NURO - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the NeuroMetrix Second Quarter 2024 Business and Financial Update. My name is Amy, and I will be your moderator on the call. On this call, the company may make statements which are not historical facts and are not considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature that depend upon or refer to future events or conditions are forward-looking statements. Any forward-looking statements reflect current views of NeuroMetrix about future results of operations and other forward-looking information.

You should not rely on forward-looking statements because actual results may differ materially as a result of a number of important factors, including those set forth in the earnings release issued earlier today.

the risks Risk including periodic the Factors the available the under factors filings SEC's to website SEC heading Relations the in on website refer at and and the uncertainties, described with at sec.gov. Please Neurometrix.com Investor on company's the company's update does NeuroMetrix to intend on disclosed undertake and information not this duty no the conference call. introduce NeuroMetrix's Chief Mr. and Senior Financial President to Vice like now I'd Officer, Higgins. Thomas Mr. Higgins?

Thomas Higgins

and Amy, to our business XXXX welcome QX update. Thank you,

stage pain you medical neurotechnology of For markets. unfamiliar, and unmet a commercial company, we commercializing device those devices needs are developing in and address to the chronic diabetes

products solutions, devices including handheld enabled cloud-based wearable enterprise software apps, and and software consumables Our mobile are systems. by or proprietary

addressing to We and indications, pain to chronic have others. back X extremity products: lower including is COVID, low commercial are chronic currently pain pain, also CIPN chronic fibromyalgia Quell multiple related our pain. platform chronic overlapping There related with emerging and along Neuromod conditions wearable

point-of-care DPNCheck neuropathy, screening particularly is diabetes. test our on focused peripheral for

business with usage liquid million, objective further razor-razor $XX.X At we funded in as approximately scale, X/X quarterly about and going we decrease sales blade $X.X our current of with aftermarket is currently representing forward. financial are and million primary of adequately to the about assets cash Our model which revenue. plan

capital Our stock common structure is simple, and it's based. debt-free

drop XXXX, for this This decline. drop accounted $X.XXX from revenue and the anticipated. product a quarter of was Today, we QX of $XXX,XXX. entire revenue reported million in The the second line was DPNCheck

providers the of and a X-year This compensation risk discussed, including of last initiated changes XXXX, As to for that encompass second early is patient range adjustment CMS neuropathy. screenings, Medicare Advantage year of a peripheral rule final timetable. previously health care in phaseout year

would expected, curtailed providers be activity. this many have As

however, identify year-on-year of The ultimate to continues in potential working line, interest this Quell is of domestic attractive point. The XX%. our QX outcome markets revenue of revenue growth. opportunities. and gain uncertain a Quell pursuing at was product are DPNCheck in several to are post efforts new We $XXX,XXX

relatively While is rate growth provides of a Quell its revenue small an future indication encouraging potential. contributor,

launch while of building in on marketing product, of spending been July earlier sales XXXX. and in knowledge and activities. neuropathy as market quite phaseout has Quell ADVANCE strategic careful XX, effective controlling The completed Our and XXXX peripheral this was for a planned fibromyalgia terminated legacy year

margins quarter Individual gross in upward. range in was is has Quell, quarter for at the which profit lower reflects stable gross was points XXX range pushed growth rate Gross quarter the XX% This at the of generally $XXX,XXX. for margin year. and which a trending of basis were last territory product into the in second margin DPNCheck, in and margin rate XX% the positive of where the XX%, improving

XX% margin Of absorption. impacted cost was the indirect adversely on reduced course, overall effect the by volume of of sales

reduce personnel Operating QX year the effects over or going in quarter. forward, million, expenses per costs XXXX down This prior million the by from reduction force, quarter. will XX% about spending of reflects in quarter down $X.X drop a the which totaled $X.X $XXX,XXX

was of the in usage $XX.X from lower we quarter assets last quarter million, cash the $XX,XXX Working share, was in QX and in net quarter capital at by million, million service $X.X the a Operating loss our the professional from approximately ended Net quarter of liquid end about the quarter second in process. $XX,XXX partially about of were $X.X year. savings The $X.XX $XX.X strategic the was ongoing offset costs review associated or XXXX. with of QX again million. loss a of with of small million by $X.XXX improvement a

