Q1 2025 NeuroPace Inc Earnings Call
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Speaker Change: Greetings and welcome to the Neuropace First Quarter 2025 earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad.
Speaker Change: As a reminder, this conference is being recorded. It is now a pleasure to introduce Jeremy Feffer of life side advisors. Please go ahead.
Speaker Change: Good afternoon. Thank you for joining us for Neuropace's first quarter 2025 financial and operating results conference call. On today's call we will hear from Joel Becker Chief Executive Officer and Rebecca Kuhn Chief Financial Officer.
Speaker Change: Earlier today, Neuropace released financial results for the first quarter and had March 31, 2025. A copy of the press release is available on the company's website at Neuropace.com.
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 State 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,
Speaker Change: 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,
Speaker Change: Please refer to the risk factors section of our public filings with the SEC, including our annual report on form 10K, for the year ended December 31st, 2024, filed with the SEC on March 4th, 2025, and any other reports that we may file with the SEC in the future.
Speaker Change: This conference called contains time-sensitive information, which we believe is accurate only as of this live broadcast on May 13, 2025.
Speaker Change: Neuropace disclaims any intention or obligation, except is 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 of the Neuropace's Chief Executive Officer, Joel Becker, Joel.
Thank you, Jeremy, and good afternoon, everyone! Thank you, everyone!
Speaker Change: I will start out today's call by reviewing our performance in the first quarter as well as providing additional insights around our key business priorities for the remainder of 2025 and beyond.
Speaker Change: Before turning the call over to our CFO , Rebecca Kuhn, to present the details of our financial performance for the quarter ended March 31st, 2025, which will be followed by a Q&A session. Let's get started.
Rebecca Kuhn: We had a strong first quarter generating total revenue of $22.5 million and increase of 24% compared to $18.1 million in the prior year period driven by strong growth in our four RNS business.
Rebecca Kuhn: These results reflect solid execution on our strategy focused on expanding access to RNA therapy with another quarter of a record number of prescribers and ongoing momentum for my project-care access initiative.
Rebecca Kuhn: In the quarter, R&S sales increased by 26% or 29% when excluding the impact of Nautilus study implants in Q1 2024 34%
Rebecca Kuhn: We're encouraged by the accelerating growth we saw in the first quarter, driven by sustained strength and artist adoption of local force centers and contributions from our project care activities.
Thanks for tuning in. Have a great day.
Rebecca Kuhn: In addition to these strong operating results, we executed on a number of important strategic initiatives in the first quarter, including holding an investor day in January , where we articulated our long-term vision and plans for the company.
Rebecca Kuhn: Completed a $75 million dollar follow-on equity financing, adding a number of high-quality shareholders, while transitioning along term shareholder.
Rebecca Kuhn: Re-focused our product portfolio on the significant opportunities in our higher margin R&S business by clarifying our SEEEG plans beyond 2025.
Rebecca Kuhn: and completed one year follow-up of the Nautilus Study, a busy and successful first quarter of 2025.
Rebecca Kuhn: During our investor day, we discussed three key pillars of our growth strategy, clinical, product and market development. Today, I'd like to offer an update on the progress on our clinical development initiatives.
Rebecca Kuhn: We've made very good progress on three key programs, including our post-approval study in adults with focal epilepsy.
Rebecca Kuhn: The Nautilus Idiopathic Generalized Study and the Pediatric Focal Epilepsy Indication Expansion Study.
Rebecca Kuhn: In April , that the American Academy of Neurology Annual Meeting, we presented three year effectiveness data from the post-approval study of the R&S system.
Rebecca Kuhn: This study is the largest prospectively enrolled FDA-reviewed study ever done in neuromodulation in the drug-resistant epilepsy population.
Rebecca Kuhn: It showed an 82% median reduction in seizures in adults treated with brain response of stimulation for drug-resistant focal epilepsy.
Rebecca Kuhn: Additionally, 42% of study participants have periods of more than six months of seizure freedom which can be life-changing for drug-resistant epilepsy patients.
Development of this level and title evidence.
