NPCE - Earnings call transcript Q1 2022

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Operator

Good afternoon, and welcome to NeuroPace's First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session towards the end of today’s call.

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Matt Bacso from the Gilmartin Group for a few introductory comments.

Matt Bacso

operator. you, Thank thank and participating today's in Good you call. afternoon, for

first NeuroPace Joining released CEO; the is XX, available are press and company's of from A financial ended copy XXXX. Rebecca for on NeuroPace Favet, release today, Mike me the March Earlier Kuhn, results website. the quarter CFO.

impact results prospects current from development for on events in not commercial performance, our upon various Reform statements actual to These I'd those meaning remind Act statements, predictions future material forward-looking this this pursuant to to and reliance on Accordingly, undue COVID-XX and you to begin, trends relating include forward-looking safe are place uncertainties of that are these of opportunity, cause could revenue of XXXX. call materially securities assumptions. that pipeline the or statements management All risks which will differ performance forward-looking our and we during approvals, statements. expansion, of Securities Before expectations including Any management, our operating the those performance based statements by provisions of expectations those that expense that outlook, product like and to or forward-looking should call the within federal laws, during implied and business involve statements. made hiring, the estimates or you statements. make Litigation these organization, recovery, market around product harbor and FDA are our statements future made NeuroPace's results financial events, trials relate clinical growth for Private

on our by with Factors that or Securities the except risks projections on because or reports to broadcast please time-sensitive to believe NeuroPace our on information, ended turn the filings SEC update with as well May section obligation, report filed our including intention events the as new Commission business, Form with annual Risk May XX, the as to or or For the a refer disclaims report more filed detailed for to SEC of live the required XX-Q on Exchange the over December any be that, our XX, conference March the the any XX-K SEC, otherwise. law, with and we and public as file with information, XX, year statements any is SEC XXXX. future. or XXXX, of the we XXXX, with XX, accurate financial call and of uncertainties This description XXXX, And quarterly on associated revise may only future contains of whether call forward-looking I'll Mike. which in Form

Mike Favet

you and Thanks, thank joining us. Matt. Good for afternoon, everyone,

will our by before opening call who For update, today's and provide provide a business quarterly opening call, followed full comments the and XXXX to additional year Rebecca, detail results regarding will I financial outlook Q&A.

million specifically and February, second our of revenue our half of as on result guidance in we above first significant levels. rebounded to of marked most Omicron January resulting XXXX of primarily a experienced a early We one of first in period was volumes Initial saw procedure in end came January half disruption started the million results. top the in the We through improvement quarter in first the quarter Moving nicely second $X.X in the XXXX. of year generating revenue total $XX.X for strong, variant, from implant February, range. the the business We the of the quarterly of from to-date. COVID-impacted quarter quarter,

new volumes, meaningful rescheduled uptick combination we which earlier and procedures the March, implant to in when in believe of in Our from be quarter business improved we a procedure further saw a procedures.

part early of the our Given the COVID-XX we the faced are pleased results. with quarter, challenges related in

but we disruptions coming EMU patients procedures implant of February severe during that January the in a coming time. we March, units, monitoring caused by diagnostic through and Although The believe through COVID-related nice pipeline epilepsy EMUs that number rescheduled in process part in patients the or recovery in a experienced volumes fueled feed patients the significant for patients reduction in plants. the the believe with the first number of second the that the implanted the QX We from RNS our RNS System levels Omicron of returned as EMUs impact the in through in will number coming limit EMU of to XXXX largely March, reduced System quarter. half subsided, the

the that we target at the million that to the our to initial first patients first impacts a for both guidance COVID implanting the the to there XXXX typically as admission of in growth of backlog the additional COVID-XX will a EMU as number most also of EMU half continue disruptions of return of of $XX is quarter, track well System. coming on process levels result disruptions, our growing in takes until believe remain pre-pandemic grow. quarter recent EMUs, It implant an of approximately XXXX of meeting believe in System. the revenue as through well as million, We six saw pandemic. longer-term we expect RNS the centers months from and we what $XX RNS that XXXX, Given of the Without approximately patients our diagnostic the we XX% as

