STIM - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter and Full Year 2019 Financial and Operating Results Conference Call. At this time, all participants’ lines are in a listen-only mode. After speakers’ presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

the over hand today, your now Klausner. Mark will conference to call speaker I please sir. go and you, Thank ahead,

Mark Klausner

Thank you, year operator. be joining A us Good of available morning, and Neuronetics replay for quarter thank on fourth our and XX call full this XXXX website call. for conference will you days. for

Chief today's Furlong. Steve call on Executive me Officer, Neuronetics' Chief Officer, Financial Chris Joining are Thatcher; and its

related will to during Litigation include these the listeners due company's begin, to results revenue statements Actual that to certain this could I and our conference statements by discussed differ associated Private business. of we risks the call materially and Before forward-looking under other statements including uncertainties stated and caution with by guidance operational management forward-looking of from the issues covered implied safe Reform would metrics. information provisions XXXX, like strategy, business, and harbor Act Securities those financial or

For to the obligation with a of and including discussion of report any this I the later by the expected be any today. company's disclaims as the statements on Exchange forward-looking filed filings review except encourage company The Securities Commission, to annual update associated during with business, required Neuronetics' XX-K company's Form to risks made and uncertainties call, you course law.

results. certain Management against our compare GAAP plans includes measures U.S. are competitors excluding basis not forecast During with to by externally indicative that benchmark the noncash information call, trends our both we'll measures and a in and and management financial EBITDA. information Management for certain our conjunction that to believes to investors of information that non-GAAP also non-GAAP decisions. for discuss other certain operating provide strategic financial in and compensation uses performance taken performance relative on expenses useful non-GAAP financial

results release, on which website. in accompanying can are between and the our Reconciliations presented tables viewed be GAAP non-GAAP U.S. our press

call the Executive pleasure to Chris it's Thatcher. that, over turn Officer, Chief to With my Neuronetics'

Chris Thatcher

I Good a an quarter, to everyone, on for I'll performance you call, which of our few will will our provide walk hand and on On today's provide questions. an fourth aspects the through strategic line Mark. an on Steve I for Thanks, we business. update the update the up morning, then to forward business including performance, thank to after will followed your over the update by financial joining call take the us. during XXXX. Then, open guidance going

the and over with prior the pleased expectations These NeuroStar revenue. Total for exists we've continue take to base, prior commercial able execution which our base consecutive fourth consistently market installed installed advantage the quarter. at revenue in XX% the revenue $XX.X seventh continued consistently over growth NeuroStar U.S. been able by was has U.S. the in line be with strategy, quarter penetrate in we in with were to the in results of driven year growth an the the primarily quarter to been and session untapped approximately grow XX% of U.S. XX% and treatment which the increase million, Therapy grown the the in quarter we've the XX% our our quarter Through Advanced pace large representing that of year active

our XX to goal. for as to development on bring noted total Starting force, territory BDM by the with the of end and we or sales was business calls, an update year on BDM met goal previous XXXX managers that our

NeuroStar XX at practice consultants XX consultants beginning line the We and XXXX clinical also with training the in out plan XXXX. we with ended laid of

offer value and proposition in part to in operationalizing practices. important that customers that an are that training their CTCs NeuroStar are and NPCs ensure the we The of supported

CTCs and resource support. best to BDMs, customer level driving NPCs right balance and ensure system training to utilization We continue how high providing NeuroStar evaluate of and to commercial a the our sales, between across team

going to strong TMS-only in sales shift focus another later, modest We commercial providers. discuss quarter I'll make in XXXX. As our a system resources we're had with MPCs towards of the of and CTCs our

As businesses in a multiple or community the reminder, referrals market patient currently directly either don't large to patients or that often these TMS who having from depression are with sites across receive psychiatrists country the both. offer struggling