Rebecca Kuhn: As well as demonstration of these best-in-class results further demonstrates Neuropace's leadership in the field of neuromodulation treatment for drug resistant epilepsy.
Moving to our ongoing Nautilus Pivotal Study
Rebecca Kuhn: Plant Progress was made during the border, in line with expectations
Rebecca Kuhn: With study follow-up visits completed in March and primary safety and effect of this endpoint evaluations I'm going study progress remains on track and we expect to announce data and file the FDA submission during the second half of 2025
Rebecca Kuhn: In addition, we continued to work on a pediatric focal epilepsy indication with FDA and the National Evaluation System for Health Technology or NEST.
Rebecca Kuhn: An organization focused on the use of real-world data to expand indications for use with a focus on underserved populations.
Rebecca Kuhn: This initiative leverages data from the pediatric epilepsy research consortium or PERC, which has gathered an extensive set of data from children treated with RNS therapy across 27 pediatric centers.
Data is also drawn from more than 25 peer-reviewed publications.
Rebecca Kuhn: We've had multiple discussions with the FDA on how this data can support an expanded indication, and we're optimistic about receiving the Nest Mark, an important milestone that would validate the data as the basis for an approval study protocol.
Rebecca Kuhn: Under the strategy, we expect to complete our data analysis and submit the data to the FDA in the second half of the year.
Rebecca Kuhn: I would not like to discuss our recently announced decision to terminate our distribution of SEG products.
Rebecca Kuhn: The distribution agreement was appropriate for our company when it was signed three years ago. However, our R&S business and the opportunities associated with it have evolved significantly since that time. And we now have clinical indication expansion initiatives.
Rebecca Kuhn: and a product development pipeline that we expect to yield significant opportunities in the near term.
Rebecca Kuhn: We believe that the best use of our resources to create value for the Neuropace community of patients, clinicians and shareholders is by doing what we are uniquely positioned to do.
Rebecca Kuhn: which is to focus on the significant opportunities within our R&S portfolio and make the R&S system the standard of care for the treatment of drug-resistant epilepsy patients.
Rebecca Kuhn: Our distribution arrangement will continue as usual through Q3 2025, after which we will begin winding down the relationship in the fourth quarter of 2025, continuing through the first quarter of 2026.
Rebecca Kuhn: Importantly, the SEG market is well served by multiple providers, and we are confident our customers will have ample access to comparable diagnostic products through other channels.
Rebecca Kuhn: Our team is already working to ensure a smooth and supported transition for all of our customers.
Rebecca Kuhn: Financially, this change enhances our margin profile going forward as SEG gross margins have historically been around 50 percent versus gross margin on our RNN system over 78 percent.
Rebecca Kuhn: From a revenue perspective, given the timing of this proposed change, we do not anticipate any material revenue impact in 2025, as we will sell remaining inventory during the transition period, the impact of which is fully reflected in our revised guidance, the Rebecca
Rebecca Kuhn: Additionally, given the timing and magnitude of our RNS opportunities, we continue to expect a 20% plus CHER through 2027 and remain on track for achieving cashflow break even by year
Rebecca Kuhn: The first quarter of 2025 is a strong start to the year, operationally, financially and strategically.
Rebecca Kuhn: I will now turn it all over to Rebecca to review our financial results for the first quarter, as well as our guidance for the full year of 2025. Rebecca?
Thank you, Joel.
Rebecca Kuhn: Our revenue was $22.5 million for the first quarter of 2025, representing growth of 24% compared to $18.1 million for the first quarter of 2024.
Rebecca Kuhn: Revenue growth was primarily driven by increased sales of the R&S system, which grew 26% compared to the prior year.
Rebecca Kuhn: Sales of Dixie Medical SEG products also contributed to growth in the quarter.
Rebecca Kuhn: Gross Margin for the first quarter of 2025 was 77 percent compared to 73.6 percent in the first quarter of 2024 in the first quarter of 2024.
Rebecca Kuhn: Gross margins for our R&S products was particularly strong this quarter, benefiting from improved manufacturing efficiency as fixed overhead costs were absorbed across a higher volume of units.
Rebecca Kuhn: Disgrose was partially offset by the lower gross margin from distribution of SEG products.
