NPCE - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the NeuroPace Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeremy Feffer, Investor Relations. Thank you sir.

You may begin.

Jeremy Feffer

Good afternoon. us conference third call. joining and XXXX for results operating you for quarter NeuroPace's financial Thank Financial released On Joel quarter Officer; Chief Becker, call, ended Chief today, today's we Executive and will September XX, Rebecca the results for financial hear XXXX. from Officer. Earlier third NeuroPace Kuhn, the copy A on the neuropace.com. at release press website of available is company's

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

file the SEC year for filed that December is law, revise I the projections the our of the quarter or X, or SEC the future. This call now XX, live future SEC be the for any in over turn we associated events on because contains with refer the with required on obligation, ended believe only XX-Q Form information, XXXX, new other latest detailed and ended conference filed intention we accurate of March XX, statements, or with September our disclaims otherwise. And our and to descriptions uncertainties reports November Risk as with public forward-looking SEC, except whether this business, call which by to any NeuroPace section quarterly report on or may the XXXX, as XXXX, XXXX. time-sensitive annual on our XX, information, any to Becker. will of XX-K report more Executive Joel Factors For including Chief to Form financial of Joel? update that, the Officer, with broadcast filings with and please risks NeuroPace's the

Joel Becker

year the CFO, Thank providing Q&A as the good our ended business call before present today's for I you, XXXX, and Kuhn, to additional third a our the reviewing performance out by by the September of remainder the will the our Rebecca our over details quarter Jeremy performance of which in priorities insights call start for quarter as to around everyone. be turning afternoon key followed will session. well XX, financial

Let's get started.

of revenue, strategy. performance continue we management, third XXXX, generated execute in track we the as delivered our to the quarter pleased We multiphase against record expense as are and business margins with very operating disciplined gross growth the demonstrated on of

quarter the RNS With sales continued Medical regard of XXXX utilization of was last CARE and of of For in with of growth, RNS levels. Adding system growth line, RNS driven and part first increasing RNS areas sales for year-over-year the compared execution increased Level number the active see number XX% third part centers to system. This we referrals of reported the the from the increase the coming and we and quarter million, a business. Project X to are to growth execution of record across in X program meaningful DIXI Level included demonstrate RNS products, to of year. of from our an began increase from Revenue the in XXXX, implants contributions pilot top to total period the by majority of at the prescribers centers to for systems number SEEG revenue number we in to $XX.X therapy adoption QX RNS implants the of the these same our system the of of performance of of of a centers CECs. that strategy the

second continued to of of gross was in and DIXI our we the and part operations end $X.X growth combined the burn of strategy track increased end opportunistic when balance third penetration development quarter quarter. to a million million $XX.X key on the our cash priorities, quarter cash fund with Medical We revenue position the our middle for in $XX.X to ATM income million facility, quarter. Combined our sufficient the which also the statement, current in disciplined foreseeable that of and with the expand future. target reduced is growth utilization We believe QX. In our at the with delivered investment at the for products, to our range market contributed use our from to that the of the cash margin

the year, advantage while development growth this months, program over be to to past to level us. The build field contributed our expansion front in multiple that as and the of the representatives has of leveraging opportunities significant come. the of our CARE performance launch on has as capacity our several in and which market will placement to increasing revenue momentum We for our so sales we current additional well also indication the developing of organization prepare also U.S. take in Project opportunities focused of the increase helped well-positioned

of member's on strengthening now team. in like significant I the experience key including market our in her function. our moment take the development in background. We're team Katie CARE new Resources. touch and outreach and have on opportunities marketing to development head given of Wingeier team Additionally, leading to expansions, product senior the lead Brett business, direct lead to initiatives, a brings market team efforts planning announced our manage Katie hiring expertise strategic position for pipeline. function, efforts our would the recently to we've around development to neuro-stimulation Katie expansion development focused research namely Keller research Keller on been the launch digital to to well We guiding working also our to that patient of Amy our indication leadership excited new our our marketing valuable and program, and Treadwell Human and up each leaders with and specific marketing market our

