Q1 2025 CeriBell Inc Earnings Call

Hello, and thank you for standing by at this time I would like to welcome you could share about Q1 2025 earnings call.

Operator: Hello and thank you for standing by.

Operator: At this time, I would like to welcome you to the CeriBell Q1 2025 earnings call. All lines have been placed on mute to prevent any background noise.

All lines have been placed on mute to prevent any background noise.

Operator: After the speaker remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again.

After the Speakers' remarks, there'll be a question and answer session if you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again.

Elizabeth Spadizio: I would now like to turn the conference over to Elizabeth Spadizio, Investor Relations. Please go ahead.

Elisabeth: I would now like turn the conference over to Elisabeth <unk> Investor Relations. Please go ahead.

Elisabeth: Good afternoon, and thank you all for participating in today's call joining me from serve all our Jane Hsiao co founder and Chief Executive Officer, and Scott Bloomberg Chief Financial Officer.

Elizabeth Spadizio: Good afternoon and thank you all for participating in today's call. Joining me from CeriBell are Jane Chao, co-founder and chief executive officer, and Scott Bloomberg, chief financial officer.

Elizabeth Spadizio: Earlier today, CeriBell issued a press release announcing financial results for the quarter ended March 31st, 2025. A copy of the press release is available on the investor relations section of the company's website.

Elisabeth: Earlier today, Sir about issued a press release announcing financial results for the quarter ended March 31 2025.

Elisabeth: A copy of the press release is available on the Investor Relations section of the Companys website.

Elizabeth Spadizio: Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forms of these statements. Accordingly, you should not place undue reliance on these statements.

Elisabeth: Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities laws and that these are being made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.

Elisabeth: Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements.

Elisabeth: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements.

Accordingly, you should not place undue reliance on these statements.

Elizabeth Spadizio: For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors section of our public filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on February 25th, 2025.

Elisabeth: For a list and description of the risks and uncertainties associated with our business. Please refer to the risk factors section of our public filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on February 25 2025.

Elizabeth Spadizio: This conference call contains time-sensitive information and is accurate only as of the live broadcast today, May 8, 2025.

This conference call contains time sensitive information and is accurate only as of the live broadcast today may eight 2025.

Elizabeth Spadizio: CeriBell disclaims 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.

Elisabeth: <unk> disclaims 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 and with that I will turn the call over to Jay.

Jane Chao: And with that, I will turn the call over to Jane. Thanks Elizabeth. Good afternoon and thank you all for joining us on our first quarter 2025 earnings call.

Jay: Thanks, Elizabeth Good afternoon, and thank you all for joining us.

Jay: First quarter 2025 earnings call.

Jane Chao: Today, I share the key highlights from our first quarter results, as well as our strategic priorities for 2025.

Jay: Today I'll share the key highlights from our first quarter results as well as our strategic priorities for 2025.

Jane Chao: Scott will then provide a more detailed analysis of our financial performance and discuss our full year 2025 guidance. The first quarter marked a strong start to the year for CeriBell. We delivered robust revenue growth and made measurable progress across every strategic initiative outlined on our last call. Total revenue for the first quarter of 2025 was $20.5 million. This reflects 42% growth over the same period last year and 11% growth over the fourth quarter of 2024. We are also pleased to deliver an 88% growth margin in Q1. Once again, our strong Q1 performance was driven by our team's continued success in acquiring and launching new accounts, while also driving utilization across our account base.

Jay: Well then provide a more detailed analysis.

Jay: Our financial performance and discuss our full year 2025 guidance.

Jay: The first quarter marked a strong start to the year for sure about.

Jay: We delivered robust revenue growth and made measurable progress across every strategic initiatives.

Jay: On our last call.

Jay: Total revenue for the first quarter of 2025, plus $25 million.

Jay: This reflects 42% growth over the same period last year and 11% growth over the fourth quarter of 2024.

Jay: We were also pleased to deliver 88% gross margin in Q1.

Jay: Again, a strong Q1 performance was driven by our team's continued success acquiring and launching new accounts, while also driving utilization across our account base.

Jane Chao: As Scott will detail, our first quarter performance has given us greater conviction in revenue growth expectation for the full year of 2025. Importantly, we are also reaffirming our confidence in achieving profitability in the future using only current cash on hand, despite a dynamic trade environment. Underpinning our growth is the clinical value that we deliver to our customers every day. As of March 31, 2025, we had 558 active accounts, representing an increase of 29 during the first quarter.

Jay: As Scott will detail, our first quarter performance has given us greater conviction in revenue growth expectation for the full year of 2025 important.

Jay: Importantly, we're also reaffirming our confidence in achieving profitability in the future using only current cash on hand, despite a dynamic trade environment.

Jay: Underpinning our growth is the clinical value that.

We delivered to our customer every day.

Jay: March 31, 2025, we had 558 active accounts, representing an increase of 29 during the first quarter.

Jane Chao: Among these were our first cohort of VA hospitals where our clarity algorithm has now been integrated. This follows the receipt of authority to operate from the federal government in November 2024. This ATO is a testament to CeriBell's ability to comply with extensive cybersecurity standards. which have become increasingly important for health.

Jay: Among these were our first cohort of VA hospitals.

Jay: Our clarity algorithm has now been integrated.

Jay: Following the receipt of authority to operate from the federal government in November 2024.

Jay: <unk> is a testament to <unk> ability to comply with extensive cyber security standards, which has become increasingly important for hospitals.

Jay: More recently, we're proud to have also received Fathogram high authorization from the U S government that should be pretty guys, even more significant validation of our cyber security standards and enables other government agencies to utilize the sorry about this.

Jane Chao: More recently, we are proud to have also received FedRAMPi authorization from the U.S. government. This represents an even more significant validation of our cybersecurity standards and enables other government agencies to utilize the CeriBell system.

Jane Chao: For context, FedRAMP-I is the U.S. government's most stringent category for review of cloud-enabled technology that handles highly sensitive information. Following this authorization, CeriBell is one of the only 51 companies. and the only medical device manufacturer. who have received the disauthorization.

Jay: Context that rent high is the U S government's most stringent category for review of cloud enabled technology that handle a highly sensitive information.

Following this authorization turnabout.

Jay: One of the only 51 companies and only medical device manufacturer.

Jay: <unk> received this authorization.

Jay: Well, we're delighted by our success to date, we believe that we are.

Jane Chao: While we're delighted by our success to date, we believe that we're still in the early stage of the adoption curve for our product. Based on our market research and assumptions, we only serve around 3% of the U.S. populations who could benefit from our technology.

Jay: Still in the early stage of adoption.

Jay: Adoption curve.

Jay: Product.

Jay: Based on our market research and the assumptions, we only server.

Jay: 3% of the U S populations, who could benefit from all of our technology.

Jane Chao: We're confident in our ability to leverage our unmatched AI capability and extensive clinical evidence to establish CeriBell as the standard of care.

Jay: We are confident in our ability to leverage our unmatched AI capability.

Jay: And extensive clinical evidence.

Bill: Sure Bill.

Jay: The standard of care.

Jane Chao: Through Q1, we continued to invest in and expand our commercial organization. We're on track to meet our goal of expanding our account acquisition team to 55 territory managers by mid 2025. Given the nature of our sales cycle, we expect that this expansion will begin impacting our rate of account acquisition growth in 2026. Meanwhile, we are continuing to invest in our Clinical Account Manager, or CAM, team to serve our growing account base.

Jay: Through Q1, we continued to invest in and expand our commercial organization.

Jay: On track to meet our goal of expanding our account acquisition team 255 territory managers by mid 2025.

Jay: The nature of our sales cycle, we expect that this expansion will begin impacting all of our account acquisition growth in 2026.

Jay: Meanwhile, we are continuing to invest in our clinical account manager or Cam team to serve our growing account base.

Jay: As by far the most studied and proven rapid EEG solution on the market. We have also continued to build on our efforts to expand awareness regarding the clinical and economic benefits of Sandra Bell.

