet Chopra, Andrew Ranieri, Jeremy Feffer, Frank Takkinen, Michael Polark, Rebecca Kuhn, Vikramjeet Chopra, Andrew Ranieri, Jeremy Feffer, Frank Takkinen, Michael Polark, Rebecca Kuhn, Michael Polark, Rebecca Kuhn,
Speaker Change: From a financial perspective, and as we've talked about, the ability to kind of deepen relationships and vertically integrate in the diagnostic process makes, I think, it's a good combination.
Speaker Change: Obviously SG&A came in lower than our expectations and it was a modest 4% growth year over year as you mentioned.
Speaker Change: the better leverage. And obviously, this implies kind of from biomass, low to mid-teens, OPEX growth in fourth quarter. So is there any specific reason why we shouldn't see this kind of single-digit OPEX growth continue for the balance of this year and beyond?
Speaker Change: I'll ask Rebecca to put some color around that one thing I would I would mention that we did call out is you know within SG&A we're investing on the S and we're being real efficient on the G&A so there's a little bit of a tale of two cities there but Rebecca if you maybe wanted to say a little bit more about OPEX expectations and any color in the quarter.
Rebecca Kuhn: may have seen. We grew R&D expense by about a million dollars year-over-year or 20%. We're clearly making investments.
Speaker Change: and programs that we believe will help drive revenue growth both in the near term and over a longer time horizon.
Speaker Change: activities, but as Joel mentioned, those are then offset by lower G&A expenses. We continue to realize efficiencies within our G&A area. Some of that has to do with just ongoing experience.
Speaker Change: Operating as a public company. It's just kind of an ongoing focus, though, to drive efficiency, particularly in that area.
Speaker Change: So I think that gives you a little bit more, I will say,
Speaker Change: Q3 expenses can tend to be a little bit lower versus other quarters.
Speaker Change: And Q4, we have our AES annual meeting, which can contribute to somewhat higher OPEX in the fourth quarter.
Thank you. I hope that helps.
Yeah, no, thanks a lot.
Our next question comes from
Speaker Change: Our next question comes from Vik Chopra with Wells Fargo. Please proceed with your question.
Vik Chopra: Hey, good afternoon and congrats on a nice quarter. Thank you for taking the questions. So I had one follow up on your Q4, you know, obviously you had a pretty big beat in Q3.
Vik Chopra: And that would imply a sequential step down in dollars in Q4, which hasn't been the case traditionally. So is there something that you would call out? Is it maybe pull forward or any impact from hurricanes? Or is it just management conservatism? Just try to get a better handle on that, and then add a follow-up, please.
Speaker Change: You know, we really can't see anything that would say there was a borrowing or any kind of a pulling forward of cases necessarily from from Q4 to Q3 there. You know, there may have been some of that at the hospital level, but
Speaker Change: We really we can't I don't think we can really point to anything like that at this point But it is a little bit difficult for us to know all the individual ins and outs of scheduling You know obviously
Speaker Change: with regard to Q4. You know, we did call out, there's obviously the AES annual meeting in early December, our largest meeting of the year, and I think as we've talked about.
Speaker Change: previously, that's pretty impactful to the whole field. So epileptologists as well as
Speaker Change: The business has been growing 20% plus in the first half of 24 and also in the middle of the year and our guidance reflects 20% plus growth for the second half of the year and full year 24, so
Speaker Change: We think that's a good place to be from a guidance perspective. We're focusing on delivering that 20% for the year and continuing it and building on the momentum the business has got.
Speaker Change: Okay, thank you. And then my follow-up question, I mean, obviously you're starting to see some impact from Project CARE, which you called out for Sue 3, but as we think about our models for next year, how should we think about the impact from Project CARE in 2025? Thank you.
Thanks Vic, I know you've been...
Speaker Change: very much focused on care and I appreciate that. We see care and the expansion of service opportunity in 25 as an important opportunity for us to continue to grow and expand the business again.
Speaker Change: expanding site-of-service and continuing to expand pilot activities and then really incorporating care.
Speaker Change: Group in 25. And so, you know, we'll we'll begin to expand those efforts and expect care to Expand in 25 as well and then thirdly layering on indication expansion on top of that pending the successful Clinical trials so these things all work together
Speaker Change: We're seeing the impact of adoption and utilization in level four center focus. We're beginning to see expansion of care and we're going to be focused on expanding all three planks of that strategy and working to build momentum.
and many more. Thank you. Thank you.
and many more. Thank you. Thank you.
Speaker Change: and many more. Thank you. Have a great day. Thanks for joining us. We'll see you next time.
Speaker Change: Our next question comes from Ross Osborne with Cantor Fitzgerald. Please proceed with your question.
Speaker Change: All right, congrats on the Corps and thanks for checking our questions. So starting off, sounds like Project CARE is starting to take off nicely. Would you provide some color on what you are hearing from new accounts outside of World War IV centers on the level of difficulty or ease they are having when launching their programs?
Thanks, Ross. Yeah, and I think
Speaker Change: have prior R&S experience from other institutions or their training, etc. And so, for those folks, you know, the turn-on and turn-key process is...