position. And instrumental high-performing innovation as we Amy President in continue the an will record Amy roles technology to oversee NeuroPace and research growth. an development of and experience to amplify Brett RNS data enhance his Vice RNS she to helping system success our With to of lead in of uniquely to and pleased welcome to We work focus to and of expertise on back in Treadwell technology and Human us track and medical most use support and Wingeier health device our exciting engaged, Resources. our recently, our continue underway the well and advance appointed team. culture are to the and be care to use both development, the leadership to Brett efficiency ease suited brings build is impressive device significant of neuromodulation

phase our for make primary strategy, for approved the to the the in progress continue element the quarter RNS on of growth focus expanding the third this our strategy study. system. We is indications The of NAUTILUS

QX phase and XXXX. patient follow-up all complete. trial is The mentioned, remains X implants are to the track in previously As follow-up required complete in the year on

if the presenting and reminder, and publication Rebecca? publishing the approved, epilepsy. effectiveness of call Rebecca X-year turn Post-Approval results would be to our with full prospective also data of X-year a to an an first indication the drug-resistant let as FDA device were third to to submit expiration financial pleased RNS the QX, idiopathic approved from pending our generalized quarter safety review Study forward adults in the the in look over now for a We RNS As system operational XXXX. of with system our positive for ongoing of study that We overview progress our embargo. With me results epilepsy. focal

Rebecca Kuhn

you, Thank Joel.

our to educated, of is will have extraordinary, trained years system. through progress closing ago by compared physicians network against key therapy RNS couple and continued gap just treatment utilization broader to and reach prescribing play has our in of The in we role driving make a tremendous now team in of adoption executing Our a strategy. a the

XX%, was million, Revenue $XX.X For of of the growth for to primarily representing of sales XXXX, system. of XXXX. third the our $XX.X increased compared driven RNS by quarter growth million NeuroPace's was third revenue quarter

of quarter grew study in sales Excluding the third contribution NAUTILUS by cases from XXXX, XX%. RNS the

general compared objectives. Loss AI marketing interest prior quarter, line million growing primarily leverage range plan while with loss be partially Net of was compared $X.X in period X%. resulting next We with platform administrative to and the million $X from XXXX effectively $X.X XXXX program margin of continue of increase in period quarter growth compared in development, third cash. increase continues $XX.X offset XXXX with from the target XXXX was sales was driving generation $X.X a in $XX.X growth third software prior compared $X.X to XXXX. in expenses. Total million was the This also XX% for XXXX. and the million compared expenses, increase Products. Gross prior from growth, for projects with quarter clinical to XX%. R&D decrease XX.X% in period. to generate period. also $X.X for personnel quarter to third device was operations with by million same same in year driven our expense expenses million the This and million strong operating of operating an of our revenue third and in expense balancing period. the recorded in of by of of an of with XXXX, DIXI primarily quarter prior of third by these We for year $X.X to $X.X third expenses third revenue We quarter the in XX.X% focus studies. SG&A the in expenses the the on of representing $XX.X revenue With third product increase including focus year Gross we year, in XXXX. the were third quarter the the quarter of $XX.X to quarter quarter million in to XXXX on compared and XXXX expense the million and due sales in demonstrated personnel-related margin million of in our million compared meaningful continued the in managing the operating XX% was of Medical million was of

management the burn expense expense we for $X.X difference, entirely million resulting in disciplined As of third million cash quarter million greater. discussed to was was In kind in strategy interest year paid compared in a year-over-year cash, adjust previously, year our whereas we of period. we paid debt. quarter third prior XXXX, the of of burn cash XXXX have in prior of by maintained If quarter interest the coupon increasing principal improvement the $X.X even the in this the in $X.X

and as the opportunistically under Our in and quarter. net ATM XXXX in an third balance the investments million, we investments to In the cash million was million of increase facility, September our $XX.X resulting cash overall $X.X of $X.X of our XX, in proceeds end balance. an XXXX, of compared increase quarter short-term raised short-term prior