Jane Chao: As by far the most studied and proven rapid EEG solution on the market, we have also continued to build on our efforts to expand awareness regarding the clinical and economic benefits of CeriBell.

Jane Chao: We are directly engaging with clinicians. investing in marketing initiatives, and importantly, generating further clinical and health economics data.

Jay: We are directly engaging with clinicians.

Jay: <unk> marketing initiatives, and importantly, generating further clinical and health economic data.

Jane Chao: During the first quarter, we are pleased to see three separate publications reinforce the clinical benefit of using CeriBell.

Jay: During the first quarter, we're pleased to see three separate publications reinforce the clinical benefit of using shares.

Jane Chao: These papers articulated the advantage of nursing-driven rapid EEG protocols, the clinical value of assessing seizure in stroke and stroke-mimic patients, and the significant decrease in time to diagnose and treatment in pediatric patients with CeriBell EEG cohorts when compared to using conventional EEG.

Jay: These papers articulate the advantage of nursing driven rapid EEG protocols, the clinical value of assessing seizure, a stroke and silicon the next patient.

Jay: The significant decrease in time to diagnose and treatment in pediatric patients with CRE about EEG cohort when compared to using conventional AEG.

Jay: Beyond investing in sales and marketing efforts. We are also investing in our product development pipeline.

Jane Chao: Beyond investing in sales and marketing efforts, we are also investing in our product development pipeline.

Jane Chao: Our goal remains to make EEG a new vital sign. We believe these investments will enable us to extend the benefits of our technology to even more patients.

Jay: Our goal remains to make cez anew Vitale Si.

Jay: We believe these investments will enable us to extend the benefits of our technology to even more patients.

Jane Chao: Recently, we were thrilled to receive FDA 510K clearance of clarity for seizure detection in pediatric patients. Clarity is now the first and only FDA-clear seizure detection algorithm indicated for patients aged one year and above. thereby expanding our addressable patient population. The development of our pediatric algorithm was supported by EEG data collected from over 1,700 patients. FDA data indicates that this is the largest validation data set ever used for FDA clearance of a seizure detection algorithm. This reflects the scale of our extensive EEG database and the rigor of our algorithm and validation process. Our pediatric clarity algorithm is designed to be used with our existing CeriBell EEG headbands, which are already cleared for use in patients of all ages.

Recently, we were thrilled to receive FDA five 10-K clearance of clarity for seizure detection in pediatric patients.

Jay: Clarity is now the first and only FDA cleared for Ctrip caching algorithm.

Jay: Hey did swap patients, aged one year and stuff.

Jay: Thereby expanding our addressable patient population.

Jay: The development of a pediatric algorithm, while supported by EEG data collected from over 1700 patients.

Jay: FCA data indicates that this is the largest validation dataset ever used for FDA clearance of a seizure detection algorithm.

Jay: This reflects the scale of our extensive EEG database.

The weaker.

Jay: Our algorithm and the validation process.

Jay: Our pediatric clarity algorithm is designed to be used with our existing stirabout EEG headphones, which are already cleared for use in patients of all ages.

Jane Chao: We believe CeriBell with clarity will have a profound impact on the lives of children at risk of seizure who are particularly vulnerable to preventable secondary brain injury caused by seizure.

Jay: We believe Cerro valve it's clarity.

Jay: A profound impact on the lives of Joe journey at risk of failure.

Jay: Clearly vulnerable to prevent both secondary brain injury costs device Asia.

Jane Chao: In fact, seizures are a leading neurological cause of pediatric visits to emergency departments. Studies have also shown that up to 98% of pediatric patients in ICU who experience just 12 minutes of seizure in a one-hour window suffer from neurological decline.

Jay: In fact seizures are leading neurological calls of pediatric visits to emergency departments.

Jay: <unk> has also shown that app to 98% pediatric patients in the ICU.

Jay: Various just 12 midnight seizure in the one hour window.

Speaker Change: Sir from neurological decline.

Jane Chao: Yet, despite EEG being critical for appropriate patient management, pediatric patients in the ED are often discharged without any EEG. The children often receive their first EET in the outpatient setting days, weeks, or even months later, and sometimes not at all. We estimate that 80% of pediatric emergency department visits occur at general or non-children's hospitals, which represent our core customer base today. Yet, there is typically a significant shortage of pediatric epileptologists in general ED. The shortage results in potentially even greater clinical gaps than for adult population.

Speaker Change: Yet despite EEG being critical fault prostate patient management pediatric.

Speaker Change: Pediatric patients in the <unk> are also discharged without any EG.

Speaker Change: The children often received their first AEG in the outpatient setting.

Speaker Change: Days weeks or even months later.

Speaker Change: Sometimes not at all.

Speaker Change: We estimate that 80% pediatric emergency department visits.

Speaker Change: Occur at general or non children's hospital, which represents all of our core customer base today, yet there is typically a significant shortage of pediatric epilepsy, Paula just a general eds.

Speaker Change: This shortage results and potentially even greater clinical guidance then.

Speaker Change: And then for adult population.

Jane Chao: Polarity is a powerful tool to help both epileptologists and ED physicians fill this gap. Following this clearance, we plan to conduct a limited commercial release and pilot. Specifically, we will focus on pediatric expansion within our existing ED accounts, as well as children's hospitals.

Speaker Change: <unk> is a powerful tool to help both at la <unk> and <unk>.

Speaker Change: Thanks, guys.

Speaker Change: Following this clearance we plan to conduct a limited commercial release and pilot.

Speaker Change: Specifically, we will focus on pediatric expansion within our existing accounts as well.

Speaker Change: Well as to address hospitals.

Jane Chao: This will enable us to better understand how to best leverage the natural synergies of the pediatric clarity opportunity with our existing product and ED strategy, as well as potential future indications, including clarity for neonates. Ultimately, we will refine our broader go-to-market strategy. with an even more comprehensive offering for the wider population.

Speaker Change: This will enable us to better understand how to best leverage the natural synergies.

Speaker Change: Pediatric clarity opportunity with our existing product and <unk> strategy.

Speaker Change: As well as potential future indications, including clarity for neonates.

Speaker Change: Ultimately, we will refine our broader go to market strategy.

Speaker Change: The even more comprehensive offering for the wider population.

Jane Chao: To summarize, this pediatric clearance marks the first step on our path to entering another exciting segment of our core seizure market. We look forward to providing more updates in our next call.

Speaker Change: To summarize this pediatric clearance marks the first step.

Speaker Change: Past two entering another exciting segment.

Speaker Change: Our core see share of market.

Speaker Change: We look forward to provide any more updates in our next call.

Speaker Change: Moving to our pipeline.

Jane Chao: Moving to our pipeline, we are pleased to report that the timeline for other opportunities discussed on our last earnings call, specifically neonate clarity and delirium, remain on track.

Speaker Change: We're pleased to report that the timeline for other opportunities as discussed on our last earnings call, specifically neonate clarity and delirium, we remain on track.

Jane Chao: On a go-forward basis, we intend to provide pipeline updates only on clearances. or other meaningful regulatory or strategic changes.

Speaker Change: On a go forward basis, we intent to provide pipeline updates only clearances.

Speaker Change: Or are there meaningful regulatory or strategic changes.

Speaker Change: At a high level, we see all our pediatric clearance is illustrative of some of the unique dynamics inherent in our regulatory and commercialization pathways.

Jane Chao: At a high level, we feel our pediatric career is illustrative of some of the unique dynamics inherent in our regulatory and commercialization pathways. First, there is a very high degree of synergy and interdependency across our existing products and anticipated future indicators. Second, we are truly pioneering novel solutions and endeavoring to improve care by transforming care pathways. Third, we believe the regulatory frameworks for our potential new indications are faster and lower cost compared to those for most medical devices. due to the nature of algorithm development and ability to leverage our extensive EEG database and AI expertise.

Speaker Change: First there is a very high degree of synergy and inter dependency across all of our existing products and anticipated future indications.

Speaker Change: Kent.