number we commercial those and within this, implanting our our in resulting System utilization will increasing an XXXX RNS execution, by driven that centers. increased believe of Given in centers growth be

we increase epilepsy In X practice in an the on longer-term CECs track provides announced specialists field assisted will Level volumes, our specialists, engagement focus start these implanted. with this is can our patients. for a our a number pandemic, we educate Of benefit specifically, by summer are by the customers already of of education We make hiring to commercial of hires that field oversight the leading since patient device previously physician believe significantly. RNS to with with diagnostic System new patients market environment the to we locally our and clinician System, plan CECs. the are field of practicing future will team relationships, collaborate be number accelerated with EMU have This expect indicator on place. Through adoption. increasing growth a of for therapy of and them will device of available Level epilepsy ongoing provided events number has this access X management coming significant trend larger initiatives, specialists that note, patients first larger believe RNS We resuming patient epilepsy business. in-person increasing an we the ability plan improving on have about to of process. outside with the team programming a We to monitoring and who opportunity time allow outside the to RNS starting centers. us additional The helping many We through have these and anticipation improved improved to

generation We educating are their treatments also in they by demand earlier epilepsy treatment consider as identifying patients and beyond journey drug-resistant driving medication.

generation digital programs, and We connections. are marketing in expanding ambassador lead patient an and efforts social advertising, our including increase

System RNS team their and will more with education process. connect care RNS information through patient our the we NeuroPace's about guide provide in journey, appropriate patients earlier candidates As

to track the year our opportunities. pivotal indication and include support updates middle enrolling clinical our future expand on epilepsy. recent primary to in indication NAUTILUS supplement on remain We a trial of to expansion generalized start to patients Moving PMA to the around

we are patients. business our we for in While pursuit what expansion, and of early epilepsy generalized still would about our this indication excited are mean for

be epilepsy generalized faster epilepsy not a treating less generalized the epilepsy cover other fast treatment a the epilepsy, need indication to that In this Surgical expanding anticipate are for and there differences evaluation simpler addition expect are for rollout, population, Upon using for resection for neuromodulation patient and important RNS for NeuroPace we an monitoring. focal device. are there larger opportunity selling and current same diagnostic RNS focal the of who need our focal excellent ablation We FDA commercial process because with the to population. our approval, physicians believe this no of make therapies patient patients, already for patients relatively appropriate are no than approved we for that and same will number to EMU invasive therapy. from epilepsy

to the an NAUTILUS to in expansion forward and We population. enrollment indication are look study patient begin into excited this underserved

an replacement revenue. on like update implant I Next, to provide would

Replacement quarter-to-quarter. in us unchanged, label stated barrier and feedback line the initiatives. As was labeling, million. actively to devices estimated FDA of key there an received despite of million approval the replaced, which replacement significant we a first-generation XX, represents and full on be trends competitive to from and rates. this end being a XXXX year remain half shorter life. battery our average we XXX to of which XXXX, XX battery longer trends year, updated we other implants continued been expectations headwinds life decline to strong has slightly year came expected sequentially progress first guidance can marketing implant replacement very the as patients been remain over actively variations as there from our provide years QX customer of with adoption the much transparency $X.X approved a the and gives of are with timing continue That removes last devices. replacement nearly to labeling approximately use for revenue quarter, quarter previously for first-generation important than two In revenue customers. the in increase from range. initial summary, positive implants replacement to XXXX, more revenue to Early first the of the replacement Due and advantage This To top in quarterly said, quarter historical the update started Revenue neuromodulation treated conditions. claim strategic when revenue benefit expect of under have March our continue COVID an with make above meaningful have throughout $X we epilepsy, were battery typical life in a distinct year our

study step in which begin for mid-year, expand to clinical RNS remain the our an On the the we side, market System. around be track will important enrolling on opportunity to patients NAUTILUS

the the team are on commercial On track and number in first RNS side, generation implanting demand the our of quarter increased initiatives. patient System our centers expansion and with we field

anticipate call volumes patients more Chief EMU as NeuroPace's position over these deemed System. RNS patient well will we turn increasing, to of our that, being I to leading candidates Financial With Officer. All for Rebecca, us the