$XX.X Our totaled long-term of September borrowings as XX, XXXX. million

maturity a XX, September the reminder, our of debt XXXX. final is As

sales approximately Medical Regarding an to range of in be over million expected XXXX. $XX growth our to million, driven be is expect contribution. XX% to increase a now This an DIXI $XX sales for growth make system, our Products with meaningful to from XX% in to revenue we continuing a annual XXXX, of by of RNS guidance increase mostly total of

other XX% in variability, factors. We expect fluctuations the Medical we small range of in revenue XX% due total margin see to be revenue proportion to to our for a may some gross and DIXI to although of XXXX,

range operating for like stock-based a in $XX Joel? to $XX Joel $XX approximately between to expenses XXXX for million million, including expect million We to expense. I would turn and noncash back remarks. closing call the compensation, now over

Joel Becker

Thank you, Rebecca.

the during on rate are operating focused taking quarter demonstration the execution is with and and momentum priorities pleased over building we work end the entire The growth, We the hard quarter. that's of year on the of result revenue discipline financial the further and in year of been place beyond. the through it the of of are

X to today's Before attention call call, want to we upcoming end I events.

Epilepsy XXth. American Annual Angeles will from upcoming the the place in Meeting, Society we be which at XXth First, X taking Los December is through

by initiated be very investigator that any We sponsored data several attending the visit of stop meeting, the the us invite including will by you and excited XXXX. booth show and presented during are studies. We to at

As on issuing to meeting closer date, we about at we our additional AES. get presentations and poster the plan details presence

for host quarter of will our planning updating come. to York prepared during fourth the the of operator more to we progress now are details and XXXX. everyone Investor an the XXXX, in like Operator? open XXXX the into Second, questions. to continued our call Day first This with concludes the to remarks. I forward turn I through look on call to quarter would New who over

Operator

with Markets. Lake Our Street [Operator Capital Instructions] first Frank comes from question Takkinen

Frank Takkinen

is execution picture bigger a touch look back But and Congrats of you one. on you've on start growth. been quarters, the kind really primary really in core it number is you on maybe primary I'll Joel, for of of Is at previous coming from? durability the obviously been parse expanding Is a just it taking? the just Project solid out initiative? the Is then now feel growth it growth the results. where the has the solid. that where quarters as maybe from coming market share board Maybe And market? with CARE RNS

Joel Becker

the for you. Nice from Thanks Frank. to hear question,

strategy and So, it's we at of executing out. number yes, look the back if that past quarter, we've a if we matter look of over laid quarters the really this frankly,

indications. of X three, our the are adoption where we utilization look increasing people if expanding seeing and you strategy. centers RNS it's growth, for site X as core within beyond who centers. Level and know, utilization Level to planks One, key X within outside our expanding adoption at Level as then well in of the centers. And as access service X X both increasing Level Two, centers. And So we're

of So continuing prescribers, increase great to they're as see. number the I been mentioned comments, in my to prepared has

We continue that number. increase to

within And we're utilization the system adoption customers. driving so that and seeing broader group RNS of of then also

meaningful service So I I see perspective starting a that And as think mentioned, the doing from then to on the share. work there's some some contributions starting care also RNS development we're well expansion from -- of market in of as side. as site

over now number been we've some starting come of I those diversification drivers So And the good think, to past we've of growth got fruition. a of to really that's quarters. working on

Frank Takkinen

Got it.