We're country's new we've become we these providers continue higher on drive system partner volumes attractive patients to over which purchases this providers, been and are to a the able the to many pace will and to largest market in thrilled likely at focus preferred at consistently time. of as TMS-only segment multiple the of make

marketing On our improvement in and worked subset teams there of customers decline We of We our these amongst a and these a sales in develop a accounts reverse room right last of determine cause a slowdown the to is call, for thorough base. customer analysis combination our with of underlying on have system utilization training utilization with to to support. legacy found that of the these our and majority the we did strategy mentioned trends.

market of these We in did in fourth not the expect systems the utilization still we're to with these improvement the see working quarter of a process practices. in as

improved can we that in believe we deliver utilization However, XXXX.

our global expansion to gears Shifting efforts.

potential We early positive has Teijin, a of the with XXXX. commercial done so to solid reimbursement view see our develop as are and Japan traction market. our to in decision partner, in very following far high geography work the Japan June pleased that continue We

both goal session revenues. the to with revenues work of system as Teijin awareness, lumpy driving expect psychiatrists training We be treatment near-term and and increase to we in capital with a installations,

program's the an to for for process the design U.S. We're in the recently very protocol NeuroStar advantages, Advanced to bipolar the use to the disorder. NeuroStar company's excited review and announce proactive of clinical the Breakthrough company's indications future expansion Advanced Designation for Lastly, Device FDA, process that clinical for the therapy from including submissions I'd for Designation Therapy received with via and several FDA discuss faster system. FDA. treatment the provides innovative Breakthrough of the a dialogue like potential agreement potential trial expedited the

nonpharmaceutical the determine for treatment to this year, need effective specific disorder. with clarity time, the this We're working an validates FDA details. have later for expect in a and also which some at It design we'll clinical on to study the more option share

recent well of the our Overall, business adoption, over Advanced continue NeuroStar to our we we continuously we ability market term. in believe utilization lumpiness build have that leadership Despite drive Therapy. positioned demonstrated to and the the percentage remain upon line our the customers, among small to utilization top position throughout year, growth the of long some drive and

to Steve performance. discuss the to over hand like our now call I'd financial to

Steve Furlong

Thanks, Chris.

Before in like I quarter going financial provide way attention performance, your a our a change I review report to would U.S. bring are we to the revenues. of our fourth to

session sales-type to As usage as has provide our treatment our we as business as fixed information useful the of business, has the U.S. we price of leases our most the how of have evolved, well an revenue our revenue. increased a investors U.S. composition with on contracts, result effort present In shifted. changed

revenue, coil three revenue Therapy recognized revenue NeuroStar generated the reporting be which of lease sales-type upgrades. leases; significant of revenue, previously which revenue revenue Under the operating revenue capital system system consists as sales from sale reported U.S. will structure, items. from of capital of from separate revenue consists treatment primarily Advanced NeuroStar the revenue, units majority from rented; new and other and

U.S. providing addition the the installed in of lease. to total Therapy units quarter. systems items Advanced revenue, be three new a U.S. type a of providing sold during breakout as In number a the in we sale these within NeuroStar number of will the This either capital represents or U.S. system sales a number

our revenues click our treatment business Total fixed-price as all well U.S. both treatment is of per from session revenue contracts. comprised U.S. session as

forward, by U.S. base active the average will an Going the total end quarter. the installed of active as revenue defined revenue treatment at metric we U.S. divided prior session provide system per

We XXXX which breakout U.S. a a IR the disclosure the quarterly for will includes reporting on of be structure of historical and providing XXXX. website, revenue supplemental new our portion document

$XXX,XXX increase for revenue revenue was million, Turning revenue quarter quarter of the prior million, approximately U.S. an fourth an $XX.X quarter. XX% the International to XX% results. year was of $XX over increase the quarterly was the XXXX. Total over of a the versus fourth initial decrease year. of XXXX quarter of decrease did order function this systems stocking prior year approximately was of placed quarter. that during recur the The year-over-year not the a $XXX,XXX, Teijin by

XXXX U.S. capital the revenue increase fourth fourth of million, was NeuroStar the XXXX. quarter XX% $X.X fourth over quarter Advanced of of increase system million. the $X revenue for of Therapy In fourth $X.X million, revenue NeuroStar of of of an over XXXX, quarter was quarter XXXX XX% an the