Kent: We're truly pioneering novel solutions and endeavoring to improve care by transforming care pathways.

Kent: We believe the regulatory frameworks for potential new indications are faster and lower cost compared to those or most medical devices.

Kent: Due to the nature of algorithm development and <unk>.

Kent: <unk> to leverage our extensive EEG database and AI expertise.

Kent: As a result, we want to be incredibly strategic and precise.

Jane Chao: As a result, we want to be incredibly strategic and precise in how we bring this potentially transformational innovation to market. We anticipate using at least one year following regulatory clearance of any indication-related product expansions to pilot our approach and potentially continue to optimize our product. We believe this will allow us to refine our messaging and sales approach and better understand how the new product offering impacts the hospital workflow. We expect this will enable us to most effectively bring products to market quickly while optimizing our business plans based on real-world feedback.

Kent: How we bring this potentially transformational innovation to market.

Kent: We anticipate using at least one year following regulatory clearance of any indication related carve out expenses for pilot Abra approach and potentially continue to optimize our products.

Kent: We believe this will allow us to refine our messaging and our sales approach and better understand how the new product offering impacts the hospital workflows.

Kent: We expect this will enable us to most effectively bring products to market quickly, while optimizing our business plans based on real world feedback.

Jane Chao: This has been a successful strategy for CeriBell since the initial introduction of Clarity in 2020.

Kent: This has been a successful strategy for cerebellum since the initial introduction of clarity in 2020.

Jane Chao: We're excited to replicate our proven approach with pediatric clarity and our future product launch. Our near-term focus will remain on expanding CeriBell access to millions of patients who are receiving delayed or suboptimal diagnosis due to the inherent limitation of the conventional EEG. Over time, these incremental patient populations will meaningfully impact our total addressable market and stand to create real growth upside. Importantly, we believe we will be able to target these novel patient populations within our existing call points, largely by leveraging our existing cells.

Kent: We're excited to replicate our proven approach with pediatric clarity and our future product launches.

Kent: Our near term focus will remain on expanding Sarah doll access to millions of patients who are receiving delayed or sub optimal diagnosis due to the inherent limitation of the conventional AEP.

Kent: Over time, these incremental patient populations, while meaningfully impact our total addressable market and stand to create real growth upsides.

Kent: Importantly, we believe we will be able to target. These novel patient populations within our existing call points largely by leveraging our existing sales force.

Kent: We're encouraged by our progress in Q1, and well continue focusing on initiatives to sustained growth through 2025 and beyond.

Jane Chao: We're encouraged by our progress in Q1, and we'll continue focusing on initiatives to sustain growth through 2025 and beyond. Specifically, we plan to invest in our commercial organization to drive adoption of the CeriBell system for seizure detection in both new and existing accounts. continue to drive awareness of seizures in the acute care setting by maintaining a leading presence in generating clinical and economic evidence.

Kent: Basically we're trying to.

Kent: Investing of our commercial organization to drive adoption of this era Bell system for seizure detection in both new and existing accounts.

Kent: Continuing to drive awareness of seizures in the acute care setting by maintaining our leading presence in January <unk> clinical and economic evidence.

Kent: And finally make sure their strides in expanding our market through further product development and commercial launches.

Jane Chao: and finally make further strides in expanding our market through further product development and commercial launches.

Scott Blumberg: With that, I now turn the call over to Scott Blumberg, our CFO, to provide a review of our first quarter results and outlook for the remainder of 2025. Thank you, Jane. Good afternoon, everyone. As Jane mentioned, total revenue for the first quarter was $20.5 million, a 42% increase from $14.4 million in the same period of the prior year. The increase was primarily driven by continued commercial expansion, resulting in increased adoption of the CeriBell system across new and existing accounts. Within existing accounts, we saw strong growth in usage and purchase trends. We attribute the success to our CAN strategy plus the benefits of seasonal trends, including many hospitals increased ICU patient census in the winter months.

Kent: With that.

Scott: Now I'll turn the call over to Scott <unk>, our CFO to provide a review of our first quarter results.

Speaker Change: And outlook for the remainder of 2025.

Scott: Thank you Jay and good afternoon, everyone.

Scott: As Jay mentioned total revenue for the first quarter was $20 5 million or 42% increase from $14 4 million in the same period of the prior year.

Scott: This was primarily driven by continued commercial expansion, resulting in increased adoption Cerro del system across new and existing accounts.

Scott: Within existing accounts, we saw strong growth in usage and purchase trends.

Scott: We attribute the success to our Cam strategy, plus the benefits of seasonal trends, including many hospitals increase ICU patient census in the winter months.

Scott: Product revenue from the first quarter of 2025 was $15 6 million.

Scott Blumberg: Product revenue from the first quarter of 2025 was $15.6 million, representing an increase of 41% from $11.0 million in the first quarter of 2024. Description revenue for the first quarter of 2025 was $4.9 million, representing an increase of 45% from $3.4 million in the first quarter of 2024. Growth margin for the first quarter of 2025 was 88% compared to 86% in the prior year period.

Scott: Representing an increase of 41% from $11 million in the first quarter of 2024.

Scott: Subscription revenue for the first quarter of 2025 was $4 9 million.

Scott: Presenting an increase of 45% $3 $4 million in the first quarter of 2024.

Scott: Gross margin for the first quarter of 2025 was 88% compared to 86% in the prior year period.

Scott: Total operating expenses for the first quarter of 2025 were $32 2 million, an increase of 55% compared to $28 million in the first quarter of 2024.

Scott Blumberg: Total operating expenses for the first quarter of 2025 were $32.2 million, an increase of 55% compared to $20.8 million in the first quarter of 2024. Non-cash, stock-based complication expense was $2.3 million in the first quarter of 2025. The increase in operating expenses is primarily attributable to investments in our commercial organization. Increased headcounts will support the growth of the business and expenses related to operating as a public company. More specifically, we continue to make key hires across our sales and marketing and R&D teams. As it relates to our sales force, as Jay noted, we are on track to achieve our goal of 55 territory managers by mid-year and are continuing to strategically expand our campaign.

Scott: Noncash stock based compensation expense was $2 $3 million in the first quarter of 2025.

Scott: The increase in operating expenses was primarily attributable to investments in our commercial organization.

Scott: Headcount to support the growth of the business and expenses related to operating as a public company.

Scott: More specifically we could see.

Scott: Key hires across our sales and marketing and R&D teams.

Scott: As it relates to our sales force as Jerry noted we are on track to achieve our goal of 55 territory managers by mid year.

Scott: Thanks to strategically expand our TMT.

Scott: We expect further opportunistic investments in our commercial team stretching into 2025.

Scott Blumberg: We expect further opportunistic investments in our commercial team to continue in 2025. Meanwhile, we are maintaining our expectation that stock-based competition expense will contribute approximately $50 million to total operating expenses for the full year 2025. As a reminder, we expect expenses associated with the annual equity grant process to increase beginning in Q2.

Scott: Meanwhile, we are maintaining our expectation that stock based compensation expense will contribute approximately $50 million to total operating expenses for the full year 2025.

Scott: As a reminder, we expect expenses associated with the annual equity grant process increase beginning in Q2.

Scott: Net loss was $12 $8 million for the first quarter of 2025 or loss of <unk> 36 per share compared to a loss of $8 5 million or a loss of $1 56 per share in the first quarter of 2024.

Scott Blumberg: Net loss was $12.8 million for the first quarter of 2025, or a loss of $0.36 per share, compared to a loss of $8.5 million, or a loss of $1.56 per share in the first quarter of 2024. An average weighted share count of 35.9 million shares was used to determine loss per share in the first quarter of 2025.

Scott: And average weighted share count of $35 9 million shares using seven loss per share in the first quarter of 2025.

Scott Blumberg: Our cash, cash equivalents, and marketable securities as of March 31st, 2025 were $182.7 million.

Scott: Our cash cash equivalents in marketable securities as of March 31, 2025, or $182 $7 million.

