Stereotaxis Inc (STXS) Reports Modest Revenue Growth in Q3 2023 Amid Strategic Advances
Revenue for Q3 2023 slightly increased to $7.8 million from $7.7 million in Q3 2022.
System revenue grew to $3.5 million, driven by Genesis robotic systems delivery.
Operating and net losses widened marginally, with a focus on financial discipline and innovation.
Cash and cash equivalents stood at $23.0 million, with the company maintaining a debt-free status.
On November 9, 2023, Stereotaxis Inc (STXS) released its financial results for the third quarter ended September 30, 2023. The company, a leader in surgical robotics for minimally invasive endovascular intervention, reported a slight increase in revenue, which totaled $7.8 million compared to $7.7 million in the prior year's third quarter. This growth was primarily attributed to the delivery of two Genesis robotic systems, which contributed to the system revenue increase from $2.4 million in Q3 2022 to $3.5 million in Q3 2023. However, recurring revenue experienced a decline due to the absence of catheter royalties received in the previous year.
Financial Performance Overview
Stereotaxis Inc (STXS) experienced a gross margin of 52% of revenue for the quarter, with an 80% recurring revenue gross margin and an 18% system gross margin. Operating expenses for Q3 2023 were $9.7 million, which included $2.6 million in non-cash stock compensation expense. Adjusting for this expense, operating expenses were $7.1 million compared to $6.9 million in the prior year's third quarter. The operating loss and net loss for Q3 2023 were ($5.6) million and ($5.4) million, respectively, marking a slight increase from the losses reported in the same period last year. The adjusted operating loss and adjusted net loss, excluding non-cash stock compensation expense, were ($3.0) million and ($2.8) million, respectively. Negative free cash flow for the quarter was ($1.0) million.
Strategic Developments and Outlook
David Fischel, Chairman and CEO of Stereotaxis Inc (STXS), highlighted the company's commitment to delivering commercial results and advancing its innovation strategy while maintaining financial discipline. Fischel noted that a robust system pipeline and existing system backlog of $13 million support continued growth in the coming quarters. The company is making progress in the late stages of a comprehensive innovation strategy, including the expected European clinical study approval for the MAGiC ablation catheter and a planned PMA Supplement submission in the US before the year's end. Collaborations with Abbott and MicroPort, along with the development of a next-generation robot, vascular interventional devices, and a digital surgery solution, are expected to drive a strategic transformation in endovascular surgery.
Balance Sheet and Liquidity
As of September 30, 2023, Stereotaxis Inc (STXS) reported cash and cash equivalents, including restricted cash, of $23.0 million and maintained a debt-free status. The company expects continued revenue growth in the coming quarters, driven by system backlog and new orders, with new technology launches expected to accelerate growth in subsequent years. Stereotaxis Inc (STXS) anticipates ending the year with $22 million in cash and no debt, positioning it to bring a transformative product ecosystem to market, fund its commercialization, and reach profitability without additional financing.
Investor Relations and Future Expectations
Stereotaxis Inc (STXS) will host a conference call and webcast to discuss the Q3 2023 financial results and provide further insights into the company's performance and strategy. Investors and interested parties can access the conference call and webcast details on the investor relations section of the Stereotaxis website at https://ir.stereotaxis.com/.
In summary, Stereotaxis Inc (STXS) has demonstrated a modest increase in revenue for the third quarter of 2023, with a strong focus on innovation and financial discipline. The company's strategic initiatives and robust product pipeline are expected to contribute to future growth and profitability, as it continues to lead in the field of surgical robotics for minimally invasive endovascular intervention.
Explore the complete 8-K earnings release (here) from Stereotaxis Inc for further details.
This article first appeared on GuruFocus.