XXXX. were units units a quarter In XX sold of fourth compared the XX in to quarter, the total of

leases mix prices declined prices to selling average prior and capital versus compared the lower sales higher blended as anticipated, sales-type a sales. capital due to As XX% year of on

fluctuate selling will and sales trends. underlying the average pricing well sales-type mix as as that prices based of expect We on leases capital

the saw net XX our a X,XXX During sequentially. increase XXXX increase increase XX% units by of a XXX units base fourth from installed the active of units, we to net and quarter, quarter of

operating As type units. a leases capital includes base sales and reminder, the lease units active sold, installed

lease U.S. year change fourth went operating decrease And thus, agreements. any effect don't systems will the as to this XXXX, Due number accounting prior compared under was of expect install we $XXX,XXX, to XX% that to of XXXX, lease eventually operating the quarter In new zero. into revenue in a quarter. revenue currently to go the

system fourth of quarter treatment as XX% the year over compared an NeuroStar in other increase year the quarter. of the coil Therapy U.S. revenue upgrades prior XXXX, Advanced an quarter of In to number prior we increase saw $XXX,XXX, the was

XX% revenue and an year treatment customer for revenues. systems treatment larger over prior base, treatment of U.S. purchasing increase contracts of driven installed to session increase our under of larger million in more Turning The session sessions session by the revenue $XX.X fourth number was fixed-price quarter was the quarter. treatment XXXX, a U.S.

$XX,XXX, systems to not ramped average that substantial state price the utilization sold in decrease prior quarter, up approximately year treatment a the X% per months and new the to due of click revenue the primarily session. system last steady from of for was declines number quarter, During active per have yet XX

million fourth service and XXXX of other profit U.S. the $XX.X the a an $X.X quarter $XX.X The year. $XXX,XXX, of increase million the XXXX. Gross approximately during quarter prior XX% for fourth decline was of revenue million, from was over

small very leases of prices fourth system from margin We strong of sales-type sales. quarter generate This gross capital and quarter higher just a of continue XX.X%. selling average mix resulted XXXX XXXX lower margin margins in gross of the a down gross at XX.X%, to on in bit from decrease the fourth

force. of for increase prior the the due marketing over the and size $XXX,XXX approximately of of our $XX.X XXXX expenses sales to year. increase fourth quarter primarily an were Sales This million, was increased

million, compared $X.X year-over-year were expenses a decrease administrative public primarily by $XXX,XXX driven and prior was year. of the This of company General costs. decrease approximately to the timing

an XXXX and the to in Research our related personnel expenses fourth quarter was $X next-generation million, prior continued and preparation the primarily development platform, development to from of for were of clinical for approximately million of increase year due period. the trials. The increase costs development $X.X costs product higher

Net of compared loss quarter fourth in $X.X a to of which was of for XXXX. the net compared EBITDA non-GAAP million loss the million a the fourth $X $X.X of of was fourth loss XXXX $X.X measure loss fourth million quarter is to XXXX. for the of EBITDA, quarter quarter financial an million a in

$XXX.X of We $XX.X the cash the XXXX. equivalents at cash balance the million to end sheet. Moving to year ended million of compared with and

period million additional Solar million facility We our favorable us loan Capital, prior for just to debt we balance within which terms. provides repay are pleased sheet $XX outstanding capital on term and closed $XX allows a currently to our interest-only bolster on to the the announce with at

will initial measured the or but XX is XX-month basis, available basis, XXXX. two, revenue months measured funded an $XX measured follows: milestone additional at or XX request is before tranche tranche milestone on achieving revenue before in funded December measured available our product interest-only million, one, period which The our achieving trailing on on November on and XX-month a XXXX. months, XX, The a would million to net funded can product by tranches, net be our of XXXX, November be be a as debt within tranche or XX again extended on XX, yesterday; on be XX, two a $XX before days on trailing

back I'll turn Chris. call now the over Chris? to

Chris Thatcher

Steve. Thanks,

we'll beyond, and to on XXXX into move focus our we increased As putting pathway an profitability. be accelerating