Scott Blumberg: Turning now to our outlet for the remainder of 2025. Given our momentum in the first quarter of 2025, we now expect full-year 2025 total revenue to range from $83 to $87 million, up from our prior guidance of $81 to $85 million, which represents annual growth of 27 to 33 percent over 2025. Moving down the P&L, even in the face of substantially increased tariff on goods imported from China, we continue to expect gross margins for the full year of 2025 to be in the mid-80% range. This contemplates our high degree of confidence in our expectation for current product inventory located within the United States that fully meets demand through at least the third quarter of 2025.

Scott: Turning now to our outlook for the remainder of 2025.

Scott: Given our momentum in the first quarter of 2025, we now expect full year 2025 total revenues to range from <unk> $87 million up from our prior guidance of $81 million to $85 million, which represents annual growth of 27% to 33% over 2024.

Scott: Moving down the P&L, even in the face and substantially increase tariff on goods imported from China. We continue to expect gross margins for the full year 2025 to be in the mid 80% range.

Scott: This contemplates our higher degree of confidence in our expectation for current product inventory located within the United States to fully meet demand through at least the third quarter of 2025.

Scott Blumberg: Therefore, we do not expect to see any material impact to gross margins from incremental tariffs on imports from China until at least the fourth quarter of 2025. Looking ahead, under the latest assumption, which is that imports from China will be subject to 145% in tariffs, in addition to the 25% in tariffs that have been in place since 2018, we believe the impact for a gross margin from the new tariffs will still be less than 10 percentage points. This compares to gross margins of 88% in the first quarter of 2025.

Scott: Therefore, we do not expect to see any material impact to gross margins and incremental tariffs on imports from China until at least the fourth quarter of 2025.

Scott: Looking ahead under the latest assumption, which is the imports in China will be subject to a 145% in Paris and in addition to the 25% and tariffs that have been in place in 2018, we believe the impact to our gross margin from the new tariffs will still be less than 10 percentage points.

Scott: This compares to gross margins of 88% in the first quarter of 2025.

Scott: To be clear this assumes no change in credit growth tariffs no benefit marlin mitigation strategies, including potentially restarting our manufacturing, which we are actively considering.

Scott Blumberg: To be clear, this assumes no change in currently proposed tariffs and no benefit from our own mitigation strategies, including potentially restoring our manufacturing, which we are actively considering. When we have greater clarity regarding international trade policies, we are confident in our ability to move quickly to fully execute these contingency plans, likely within a matter of quarters, not years. Independent of potential tariff mitigation efforts, we are also leaning further into our pre-existing COGS reduction strategies, the effect of which would be amplified if current proposed tariffs remain in place. Ultimately, based on what we know today, we are confident in our ability to maintain a strong, above-industry average growth margin around 80% in the medium term, with a clear path to continue to deliver margins in the mid-80% range over the medium to long term.

Scott: When we have greater clarity regarding international trade policies, we are confident in our ability to move quickly to fully execute this consistent then likely within a matter of quarters not years.

Scott: Independent of potential tariff mitigation efforts were also really further into our preexisting cost reduction strategies, the effect of which would be amplified if current proposed tariffs remain in place.

Scott: Ultimately based on what we know today, we're confident in our ability to maintain a strong above industry average gross margin of around 80% in the medium term with a clear path to continue to deliver margins in the mid 80% range over the medium to long term.

Scott: This is due to our mitigation strategies, which we believe are quickly actionable relatively low nominal cost basis for goods imported in China, and the fact that 25% of our revenue comes from subscription products, which generated 97% gross margin and are not subject to tariffs.

Scott Blumberg: This is due to our mitigation strategies, which we believe are quickly actionable, a relatively low nominal cost basis for goods imported from China, and the fact that 25% of our revenue comes from subscription products, which generate a 95% gross margin and are not subject to tariffs.

Scott: And finally, even assuming the current tariff rate and no incremental revenue pipeline initiatives. We continue to have a great deal of conviction and our ability to reach cash flow breakeven with current cash on hand.

Scott Blumberg: And finally, even assuming the current tariff rate and no incremental revenue from pipeline initiatives, we continue to have a great deal of conviction in our ability to reach cash flow breakeven with current cash on hand.

Jane Chao: With that, I'll turn the call back to James.

James: With that I will turn the call back to James.

James: Thank you Scott and thank you all for your time today in conclusion, I'm very pleased with our strong first quarter performance, which positions us well for continued success through 2025 and beyond.

Jane Chao: Thank you, Scott, and thank you all for your time today. In conclusion, I'm very pleased with our strong first quarter performance, which positions us well for continued success through 2025 and beyond.

Speaker Change: I would like to sense, alright, thereabout employees, where they are.

Jane Chao: I'd like to thank our CeriBell employees for their continued commitment to our customers and the patients we serve. Finally, we appreciate your support and continued interest in CeriBell. And we look forward to providing you with updates on our progress in the quarters.

Speaker Change: Continued commitment to our customers and the patients we serve.

Speaker Change: Finally, we appreciate your support and continued interest in Fayetteville.

Speaker Change: And we look forward to providing you with updates on our progress in the quarters to come.

Operator: I will now turn the call over to the operator for any Q&A. Thank you.

Speaker Change: I'll now turn the call over to the operator for any Q&A.

Speaker Change: Later.

Speaker Change: Thank you we will now begin the question and answer session.

Operator: We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again.

Speaker Change: I'd like to ask a question. Please press star one on your telephone keypad to raise their hand and joined the queue. If you would like to withdraw your question simply press Star one again.

Speaker Change: First question comes from Travis Steed from Bank of America. Please go ahead.

Stephanie Piazzola: First question comes from Travis Steed from Bank of America. Please go ahead.

Stephanie: Hi, This is Stephanie appears Ola on for Travis Congrats on the good quarter and thanks for taking the question.

Stephanie Piazzola: Hi, this is Stephanie Piazzola. I'm for Travis. Congrats on the good quarter and thanks for taking the question.

Stephanie Piazzola: I wanted to ask on Q1, you beat by one million and you're raising the full year guide by about two million at the midpoint.

I wanted to ask on <unk>.

Speaker Change: Q1, you beat by 1 million and you're raising the full year guide by about $2 million at the midpoint. So wanted to ask what's driving the raise in the guide by more than the B and what now looks better versus your previous expectation and just thinking about cadence.

Stephanie Piazzola: So I wanted to ask what's driving the raise in the guide by more than the beat and what now looks better versus your previous expectation? And just thinking about cadence, do we see that ratio up in any particular quarter?

Speaker Change: Do we see that ratio up in any particular quarter and then I have a follow up.

Stephanie Piazzola: And then I have a follow up.

Stephanie: Hey, Stephanie Thanks for the question.

Scott Blumberg: Hey, Stephanie. Thanks for the question. Yeah, we beat consensus by about a million in Q1. I think more than that, we got greater confidence in all of the strategies that we've been implementing, both on the account acquisition and account management side. I think you'll see our usage per account has grown pretty substantially Q1 over Q4. As we've said in our prepared remarks, we expect that there's a little bit of seasonality in that number, but we have a high degree of confidence that our strategies are working. So it's really a matter of an additional quarter of visibility and execution is giving us the confidence to raise.

Stephanie: Yes, we beat.

Stephanie: Consensus by about $1 million in Q1, I think more than that.

<unk> got greater confidence in all of the strategies that we've been implementing both on the account acquisition and account management side I think youll see our usage per account has grown pretty substantially Q1 over Q4, as we said in our prepared remarks, we expect that there is a little bit of seasonality in that number but we have a high degree of confidence that our strategies are working.

Stephanie: So it's really a matter of.

Stephanie: Quarter, and visibility and execution is giving us confidence to raise.

Stephanie: Great. Thanks, and then for my follow up just wanted to ask.

Stephanie Piazzola: Great, thanks.