Dr. the and CEO. of for Shai our comments Founder now Gozani, And

Shai Gozani

you, Thank Tom.

that we February options an providing by of of year. this update the announced start me in Let on strategic review

goal value. Our to and reasonable remains shareholder all maximize consider to opportunities was

process. in of several X resources potential months, collaboration in have with effort our diligence. transactions adviser, And in time, specific have these survey past these financial considerable to and invested we Over terms of have then and conducting extensive we led of been this an activities, detailed

However, thus these has none Board far, the in determined opportunities of best time. shareholders at that interest of the are this

at This our going-forward reduction alignments. noted, a and Tom the substantial basis OpEx revenue on million a into operating by implemented first quarter. quarter of As over we expenses helps force in bring the lowered that $X.X better end per

focused not here, exploring actively And international are to monetize offset are are markets U.S. to particularly on that opportunities our assets we core noncore cash consumption. We to further focus.

in we large a addition with that of we as terminated And our ATM of engaged at-the-market new director. independent Joshua that And in in Horowitz facility. at one equity shareholders our April, also, discussions resulted time,

process set plan consummating will or pursuing and Our business transaction result to or completing company There the is the strategic yet other point, process a And also review this seeking process. that in have continue at specific deadline a can for we assurance strategic to to while operating efficiently be no the not outcome. particular return growth. this the

our now to business. Returning operating

noted, year-over-year growth in in As good our $XXX,XXX around reported Quell second the XX% quarter. to we business Tom of

a are While is absolute the of number modest, encouraging number there signs.

pause. in as a commercial entirely the First, it And over-the-counter from fact, decreased Quell fibromyalgia. has was been the in business growth

will We us OTC business, to sources give restart going are which now the of forward. planning X growth

are planning fourth active fibromyalgia quarter. of Quell both have and by business, We to the the OTC parts

year-over-year we the growth planned electrodes, was shortly. able Second, refills in drop was of reverse this Quell good growth. XX% business X-month growth, in Quell quarter, be we in we that with OTC is sold There X,XXX of the saw kits addition which the number starter Again, sold. to had which should XXX are and the revenue, to XXX% in

see is and Administration uptake Veterans as This exciting reimbursed. Quell of system. third, attractively And are refills opportunity in the starting fibromyalgia we health to an the device are

time, year expect of make to we'll this centers a few VA in are the be XXXX. at looking core for rest steadily VA grow but We and operating the focus to a the just

believe chemotherapy-induced clarity peripheral for forward indication. move We CIPN on have standing now we how neuropathy. with that CIPN to our

De a will indication We commercial XXXX introduce branding new this by a and of with end CIPN a devices of quarter oncology the large fourth if attractive the place. this year have falls everything launch If technology market. as Novo for a obtained by Quell potential will to make into submission like the into commercially

changes neuropathy. including business final compensation of types Advantage risk an for Tom, by is year-over-year Medicare adjustment year drop to phaseout to noted early DPNCheck due last of announced substantial year. As many the XXXX suffered a the of peripheral patient screening, expected

of will we to is continue next rotate DPNCheck customers year that expect markets. and beyond, some our other utilize we it into MA While imperative that

to the to Hopefully, have we We are year and of nevertheless, of a number working again, but progress. hope attractive of from scale quarters announcement opportunities indicators these business our the still over we up newer revenue of on as meaningful at least provide are channels. this that potential for pilots balance several updates the

XXXX. to prepared Scientific And side, meeting there comments, several June scientific prominent be and on and happy are take ADA in our Society the and the DPNCheck were the clinical at XXXX Those in abstracts Japanese May now. of Meeting we'll questions presented Diabetes