XXXX and in As a late be a some actions we'll to year, their EBITDA positive result, focusing this taking path with to strategic XXXX. spending early on initiatives

that believe sufficient EBITDA cash note positive. us would to hand also get on combined is available we us We that with to credit to

sales force. the with Starting

universe rapid the BDM this believe can and BDM continue juncture. number expanded cover we've in of and accounts in This territories the XXXX optimal of the equivalents year. in as couple that We've due these the and number FTEs actually to a patients mid-XXs gone types U.S. U.S. in currently of the BDMs and the territories the new at this practices we group most top MDD versus to through the solo treat believe Despite our growth prospect installations is optimizes decline where the of or number full-time will we in years, expansion, to total appropriate the X,XXX last that more the period a in hiring the of BDMs slight Over XXXX, at be higher XX% practices. system ended of productivity gives we HVT the that of than cadence to time. of territories targeted we that drive XXXX also throughout

order to and with drive with ongoing in CTCs expect NPCs installed utilization. we well seven In along regional to and CTCs. hire growing to as NPCs add system up as keep a Thus, base, ramp facilitate new we up will XXXX, additional two manager our

the international of have past, considered the and our Western area business expansion In Another adjusting Asia. efforts. we entering is number incremental in a regions geographic Europe of we're

time remain being. exists, given on exclusively U.S. opportunities regions the the large in we greenfield both for However, will Japan and that these the still focused

like our discuss I clinical product would and efforts. development to now

disorder As earlier, we Designation the received FDA. from just Breakthrough bipolar noted for Device

of So the need, is episode on the of is an Bipolar going on followed near-term efforts our unmet episode depression by to episode decided greatest someone we disorder by concentrate depression. mania. to this focus indication. of has We're definition that which undergone

activities pursuing but bipolar interested remain the it's clinical PTSD prioritize think disorder. in a from I first well, to cash our as and a development perspective We management indication prudent profitability on

usability, are also development of with Therapy an our and continuing system reproducibility. precision improved on We NeuroStar next-generation Advanced eye

respectively. to Turning representing year-over-year XXXX. of revenue full setting and XX% $XX guidance XX% to We're growth, for to approximately $XX total guidance between million the year million, worldwide

revenue For growth, of first million XX% the of XXXX, quarter and $XX worldwide $XX.X we year-over-year between X% representing respectively. expect million, and

and the between to strong mid-XX% and gross the margins to remain For operating $XX expect full we million. year to XXXX, expect we generate range, expenses in $XX million

to about excited depressive in the the position utilization help team largest leverage to and opportunity this at rate, to and expand to technology advanced leadership significant our system who for effective We a the the support of market most drive Therapy very by an patients sophisticated NeuroStar training. support from impressive Advanced the to most number customer best-in-class continue in We're suffer offering installed major plan maintain our to and industry. and customer disorder. commercial provide the We category share and intend best base team

consistent invest as with TMS-only in continue and systems drive practices. at increased providers, prudently awareness our both on we the look you patients to HVT and We programs will remains strategy of the we to progress updating on continue and commercial customers' our year. forward during therapy Our marketing to to focus use

With questions. that lines I’d for open to up like the

Operator

And Kaczor Instructions] of Blair. Malgorzata comes the William our from [Operator with first question line

is now open. Your line

Malgorzata Kaczor

questions. for the Hey morning guys. Thanks good taking

Chris Thatcher

morning. Good

Malgorzata Kaczor

maybe guidance. start is me for on one first The just to

accounts, around to you what the So you're for reaccelerating? in give some new And of that XXXX guys treatment guidance, revenue per for of some you us the are average modeling assume put strategies does terms what can maybe of a that trying system? legacy sense

Chris Thatcher

it the typically to lower increases that in system. believe average talk expect installed slightly bit and year. then with there's be because slightly seasonality So a to back year generally average high system, so QX active full of about in the per across We over ASPs flat higher the half. per active we would lower of revenue we will down base when see revenue slightly we it And