Rebecca Kuhn: R&D expense was $7.4 million in the first quarter of 2025, compared with $5.8 million in the same period of 2024.
Rebecca Kuhn: This increase was primarily due to increased personnel and program expenses for product development, including AI-powered software and next generation device platform projects and expenses of our clinical trials.
Rebecca Kuhn: SG&A expense was $15 million in the first quarter of 2025, compared with $15.1 million in the prior year period.
Rebecca Kuhn: This decrease was primarily due to a reduction in general and administrative personnel-related expenses, partially offset by an increase in sales and marketing personnel-related expenses, and sales, field support and commercial operations cost.
Thanks for watching!
Rebecca Kuhn: Total operating expenses were $22.5 million in the first quarter of 2025 compared with $20.9 million in the same period of the prior year, representing an increase of 8%.
Rebecca Kuhn: With revenue growing by 24% for the quarter, we continue to demonstrate strong operating leverage, resulting from our focus on driving revenue growth while also effectively managing our operating expenses and gross margin.
Rebecca Kuhn: We plan to continue to focus on balancing these objectives as we drive toward cash flow break even.
Rebecca Kuhn: Laws from operations was $5.1 million in the first quarter of 2025 compared with $7.5 million in the prior year period.
Rebecca Kuhn: We have recorded $2.2 million of interest expense in the first quarter of 2025 compared to $2.3 million in the prior year period.
Rebecca Kuhn: Net loss was $6.6 million for the first quarter of 2025, compared with $8.9 million in the first quarter of 2024.
Rebecca Kuhn: Our cash burn in the first quarter of 2025 was $7.5 million.
Rebecca Kuhn: Our Cash and Short Term Investance Balance, as of March 31, 2025, was $66.3 million.
Ball stood by our recent successful equity raise.
Rebecca Kuhn: We expect our strength and balance sheet will be sufficient to support our planned operations as represented in the long-range plan we presented at our investor day in January until achieving cash flow break even.
Rebecca Kuhn: are long from borrowing totaled $59.8 million as of March 31, 2025.
Rebecca Kuhn: As a reminder, the final maturity of our debt is September 30th, 2026
Rebecca Kuhn: Regarding annual guidance for 2025, we are increasing our total revenue guidance to a range of $93 million to $97 million.
Rebecca Kuhn: This updated guidance reflects an increase of approximately 16% to 21% over our reported revenue for 2024.
Rebecca Kuhn: This growth is expected to be mostly driven by an increase in sales of our R&S system, with growth from sales of S.E.E.G. products continuing to make a meaningful contribution.
Rebecca Kuhn: We expect our gross margin to be in a range of 73 to 75% for 2025.
Rebecca Kuhn: As noted previously, we may see some small variability quarter to quarter due to fluctuations in the proportion of SEG revenue to total revenue and other factors.
Rebecca Kuhn: As recently announced, we expect a terrorist associated with the US government's recently implemented trade policies to have a minimal impact on our operations and financial results, including our gross margins.
Rebecca Kuhn: We expect operating expenses for 2025 to range between $92 and $95 million, including approximately $11 million in soft-based compensation a non-cash expense.
Joel Becker: I would now like to turn the call back over to Joel for closing remarks.
Joel?
Thank you, Rebecca!
Joel Becker: I am pleased to report that our team is successfully executing our plans and appreciate all their hard work.
Joel Becker: We are working to deliver on several sales, clinical and product development milestones throughout the remainder of 2025.
Joel Becker: These initiatives will further advance our plans to establish the RNA system as the leader in the treatment of drug-resistant epilepsy patients.
Joel Becker: This concludes our prepared remarks. I would now like to turn the call over to the operator who will open the call for questions.
Operator.
Speaker Change: Thank you. Well now we conduct a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tolerance will indicate your lines on the question queue. You may press star 2 to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your hands up before pressing the star keys.
One moment please, when we pull for questions.
Our first question is from Mike Kratky with Learing Partners
Speaker Change: Yeah, hi everyone. Thanks very much for taking our questions and congrats on a solid quarter.
