electroCore (ECOR) Q2 2024 earnings summary

Executive summary

• Achieved seventh consecutive record quarterly net sales of $6.1 million in Q2 2024, up 73% year-over-year, driven by growth in VA/DoD and Truvaga products.

• Net loss narrowed to $2.7 million, a 46% improvement over Q2 2023, reflecting higher sales and improved gross margin.

• Gross margin reached 86%, up from 84% in Q2 2023.

• Raised $9 million in Q2 2024 via registered direct offering and private placements, with majority from insiders.

• Product portfolio includes prescription gammaCore for headaches, Truvaga for wellness, and TAC-STIM for human performance.

Financial highlights

• Net sales for Q2 2024 were $6.1 million, up from $3.6 million in Q2 2023; six-month net sales reached $11.6 million.

• Gross profit increased by $2.3 million year-over-year; gross margin improved to 86%.

• GAAP net loss was $2.7 million (38 cents/share), improved from $4.9 million ($1.03/share) in Q2 2023.

• Adjusted EBITDA net loss was $1.9 million, compared to $4.5 million in Q2 2023.

• Cash, equivalents, and securities totaled $14.5 million at June 30, 2024, up from $10.6 million at year-end 2023.

Outlook and guidance

• Expect TAC-STIM revenues to increase in the second half of 2024, with bulk purchases from military units.

• Joerns managed care relationship anticipated to drive revenue growth in H2 2024 and beyond.

• Confident in achieving positive cash flow early next year, with declining cash use as revenues rise.

• UK NHS business expected to grow at mid-single digits; other ex-US geographies seen as 2025 opportunities.

• Management expects the majority of 2024 revenue to continue coming from the VA/DoD channel.