Neuronetics, Inc. Q1 FY2025 earnings call

Greenbrook Integration - Three key initiatives: 1. Optimization of regional account managers (RAMs) with automated patient transfer process improving conversion rates. 2. Rollout of SPRAVATO: 75 of 95 Greenbrook clinics offer SPRAVATO, with 42 using Buy & Bill model generating 3x revenue vs administer and observe. 3. Standardization of operations: Patient coordinators in majority of clinics, revenue cycle management improvements. - Greenbrook clinic revenue up 41% y-o-y, NeuroStar TMS revenue up 8% y-o-y. - Combined company cost synergy realization on track, with expected synergies exceeding $23 million. ### BMP Program - Over 385 active BMP sites, 110 in progress. BMP sites treat 3x more patients per quarter than non-BMP sites, address patient needs 2x faster. - Launched NeuroStar Connection Network to build awareness of NeuroStar TMS among primary care physicians. ### Marketing Initiatives - Successful targeted TV campaign in Tampa, launched six-week TV campaign in Baltimore. - Co-op marketing program showed 20% uplift in utilization and 18% uplift in motor thresholds. - Adolescent treatment capability growing, with number of adolescent patients up 38% y-o-y, insurance coverage expanding.

Total revenue for the first quarter of 2025 was $32 million, an 84% increase over Q1 2024. NeuroStar system revenue was $2.8 million with 31 systems shipped. U.S. treatment session revenue was $9.6 million. U.S. Clinic revenue (Greenbrook) was $18.7 million. Greenbrook clinic revenue in Q1 2025 was approximately $196,000, a 41% increase from Q1 2024. NeuroStar TMS revenue increased 8% year-over-year due to Greenbrook integration efforts. Revenue contribution: NeuroStar system revenue was a smaller portion, while Greenbrook clinic revenue was a significant contributor.

• Second quarter revenue expected $36 million to $38 million. - Full year revenue guidance narrowed to $149 million to $155 million (previously $145 million to $155 million). - Full year gross margin expected to be approximately 55%. - Full year operating expenses expected $90 million to $98 million. - Path to cash flow positivity in third quarter of 2025.

Q: Margaret Kaczor Andrew asked about BMP sites, including growth, funnel dynamics, and utilization trends.

A: Keith Sullivan responded that there was a natural dip due to new accounts entering the program, with 113 sites working to join, and utilization expected to grow with marketing efforts and network connections.

Q: William Plovanic inquired about OpEx, guidance, and normalized OpEx spend.

A: Steve Furlong said OpEx in Q1 was $27 million, guiding $90 million to $98 million annually, and Q2 OpEx would be in the $23 million to $24 million range.

Q: Adam Maeder asked about revenue guidance, Greenbrook revenue mix, and gross margin.

A: Steve Furlong stated standalone revenue guidance remains $65 million to $70 million for Neuronetics and $80 million to $85 million for Greenbrook, TMS and SPRAVATO ratios changing, and gross margin expected to improve to ~55% in subsequent quarters.

Q: Danny Stauder asked about SPRAVATO buy and bill transition and cash flow.

A: Steve Furlong said there were higher SPRAVATO Buy & Bill expenses in Q1, working on increasing credit line to manage cash burn, with distributors having 120-day payment terms.