Scott Blumberg: And then for my follow up, just wanted to ask a little bit more on tariffs and your ability to keep gross margin for the year in the same mid to high 80% range, despite tariffs potentially having some impact in Q4 and just your confidence there. And then on a full year basis, you mentioned a less than 10 point impact to gross margin, and that doesn't include any mitigation. I believe you said, so just curious if you could elaborate on potential mitigation actions that you could take to potentially offset some of that headwind.

Stephanie: A little bit more on tariffs and your ability to keep gross margin for the year and the same mid to high 80% range.

Stephanie: Despite tariffs potentially having some impact in Q4 and just your confidence there and then on a full year basis, you mentioned, a less than 10 point impact to gross margin and that doesn't include any mitigation and I believe you said so just curious if you could elaborate.

Stephanie: Potential mitigation actions that you could take to potentially offset some of that headwind.

Scott Blumberg: Thank you.

Stephanie: <unk>.

Stephanie: Sure well first of all acknowledging that the trading environment is incredibly dynamic with that caveat as I mentioned, we have about two quarters of runway here, where we're operating off of inventory that was acquired before the tariffs. So we don't expect an impact over the coming couple of quarters.

Scott Blumberg: Sure. Well, first of all, acknowledging that the trading environment is incredibly dynamic. With that caveat, as I mentioned, we have about two quarters of runway here where we're operating off of inventory that was acquired before the tariff, so we don't expect an impact over the coming couple of quarters.

Scott Blumberg: In Q4 and in early 2026, we would expect some impact, the degree of which really depends on what the ultimate policy is and how much clarity there is, and then the comment about returning to the mid-80% range is really dependent on how quickly we get that clarity so we can execute on the strategies. As far as the strategies go, I think it's important to acknowledge that we didn't get to 88% margins by chance. We've really focused on supply chain extensively since the beginning of the company. A lot of the strategies we have in place were things we were already working on and we're really doubling down and accelerating them.

Stephanie: In Q4 and in early 2026, and we would expect some impact the degree of which really depends on what the ultimate policy is and how much clarity. There is and then the comment about returning to the mid 80% range.

Stephanie: Is really dependent on how quickly we get that clarity. So we can execute on the strategies as far as the strategies go I think it's important to acknowledge that we didn't get to 88% margins by chance, we really focused on supply chain extensively since the beginning of the company.

Stephanie: A lot of the strategies, we have in place where things were already working on and we're really double down and accelerating them.

Scott Blumberg: One is automation. Second is cost negotiation with vendors. Third is reduction of costs of shipping.

Stephanie: One is automation second is cost negotiation with vendors third is a reduction of the cost of shipping one thing thats important to note is that.

Scott Blumberg: One thing that's important to note is that some of these cost reduction initiatives under the current tariff structure would have a synergistic effect where it would magnify as it would lower the nominal cost base of the product, and then ultimately we are looking at and have pretty detailed plans for reshoring, but we're really waiting for greater clarity on where the ultimate US trade policy settles before we execute on those plans, but they're ready to go. As I mentioned, that'll take a few quarters to execute on, not a few years.

Stephanie: Some of these.

Stephanie: Cost reduction initiatives under the current tariff structure would have the kind of synergistic effect, where it would magnify as it would lower the nominal cost base of the product and then ultimately we are looking at and have pretty detailed plans for re shoring, but what we're really waiting for greater clarity on where the ultimate.

Stephanie: S trade policy settles before we execute on those plans, but they are ready to go and as I mentioned that will take a couple of quite a few quarters to execute another two years.

Robert Marcus: Our next question comes from Robert Marcus from JP Morgan.

Rohan: Our next question comes from Robert Marcus from J.P. Morgan.

Speaker Change: Hi, This is actually Ryan on for Robbie Congrats on a nice quarter. Thanks for taking our question I.

Rohan: Hi, this is actually Rohan on for Rowdy. Congrats on a nice quarter.

Rohan: Thanks for taking our question. I guess I wanted to start off and follow up on the gross margin point, but zero in on OPEX. You reiterated the expectation of reaching cash flow break even with the current cash on hand.

Robert Marcus: I guess I wanted to start off and then follow up on the gross margin.

Speaker Change: But zero in on Opex.

Speaker Change: Reiterated the expectation of reaching cash flow breakeven with the current cash on hand, So just wanted to get a sense for your thoughts on Opex This year.

Rohan: So just want to get a sense for your thoughts on OPEX this year between SGMA and R&D, and then how are you thinking about that trending maybe a bit longer term, and then how to follow up as well. As it relates to the impact of tariffs on margins, I think it's important to note that we expect the impact to be transient, so it's bounded since we expect to be in the mid-80% range in the not-too-distant future. As it relates to OPEX, some of the investments we made, which we outlined in our last earnings call, are related to the capital raised in the IPO, which was substantially more than we initially intended to raise.

Speaker Change: Between SG&A and R&D and then how are you thinking about that trending maybe a bit longer term and then I had a follow up as well.

Speaker Change: Yes, as it relates to the impact of <unk>.

Speaker Change: Tariffs on margins I think it's important to note that we expect the impact to be transient so it's.

Speaker Change: Since founded since we expect to.

Speaker Change: Be in the mid 80% range in the not too distant future as it relates to Opex.

Speaker Change: The investments, we made which we outlined on our last earnings call are related to the capital raised in the IPO, which was substantially more than we initially intended to raise so we are investing a bit more than we had previously intended before the IPO on R&D. We're also looking at opportunistic areas to invest in sales infrastructure to drive.

Rohan: So we are investing a bit more than we had previously intended before the IPO on R&D. We're also looking at opportunistic areas to invest in sales infrastructure to drive growth. One example is that we're running a pilot on driving usage within the emergency departments, and our strategy is generally to run commercial pilots, and then if it works well, double down, and if it's not working, we'll adjust. With the capital we raised, we feel very confident in our ability to do that. We understand the critical importance of achieving positive cash flow without additional capital, so we're always keeping an eye on that.

Speaker Change: <unk>.

Speaker Change: One example is that we're running a pilot on <unk>.

Speaker Change: Driving usage within the emergency departments and our strategy is generally to run commercial pilots and then you can work well double down and if it's not working well adjust.

Speaker Change: With the capital we raised we feel very confident in our ability to do that we understand the critical importance of achieving positive cash flow without additional capital. So we're always keeping Ryan that we have a very high degree of confidence that we can execute that well, making these additional investments.

Rohan: We have a very high degree of confidence that we can execute that while making these additional investments.

Speaker Change: Okay.

Rohan: Great.

Rohan: And then I had another question on the pediatric software approval and your limited launch of that this year. I guess, is there any contribution from that factored into the current guidance for 2025? And how should we think about the incremental revenues potentially just in light of the TAM expansion over the long term? Thanks.

Speaker Change: And then I had another question on the.

Speaker Change: Pediatric software approval.

Speaker Change: And you were in limited launch of that this year.

Speaker Change: I guess is there any.

Speaker Change: Contribution from that factored into the current guidance for 2025, and how should we think about the incremental revenues potentially just in light of the Tam expansion.

Speaker Change: Over the long long term thanks.

Speaker Change: Thank you for the question.

Rohan: Thank you for the question.

Speaker Change: The short answer in 2025, the pediatric clarity.

Rohan: The short answer in 2025, the pediatric clarity will not have an impact on the 2025 guidance. However, as we talked about earlier, we do see a meaningful expansion there, both in children's hospital, as well as pediatric population in the emergency department.

Speaker Change: We will not have an impact on the 2025 guidance.

However, as we talked about earlier, we do see meaningful expansion there both in children's hospital as well as pediatric population in the emergency Department.

Rohan: After we finish our limited commercial release, which will be about a year frame, we will do a full launch. And with the full launch, we will start to anticipating additional revenue in after a year.

Speaker Change: After we finish our limited to commercial.

Speaker Change: <unk> release, which will be about a year frame, we went to a full launch and we feel for launch we will start to anticipating additional revenue in the outer years.

Margaret Andrew: Next question comes from Margaret Andrew from William Blair.

Margaret Andrew: This question comes from Margaret Andrew from William Blair. Hey, good afternoon, folks. Thanks for taking the question.