Rebecca Kuhn

the implants revenue sales was in comprehensive quarter million, of compared of epilepsy $X.X initial $X.X $XX.X for was Growth Growth to primarily first our headwinds centers NeuroPace's XXXX. number the from was driven of was quarter by driven XXXX. quarter, implant for despite Omicron first quarter XXXX revenue for the by Revenue first Mike. an implants the increase an half quarter to in for the million in $XX.X in to $X.X of replacement procedures. In the first Thanks, unit initial the System to primarily million of the million, quarter RNS the quarter compared implant first variant in the the of million was procedures, first initial compared $X.X in of million, quarter. XXXX. from increase from

related primarily million implant to in generally replacement first due the margin was to indirect due result the expect quarter XXXX. and the our expense in Gross from device, in pandemic. of first resulting million, a of next compared period reduced XXXX model the decrease XX% period quarter gross battery. increased the in $XX to same million, compensation Total COVID-XX of was prior production revenue to an the R&D of was was year the continue first in development relative in SG&A The current year. driven was several prior $X.X of same driven XX% first the years initiatives. increase increase loss in as to and primarily expense compared with of XXXX a which labor the the million and volatility compared XXXX margin study clinical costs $X.X operations primarily increased for was The the XXXX transition resulting $X.X for compared quarter to was The compared year has expenses. quarter period. from million increase $X.X of in period. was XXXX. the $XX.X expenses quarter from $X.X a the expenses, first million, costs the stock-based with operating million the quarter to R&D were support flat in first the Net increase in company, by in $XX.X to volume the to longer-lasting year was prior the decline to first period by We expansion first of XXXX, associated as sales expense costs interest increased $X.X prior personnel of of of in product to XXXX, Loss compared million million in quarter the in SG&A personnel, expense with XXXX. million $XX.X an the operating in and marketing of quarter in quarter with commercial public for prior compared the million We in year recorded first $X.X period.

Our short-term of cash March while borrowings $XXX.X $XX.X million. and as balance our was XX, investments long-term XXXX, million, totaled

turning Now XXXX. to for outlook our

continue the last million and assumes operating of diagnostic as $XX $XX initial between and implant we expect We million. build, annual evaluation process. normalize over This to they Because initial six-month the has continues XXXX, to days, implant of transition $XX in the XX second $XX of patients million new million. to the expect between revenue through improved revenue the environment pipeline revenue half and

to million. to expect approximately XXXX continue We replacement be revenue $X

Moving statement. down the income

is We would stock-based like be will million, questions. concludes to call prepared approximately call $X the million of to gross range which turn mid-XX% I and to over million compensation to the non-cash $X operator, the expect million operating for This between the expense. continue to open who back $XX remarks. $XX in our margin expenses and

Operator

question from Marcus [Operator comes Instructions] first with Our JPMorgan. Robbie

is open. line Your

Unidentified Analyst

the due us question, Hi. start, The actually quarter good a revenue recovery taking to on expectations for February. This a than Robbie. on congratulations came better some higher in Thanks To more cadence you first is to little for on year? be Rohin able for color in the give would quarter. and

COVID I have you And follow-up in how So light view the variability? Also, of current further does contemplate guidance a this? then any question. range

Mike Favet

Very Rohin. for good, Thanks the question.

start at year the that We're just So you the general with to beginning me recover way a of from made. quarter the being able that and started variant. with the the Omicron pleased comment with challenges the let off we very due observation to the

patients $XX we're about think we is we the implants months reiterated QX that, million in guidance anticipated As we the amount. system the total the the monitoring through the that the of dynamics increased has that those in And counterbalancing for we've a couple happening to call increase coming coming at that the able through initial replacement backlog units levels volumes decreased the then update revenue in side. ago. that continue at those overall, to that with some going from in will were ago. having then We're coming to beginning and be revenue have the year. delayed year for in impact million happened increase months procedures trends earnings half rationale year, seeing few the Really, opportunity guidance to units the the a that expect We saw short-term pleased in part the early that continued the that faster $XX at the numbers cases – grow, QX. resulting patients course implant number the monitoring continue the through number are the of of our patients providing an that implant doing continuing through in And – anticipate we the year, we're QX. commercial will of execute in that were of in the to for planning, hearing the have through happening But anticipating an the and of number months we're we the impact we're overall to to positive. able addition when We're an that And over of that in near-term, than anticipated that continuing in quarter. on recover epilepsy that EMU the customers us as core in with few monitoring there the of at did to through we're of centers delays on speed units that we anticipate decrease QX, epilepsy compared the business to we'll very seeing of QX addition drive and implanting, on second those epilepsy the increases which QX the increasing both to centers commercial be from utilization recovery through to the last the to of provided through efforts We utilization. the there's the year, strategies, grow that and of increasing are we resulting continue to patients provided the