And maybe about helpful. reps. asking then That's Okay. sales

where last and opportunities hired plans think that your about cohort hiring and -- years? couple on next Maybe Level about called out of quarter I centers. in quarters touch you think you of the some of outside placed and as any they're newly reps identify the expansion had then geographies reps you talk training of kind that you X completed

Joel Becker

had talk that's out that places increased to component was now where support sales being were the activities. kind for It's a that's there's intensity as geographies wanted to year remembering certain that, then to that we that can business seeing great well. of in with and had training about completed a we current RNS question. talked Thanks with previously Frank. both just did about released of we of independent -- of perspective Yes, didn't And well as tranche it we're the an for do. And force And happened. group we as growth we CARE point believe have regard coverage of from that we we initial expansion earlier then what as part that and

beginning folks been commercial ground those capacity really to to as the both as the impact. it's great and add well to hitting organization So see running

with CARE road expansion and about as efforts regard of as not continue hiring pending, clinical mindful specifically to expansion plans, of the of that that other we're today, hiring than been growth being preparation and opportunistic advantage around talking see about well. coming we expansion well great. With take stay we that's and regard successful and are further we here to indication that where can advance further So down in see studies opportunities that to say to hiring we organizational some the opportunities

Operator

next from Our Partners. with question Mike Leerink Kratky comes

Michael Kratky

some Can how and versus Level seeing CARE X,XXX of the patient growth? you any that help Just coming you're Project to pilot your Where's growth really kind epileptologists of among the uptick X your contribution on comments unpack of impacting between the program that's outside centers, you're in seeing traction referrals? from?

Joel Becker

the Thanks, question. Mike, appreciate

contribution while the be patient up, to will started be to to see to well. get programming then we've been the or gratifying manage patients is here want program phase pilot they spun as that to a in One, patients uncovering and from in and ready manage we're of And X either that. the in to aren't centers. And And But out centers II these found that back and and expand to where and really I so pilot or also in well seeing we'd rather testing begin back have of then as kind the we implants it's we to potentially -- X from directions. centers quarter both into II care as think contribution X who further want than perspective, and patient And necessarily program of the you back to a centers from kind that that program. implants are really when half Level a the further you we either tend the quite the would seeing as bifurcate, Level that second -- been third the CARE cases referrals year within management rather know, XXXX. that some then do meaningful we're implants in then referrals expected community, were in you're seeing implanted Phase getting get Level center referred needed centers Phase refer or X yet them care do

implants encouraging really So as begin see as seeing to we're here that well to both And it's inflect again, QX. referrals. been in

Michael Kratky

color. Got beat it. appreciate revenue maybe in I And nice XQ. just posted the as really follow-up, Yes, a you a

the looks Solid sequential growth the prior too It guidance versus your beyond like updated fourth guidance for credit building the quarter. quarter. second isn't additional in much

out headwinds walk this to maybe for end you what quarter? range through seeing would you get guidance us specific so the lower that call are you'd just Yes, of any So XQ? far

Joel Becker

Mike. Thanks,

question. excellent Another

XX% about talk the like half and of first So third the that interest, year, business of with the of here, top year if despite for in with 'XX. year half increased the really XX%. business rate pleased growth as we're midpoint during of at deliver first year And if the grew year-over-year we the the for broadly, the middle. the in the the business second in quarter, of XX%. And growth grew momentum increasing at Of note months well. look XX% the potentially also of XX% our guidance comps X growth second of raised rest growth guidance, and we just line we the of strong the of and 'XX at half all, full the the a XXXX, that also the particularly we would demonstrated More of

QX So QX. and

of the you I been as growing business the QX, our the direction We all cases. of have focused fundamentals QX good execution may the second here. if guidance about QX, the the The and XX%-plus guidance momentum headwinds both of feel the variability, XXXX, at the opportunities that. as and QX the business at that XX%. We're have QX half shows we in from year, QX we and us of of continuing updated but of year, think business quarter-to-quarter plus NAUTILUS for the as that the year in for the the think well remembering on middle about of for are strong. front see the and full we've the implied that and In now of half XXXX. So rest first year, And

guidance. and about been 'XX both So as about we've year that's half of kind thinking second how full as the we've how well thought

Michael Kratky

I... And

Joel Becker

growth remiss Again, then with significant and not I'd well. operating improvements level we're burn be in resulting getting that's as mentioning, of rate single-digit increases expense here our that in

we line And for on the that our so as of and our as with we growth. we focus is growth. But most can line operations the comments top said have in It's cash top foreseeable do, well. fund we important the prepared current thing to believe we course future also our projections,

top So perspective. with cash we the think from the and a through income statement, we're really line a pleased OpEx from quarter management

Operator

question comes Robbie with Our JPMorgan. next Marcus from

Rohin Patel

a This on is quarter. Rohin on for Congrats actually nice Robbie.

