Neuronetics Posts Better Than Expected Q4 Results Despite Lower NeuroStar Therapy System Sales

Neuronetics Inc STIM reported Q4 FY21 sales of $15.02 million, down 4% Y/Y, exceeding previously issued guidance of $13.0 million - $14.0 million and the consensus of $14.43 million.

• U.S. revenue decreased by 3% during the quarter, and international revenue decreased by 13% Y/Y due to lower NeuroStar Advanced Therapy System sales and treatment session revenue, respectively.
• U.S. NeuroStar Advanced Therapy System revenue was $2.8 million, down 22%. The company shipped 48 units.
• U.S. treatment session revenue was $11.2 million, +2%, and session revenue per active site was $12,183 compared to $12,133 during Q4 FY20.
• The gross margin improved 60 basis points to 76.4%, primarily due to higher average sales prices of NeuroStar Advanced Therapy System units and a higher mix of treatment session revenue.
• The company posted an EPS loss of $(0.29), beating the consensus of $(0.32), compared to $(0.19) a year ago.
• Guidance: Neuronetics expects FY22 sales of $58 million - $62 million, compared to the consensus of $61.4 million. It expects FY22 total operating expenses to be $86.0 million - $90.0 million.
• For Q1 FY22, the company expects sales of $13 million - $14 million, versus the consensus of $13.67 million.
• Price Action: STIM shares are up 5.28% at $2.99 during the market session on the last check Tuesday.