Neuronetics Provides Business Update and Issues 2025 Guidance

   -- Preliminary unaudited fourth quarter and full year revenue 2024 was $22.1 
      and $74.5, respectively 
 
   -- Closed acquisition of Greenbrook TMS effective as of December 9, 2024 
 
   -- Expects full year 2025 pro forma year-over-year revenue growth of 12% - 
      19% 
 
   -- Expects to realize over $22 million in annualized cost synergies 
 
   -- Expects to achieve cash flow breakeven in the third quarter of 2025 

MALVERN, Pa., Jan. 13, 2025 (GLOBE NEWSWIRE) -- Neuronetics, Inc. $(STIM)$ (the "Company") today announced preliminary fourth quarter and full year 2024 revenue and issued 2025 financial guidance.

Preliminary Fourth Quarter and Full Year 2024 Results

Neuronetics' preliminary unaudited fourth quarter and full year revenue 2024 was $22.1 and $74.5, respectively. These results reflect Neuronetics' standalone performance through December 10, 2024, and combined performance with Greenbrook TMS for the remainder of the year. In the quarter, the Company shipped 50 systems.

Preliminary Proforma Fourth Quarter and Full Year 2024 Results

This 4Q 2024 presentation assumes the acquisition between Greenbrook and Neuronetics occurred on October 1, 2024 and includes the following adjustments: The addition of assumed sales to Greenbrook through December 31, 2024 following the acquisition, the elimination of all Greenbrook sales and assumed sales during the fourth quarter and the closure of all non-performing Greenbrook clinics on October 1, 2024.

This FY 2024 presentation assumes the acquisition between Greenbrook and Neuronetics occurred on January 1, 2024 and includes the following adjustments: The addition of assumed sales to Greenbrook through December 31, 2024 following the acquisition, the elimination of all Greenbrook sales and assumed sales for the year ended December 31, 2024 and the closure of all non-performing Greenbrook clinics on January 1, 2024.

 
             4Q 2024                             FY 2024 
          (in millions)                       (in millions) 
---------------------------------  ----------------------------------- 
  Neuronetics Adjusted                  Neuronetics Adjusted 
   Gross Pro Forma                           Gross Pro Forma 
   Revenue                 $ 19.5                    Revenue  $ 71.9 
  Intercompany                             Less Intercompany 
   Eliminations            $(2.4)               Eliminations  $(9.9) 
-------------------------   -----  -------------------------   ----- 
  Neuronetics Adjusted                  Neuronetics Adjusted 
  Net Pro Forma Revenue    $ 17.1      Net Pro Forma Revenue  $ 62.0 
 
  Preliminary Greenbrook              Preliminary Greenbrook 
   Gross Revenue           $ 18.5              Gross Revenue  $ 76.0 
  Impact of Greenbrook                  Impact of Greenbrook 
   Clinic Closures         $(0.9)            Clinic Closures  $(8.2) 
-------------------------   -----  -------------------------   ----- 
  Greenbrook Net Pro                      Greenbrook Net Pro 
   Forma Revenue           $ 17.6              Forma Revenue  $ 67.8 
 
  Consolidated Adjusted    $ 34.7    Consolidated Adjusted    $129.8 
   Pro Forma Revenue                 Pro Forma Revenue 
-------------------------   -----  -------------------------   ----- 
 

See the accompanying financial table that reconciles Adjusted Pro Forma Revenue, which is a non-GAAP financial measure, to revenue.

"2024 was a highly transformative year for Neuronetics. With the closing of our acquisition of Greenbrook TMS, we have brought together two of the nation's leading mental health device companies. This new organization can leverage its combined scale and expertise to deliver faster revenue growth and a significantly improved cost structure, accelerating our path to profitability," said Keith J. Sullivan, President and Chief Executive Officer of Neuronetics. "We have worked to rapidly integrate Greenbrook into our organization, and are actively executing a number of key growth initiatives aimed at optimizing the performance of both Greenbrook and NeuroStar customer sites. Concurrently, we have identified over $22 million of annual cost synergies, over 90% of which have already been fully implemented."