Speaker Change: Robust Epilepsy Population or are in areas where there hasn't been as much RNS penetration from a level 4 perspective and so some of those folks can take some more time to kind of get up and running from a training perspective so we see people kind of along the continuum there but that's where as well I think what we're finding is the way we're approaching the program and the flexibility that we have with the program.
really allows people who are ready to go.
Speaker Change: to more quickly get into doing implants and following and programming patients within their own center.
Speaker Change: with folks who are going to be ready to go, we can get them trained and ready to program and they can be referring people out in the interim while they get ready to do implants. And then for some others, if they want to be referral and programming centers, we can also accommodate that. So I think we see people at different points on the continuum, we also see different ways that increasing access to RNS therapy can allow people to kind of tailor and target integrating RNS into their practices in different ways too.
Speaker Change: Okay, great. And then any update on the R&D projects for software tools using AI and data analysis?
Thank you.
Speaker Change: Discussion around investment and operating expenses here in the quarter, the work that we're doing with regard to AI software tools and data development, as well as next generation platform work.
to host
We realize that it's
Speaker Change: You as you mentioned with regard to AI and software programs that are in particular focused on
Speaker Change: efficiency and easy use as well as increasing efficacy from the insights they can provide.
Speaker Change: We want to have an opportunity to give you more of a fulminant review of that, and that's part of what we've got planned for our Investor Day. We'll have more information to come there.
Speaker Change: Okay, great. Looking forward to the best today. Congrats again on the quarter.
Thank you, Ross.
Speaker Change: Good afternoon. Thank you. Can I ask on the investor date timing, would you have us think about that as something that could align with maybe initial top line view of the Nautilus trial?
Speaker Change: So it's a good question, Mike. Thank you. And there are a number of different factors to consider there from a timing perspective. And so more to come on that, as you might imagine, as much as there is going on in the business, there's always a lot to consider. With regard to timing, we are going to try and have it be, you know, a good nexus of a number of things coming together with regard to the different activities in the business. And depending on where we're at with study and with Nautilus, as well as depending on...
Speaker Change: Different activities that we've got going on in the business. We're going to try and coordinate that specifically. But we'll have more on dates here shortly, and then you'll be able to plan around that.
Speaker Change: Appreciate that. For my follow-up, I want to ask about the two smaller revenue lines, replacements, and this pharma collaboration. On replacements, the question is just, I know the numbers are very small here.
Speaker Change: What does that curve look like in 25 off of a low low base? Could replacement revenue be up? Or would you have us think about similar zip code to where it currently is? And then on pharma?
Speaker Change: Collaboration. I know we know the lifetime value of that arrangement. My question's been on or my question is on timing. Is it linear? Is it kind of smooth quarter to quarter over the expected period or is it been a little bit lumpy? I want to make sure we
Speaker Change: Don't have, you know, tough comps on that saying next year versus this year. Thank you so much.
Speaker Change: Thanks, Mike. I'll ask Rebecca to talk a little bit about each one of those. She's real close to following both our replacement cycle as well as on the revenue recognition side for rapport. So, Rebecca? Sure.
Rebecca Kuhn: We believe that really all of the prior generation devices have been replaced, and so what we're seeing now is, you know, the beginning of current generation devices being replaced. Some of that is
Rebecca Kuhn: Unknown Attendee, Michael Polark, Rebecca Kuhn, Vikramjeet Chopra, Andrew Ranieri, Jeremy
Worth it.
You know, I think we've reached...
Rebecca Kuhn: We can at least say that we've reached the trough. We're not gonna go too far just yet in predicting 2025. We'll have more to say about that later, so.
Rebecca Kuhn: If we can ask you to just be a little patient until we're ready to talk more about 2025.
http://TheBusinessProfessor.com
Rebecca Kuhn: We can at least, you know, confirm that we're kind of at the end of that downturn.
http://TheBusinessProfessor.com
Rebecca Kuhn: perhaps nine plus quarters not a lot of fluctuation there of course there are some fluctuations quarter to quarter but I'll just say it was not dramatic
Thank you. Thank you. Thank you.
Rebecca Kuhn: So, but, you know, considering revenue recognition criteria, which is always a fun topic.
Rebecca Kuhn: There are some fluctuations, but maybe not to the extent that you would think there would be.
worry about.
I hope that's helpful.
It was helpful. Thank you.
Thanks, Mike
Speaker Change: We have reached the end of our question and answer session. I would now like to turn the floor back over to Joel Becker for closing comments.
Thank you.
Joel Becker: Thanks everyone for joining us today. We're pleased with the strong revenue growth of 28% in the third quarter.
Projection that are current.
Joel Becker: Cash position that can support our operating activities for the foreseeable future, so we're excited about all that. We're excited about the fundamentals of the business and the nature and trajectory of the opportunities that we see in front of the business as well.
Joel Becker: Thanks for your interest in and support of NeuroPace. We look forward to keeping you up to date here on the execution of the strategy as we progress and hope to see you either at AES or our upcoming Investor Day.
Thanks again. Good afternoon.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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and Michael Polark. Thank you. Thank you.
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