Speaker Change: Maybe just to start, we'd love to hear just on the 77% gross margin that you saw during the quarter, you know, based on your press release in April . I think Dixie has about 50% gross margin. So does that imply that you had pretty negligible Dixie revenue this quarter? And...
Speaker Change: Are there any other one time dynamics that could explain that? And then I have a follow-up question.
Speaker Change: and Impacted by volumes and efficiencies associated with what we do in the R&S business. So, I say I point your focus toward R&S execution with Rebecca, anything you'd add there on mix.
Speaker Change: I would just emphasize that our gross margin was particularly strong and we really
Speaker Change: Mix or anything else. We had just a really strong quarter largely driven by increased production volumes in our R&S manufacturing.
Speaker Change: Be on our primary driver there and then we have been taking price increases as well and I think we've done a particularly nice job of executing with customers on those reasonable price increases and I think that's all, that's all just showing up here in the gross margin line.
Speaker Change: Yeah, understood, super helpful and maybe just one quick one, you know, in terms of the commentary that you provided it does sound like
Speaker Change: Yeah, maybe that would be more of a durable impact in terms of...
Thanks for joining us.
Speaker Change: Well, I think as we've talked about previously as well and I'll invite any commentary from Rebecca here too, but you know, Gross Margin is
Speaker Change: Impacted by a number of different things and can move around a little bit from quarter to quarter
Speaker Change: You know, we're actual operating levers that we have in the business. So, while Grossmargin can certainly bounce around a little bit again from period to period what we see as the underlying drivers are real operating things that are going on in the business.
Yeah, not much. Thanks very much.
Thanks Mike!
Our next question is from Frank Takkinen with Lake Strip [inaudible]
Speaker Change: Great, hey, this is Nelson Cox, I'm for Frank, congrats on all the progress here here.
Speaker Change: I guess as it relates to project care, can you talk a little bit about how referral volumes have been impacted in medical force centers and geographies where you have had project care established for a few quarters now, just any color there I think would be helpful.
Speaker Change: Thank you, Nelson. Yeah, it's a great question and care as we mentioned in our prepared remarks as well as in the release is certainly something that's been impacting the business. We're pleased to see it and we do see both with regard to referral as well as implants.
Speaker Change: contributing here to growth. As we've mentioned previously, we do see increasing referral volumes into level 4 centers from the level 3 and community centers. And we think that's logical for a couple of reasons. One,
Speaker Change: As people look more carefully at their drug-resistant epilepsy patient population, patients are uncovered.
Speaker Change: and my patients that eventually they would want to treat locally, but during that period of time they're happy to have them refer it out and implant it and then get the patients back to manage them. So I think there are a couple of dynamics there where referral has absolutely been something as part of care.
Speaker Change: that we see as a growth driver and we think it's both helpful in terms of more broadly increasing access to R&S as well as increasing access to patients so it will be.
Treated at the local centers [inaudible]
Thanks for watching!
Speaker Change: Okay, that's helpful. And then you've talked about personal investments. How should we think about kind of hiring Canadians throughout the year as much as you can?
Thank you.
Speaker Change: You bet. Great question. Thank you. And we're being consistent here. You know, we've talked in the past about incremental investment in our commercial organization. We've talked about how we did that in 23. We continued to in 24 and had talked about how that group then had come through training and was then out working independently in their territories, really in the second half of 2024. And so we're pleased to see those
Speaker Change: and folks begin to have good impacts there and expect even more so as they continue to get more and more experienced in their territories. And we expect to have similar dynamics in 2025. We continue to invest in and prepare the commercial organization both to take advantage of the opportunities that we have today.
Speaker Change: in our core Level 4 Centers to Increase Adoption and Utilization.
Speaker Change: to expand into care centers and then to make sure we have people on the ground and ready in our targeted geographies to cover our targeted centers with the significant opportunities that we have coming in terms of indication expansion both with the focus on IGE patients as well as pediatric focal patients. So, you know, I think we've demonstrated that we've been disciplined in our operating expense investment in the commercial organization, but you've also seen, I think, a-
Speaker Change: Consistency here and our investment there and we expect that to continue and it's fully reflected in how we've thought about the guide for the years as well as our plans.