Margaret Andrew: Hey, good afternoon folks thanks for taking my question.

Margaret Andrew: Yeah, maybe I'll have to start with guidance first. Scott, your math tracks, at least with our model, and maybe we don't have a specific utilization rate, but, you know, at least based on our model and some reasonable assumptions. You know, if we keep utilization flat versus with what happened, maybe in the first quarter for the rest of the year, it gets us to that high end, or maybe even above the high end of your revenue guidance range. And that doesn't even, you know, account for the nice number and clarity where those metrics looked really nice versus our model as well.

Speaker Change: Yeah, maybe I'll just start with with guidance first.

Margaret Andrew: Yeah.

Speaker Change: Scott your maps tracks at least with our model and maybe they don't have a specific utilization rate, but at least based on our model and some reasonable assumptions.

Margaret Andrew: If we keep utilization flat versus <unk>.

Margaret Andrew: With what happened maybe in the first quarter for the rest of the year.

Margaret Andrew: Gets us to that high end or maybe even above the high end of your revenue guidance range and that doesn't even account for the nice number and clarity where those metrics flipped really nice versus our model as well. So two questions around that one one is our math is my math right.

Margaret Andrew: So, two questions around that. One, you know, one is our math, is my math right? And why should or shouldn't utilization rates grow above this quarter's specific rate?

Margaret Andrew: Why should or Shouldnt utilization rates grow above this quarter's specific rate and then two what seasonality should we expect going into Q2 and throughout 2025.

Scott Blumberg: And then two, you know, what seasonality should we expect going into Q2 and throughout 2025? You know, do you think that the sell side numbers maybe for Q2 prior going into this quarter should go up? Or are they pretty, you know, Yeah, I think as it relates to seasonality, let me get to the reason behind that, which is really having to do with ICU census. In the winter months, there's higher ICU census given respiratory illness, and so we've historically seen an increase in usage in Q4 and Q1, and of course, we're just coming out of that.

Margaret Andrew: Do you think that the sell side numbers, maybe for Q2 prior to going into this quarter should go up or are they pretty.

Margaret Andrew: Just stay where they are.

Margaret Andrew: I think as it relates to seasonality, let me get to the the reason behind that which is really having to do with ICU census in the winter months.

Margaret Andrew: Higher ICU census, given respiratory illness, and so we've historically seen.

Margaret Andrew: An increase in usage in Q4, and Q1 and of course, we're just coming out of that so we did have.

Scott Blumberg: So we did have a pretty high Q1. Last year, Q1 and Q2, we saw a slight sequential decline in usage. It's a little bit hard to truly isolate the impact from the CAM strategies, which we're very confident are driving usage from seasonality, but we do expect that seasonality did drive some of that number in Q1. So I wouldn't be surprised if in the near-term quarters, you might see that number potentially go down from where it was in Q1 temporarily as a result of seasonality, but ultimately over the long term, we have a very high degree of confidence that our strategies are working.

Margaret Andrew: A pretty high Q1.

Margaret Andrew: Last year Q1 to Q2, we saw a slight sequential decline in usage.

Margaret Andrew: It's a little bit hard to.

Margaret Andrew: Truly isolate the impact from the Cam strategies, which were very often are driving usage from.

Margaret Andrew: From a seasonality, but we do expect that seasonality you did drive some of that number in Q1, so I wouldn't be surprised if in the near term quarters, you might see that number.

Margaret Andrew: Go down from where it was in Q1 temporarily as a result of seasonality.

Margaret Andrew: But ultimately over the long term, we have a very high degree of confidence that our strategy is working.

Scott Blumberg: It's important to note that we still feel that we're somewhere in the neighborhood of 20 to 30% penetrated within our established account base, so we have a lot of room to keep growing and driving utilization.

Margaret Andrew: Note that we still feel that we're somewhere in the neighborhood of 20% to 30% penetrated within our established account base that we have a lot of room to keep growing and driving utilization.

Margaret Andrew: Okay, and maybe utilization dips down a little bit comes back up in Q4, but directionally. It seems like the campus strategy is paying off and so.

Scott Blumberg: Okay. And so, maybe utilization dips down a little bit, comes back up in Q4. But directionally, it seems like the CAM strategy is paying off. And so, you know, the prior number, at least relative to this one, we had, you know, utilization down 8% sequentially into Q2, you know, is that too aggressive, you know, is that about right relative to maybe the ED visits that you're seeing?

Margaret Andrew: The prior number at least relative to this one we had utilization down 8% sequentially into into Q2.

Speaker Change: Is that too aggressive.

Margaret Andrew: Is that about right relative to maybe the 80 visits that youre seeing.

Margaret Andrew: I wanted to comment on individual models I would say that sequentially Q2 over Q1.

Scott Blumberg: I want to comment on individual models. I would say that sequentially Q2 over Q1, as we continue growing the business, throughout the history of the business, we've had sequential increases quarter over quarter, but as we grow, the number of accounts we're adding relative to the total account base gets less and less. So we get less impact from new account ads.

Margaret Andrew: We continue growing the business right.

Margaret Andrew: The history of the business, we've had sequential increases quarter over quarter, but.

Margaret Andrew: As we grow.

Margaret Andrew: The number of accounts, we're adding relative to the total account base gets less and less so we get less impact from new account ads. So over time I would expect for the seasonality as it relates to Q1 to Q2 two to increase in terms of how it how visible is in the numbers. So.

Scott Blumberg: So over time, I would expect for the seasonality as it relates to Q1 to Q2 to increase in terms of how visible it is in the numbers. So Q2 to Q1, I would expect a much more modest increase, if any, than we saw, you know, Q4 to Q1 as a result of that seasonality.

Margaret Andrew: Q2 to Q1.

Margaret Andrew: We'd expect a much more modest increase if any then we saw Q4 to Q1.

Margaret Andrew: As a result of seasonality.

Speaker Change: Okay Super helpful and then maybe just.

Scott Blumberg: Okay, super helpful. And then, you know, maybe just to walk through some of these CAM investments, because again, it does seem to be paying off in higher utilization.

Speaker Change: Walk through some of these <unk> investments because again it does seem to be paying off in higher utilization. So can you give us some context over some of the initiatives are playing out not that you are hiring people that they're doing something in the field. So.

Jane Chao: So, can you give us some context over some of the initiatives that are playing out? Not that you're hiring people, but they're doing something in the field. So, what are they doing? How broadly are some of those initiatives playing out at this point? And how should that play out as we look out through 25 and 26?

Speaker Change: What are they doing how broadly are some of those initiatives playing out at this point.

Speaker Change: And how should that play out as we look out through 'twenty five and 'twenty six.

Jane Chao: Thank you. Yeah, we focus on a few different dimensions in driving utilization with our CAM team. The first area we focus on is to raise the disease awareness, especially leveraging existing guidelines. For example, the American Heart Association has a level one recommendation of using EEG promptly after a cardiac arrest patient, after initial survival.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: We focus on a few different dimensions in driving utilization with our Kam team. The first area. We focus on is.

Speaker Change: To raise disease awareness.

Speaker Change: Actually leveraging existing guideline.

Speaker Change: For example, American Heart Association has a level one recommendation.

Speaker Change: Using EEG promptly after cardiac arrest patients after initial survival. Despite the level by recommendation started in 2000 2090 hospitals were not aware of this guideline.

Jane Chao: Despite the level one recommendation started in 2020, many hospitals still were not aware of this guideline. So our CAM team often go in and partner with the nursing and physician team to develop more standardized protocol so proper care can be delivered. The second dimension we focus on is, in general, the physician education as well. Post-pandemic, there's still a lot of turnover, both at physician level as well as nursing level. So our team will go in and re-educate not just how to apply the device, but latest guidelines and some of the disease state education.

Speaker Change: Our Kam team often go in and partner base that nurse and physician team to develop more standardized protocol. So proper care can be delivered.

Speaker Change: The second dimension, we focus all is in general the physician education as well.