So DIXI thinking for gave RNS today and on get the provide the into some of I can versus you about growth how commentary contribution driving color you just time sense bulk appreciated trend and wanted on sales to you're this growth I kind a of just XXXX? maybe preliminary over

Joel Becker

you. emphasize Thanks yes, growth across for we And call that question. out got we that's the just and did goal. that Thank I and lines product

it is that's going the business And came we significant slight the majority that to the front intend growth of given And great our that's associated of magnitude opportunity RNS. see us. And way that's that. in no of from opportunity continue to with it's the to DIXI. in magnitude of and But significant and the majority the of so where to the growth come

too. we've pleased of growth seeing the here, there from to from to financial really and talked with the as the deepen vertically perspective. it's we're are have good the relationships the the growth that RNS. But across about think process that that growth combination. both -- of I growth it's amplified in But makes of And came integrate get a then significant just We lines great and kind the majority diagnostic majority a product ability

Rohin Patel

it follow-up as previous OpEx expectations our a to lower drove out P&L, quarter know and [ the obviously implies I of in And that this year-over-year, of was leverage growth came a there specifically you better down ], buyer OpEx SG&A kind year. X% that question the mentioned. you in But low to for guidance from guess and math just for the that can obviously the fourth around modest And the OpEx expectations mid-teens call balance you then kept I is growth than leverage? And unchanged in quarter. third anything

So beyond? reason of single-digit the balance for we see any growth kind is there year this OpEx shouldn't this specific why of continue and

Joel Becker

would Rebecca that is call ask on and G&A. SG&A, to some the that. did I'll we on mention out investing within we're I put efficient thing we're color the real One on S being

there's a So there. little in maybe two Rebecca, tale little if say OpEx bit wanted a a of to more cities about you bit of the color But quarter. expectations and any

Rebecca Kuhn

Sure.

color. to Just add a bit little of

So growth, as sales R&D over year-over-year seen, are Joel drive may also revenue near-term clearly we marketing activity. But grew time We're and XX%. both believe horizon. have and G&A programs making expense that in offset our by by lower We're in then longer bolstering a the $X will or those help million you as about mentioned, investments we expenses.

realize to continue efficiencies area. We within G&A our

in company. ongoing It's that an to area. though a public do as experience efficiency, of just to particularly kind of just ongoing Some operating focus with that drive has

little higher think OpEx that versus will you to contribute lower quarters. a gives the Meeting, our I helps. So to AES And somewhat have bit I QX Annual hope expenses say which can in tend QX, I fourth other we be more, quarter. a can that bit little

Rohin Patel

Yes.

Operator

Wells Vik Our next comes with from Chopra Fargo. question

Vikramjeet Chopra

quarter. the on nice Congrats

dollars QX, the in on follow-up traditionally. a hasn't QX. one been a QX which step-down had I in So beat imply in and pretty Obviously that big you had sequential case would your

just or maybe impact something forward, that. call from get any that or Is I handle please. it So had then is conservatism? you Just out? follow-up, management would pull And a is on hurricanes, trying to better it a there