Perfect, congrats on the strong court, I guess [inaudible]
Thanks, Nonsense.
Our next question is from Ross Osborn, Bush Cantor Fitzgerald
Ross Osborne: Hey guys, congrats on the strong quarter. Looking at Project Care, how difficult or easy has it been to get docs up to speed and performing R&S procedures and a community setting, and how much incremental support from your team do these doctors require relative to the level four centers.
Speaker Change: It's a great question, Ross, and it varies a bit by center. Maybe for context, I would have folks think a little bit about that.
Speaker Change: or we start a new center, the same types of training and support that we do to start new customers.
Speaker Change: is the same either in level four centers or in entirely new centers and so we know how to do that pretty well and our organization is is completely fossil and experienced in doing so. Now when you think a little bit more specifically about the dynamics around care centers, those centers can have a little bit of a different complexion center to center as well. Now while it's true that...
Speaker Change: These centers and clinicians hadn't previously been able to implant the R&S system prior to the care expansion.
Speaker Change: A number of them have come from places where either is part of their fellowship [inaudible]
Speaker Change: Or as part of where they've previously practiced, they're familiar with neuromodulation and familiar with R&S and so of course there's refresher and appropriate understanding of...
Speaker Change: You know, the technology advancements that have been made because we continue to improve the technology but again a lot of the folks that were involved with do have some familiarity.
Speaker Change: So there's new work that needs to be done in particular in a couple of areas, one in contracting. So we've got to get contracts put in place with these centers and everything that goes along with that. With current customers we've already gone through that number one and number two then.
for folks that either have...
Speaker Change: Infrastructure that needs to be put in place or a referral network development that needs to take place, those are things that we work on specifically when we open these new centers. So there certainly is support that's required and so none of that is easy.
Speaker Change: But with regard to your question of difficult and easy, it's really the execution around that versus thinking about anything as difficult or easy as things we haven't done before. These are all things we've done before with people who are out there doing them every day.
Thanks for watching!
Speaker Change: Great, and then as you've moved into the community setting, have you seen more patients coming into the tunnel that are requesting your R&F system?
It's a great question.
Speaker Change: I think as we get, so the short answer would be not really not yet. As we expand out into the care centers, the work there is really on the individual centers and the people's practices associated with those centers and the patients that they're already managing and generally there's a good group to work from there.
Speaker Change: Patient Engagement is an in parallel set of activities that we haven't talked about quite as much but we gave some visibility to in January to our investor days, our increased focus on direct to patient.
Speaker Change: And as part of direct-to-patient we are both our activity as well as the targeting of our activity here and here's where the bend diagrams overlap a little bit with care because of the digital media nature of the direct-to-patient work that we do we can even target that work into geographies where we have specific care accounts.
Speaker Change: Director-patient is a good channel for us to create awareness and do a certain amount of education and get people into the appropriate physician group as well as our nurse navigator team.
Speaker Change: and we're doing more of that and we think we see elasticity. As our activity rates are going up we're also seeing increased rates of patient engagement. So the two things are working together and I do think over time we'll see kind of the traffic merge here on direct to patient as well as care.
Thanks for taking our questions and congrats again. Thanks for us.
Our next question is from Priya Sachdeva with UBS [inaudible]
Priya Sakdeva: Hi guys, thanks so much for taking the question and you can wrap it on a great quarter.
Speaker Change: Um, maybe first if I could just follow up on Mike's question from earlier on the Gross Margin Front.
Speaker Change: Your guidance implies a step down for the rest of the year so I guess you know we're just trying to understand what's driving that step down in an environment where you know we should see RNS growth expanding and driving margin expansion and you know declining Dixie revenue so you could just expand a little bit on the stop process there. Thanks.
Speaker Change: Sure, Hi Priya. So as we said in our prepared remarks
Speaker Change: Grossmargin was particularly strong in the first quarter, and it can fluctuate quarter to quarter. So we're really pleased by the performance in Q1. There are a number of things.
Speaker Change: Small things that can add up, and number of things contributed in the first quarter, but...