Malgorzata Kaczor

that could then of And you legacy the quarters improvement for both headwind. we of a get that the four of maybe that Okay. And two think what some see whenever sense those XXXX, matter a second can of impact or can over accounts, there? be so you half

Chris Thatcher

Yes, we think increased operational We are. active years. those we've XXXX to in and monitoring ability most the recent force in primary is time, and so average we're that period drive per scale what's challenges. been as those and tracking that issues, our our in our reimbursement or And one-off of assessed a Margaret, the turnover, system all accounts. that's most we're on to those over customers impact thing what staff attributing our has We've that. the to what our accounts. understand identified decline sales to is as number, such staff really revenue new training have greatest The of going impact utilization going in be will The

the So impact the we will last across greatest on XXXX. year put utilization that systems in have

Malgorzata Kaczor

for Okay. one And question me. last just

terms kind to the scale Is bigger the what that few you And do XXXX? continue terms In centers. going quarters? surprised help to and physician anything do for and TMS-only you they those there of them do has of into what over you guys. of Thanks can the focus can of in think kind accounts last

Chris Thatcher

out a companies of out sense the accounts, about of there, five primary there, we So market TMS-only really a give the there's of TMS-only emerging. give referrals within patient system. accounts don't that share that accounts. those TMS-only. To we provides to TMS have believe have sense we the know the Of just a you are fits several where maybe in, those to everyone TMS-only five that

about patients segment. now the improved we're that XX,XXX which our XX% XX% that's So MDD the patients. of of MDD the practices, the of in the exist, accounts about targeting And have about is providers, that is X,XXX our the solo market XX% that with on TMS-only not the focus really, of and the XX% playing accounts in is right of

this is market. we the So how address entire

We partner are primary for TMS-only. the

into highest we team our force, potential practices then on selling our the sales and have and XXXX. BDM And selling single group in

Malgorzata Kaczor

Chris. Thanks it. Got

Chris Thatcher

Thanks Malgorzata.

Operator

from question Genuity. our Jason Mills And with line next comes of the Canaccord

is open. Your line now

Unidentified Analyst

I as indications, on about like ask talked evaluate that? This focus impact you this BDM morning. expand size wanted the target recent And your will XXXX, of standpoint actually you. strategy, the you now. just shifting size? about a about XXXX, know outlook talk seem is beyond from beyond an your growing force right continue just Cecilia I rather and than the does good team? your for to kind really of range But can force XXXX. to just you BDM Hi Jason. mid-XXs SG&A sales being the from Or in And growing you the Thank for

Chris Thatcher

team BDM Cecilia, Okay sense in with of for full-time where On a are this believe, you high give so the XXXX. mid-XXs. we we we'll the average weighted in year, had in have about and equivalents to in we XXXX, of the BDMs a BDMs, XXs

increase that We number second the the increase rep, system of per plus, of slight are new accounts in forecasting also number the with think in a also we sales.

into higher last and months, sales. been we've the second rates system XX are we larger For of seeing accounts, getting

the modest in a BDMs of for system So increase sales with record that in XXXX we new believe year. terms have slightly with a that productivity higher rate, year-over-year we'll this

And XXXX, metric revenue with guide our to our we'll are sales system unit XXXX manage that to future. more to bring and beyond average That line business the in resources bring on per of and monitor going NPCs in CTCs we're said, As active it we XX%. more the appropriately. improve shifting and relates to and

and account decide those on big chart of we're the really NPCs then real going And of thrust We'll pull-through us thoughtful here. the be and the and we'll new the CTCs impacting beyond. and progress end that's do year, to for at level. So in then at XXXX the assess what

Unidentified Analyst

I turning also Okay, just you. guidance. And then, guess, great. to Thank revenue

high-volume ASP especially you're of in what factored to capital well in as your sales And into thinking in mix just continue about base guidance, as that's the terms accounts? leases? are Just we installed thinking these how as between growth you trends these accounts target and XXXX sales-type

Chris Thatcher

Okay.