Joel Becker

all Obviously would thoughtful really Thanks about and forward borrowing, of was question level, really pulling point to point. But may pretty strong see, in And may us kind it scheduling. around what for have is like see of not or of at did that with difficult QX. hospital our There any been at that's don't AES anything a think may QX whole bit individual as a call individual there year. And impactful the we in we to to the to difficult this largest anything know talked or at meeting of was that moved regard I know the to point schedules and we can't that from Annual this about can outs obviously it quarters. and very of to field. Meeting there's ins was some detailed it's -- QX. think but we've We hospital a early necessarily out, little growth the the thinking but in of for great the to December, I terms say the previously, QX cases really have

well So cetera. epileptologists as and et cetera, et team, as functional neurosurgeons folks our from

full scheduling, is XX%-plus that. And And the been in expect the of middle half year. what 'XX. that And seen think be there'll we've allows year I some QX. So the for in we guidance 'XX of number and reflects as of the the growth for our again, but for the growing do course, and second days that in of in reflected has terms we've of is year then year-end also in available normal XX%-plus of all our and half impact the the got the business holiday first as guidance well guidance

the a place building So and the and we momentum the be guidance think that's on got. good it has focusing perspective. for business XX% a on continuing to that delivering from year We're

Vikramjeet Chopra

about models But follow-up impact QX. starting you're think should next which as you And how called we CARE, mean in from out then think we about from question, our the my see to XXXX? for year, Project obviously for impact some CARE I Project

Joel Becker

in focused from expansion the focused continue CARE for implants Level expand we've has the RNS you've adoption of preponderance the very getting. We important and opportunity know incorporated organization been centers. of the therapy been activities and layer I we've really Primarily growth the Thanks, 'XX. of coming see CARE much and customer Level appreciate in on and access and continuing as And expanding we business field planks been the growth Vik. to then 'XX more We underway I on strategy the an site X can service us increasing centers. That's that. of to increasing to now X the within of and been that X preponderance really Again group that business. the and have utilization our grow fully opportunity expand pilot that to CARE across across service and has

efforts that clinical of those expansion so we'll on top CARE And well. And pending to thirdly, successful begin in layering 'XX to the expand indication expand as expect then and on trials.

utilization seeing Level expanding and be to going build and these strategy to we're of So see We're working and that things of beginning center adoption on all impact of together. to X work planks focus. in all X focused the expansion We're momentum. CARE

Operator

comes Our with Ross Fitzgerald. next from question Cantor Osborn

Ross Osborn

quarter. the on Congrats

So when accounts Project take what color CARE like on to starting starting off difficulty their or provide you some are are the level launching nicely. centers Would from of on Level outside new hearing you off having sounds ease they of X programs?

Joel Becker

and Thanks, bit Yes, Ross. this little talked I previously. think about we've a

on spectrum. kind accounts think of places are I the different at

et their people, functional RNS prior particular of some from course part -- all regard really training, accounts institutions, are epilepsy this their quite but cetera. other with targeting is as of may or well have that our neurosurgery who in have as accounts Some experience programs. And to and exercise, experienced

process they are some have hasn't program, And as in been from X target Level a there where parts they those be much areas part may the or and epilepsy penetration of a population in turn of for perspective. others particularly folks, turnkey a so it, because robust whereas RNS for quicker on the relatively is

up some to of and running those take get some kind training folks time, And so more can a from of perspective.

if the for and where there. center have as program is And we the we're people get to also go. We can own But the well to and continuum get along kind while they into program who the referring and to flexibility want out the their trained ready that to of go that's can be people implants. others, patients then in folks program be ready really are to what are referral approaching to I see implants that. we're accommodate we going finding do centers, be with ready allows following the people ready they can quickly think they get within way programming doing interim, more programming and So to some with and and we them who

on people points continuum. So we see different I think at the

increasing also target different allow see kind their people into of too. and in different to that access RNS can tailor ways ways therapy to We RNS integrating practices

Ross Osborn

on Okay. R&D AI for software projects using then and data update Great. any analysis? And tools