Speaker Change: Given that it can bounce around a little bit, quarter to quarter, we feel good about the guidance that we established earlier and we're sticking with that guidance.
Speaker Change: Okay, understood. That was super helpful. And maybe just one follow-up if I could. Congrats on presenting the post-approval study data, super compelling. I just want to know, you know, there's any early feedback from physicians that you're hearing on the ground and how you're going to leverage that momentum into Nautilus and the PEEDs indication. Thanks.
Dr. Prima, Dr. Prima, Dr. Prima,
level of evidence.
Speaker Change: of their emerging practices with R&S, with some who are maybe more familiar with neuromodulation more broadly. It's an opportunity for us to start the conversation about research the conversation in some cases and start the conversation around R&S and how R&S is different and better.
Speaker Change: than other neuromodulation choices that customers have. That's done a couple of things, both of which we think is good. One that has caused us to be able to have the reason why, here's what's new.
Speaker Change: Here's the new information to talk about when it comes to RNS and we've got that.
Speaker Change: The second is then really engaging customers and seeing them ask a lot of questions about the data. Okay, well, so tell me about this part of the data, tell me about that part of the data, and those are really engaging opportunities for us that allow for education and discussion about how...
Speaker Change: R&S can play a role in people's practices, so we've been really pleased with the reaction so far.
Speaker Change: I think it's logical that we'd be pleased with the reaction so far when we look at the data and I know many of you here on the call.
Speaker Change: are familiar with it but again as a reminder of median seizure reduction rates 62% at 6 months, 82% at 3 years.
Speaker Change: When you take a look at VNS and DBS, so 62% median seizure reduction is 6 months for RNS, 30% for VNS and 23% for DBS
Speaker Change: 44% for VNS and 40% for DBS. So the date is different and it's different both with regard to median seizure reduction as well as seizure freedom.
Speaker Change: The seizure freedom rates, more than 40% of patients in the study saw more than six months of seizure freedom.
Speaker Change: and that can be like changing for an epilepsy patient. And again, it's different than other options people have.
Speaker Change: At last follow-up, 27% of R&S patients were seizure-free. At last follow-up in their most recent studies, 8% PNS and 4% of DBS were seizure-free.
Speaker Change: So it's been great to get out there. It's always great for Salesforce to have something new and we think about the Post-approval study data is like a product.
Speaker Change: and so we've launched it like a product and so to engage with new as well as current customers in both education as well as then comparison with other choices that they have for their patients the post-approval study data has been great to get out and get started with and we look forward to
to that impact throughout the year. [inaudible]
Thanks Priya.
Our next question is from Rohin Patel with JP Morton
Rohan Patel: Hey, thanks for taking the question. I also wanted to follow up on the previous question and specifically on project care.
Rohan Patel: You talked about an increase in in plans and referrals through the program versus fourth quarter. Is there any more kind of quantitative color? You can provide as far as like percentage of total in plans.
Rohan Patel: and any potentially any KPIs you can discuss about just how the three-year post-approval data may have contributed to some momentum in the community setting during the quarter and then I had to follow up.
Rohan Patel: So, a couple of things there. Thank you, Rahim. I appreciate the interest in care.
Rohan Patel: I think what I punch up in terms of growth contribution is that R&S growth in the border was really driven by a couple of things. One, implants and referrals from care centers, both on as sequential as well as as eerily as you might imagine, compare some bases.
Rohan Patel: and then a significant amount of growth as well from new prescribers in our level 4 centers.
Rohan Patel: So you'll recall the three legs of the growth strategy here in the near term being one increasing adoption and utilization in the level four centers.
Rohan Patel: to expanding into care, and three expanding indications, and so all three of those things are what are driving here over this period of time increased access to R&S, and so in Q1.
The significant drivers were implants in referrals from care.
and increased numbers of prescribers in level 4. [inaudible]
Rohan Patel: To the second part of your question, I don't think that with the post-approval study data we really saw an impact in Q1 just given the timeline so the data was presented on the 7th of April and so we wouldn't have had
Speaker Change: The launch of the data with the commercial organization out engaged the way they have been prior to that in them getting those materials.