continuing implant year for we're going that get general, half be the to to we in allowing to just seeing is overall. that us initial second grow guidance the of year on to in the revenue So provided

Unidentified Analyst

Great. due and staffing EMU the headwind you lower least Okay. moving And relative kind would implanting on seeing utilization more to to you're your patients quarter, want comment like in the on get much at that doctors Just where of is how share a in Thanks. this higher able to the additions? levels first the alongside with with offsetting Are greater be volumes patient of thoughts center you dynamic. staffing COVID, forward? seeing of to new

Mike Favet

the staffing of through first the exacerbated of the be the Omicron from infected. was waves elective staff ICU number to previous being to the which dynamic centers capacity. the That where previously, process. we challenges. patients, because different larger to of in the ability included had more weren't causing to That Omicron doing variants, a about causing happened diagnostic treat hospital they Really, the epilepsy administration bring concerns what saw schedule say that filling hospitals with – pandemic, that other of The them Delta at the much people the centers variants procedures, up, saw we quarter some variant in limited of what to were procedures than was the hospitals, going

staffing, hospital we've the even of know and staffing first half continuing the in particular, that previously staffing, people technician to terms a look And nurse primarily that units worse in be that infected We the were confidence been build at through hospitals. that months, try of just coming into continues patient staffing. their the the So number monitoring quarter. then staffing hospitals of up-listing of patients factor. capacity The the that now, about increasing meaning coming couple of in up made to of the we a of the talked last and factor the number are the has when to Omicron and the

were expect a they're XXXX the guided that trend the definitely get in longer-term staffing been But of levels. start hospitals XXXX, to volumes, that's and to We working where that. we haven't unit that monitoring epilepsy And key know they are the reason do pre-pandemic. to the we why trying increase levels back that's a you

Unidentified Analyst

Okay. so Great. Thank you much.

Operator

comes Our next with from question Larry Wells Fargo. Biegelsen

Your is open. line

Larry Biegelsen

a of to through the for point expect what QX. initial year. signaling for on down be be sure decline Are flat was afternoon, Thanks a it's here. on this that clear and kind wasn't to continue the pipeline you good finer you signaling taking sequentially? QX questions. put that question, it to of I you I Mike, going quarter replacements for the because think were pretty implants, But implants, initial to just to or guys. here prior of the the Hey, congrats maybe one going nice EMUs on is within

Mike Favet

we patients beginning what than recovery QX knew completion those the we guidance the came delayed coming guidance the reason – had of we that QX The full happened ahead for provide the year that for guidance. coming of the that the part were quarter. in QX, we And of provided the the a QX, we of those or guidance, reason when implant at and provided of ahead of of that the of scheduling in didn't anticipated patients was patients we they reiterated off in specific We would. faster

we those were quarter. that in implemented the fewer result growth delayed – pleased patients of So that the of that part to quarter. the able get QX. coming very were that did patients we the EMU we're feeling the first recovery, the did in impact is overall, first and through of with demonstrate patients the the the – And through at came patients get the The

last QX, confidence process couple are the that are for the thinking numbers – effect that second in the give second continues the specific half the start start the dynamics but specifically we the providing first EMU the normalize to not of business quarter happening So some having grow just of the year. of about the quarter. then months, in which impacting in the And seeing to ability in here to the through near-term,

Larry Biegelsen

on And the studies. Okay. switching gears market just expansion

you kind to So you we think the enroll, study. approval adolescent of Can so will how through again, NAUTILUS and lines? remind of time please, take just think us those long kind can