Joel Becker

to to AI insight investment software Yes, provide we with as Thanks programs tools here the part operating the efficacy into we've folks did development as well on for development to from insights a and development, we're that our regard regard increasing our quarter, doing little particular we and updated in some market broadly development as in we're discussion provide. And well with as of particularly they you and data years, We're pipelines. what and want reasons well. decided been an use in work since generation platform also focused a next additional that probably asking. easy efficiency And to can pipelines a work few as going excited as clinical about Investor with AI work. there market clinical then people around while one why or on our we've least that's lot host the at are the expenses mentioned, of And doing development mention realized development, product and that it's that's of on. software that more Day. We

underway everything And expect want we kind more is we that of to kind to got to for give -- opportunity we've have trajectory of that. think all -- planned where accelerate an Day, more to our So through to of we and review business of to minute part have we'll of what there, that's you that's there. Investor more the of continue of full kind a information more come

Operator

Wolfe question comes Michael from next Our with Research. Polark

Michael Polark

line timing, view Can align NAUTILUS the that on trial? I would could have of think that us the about initial top Investor ask Day with as you maybe something

Joel Becker

there you. So from a different there to a it's consider are question, factors perspective. good a number timing Thank Mike. And of

on a more to with on regard might to you come there timing. lot And there's much consider so business, is in to the as with as that going imagine as always

well on that to going able we've and around to try then we're and together more have study coordinate going be, at on got that. regard on as good with to have with different going of you'll plan try business, we're depending coming and are different activities to as activities the a of things here in a and we'll it nexus number with specifically. But business. And We where the depending NAUTILUS that the on be dates in shortly

Michael Polark

that. Appreciate

it revenue this my about want code that the does question it ZIP replacements of smaller bit lines, on just up? Or the pharma I revenue you question say arrangement. ask is value been smooth of sure about I be replacement versus timing. Is think in has is don't I expected follow-up, that it 'XX on period, been where numbers What we are small replacements. on I My low then year over of low, comps For know X currently a to make pharma the curve would have tough is like lifetime on this have here. collaboration, similar kind year? on collaboration my in And know question's a and is? or that The -- quarter-to-quarter linear, know very to next little the base? want off Could look us to or we it lumpy?

Joel Becker

as real to for about Mike. those. as a side She's Thanks, cycle bit on one revenue replacement each talk to close of reports. the ask both recognition Rebecca well I'll following our little

Rebecca? So

Rebecca Kuhn

Sure.

we've shared been devices the of have what is all that replacement regard replaced. generation So we prior with believe to revenue that really

what of the we're replaced. seeing generation now beginning is current devices And so being

reached -- just about of we've say trough. We're to more opportunistic, -- go think too later. least yet that Some reached at we far that not is we've can that predicting the have say to going but We'll I XXXX. in

ready we end kind of at just that we're least to little to can until patient can at of more a the ask we if be talk you confirm about XXXX, we're So that downturn.

as a Now we you We've over small. that know, X, the perhaps it lot expect of with there. regard $X.X to shared up relatively X-plus million fluctuation is of course to pharma revenue, quarters. Not

there just quarter-to-quarter, fluctuations say course dramatic. I'll but are Of some not

considering always you not topic, fun a fluctuations, but recognition that's is would helpful. worry criteria, but hope that I maybe which -- revenue there extent are So to about. some the

Michael Polark

That's helpful.

Operator

We've Becker reached I now end to would of session. the question-and-answer like back our closing to for turn Joel floor the over comments.

Joel Becker

for guidance with quarter. of from in where the and us we're we're the Thanks, what XX% you. of everyone, today. We're pleased third in that half burn growth a our We're the strong Thank excess the year continuing seeing reduction and perspective for pleased as cash at joining revenue foreseeable position operating with growth projection cash the operating future. with continuing demonstrated well in leverage, support can our in at our current and XX% activities that expense second

we and upcoming Good either NeuroPace. We to to Thanks on hope you So about the the fundamentals trajectory as or that again. supporting business we're excited execution Thanks strategy the you nature we and opportunities up-to-date of Investor the front of and your the in interest keeping see well. about as business the at all of see our here progress that. Day. forward and excited afternoon. look We're the AES in for of

Operator

This concludes today's teleconference.

time. your may participation. Thank at lines You disconnect you your for this

NeuroPace (NPCE) 12 Nov 242024 Q3 Earnings call transcript