NeuroPace Inc (NPCE) Reports 47% YoY Revenue Growth in Q3 2023, Raises Full Year Revenue Guidance
NeuroPace Inc (NASDAQ:NPCE) reported a 47% YoY increase in Q3 2023 revenue, reaching $16.4 million.
The company raised its full-year revenue guidance to $62.5-$63.5 million, up from $59-$61 million.
Cash burn reduced to $2.2 million in Q3 2023, down from $4 million in Q2 2023.
Net loss was $7.3 million for Q3 2023, compared with $11.8 million in Q3 2022.
On November 6, 2023, NeuroPace Inc (NASDAQ:NPCE), a commercial-stage medical device company, released its financial results for the third quarter ended September 30, 2023. The company reported a significant 47% year-over-year increase in revenue, reaching $16.4 million. This strong performance led the company to increase its full-year revenue guidance to $62.5-$63.5 million, up from the previous estimate of $59-$61 million.
Financial Performance
The company's gross margin for Q3 2023 was 74.5%, up from 71.4% in Q3 2022, primarily due to an increase in RNS products produced and sold. Total operating expenses remained consistent at $18.2 million compared to the same period of the prior year. The net loss for the quarter was $7.3 million, a significant improvement from the $11.8 million loss reported in Q3 2022.
Cash Management and Revenue Growth
NeuroPace Inc (NASDAQ:NPCE) demonstrated effective cash management, reducing its cash burn to $2.2 million in Q3 2023, down from $4 million in Q2 2023. The company's cash and short-term investments balance as of September 30, 2023, was $61.3 million. With its revenue growth, gross margin performance, and operating expense results, the company believes it has sufficient capital to fund its planned operations into 2026.
Operational Highlights
During the quarter, NeuroPace Inc (NASDAQ:NPCE) made significant operational progress. The company implanted its first patients with the RNS System in the community setting as part of the Project CARE initiative. It also received FDA approval of the Tablet Remote Monitor (TRM), which simplifies patients experience through seamless transfer of data to the clinician. Furthermore, the company launched the next generation nSight platform, a secure online portal that streamlines the clinicians review of patient data to further optimize care.
Looking Ahead
NeuroPace Inc (NASDAQ:NPCE) remains on track to complete enrollment in the NAUTILUS trial for generalized epilepsy in Q1 2024. The company's strong financial performance, market expansion initiatives, product enhancements, and clinical progress position it to exit 2023 on a high note and build momentum heading into 2024.
Explore the complete 8-K earnings release (here) from NeuroPace Inc for further details.
This article first appeared on GuruFocus.