Mike Favet

We enrollment haven't specific time guidance. provided

the key involved are So that I'll factors with remind of that you that.

need able to So that. it's study the that start follow-up other that that NAUTILUS side trial. PMA We that happens the about submission patients for middle of that study, supplement top year. the know a XXX or in over then in on one expanded indication PMA submission know priority which and indication, a enrollment be this we is to to XX study expecting enroll we're year of implant around patients for We to our the

the to sites as that to are patients haven't able on those that. enrolling able many and information. Yes, more and time get be running XXX we get that are to the enroll understand we how trial, provided we'll give clarity up So to in to complete able

study response So of that the to the about this around follow-up is similar the middle study enroll, again patients to XXX The need we very and a primary then the for – that. adolescent one of endpoint. enrollment year start year,

bit patients, be point one study, that need primary that kind but magnitude, of implanted minimum kind for well. at that end a patients so to study little number follow-up as of the smaller So similar XX year a of for of

similar amount PMA those. then of size of say, submission overall, would for So supplement follow-up, kind study, of similar both and I

Larry Biegelsen

how implant Are precedents long point us to you it that on Mike, there to enroll XXX in any take XX? would patients can

Mike Favet

don't to for precedents So that specific to I the is focus any NAUTILUS take primarily reiterate of have that it's our time I on going the will study. enroll. amount

our the patients an that's putting of a the majority So opportunity of we're quite largest expand effort, we're in number represents into where terms excited an that it and organization, the opportunity new as market to about. of area

So internally, we moving focused the more we'll have study generalized get clarity that epilepsy. in the we're specific centers, on primarily and be NAUTILUS the point into enrollment provide don't into as number I understand Again, you comparison of the able to but study to and to.

Larry Biegelsen

right. so Thanks All much.

Operator

Our question Research. Michael next Polark with comes from Wolfe

is open. line Your

Michael Polark

afternoon. evening. taking Thank for you good Hey, the questions. Good

margin. and volatility, gross and It clear was there here heard the that been so Or been deleverage? costs XX would quarter. six and and gross on be supply on was and influenced So just, goods additional COVID going some overhead But componentry have a the any and lower also what if one, like it you've and the helpful. that non-cash color quarter cost of to sourcing comment hey, production, in absorption months, the look, down input chain comp, is volumes First so I turning wasn't margin in in sounded if disrupted trailing up?

Rebecca Kuhn

that. take Thanks, Mike. I'll Sure.

volatility really in unusual we was gross quarter related first fourth demand XX%, to we lower And quarter, in the led margin There's absorption gross first not to nothing currently, the increase volatility margin the quarter. consistent lower with and chain then in in and and SEC. overall. had our some And our production that's some disruption. have But our that's supply we're did production seeing baseline. cost So

mitigate earlier that components supply in any seeing we purchased not We might than chain we're future. could develop some risk the But materials otherwise have potential to and disruptions.

it's quarter. really really, mentioned, out just that stands nothing the the unusual for factors So we that

Michael Polark

new And centers commercial forming I'd and hiring like the your update of be new difficult Thank just It mean year? to progress, strains that terms bringing sounds difficult some in commercial investments. online. track, so it's a taking any I curious much call successes follow-up on so for but ramping then on get providers. in territories, it's a for questions. an How environment, out? especially XQ, played the this has to the far out And org or on you

Mike Favet

progress in pleased Mike. the Thanks, We're first part the the that quite here been year over commercial to we've initiatives. of with able make the

areas organization organization. So two the part investments just the on the – in we're making an as primary where a of reminder, commercial there's

pleased where at of track hires to And compared the people be half we in to say to One those on happening back the those of with field of people increase That's an to XX the of were the net most scheduled a that acceleration expansion XXXX. the of we're by the is of get of to targeting the time the first team. IPO end of organization our field around We're here year. well in on XX for order that.

that is that the some per plan start with at the and through team the – So the really them been expanding been with we've able to people making we've identify going process. progress field great training

around is initiative of patient area patient key other awareness. education The and

System to get benefits information the of the through about patients the that with so working we we're amount that diagnostic the to have RNS doing broader System, RNS the are out of number work that, process. their of way And increased a