"We are incredibly excited about the future at Neuronetics, and will continue to take advantage of the opportunities that exist to expand our leadership positions across both sides of our business to expand patient access to innovative mental health treatments and drive value for shareholders. As a result, we expect to drive double-digit revenue growth for the full year 2025 and achieve cash flow breakeven during the third quarter."

Business Outlook

For fiscal year 2025, Neuronetics expects:

   -- Total Revenue: $145.0 million to $155.0 million (+12% to 19% on a 
      proforma basis) 
 
   -- Gross margin: approximately 55% 
 
   -- Operating expenses: $90.0 million to $98.0 million 

The Company anticipates reduced cash burn in the first half of 2025, with plans to be cash flow positive beginning in the third quarter. The Company will provide additional guidance during its fourth quarter earnings call.

Key 2024 Highlights

Neuronetics and Greenbrook TMS Transaction Closed

Effective as of December 9, 2024, Neuronetics successfully completed its acquisition of Greenbrook TMS Inc., creating a transformative combination in mental health therapy delivery. The transaction united Neuronetics' NeuroStar technology platform with Greenbrook's network of over 95 treatment clinics across the United States. The integration planning teams have already made significant progress in implementing strategic initiatives aimed at driving profitable growth and recognizing operational cost synergies.

Better Me Provider Program Launched, Enhancing Patient Care and Accessibility

In July 2024, the Company announced the national launch of its Better Me Provider (BMP) program, setting new industry standards for patient care and responsiveness in mental health treatment. The program, developed in collaboration with TMS medical experts, has shown strong results. Participating practices demonstrated up to 3 times faster 24-hour follow-ups and a 2.5x reduction in time from initial patient interest to motor threshold determination. With over 350 active sites and over 125 more committed to joining, the BMP program represents a major step in Neuronetics' strategy to improve accessibility of NeuroStar TMS Therapy for millions suffering from MDD, OCD, and anxious depression.

FDA Clearance as a First-Line Add-On Treatment for Adolescents with Depression

In March 2024, Neuronetics received U.S. Food and Drug Administration ("FDA") clearance for its NeuroStar Advanced Therapy as the first and only transcranial magnetic stimulation ("TMS") treatment cleared as a first line, adjunct for major depressive disorder ("MDD") in adolescents aged 15-21. The FDA clearance was supported by real-world data from the Company's TrakStar database showing 78% of adolescent patients treated with NeuroStar achieved clinically meaningful improvement in their depression severity. This clearance opened up a new treatment option for the large adolescent MDD patient population that had extremely limited FDA-approved treatment options available previously. With the addition of the adolescent indication, Neuronetics' total addressable market for MDD increased by approximately 35% to 29.3 million patients.

About Neuronetics

Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is delivering more treatment options to patients and physicians by offering exceptional in-office treatments that produce extraordinary results. NeuroStar Advanced Therapy is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication has not helped. In addition to selling the NeuroStar Advanced Therapy System and associated treatment sessions to customers, Neuronetics operates Greenbrook TMS Inc. (Greenbrook) treatment centers across the United States, offering NeuroStar Advanced Therapy for the treatment of MDD and other mental health disorders. NeuroStar Advanced Therapy is the leading TMS treatment for MDD in adults, with more than 6.9 million treatments delivered, and is backed by the largest clinical data set of any TMS treatment system for depression, including the world's largest depression outcomes registry. Greenbrook treatment centers also offer SPRAVATO$(R)$ to treat adults with treatment-resistant depression or depressive symptoms in adults with MDD with acute suicidal ideation or behavior. Greenbrook has provided more than 1.68 million treatments to over 51,000 patients struggling with depression.

The NeuroStar Advanced Therapy System is cleared by the U.S. Food and Drug Administration for adults with MDD, as an adjunct for adults with obsessive-compulsive disorder, to decrease anxiety symptoms in adult patients with MDD that may exhibit comorbid anxiety symptoms (anxious depression), and as a first line adjunct for the treatment of MDD in adolescent patients aged 15-21. For safety information and indications for use, visit NeuroStar.com.

"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995:

(MORE TO FOLLOW) Dow Jones Newswires

January 13, 2025 08:00 ET (13:00 GMT)