Operator

Cohen Instructions] our with question-and-answer session. At & question the the [Operator of Jarrod from comes will first Company. line conduct this And JM time, we Cohen

Jarrod Cohen

Yes.

a question. quick Just

prescription grown talked are a time. on gross because it running mean, gross quarterly this And Just about business Quell was a had is so ago, million it the Quell far now I'm basis, years been still how if takes for you're business the on correct, in you going the a I But and were to around not that. I market that, years. you the yes, that new to can really X really the even a it grow the year. that than said, going years I and I as I way know markets growing time. can still X a you've all How for over still you you're fibromyalgia $X it -- back at to margin you're long and that? relatively to think back business margin but and be mean long running DPN less had you know dropping how basis substantial off you XX%. was beyond? since you to changed veterans market business -- even get term, up ago. to But you get over at opening you've it's that somewhat beside X, just know I And

it elaborate little a if I'm and more, money bit just So also. takes could you just --

So...

Shai Gozani

Yes. Jarrod. Thanks the for question,

for this. methodical as quarters. been X since previously and the product, we've stated about the in launched in and prescription we've So really we're being very market we deliberate But

on So the we side. heavily invested commercial have not

before grow building commercial team. our and have of cash to invest we one the in significant to really director as efficiently business business. how understand sales We We want it that

your growth approach market the we So -- how question is growth invested. extremely the and is we to the to but to thoroughly wanted before about wanted there, it we this careful be very understand answer opportunity

reps, rep example, we on add how so we're sales have idea to a direct but been market. that So of a contract starting compensated not basis. as we've now VA, an are reps VA the understanding who contract clear to And the variable penetrate

that market. that. grow no rapidly there's commercial as the associated with well So costs And will believe in we structural as

methodical is we've and the So those growth. that to going investments been I -- investments. methodically the -- at there, again, we're ready start concomitant make opportunity how point where to the deciding answer is to now to see very, your we're And very question we'll think the growth increasing but very

Jarrod Cohen

going the always It minimal, I but you... How not relief product, there's what -- do mean the about does cure, just right? guess And effects about. has very the it's are right? side a I Okay. really with it's pain product been

Shai Gozani

It's symptom relief.

a The from fibromyalgia fibromyalgia for Quell broad relief been one. has pain, indication of pain market has is symptoms big the So but a excellent. obviously, beyond feedback

there work is the that now And particularly fibromyalgia and offers. from the as options fibromyalgia really -- there clinical our confident are quite no very that we're profile few experience. said, effective both commercial for Quell from safety our you in product with patients, is these So

can additional including we've beyond complement then for is as over-the-counter to Quell extremity chronic fibromyalgia. to the for think lower we're effectively And we about, fibromyalgia, the we And then talked which cost grow have business noted, ready that indications chemotherapy. business we a we restart pain,

going So optimistic, businesses. to build methodical these how in be we're quite but we we're

on strong signs it improved gross but we so basis, time, will quarter-by-quarter and margins. growth should And take see of a

Jarrod Cohen

out? you know -- or Perfect. whether online part it, how what to you or of terms but I than talk to differently -- don't you figure which you trying in probably still are it market, so -- stores that you're do about forth through did OTC before? going to you go want the for that

Shai Gozani

will through that mean, be pretty I online much e-commerce No. exclusively site. our

will but know, in, at of access going as on there consider we we're But back looking as really -- bricks-and-mortar is the the and retail, you distribution, Amazon. attractiveness We And were carefully are attractive. margins not nearly margins. which

for So foreseeable purely the e-commerce. least it at will future, be

Operator

showing Instructions] now would further I time. remarks. back no for turn to [Operator Dr. questions And at closing Gozani this I'm it to like

Shai Gozani

Thank to Thank you look keeping today, the as you year. updated for the balance forward we much very joining through us and you. get of we

Operator

Thank today's does conference. program. participation you for your the in conclude This

You disconnect. may now

NeuroMetrix (NURO) 6 Aug 242024 Q2 Earnings call transcript