Neuronetics, Inc. Q4 FY2024 earnings call

Key Achievements in 2024

• Transformed into a vertically integrated mental health care provider via acquisition of Greenbrook TMS.
• Expanded Better Me Provider Program to over 350 sites with strong demand for participation.
• Secured FDA clearance for NeuroStar system to treat adolescent patients, expanding the addressable market.
• Refinanced debt facility for financial flexibility and completed a $18.9 million capital raise.

BMP Program Highlights

• Piloted in 2023 and first half of 2024, then rolled out nationwide in July 2024. Sites in the program saw 36% increase in patient volume on average and 3 times more patients per quarter compared to non-participating sites.

Greenbrook Integration

• Combined with Neuronetics to create a leading TMS supplier and provider. Captured over 90% of $22 million annualized cost synergies by end of 2024. Plan to implement BMP standards across Greenbrook sites as growth drivers for 2025.

FDA Clearance Impact

• NeuroStar's FDA clearance for adolescent depression led to 10% growth in new patient starts in 2024 and an 18% increase in customer sites treating adolescent patients, with more than half of the customer base now involved.

Total revenue for the fourth quarter was $22.5 million, an increase of 11% compared to the fourth quarter of 2023. NeuroStar system revenue was $3.8 million with 46 systems shipped. US treatment session revenue was $12.9 million, and US clinic revenue (representing Greenbrook revenue) was $4.4 million. Revenue contribution: NeuroStar system contributed a portion, US treatment session contributed another, and Greenbrook clinic revenue contributed the remaining.

Q1 2025 Guidance

• Expect revenue of $28 million to $30 million.

Full Year 2025 Guidance

• Full year revenue expected in the range of $145 million to $155 million.
• Gross margin expected to be approximately 55% due to inclusion of Greenbrook clinic business.
• Total operating expenses expected in the range of $90 million to $98 million.
• Disruptions from Change Healthcare in 2024 are largely behind us with no material impact on 2025 revenue.

Q: William Plovanic asked about Greenbrook implementation progress and guidance breakdown.

A: Keith Sullivan responded that trainings for RAMs, technicians, and providers have been conducted and changes will continue throughout the year. Steve Furlong stated the revenue guidance range of $145M - $155M is broken down into $65M - $70M from stand - alone Neuronetics and $80M - $85M from Greenbrook TMS, and OpEx investments are tied to growth programs like BMP and Greenbrook initiatives.

Q: Max Kruszeski asked about Greenbrook clinic productivity and SPRAVATO.

A: Keith Sullivan said Greenbrook's 95 clinics are the most profitable and plan to stay at that number, and Steve Furlong mentioned 63 Greenbrook clinics offer SPRAVATO with 35 capable of buy - and - bill.

Q: Adam Maeder asked about revenue sequencing and SPRAVATO in Greenbrook.

A: Steve Furlong explained Q1 revenue seasonality and that Greenbrook's revenue growth for 2025 is largely targeted on SPRAVATO, with 75% of growth attributed to SPRAVATO.

Q: Danny Stauder asked about SPRAVATO buy - and - bill CapEx and productivity.

A: Steve Furlong said CapEx for SPRAVATO rollout is not significant, involving room, video/camera systems, and beds, and productivity for Greenbrook is expected to increase from an average of 4 patients per day to levels of Better Me Program partners like 6 - 8 patients per day through efficiencies in 2025 and beyond.