So to – system help influence help process. moving through them that they're on to as the and

people ramp that And do area. are would do, we we in So up in to to expected the good there, and expect what we've that what we initiatives that into had some have as area. doing organization brought made some expertise

centers and it would us have is specialists to the us these Level more setting comment number the That's device the larger out in that, are that that in other we've epilepsy outside allows I that epilepsy past are expect that recent us larger to expanded hiring reason that of is CECs here XXXX. outside enables the continue X specialists in do of up practicing to trend to to The field that that of part the of make team or we the those. call and practices level that go of there's continue allow number are we also grow It implanting organization will on of to years accelerated the as a X field centers. been a the

a go our epilepsy then treating I'm System, into to they're epilepsy a device in large specialists create on them So number to a referral ongoing center implementation epilepsy the and for the care. of of having drug-resistant their patients those working the the of patients. RNS community comprehensive dynamic for back with

strategy that is going hiring on. a accelerated that so that we're key of epilepsy part the specialists of of And expanding number

Operator

from Securities. comes Danielle with Antalffy question next Our SVB

line is open. Your

Danielle Antalffy

initial afternoon, everyone. the on so of a be start up kind for you was on quick and you the – you Thanks did Mike, implants? but something to and guidance? question a why you thought guess, do both that pretty guess it us, implants good for you in And line the for initial so about and take you conservatism? year. relative rest March anticipate bit provided guidance just the year differently just had it on on from a and congrats top a when this, decent of guidance, is the little I taking maybe transpiring why Hey, or what addressed back – whatever I much up, in, well, the just put the to already curious the just not Or quarter great then question,

Mike Favet

out anticipated recovered is again, the of patients for are feel first And coming rather the we we've thanks, The very good were as off guidance we delayed of that year, Danielle. than year, would. the we that reiterating for about first quickly, part we talked we quarter – the of the faster that So quarter we part the that of guidance about. that a

anticipated had guidance a timing we which those contributed that that we provided. beat happened had little than the bit of would in we So from The the patients it we recover anticipated, faster what to QX. and

process are And that keep knowing System the turn remainder guidance so with that really is RNS our just to year ability implants. through patients of those being where that, new coming into wanting by the driven the the and it is, to

we where we continue And feeling effect expected timing to be so then trend on to. to be operating there's some like is the and that overall really

Danielle Antalffy

I the Okay. be? the going time think a we from line so like this a That's starting sales question, to is of really And patient about there et that's out guess, part, through – When as we the about I cetera, first think fair. there I system? And totally then very an should contribute this. two a the the in and to, the for well getting about early force, patient so second we getting that much. to guess line shorten it part. months implant? getting to six X the is have from through is is sort to part an just the patients is But Level an what and and to And opportunity I investment process always it's is guess, is. opportunity Thanks And going think what like beyond we Or just growth then just that – know et building top getting centers, sorry, to cetera. there as – as

Mike Favet

Danielle. Thanks,

that in education awareness the a initiatives as So as investments the we're pay well the of off the will are of organization, accelerating commercial the over the time. patient that period we've and organization, hiring Those undertaken. field both investment making that

patients up work That think the out the go have additional that the field monitoring referring the unit call those go the and that physicians numbers hiring, can you and these somebody – come out us. provide to that force allows come If so us – out hire we increasing into about then that for the and that. for we of organization, epilepsy process more that to opportunity sales through points, of the

that overall, the XXXX based So really strategy is the execution provided CEC. guidance you within the for on about the of XXXX, we think if

beyond getting about specialists, more to will centers. XXXX. those Level more it's prescribing move outside that those doing we're So expand additional are of centers The to initiatives X benefit CECs that of epilepsy field to the opportunities be the organization those really to organization the from utilization

initial of about of the the your epilepsy implantation it unit, EMU on get RNS through admission device. takes to six question monitoring to In months average terms that from the

steps can working the that to their we do are can. we Where through of connection patients, that through that, facilitate can those way to The that process need through. help We influence are patients earlier process. that to moving for we where working they more go

with institution for also potential and that more able is initiatives, that through to those of specifically system EMU much be patients the them the by that could earlier the can there – navigate we of procedures the those the the has. is we and So capacity contact said, hospital driven some That help quickly. process the at

I amount anticipate opportunity there we dramatic in a we're say, those that, process. get I time and pushing areas the those some So through there's where push the can to on takes But areas. patients on don't EMU it would movement that definitely is, of around

Danielle Antalffy

Thank you. Okay.