Speaker Change: Pandemic there are a lot of turnover both at the physician level as far as nursing level.

Speaker Change: Our team will go in.

Speaker Change: Okay now just how to apply the device, but later guideline and some other disease state education.

Jane Chao: The third area we focus on is departmental expansion. In many of our accounts, we're not fully penetrated. We're not in all the ICU, the floor, and the emergency department yet. So that's another third area we focus on.

Speaker Change: Are we all we focus on is departmental expansion.

Speaker Change: Many of our accounts, we're not fully penetrated we are now in the ICU the floor and emergency department, yet so thats another third area will be focused on.

Speaker Change: Okay.

Speaker Change: Our next question comes from Josh Jennings from TV Cowen.

Josh Jennings: Our next question comes from Josh Jennings from TD Coward, please go ahead. Good afternoon. Great start to the year. I wanted to just build on your last answer, Jane, and just trying to think about the opportunities in the customer base to expand in departments, as you said, ICU, floor, ER. any kind of quantification in terms of the opportunity for that expansion within your customer base and then also. It's just we, our check suggests that you guys have been effective at kind of landing an account at the mothership in a hospital network and then expanding out into the satellites.

Speaker Change: Go ahead.

Josh Jennings: Hi, good afternoon.

Speaker Change: Start to the year wanted to just build on your last answer Jamie.

Josh Jennings: Just trying to trying to think about the opportunities in the customer base to expand and departments. As you said ICU floor you are.

Josh Jennings: Any kind of quantification in terms of the opportunity for that expansion within your customer base and then also.

Speaker Change: Just we our checks suggest that you guys have been effectively kind of landing in.

Speaker Change: An account at the mother ship in a hospital network and then expanding out into the satellites maybe.

Josh Jennings: Maybe just talk about the opportunity within your customer base there as well. So sorry for the two-tiered question.

Speaker Change: Maybe just talk about the opportunity within your customer base, there as well so sorry for the two tiered question.

Josh Jennings: Yes, Thank you Josh.

Jane Chao: Yeah, thank you, Josh. For the first question, we stated that we estimate we are currently in 3% of the U.S. market for seizure. And the math there is we're 10% penetrated in the hospital number, roughly. And for the accounts we're in, we estimate that we are in about, we're serving about 30, 20 to 30% of the patients for the hospitals we are in. So, that goes back to the drivers I mentioned earlier. We're not serving all the patients. We're not serving all the departments.

Josh Jennings: But the first question. We stated that we estimate we are currently in 3% of the U S market for sure and the mass there is.

Josh Jennings: We're 10% penetrated in the hospital in Denver.

Josh Jennings: And for the accounts, we are <unk>, we estimate it we're about we're serving about 32% to 30% of the patients.

Josh Jennings: For the hospitals, we are in so.

Josh Jennings: So that goes back to the drivers I mentioned earlier, we're not serving older patients. We're now serving all the departments. So there is about 70% opportunity just within the accounts we're in.

Jane Chao: So, there's about 70% opportunity just within the accounts we're in. For your second question, we do see a large synergy across different hospitals, especially similar to Telestroke, this hub and spoke model that works very well. In the spoke satellite hospitals, they tend to have even bigger gap in conventional EEG. Often, it's Monday to Friday, 9 to 5, or not have EEG at all. So, our strategy there is really to leverage their own health economics data, their own impactful patient studies to further drive that. So, it's a strategy we have been applying for the past few years.

Josh Jennings: For your.

Josh Jennings: Second question, we do see a large synergy the cross different hospitals, especially similar to tally stroke that hub and spoke model.

Josh Jennings: That works very well in the spoke satellite hospitals state tend to have even bigger gap in conventional EEG often is Monday to Friday nine to five or not have EEG at all.

Josh Jennings: So our strategy there is really two language their own health economics data their own impactful patient studies, so far that drives that.

Speaker Change: Are we is the strategy we have been applying for the past few years and as Scott mentioned, we are trying different investment opportunities on the commercialization front and one area. We are investing in is to get without the highest cost hospital healthcare system team and that team can further drive this strategy.

Jane Chao: And as Scott mentioned, we are trying different investment opportunities on the commercialization front. And one area we are investing in is to build up the hospital healthcare system team. And that team can further drive the strategy.

Speaker Change: <unk>.

Speaker Change: Excellent.

Jane Chao: Excellent and I wanted to just also learn about, sorry to ask you to help us with this, but just in terms of the competitive landscape, are you seeing any, is there anything on your radar? We don't believe you're seeing anything in the field, and again, our check suggests that there's competitive systems are not rising to the level of CeriBell, but maybe just help us understand what you're seeing competitively out in the marketplace. Thanks for taking the question. Yeah, it's very much aligned with what you stated, Josh. We have seen some emerging competitors trying to enter the category we have created, which is the Point of Care, EEG, and we remain the clear category leader.

Speaker Change: I wanted to just also learned about sorry to ask you to help us with this but just in terms of the competitive landscape are you seeing I mean is there anything on your radar, we don't believe youre seeing anything in the field and again our checks suggest that there is.

Speaker Change: Competitive systems are not.

Speaker Change: Rising to the to the level of cerebral but maybe just help us understand what you are seeing competitively out in the marketplace. Thanks for taking the questions.

Speaker Change: Yeah, it's very much aligned with which you stated Josh.

Speaker Change: We have seen some emerging competitors.

Speaker Change: Taking it trying to enter the category, we have created which disappointed up care EEG.

Speaker Change: And we remain the clear category leader and also we are highly confident well keep this leadership position.

Jane Chao: And also, we are highly confident we'll keep this position with our technology, both hardware and algorithm that's unmatched, also our clinical evidence and our patents.

Speaker Change: Our technology, both hardware and algorithm that's unmatched also our clinical evidence and our patents.

Jane Chao: We also want to remind everyone that we're only in 3% U.S. market.

Speaker Change: Also want to remind everyone that we're only in 3% U S market.

Scott: And as Scott.

John Young: As Scott already mentioned, we are raising our revenue guidance in 2025, and that also implies that we're not seeing meaningful difference on the competitive Our next question comes from John Young from Canada.

Speaker Change: Already mentioned.

Speaker Change: We are raising our revenue guidance in 2025 and that also implies that we're not seeing any meaningful difference on the competitive front.

Speaker Change: Thank you.

Conference Operator: Our next question comes from Jon Jung from Canaccord.

John Young: Please go ahead. Again, Scott, it's John.

Conference Operator: Go ahead.

Conference Operator: Hi, Dan Scott, It's John on for Bill. Thanks for taking my questions and congratulations on the quarter I wanted to just talk about pricing.

John Young: I'm for Bill tonight. Thanks for taking our questions and congratulations on the quarter.

Scott Blumberg: I wanted just to talk about pricing, you know, what pricing is factored into your gross margin comments, Scott, that you mentioned on the call. And can you talk broadly about your ability to raise prices in this tough macro environment? How receptive are hospitals to that and have a follow up?

Conference Operator: Pricing is factored into your gross margin comment Scott that you mentioned on the call and can you just talk broadly about your ability to raise prices in this tough macro environment, how receptive are hospitals to that kind of a follow up thank you.

Scott Blumberg: Thank you. The comments I gave as it relates to our margins has no change in pricing policy. We've continued to make appropriate but not egregious increases in pricing to our customers, and we've continued to deliver value to them both as a cost saver and revenue generator. So, customers have been receptive to that. We have not contemplated or our guidance does contemplate any change in strategy such as tariff-based price increases, but of course that's something we may look at but not included in those numbers.

Conference Operator: The comments I gave as it relates to our margins has no change in pricing policy, we've continued to make.

Conference Operator: <unk> appropriate, but not egregious increases in pricing to our customers.

Conference Operator: We continue to deliver value them, both both as a.

Conference Operator: Cost saver and revenue generator, so customers have been receptive to that.

Conference Operator: We have not contemplated our guidance does not contemplate.