Speaker Change: Got it. That's helpful. And then I also wanted to ask on some of the new R&F product features.
and the Next Generation Platform.
Speaker Change: At the analyst day, you talked about the new software iteration potentially later this year.
Speaker Change: So I just want to get a refresh timeline for that and how you're thinking about potentially monetizing it. Will it be some add on subscription or would it just be a free of charge software upgrade for existing customers? And then how should we think about the timing as well for a next-generation R&S?
Thanks
Thanks for watching!
Speaker Change: Great questions and thanks for the diligence in remembering and following up on that from the investor day. We remain on track with the software release for 2025. We showed it in the second half of the year. We remain on track for that.
Speaker Change: So you can expect that the software releases for the RNS 320 to be really driving increased implants through ease of use efficiency and the ability to monitor and manage patients.
Speaker Change: Nothing further to report here that I'd update from on the next generation platform outside of what we presented at the investor day. We continue that work and things are going apace.
Speaker Change: But I guess the concrete point here would be that just confirming the second half, 25, the later this year on the software release we remain on track.
Great. Thanks, Joel.
Thank you [inaudible]
Question is from Michael Polark with Wolf's Research
Michael Pollard: Good afternoon, thank you. I just have one on the Dixie exit.
Speaker Change: When the deal was done a few years ago, it was kind of, you know, new product of sell, revenue synergy, but also visibility.
Michael Pollard: given the role that that product plays in the diagnostic process and so…
Speaker Change: As it goes away, do you feel like you lose anything there, Joel, on like upstream visibility, or did that part of the thesis not pan out? If you do feel like it was helpful, what strategies might you employ without Dixie to kind of keep the visibility up the funnel high? Thank you.
Thank you, Mike, and I appreciate the-
Speaker Change: The diligence here with regard to leveraging Dixie and everything we learned and everything that we've accomplished with that relationship and you're right when we engaged in that relationship in addition to like you say having, you know, it was great to at that time have another product in the bag to sell and then additionally allow and further almost what we'll call kind of vertical integration upstream into the patient referral and [inaudible]
Speaker Change: and Diagnostic Process and given us visibility there, and I think we did get that, and we certainly did get that in some places.
Speaker Change: I think we've talked about previously where in places for example where we have more senior, more well-established reps or reps that are personnel that kind of come from the industry in the field. They have a lot of those relationships and so there wasn't quite as much incremental.
Speaker Change: In that case, however, in some places especially where maybe we had newer people or people who were newer to this space, it was a ready point of entrance to have those discussions, so I think a couple of things there, one.
Speaker Change: We've learned about that and we've learned about those upstream processes and how it can be important to have that visibility to patients and that's something we can continue to do even today with the RNS system and so that that's muscle memory that will continue to exercise.
Speaker Change: And then secondly, you know, we've made the point that and I would want to re-emphasize it that in our relationship with Dixie we want to work to transition all of that very well.
We have a common set of customers here. We are here in...
Speaker Change: Make sure that the best care gets delivered for patients and we've learned a fair bit along the way that we can take along with us too.
Thank you
Thanks Mike.
Speaker Change: Thank you. There are no further questions at this time. I'd like to hand a floor back over to Joel Becker for any closing.
Joel Becker: Thank you, as mentioned earlier, during the first quarter here of 2025.
Speaker Change: Neuropace continued to make significant progress in advance in our mission, that mission of helping patients who suffer from debilitating seizures.
Speaker Change: and we're doing that by focusing on increasing access and growing our business and executing on key initiatives here to position the business for future growth to continue to advance that mission.
Speaker Change: During the quarter, we grew by 24%, we grew RNS by 26%, 29% when thinking about an Autolus.
Speaker Change: Implants being backed out. We had a successful investor day. We completed a patient follow-up on Nautilus. We raised 75 million in equity, evolving our shareholder base, a number of significant achievements.
We're executing the strategy, and we're building momentum.
Speaker Change: We've got significant opportunities today in the near future and we're just getting started.
Speaker Change: and I'd like to thank the Neuropace team for all their hard work and accomplishments during the quarter that engendered this progress and we look forward to keeping you updated as we move forward.
Thank you.
Speaker Change: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.