MALVERN, Pa. - Neuronetics , Inc. (NASDAQ:STIM), a leader in neuroscience technology with a current market capitalization of $51.9 million, today reported its preliminary unaudited revenue for the fourth quarter and the full year of 2024, and provided financial guidance for 2025. The company announced revenues of $22.1 million for the fourth quarter and $74.5 million for the year ended December 31, 2024. According to InvestingPro data, the stock has shown strong momentum with a 9% return over the past week.
The company's recent acquisition of Greenbrook TMS, a network of mental health treatment clinics, has been cited as a transformative move for Neuronetics. Post-acquisition adjustments reveal a pro forma consolidated revenue of $34.7 million for the fourth quarter and $129.8 million for the full year of 2024. InvestingPro analysis reveals that while the company maintains a healthy current ratio of 3.16, it faces challenges with profitability, as indicated by multiple ProTips available to subscribers.
Neuronetics President and CEO Keith J. Sullivan expressed confidence in the merger, stating that it combines two leading mental health device companies, accelerating the path to profitability through faster revenue growth and improved cost structures. The company has identified over $22 million in annualized cost synergies, with more than 90% already implemented.
Looking ahead to fiscal year 2025, Neuronetics expects a revenue range of $145.0 million to $155.0 million, which would represent a 12% to 19% increase on a pro forma basis. The company also anticipates a gross margin of approximately 55% and operating expenses between $90.0 million and $98.0 million. While the company maintains a strong gross profit margin of 78%, InvestingPro's comprehensive analysis indicates the stock is currently fairly valued. Discover detailed valuation metrics and 11 additional ProTips with an InvestingPro subscription.
Neuronetics aims to reduce cash burn in the first half of 2025 and projects to achieve cash flow breakeven in the third quarter of the year. Additional guidance is expected to be provided during the company's fourth quarter earnings call.
In 2024, Neuronetics launched the Better Me Provider program to enhance mental health treatment accessibility and care, and also received FDA clearance for its NeuroStar Advanced Therapy as a first-line add-on treatment for adolescents with depression.
This financial update is based on a press release statement from Neuronetics and reflects the company's performance and forward-looking expectations. The information presented is subject to various risks and uncertainties that could affect the company's actual results. For a deeper understanding of Neuronetics' financial health and future prospects, access the detailed Pro Research Report available exclusively on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable insights.
In other recent news, Neuronetics reported a revenue increase of 4% to $18.5 million in its third quarter of 2024, with treatment session revenue contributing $13.3 million. The company's shareholders have approved the acquisition of Greenbrook TMS, expected to close in the fourth quarter of 2024, and projected to achieve cost synergies of $20 million. Neuronetics has also implemented a strategic reorganization to reduce annual expenses by $3.5 million and aims for cash flow breakeven by the third quarter of 2025.
The company's full-year revenue is expected to be between $71 million and $72 million, with operating expenses projected at $81 million to $82 million. Despite an increase in operating expenses and a widened net loss, Neuronetics has seen significant growth in adolescent treatment since its approval in March and is progressing with expansion in international markets, specifically Japan and Korea.
These developments are part of Neuronetics' strategy to enhance operational efficiencies and promote revenue growth, with a clear focus on reaching cash flow breakeven by the third quarter of 2025. The company is also discussing drawing down a second tranche of debt as part of its financial strategy. These are all recent developments that investors should consider.
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