growth. about question the how we thinking is, are line top So

it So about well, we parts. in think two

So to the as I think will productivity constant slightly of remain up. BDMs mentioned, we

we is the So we expect unit the on sales function capital and ASP slightly in sales sales-type XXXX. a of which lower expect leases XXXX. the a record-breaking year said, blended a in capital That

of So for downward break those that. will ASPs the XXXX. pressure between to we're out And combination of create the little bit on mix going not a

giving you each unit total quarter. are every sales the and We

have are we've sold a mentioned, systems steady I in less a significant know over And systems higher as XX percentage to ramped these number year-over-year last And We we state. up not systems the of much have than year. that a months.

overall system our lowers active quarter. revenue every this per and average each So

the treatment while of CTCs more are we're the close NPCs active to – treating session not growing revenues more gap we're and selling treatment that base year-over-year, that. add reason. sessions So installed And and to U.S. with on line the because in looking

expect also slight continue well. per sessions, – on downward pressure slightly treatment click XXXX to our in some ASPs as We

Unidentified Analyst

Great. for the Thank you color. all

Chris Thatcher

welcome. You’re

Operator

of next Great, line Sandler. And thank with the from you. Matt OBrien question comes Piper our

line now open. is Your

Unidentified Analyst

I had back Thank in didn't accounts expected. for utilization can morning. QX improve taking the give last improvement impacted your And address level feel what it just my on any kind sounds good as question the back the as bounce quarter. can much issue by like guide? I those guys But you to rep been accounts? incorporated then it that OpEx you you you forward? is you lastly, And see in go questions. to has wanted what confidence I for specifically did I then to Drew is, mean, It Hi in into expansion gives a of on that of mainly, guess the guess, of This Matt. of on for sort going too us you legacy that, this quarter went some

Steve Furlong

Sure.

thanks. Drew morning good So

we in expect did not utilization those QX in change accounts. any see for to So

the in of NDCs there is the currently to is patterns seven have doing good within plan explained. the and the and number the this number customers. team shifting term, diagnosing now time while what circumstance Short company – as base. we to NPC, able in group issues, we has are the to bailiwicks we're the of the CTCs well basically of as is that longer-term is And and NPCs The CTC more customers attributed and heard, do being trying to we ever-expanding operational understand to increasing spend address to existing did growing you two are to been what scale news these is this is. to provide of to on most of of And what at our cull this more to touches and to the We time, same I reimbursement installed just is resolve. the that

So that group. how addressing overall, customer that's we're

Unidentified Analyst

And it ? of seems there, difficult a that’s a Okay, kind from getting speed started in obviously, you And helpful. process especially additional little you to large Are the in Japan. any guess, slow. any investments yet impact you're international to But And know on the of just of had making then, just there? I I be a comp pretty up guess, I then moving the bit XXXX. corona just side, kind QX opportunity.

Chris Thatcher

Okay, great.

year. last purchases and the capital NeuroStar all is pull-through orders NeuroStar year, new year inventory session of This about of start-up see gradually the entire We year create a an of treatment for that the in expect NeuroStar treatment to and was It's year got And both So we'd the beginning really then equipment really and across session. we inventory and see purchases. increasing to replacing foundation. last And was inventory really the approved in building the June. right?

this early is purchase universities really leading We're at their there. impressed the national going key about gotten planned, getting over gotten really with some their They've to good opinion over publicity we're in leaders pretty So there. as they've sales Japan.

we're market. it grow I So growing that as we to in think expect

incremental year based of And build I of of that pull-through growth that pull-through year, on sales significant what then it year, any promising this added inventory. remember, inventory in is last see half operation expecting wasn't have of to SG&A that business sold, inventory, looks part Japan just as most investment. do and that well. the organization That is we're of planning for They to responsible Most for the And and the in inventory. last of not the said. said, in sales was of the we we'll the not Japan. the back was Teijin reps this fund

Unidentified Analyst

you. thank Okay,

Chris Thatcher

thanks You are welcome, Drew.