Conference Operator: Any change in strategies, such as tariff based price increases but of course, that's something we may look at but not included in those numbers.

Speaker Change: Great. Thanks, and if you would have to raise prices based on tariffs.

Scott Blumberg: Great, thanks. And if you did have to raise prices based on tariffs, how quickly could you do that?

Speaker Change: How quickly could you do that or these annualized contracts or could you do it pretty immediately.

Scott Blumberg: Are these annualized contracts or could you do it pretty immediately? Generally speaking, contracts are a year, sometimes two years, but they expire on a rolling basis. There's not a set time at which they expire, so we would generally, our pricing increases or changes have to do with the individual customer's contract life cycle, which is spread throughout the year.

Speaker Change: Generally speaking contracts are a year, sometimes two years, but they expire on a rolling basis. There is not a set time at which they expire so we would.

Speaker Change: Generally our pricing increases or changes have to do with the individual customers contract lifecycle, which is spread throughout the year.

Speaker Change: Great. Thanks, Thanks, Scott.

Scott Blumberg: Great, thanks a bunch, Scott.

Conference Operator: Our next question comes from Jeffrey Cohen from Ladenburg Thalmann. Please go ahead.

Jeffrey Cohen: Our next question comes from Jeffrey Cohen from Lattinburg, Talmadge. Please go ahead. Hi Jane and Scott, thanks for taking our questions.

Jeffrey Cohen: Hi, Joe and Scott Thanks for taking our questions one shorter one one longer ones. So firstly could you comment on.

Jeffrey Cohen: One shorter one, one longer one. So first could you comment on Pediatric clarity as far as number of SKUs and if the the actual headband itself and its manufacturers, same process, same unit, and same number of leads? Just to make sure I understand the question, it's a... It's a pediatric clarity in terms of whether or not it's an additional product in terms of SKU. Yes, are there different sizes available as far as the headband and is the unit itself as far as the leads the same as adult? Yeah, yeah. So our hardware has already been approved, cleared by FDA for all ages, so there's already different sizes of headband using the existing product.

Jeffrey Cohen: Through clarity as for so long.

Speaker Change: Normally the skus in there.

Speaker Change: Actual had them itself.

Jeffrey Cohen: That is true.

Jeffrey Cohen: The same process and you are the same number of leads.

Jeffrey Cohen: Okay.

Speaker Change: Just to make sure I understand the question is.

Speaker Change: The it's a pediatric clarity in terms of whether or not it's additional product in terms of SKU.

Speaker Change: Yes.

Speaker Change: Are there different sizes available as far as they had been.

Speaker Change: The unit itself as far as the leads the same.

Speaker Change: Got it yeah.

Speaker Change: So all of our hardware has already been approved cleared by FDA for all ages.

Speaker Change: So there is already different sizes.

Speaker Change: <unk> had been using.

Speaker Change: The existing product even before this pediatric clarity.

Jane Chao: Even before this pediatric clarity, we actually have pediatric patients using CeriBell system. They just not use Clarity. They only use the hardware as the base version. So, with Clarity Pediatric, this would not be an independent product. This is more likely, say, when we go back to the existing base account, if they have a PICU, pediatric ICU, and they all have pediatric population in their emergency department, we would expand Clarity usage from adult to pediatric. Got it.

Speaker Change: We actually have a pediatric patients using sorry about this then they just do not use clarity they only use the hardware as the base version.

Speaker Change: So we see clarity pediatric this would not be independent product. This is more likely say when we go back to the existing base account if they have.

Speaker Change: Our PQ pediatric ICU and they all have pediatric population in their emergency Department, we would expand clarity usage from adult to pediatric.

Speaker Change: Got it that's all for it and then secondly, you touched on it a little bit, but I'm curious if you could expand upon and talk about kind of the internal.

Jane Chao: That's helpful.

Jane Chao: And then, secondly, you touched on it a little bit, but I'm curious if you could expand upon and talk about kind of the internal permeation at a facility whether it pulled or pushed to toward the ICU from the ICU toward the ER or vice versa. What are you seeing as far as practice that's going on now as far as ICU are coming, the ER department's coming up to speed beyond the traditional penetration in ICU. Yeah.

Speaker Change: Permian facility, whether pulled and pushed to.

Speaker Change: Towards the ICU for me asking you towards <unk>.

Speaker Change: Vice versa, what are you seeing as far as <unk>.

Speaker Change: Since going on now as follows.

Speaker Change: Sure.

Speaker Change: Deployments coming up to speed.

Speaker Change: Beyond the traditional penetration unless you.

Scott: Thank you Scott.

Speaker Change: Yeah. So the clinical context of your question, let me lay that out first before share about many ICU as have some level of access of AEG that by contrast majority of emergency department almost never use AEG because e-commerce.

Jane Chao: Yeah, so the clinical context of your question, let me lay that out first. Before CeriBell, many ICUs have some level of access of EEG, but by contrast, majority of emergency departments almost never use EEG because conventional EEG can take hours or even days. It does not work with the time frame that ED operates on, which is often minutes or hours. Therefore, our initial entrance to the hospital often is the ICU because they have used conventional EEG before and it's more a tool-based, clear-see expansion and advantage over conventional EEG. With that success, we started to introduce EEG to the emergency department a few years back, and that has been very successful.

Scott: <unk> can take hours and days it does not work waste timeframe.

Scott: Operators always often minutes or hours.

Scott: Therefore, our initial entry into the hospital, often ace ICU because they have used conventional EEG before and it's more of todays clear seat expansion and advantage over conventional AEG.

Scott: With that success, we start to introduce AEG to the emergency Department a few years back and that has been very successful and we think the hospital clinic <unk> also and ICU would set toward or you don't recommend our product to the emergency Department and the reason is that quite.

Jane Chao: Within the hospital clinical setting, often the ICU would support or even recommend our product to the emergency department, and the reason is that quite often patients could be empirically treated in the ED without EEG, so that patient could be intubated with the suspicion of seizure without confirmed EEG, and this patient would be sent to the ICU, and that could lead to unnecessary ICU length of stay, which is also reflected in our clinical study as one of the drivers we could reduce length of stay. So, therefore, we can really cover the hospital entire patient workflow starting from ED all the way to ICU.

Speaker Change: I'll send patients could be in <unk> treated in the ETE without AEG.

Speaker Change: So that patient could be incubated at least a suspicion of seizure. We now confirmed EG and these patients will be sent to the ICU and that could be to Archie ICU bed unnecessary ICU length of stay.

Speaker Change: Which is also reflected in our clinical study the swamp the drivers we could reduce that as of today.

Speaker Change: So therefore, we can really cover the hospital entire patient workflow starting from <unk>, all the way to ICU.

Jane Chao: So your sense is the awareness in ER is coming, well, both from the company and your clinical organization, capital organization, as well as internally from the ICU departments, but case by case, I imagine.

Speaker Change: Sensus awareness and the ore is coming both from the company to a clinical organization telco organization as well as internally.

Speaker Change: From the ICU departments, but okay. So I imagine.

Speaker Change: That's correct.

Jane Chao: as co-writers. Perfect. Thanks for taking our questions. Thank you, Jeff.

Speaker Change: Perfect. Thanks for taking our questions.

Speaker Change: Thank you Jeff.

Conference Operator: There are no further questions at this time I will turn the call back over to Jane Hsiao co founder and CEO.

Operator: There are no further questions at this time.

Jane Chao: I'll turn the call back over to Jane Chow, co-founder and CEO. Thank you. Thank you everyone for joining the call. We very much appreciate your interest in CeriBell. Again, we are very excited and pleased about our first quarter and look forward to continuing sharing our future quarters with you all.

Speaker Change: Thank you.

Speaker Change: Thank you everyone for joining the call we very much appreciate your interest in Karabell again, we are very excited and pleased about our first quarter and look forward to a continuing sharing our future quarters video.

Speaker Change: This concludes the BD you may now disconnect.

Operator: This concludes the meeting, you may now disconnect.

Speaker Change: [music].