Neuronetics (STIM) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Company overview and market opportunity

• FDA-cleared transcranial magnetic stimulation device for depression, with 6.6 million treatments delivered to 182,000 patients.

• Devices are used in nearly 1,200 centers, with about 2,300 systems in the field and reimbursement from all major payers.

• Market opportunity remains large, with 4.4 million patients who have failed four drugs, and awareness of TMS has doubled to 18% in four years.

• The Better Me Provider program has improved patient response times and increased business for participating practices by 61%.

• Recent FDA clearance for adolescent treatment (ages 15-21) positions the company as a first-line therapy for this group.

Financial performance and guidance

• Q3 revenue projected at $18.5–$19.5 million, with full-year guidance of $78–$80 million; third consecutive year of revenue growth and OpEx reduction.

• Acquisition of Greenbrook TMS expected to add $74 million in revenue, with combined 2023 revenues projected at $143 million and $50 million in debt.

• Cost synergies of $15 million identified, in addition to $23 million in cost reductions already achieved by Greenbrook.

• New debt facility with Perceptive Advisors provides financial flexibility, with a $140 million debt conversion to stock at close.

• Targeting cash flow breakeven in 2025, supported by improved cap structure and operational discipline.

Strategic rationale and integration benefits

• Acquisition of Greenbrook TMS expands scale to 350 centers in 49 states, enhancing payer negotiations and reimbursement rates.

• Consistent training and branding across 120 new centers expected to drive patient growth and franchise effect.

• Access to Greenbrook’s call center and contracts improves practice economics and reduces reimbursement wait times.

• Revenue synergies expected from expanded med management and Spravato offerings, and unified branding.

• Marketing OpEx to be reduced from $21 million to $15 million without impacting customer economics.