Operator

Thank line comes you. And Securities. our from last the JMP Turkaly of with Dave question

Your line open. now is

Dave Turkaly

Hi thanks.

say, of wondering comment averaged the older what quarter. culling XXX some was about in on if back you like than, higher quarter. – to what accounts? going that past. you could the just or XX are those account, like the so And you legacy expect it's you've attrition this talked little a quarter, Just we in looked fourth last It I the something was And

on color XXXX in expect for what maybe Just that? you

Chris Thatcher

Right.

bought years. fourth means inactive, was for in typically it us treatment higher little in quarter, session a several it's the So fourth the a quarter a goes months. XX haven't an from they little And and when bit account the that remember, higher in last

that decisions year. the usually are happened these of the in So prior quarter fourth

Those that there's at bit are service seems more a it a decisions business system. So slightly closing providing seem stop a competitive of moving as little or happen line TMS the and/or end made quarter. to the higher to a about fourth practice, often

a it We or go half down run to X.X% anticipate take, So quarter a to higher each quarter three continue. somewhere a quarters. or probably it's prior and that quarter, our believe range. don't We quarter. than this around rate will Give somewhere every slightly in that

remember, these getting XX reasons why more out to of back And this not their half have of a we've or practice. and make capacity work. it. TMS in greater culling into capabilities the office And evolved get months proactively that accounts volume So are we're last in operationalize our the people strategy are – of higher that's to NeuroStar one that practice can't is most

decided not have of NeuroStar to Advanced if or out most, are Therapy have these that not, continue practice. of customers And with the many gone legacy

Dave Turkaly

the the And it. just guidance, commentary, looking the Got revenue actually, then breakout. to

break now to capital. sales-type just curious break Just out in guess, on I Thanks. sizable be capital operating lease of that comment out sales-type not logic that's think that's but I'm how trending the zero? operating there, included if the sort towards in the lease and that you could why if sales you would even curious

Steve Furlong

trying sold. financing differentiation from move of systems Dave. to We're Yes, away the

differentiating lease for sales-type those sold as sales-type customers. So for our systems our capital large going to It we to service reminder, a systems. forward, report really, and and just, total revenue the providers. offer And strategies traditional acquisition is And capital away leases between really we're only get from sales. going really TMS-only

Our acquisition to up plans expansion with they continue not their tied can on capital monies with strategy up and the so costs. their system have their free is

And at XXXX, so the And those will mix the we've will and catch we grow grow north get – important up. north growing more And the in that ASPs in of in higher than done of treatment somewhere session past it's a quarters. like that volumes feel fluctuation to But subsegment some base will equipment as again, sales quarter-to-quarter. rate ultimately, traditional to capital installed changes continue XX% you'll see XX%. that #

Dave Turkaly

last Got Greenbrook, quarter, on it. the I of update some sort think for others. you that. gave And Thank you of an Success,

those imagine sort I I it XXXX, TMS-only in providers mix if continues increased again, curious update the the I today? for you of size you of imagine but mean, update any Thanks directionally, lot. the could a any on but that guys just for provide on today? Just

Chris Thatcher

Yes thanks Dave.

calls their Greenbrook with marketplace. these prefer them comment relates think of we're as to Success as like to it the these earnings relates We So partner proposition in that our performance resonates on it large some TMS. groups. But value their this delighted accounts with to to and for TMS-only We group. really

We have Star in them support, significant and system locations, their engineering, into real-time utilization service our systems. tech their insights of provides investments Track field

capital treatment and this revenue basis. on go-forward value group. we session revenue. So be proposition on them breaking overall out with NeuroStar NeuroStar going a they'll We're fronts many our And part be to not think really our of resonates

Dave Turkaly

it. Thank you. Got

Chris Thatcher

Dave. Thanks

Steve Furlong

Thanks Dave.

Operator

concludes the closing back session, like And for to Chris you. would to question-and-answer turn call Thank remarks. this today's Thatcher now I

Chris Thatcher

call today. our for next you. you Thank quarterly you call. updating Thank earning on to joining on We look progress forward the our

Operator

and this Thank call. for you participating. today’s Thank you. Ladies concludes gentlemen conference

disconnect. now You may

Neuronetics (STIM) 3 Mar 202019 Q4 Earnings call transcript