Operator

Our Ranieri last question Drew Stanley. Morgan with from comes

is open. line Your

Drew Ranieri

Hi, the for Rebecca. questions. taking and Mike Thanks

to maybe there. that capacity the start, quarter, some the challenges staffing is still shortages can and first Just I EMU there with appreciate

sure ahead have the of Just if just new be as the you sales you're you further able next some XXXX, going pre-pandemic levels, to growth into the year to that place initiatives? And of the – XXXX other accelerate some be implants, the here. stay as EMU patient to would initiatives Are I want EMU force saying at even were in looking back through in at that just with normalized you visits to I training given want and normalizing levels? you're into you half, levels? make just XXXX they year just Or that I'm are clear the

Mike Favet

it can of the has confusing. this complexity for I question, of Great. be and there Drew. as be is And – so trends Thanks the to potential on the appreciate trends it top

through part particular, was in EMU saw QX the are half coming QX, the to that in – decreased the in monitoring patients first visits process of number we epilepsy that the of of XXXX. unit, that So relative

So to that if numbers back saw least to saw XXXX. at back levels, those or in Starting or in March, pandemic EMU move the numbers we we relative close recover to will. you

there an time, levels around around and environment With pandemic number us do is know improving statement, have, EMUs from I back there's potential and a call the over into anticipation operating getting that there. COVID, to now our demand, the patients talking looking they not go to will, get telling would levels the a from factors that – There's numbers customers to patient they're that get we're today. future pre-pandemic could backlog over those and So there's which pre-pandemic is back normal levels. time, are that the XXXX growing don't uncertainty. given that to you that of we of into EMUs, That's if so that then there. getting increase to we from But kind to but those be numbers, side a where have of anticipate able levels. We to the

– XXXX, and XXXX, would about a anticipating in XXXX the our levels As patients in think isn't we for of visits EMU growth for takes our it impact XXXX through time pre-pandemic the that return get again, those given numbers to process. to

to investments we in to made of that return control. we Part growth the that levels we've the of organization. is areas a that organization made have of for accelerator the accelerate that can pre-pandemic So the influence part have reason commercial growth is longer-term to more in the

specialists the epilepsy the group Level their to at calling patients process. in tapping level that they're process, looking the more that work getting treating X centers earlier epilepsy able on So drug-resistant into outside patient of through up facilitate of to the be more at awareness

initiatives coming number growth the our are EMUs additional and we of of us. the the the believe of opportunity that All patients with the organization organization EMUs. of And provides through independent growth then benefit those our of

able making So have the aspects that those ability is to we're influence. growth reason control to those be we the of investments to

So ability we influence. believe to we have the

Drew Ranieri

that I make new the Rebecca, environment, as state of code components a by going steady is the looking more supply, for just side purchased you And I think the in side, just answer. thinking up XXXX. Got replacement pricing inflationary DRG appreciate are to how X% kind there it. or you've for sure the whether of maybe I your just guess at about devices, you're especially, implant to patient is like considering

would any Just be comment you. great. Thank

Rebecca Kuhn

Sure.

this increase year. previously, increases, we discussed we've it process year. low-single-digits price impact in a will over of place pressures that of increase we our the the in aware the as it side. factoring will don't XXXX. big a course price on We this year, an marketplace will That the So in take expect have of are we implementing the more cognizant And price in planning. of we into price are course, doing impact are the have and pricing that But where are of of

So your I hope addresses question. that

Drew Ranieri

It you. does. Thank

Operator

I'd questions. Mike further Favet to over remarks. turn no call to the closing any are There you. Thank for back like

Mike Favet

to All right. and Thank you with following today, you, everybody. time forward I look in coming your the appreciate months. up

Operator

the concludes This program.

Everyone You have may a now great disconnect. day.

NeuroPace (NPCE) 14 May 222022 Q1 Earnings call transcript