Neuronetics Inc (STIM) 2024 Q3 法說會逐字稿

Good day.

再會。

And thank you for standing by.

感謝您的支持。

Good day, and thank you for standing by.

您好，感謝您的支持。

Welcome to the Neuronetics third quarter 2024 financial And operating results conference call.

歡迎參加 Neuronetics 2024 年第三季財務與經營業績電話會議。

(Operator Instructions)

（操作員指令）

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄音。

I would now like to hand the conference over to your first speaker today, Mark Klausner.

現在，我想將會議交給今天的第一位演講者馬克·克勞斯納。

Please go ahead.

請繼續。

Good morning, and thank you for joining us for the Neuronetics third quarter 2024 conference call.

早上好，感謝您參加 Neuronetics 2024 年第三季電話會議。

Joining me on today's call are Neuronetics' President and Chief Executive Officer, Keith Sullivan; and Chief Financial Officer, Steve Furlong.

參加今天電話會議的還有 Neuronetics 總裁兼執行長 Keith Sullivan；和財務長史蒂夫‧弗隆 (Steve Furlong)。

Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our business, strategy, financial and revenue guidance, the Greenbrook acquisition, and other operational issues and metrics.

在我們開始之前，我想提醒聽眾，管理階層在電話會議中討論的某些資訊將包括《1995 年私人證券訴訟改革法》安全港條款所涵蓋的前瞻性聲明，包括與我們的業務、策略相關的聲明、財務和收入指導、Greenbrook 收購以及其他營運問題和指標。

Actual results can differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business.

由於公司業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述明確或暗示的結果有重大差異。

For a discussion of risks and uncertainties associated with Neuronetics business, I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-Q, which was filed earlier today.

有關 Neuronetics 業務的風險和不確定性的討論，我建議您查看該公司向美國證券交易委員會提交的文件，包括該公司今天早些時候提交的 10-Q 表年度報告。

The company disclaims any obligation to update any forward-looking statements made during the course of this call, except as required by law.

除法律要求外，本公司不承擔更新本次電話會議過程中所作任何前瞻性陳述的義務。

During the call, we'll also discuss certain information on a non-GAAP basis, including EBITDA.

在電話會議中，我們還將討論非 GAAP 基礎上的某些信息，包括 EBITDA。

Management believes that non-GAAP financial information taken in conjunction with US GAAP financial measures provide useful information for both management and investors by excluding certain noncash and other expenses that are not indicative of trends in our operating results.

管理層認為，非公認會計準則財務資訊與美國公認會計準則財務指標相結合，透過排除某些不反映我們經營績效趨勢的非現金和其他費用，為管理層和投資者提供了有用的資訊。

Management uses non-GAAP financial measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions.

管理階層使用非公認會計準則財務指標來比較我們相對於預測和策略計畫的業績，以便與競爭對手進行外部績效對比並做出某些薪酬決策。

Reconciliations between US GAAP and non-GAAP results are presented in the tables accompanying our press release, which can be viewed on our website.

美國公認會計準則和非公認會計準則結果之間的對帳表列於我們的新聞稿中，可在我們的網站上查看。

With that, it's my pleasure to turn the call over to Neuronetics' President and Chief Executive Officer, Keith Sullivan.

現在，我很高興將電話轉給 Neuronetics 總裁兼執行長 Keith Sullivan。

Mark, thanks for the introduction.

馬克，謝謝你的介紹。

Good morning, everyone, and thank you for joining us today.

大家早安，感謝大家今天的參與。

I'll begin by providing an overview of our recent performance, then discuss the status of the Greenbrook acquisition.

我將首先概述我們最近的表現，然後討論 Greenbrook 收購的情況。

Steve will then review our financial results, and I'll conclude with some thoughts on the balance of 2024 before turning to Q&A.

然後，史蒂夫將回顧我們的財務結果，然後我將對 2024 年的平衡發表一些想法，然後進入問答環節。

Let me start with our performance in the quarter.

讓我先介紹一下我們本季的表現。

Total revenue was $18.5 million, an increase of 4% over the third quarter of 2023.

總營收為 1,850 萬美元，比 2023 年第三季成長 4%。

NeuroStar system revenue was $4.1 million.

NeuroStar 系統營收為 410 萬美元。

During the quarter, we shipped 49 systems.

本季度，我們共出貨了 49 套系統。

US treatment session revenue was $13.3 million, which represents a 2% increase compared to the third quarter of 2023.

美國治療療程收入為 1,330 萬美元，與 2023 年第三季相比成長 2%。

I'd like to turn to our acquisition of Greenbrook TMS.

我想談談我們對 Greenbrook TMS 的收購。

Last week, our shareholders approved the transaction, which we expect to close during the fourth quarter.

上週，我們的股東批准了這項交易，我們預計交易將在第四季度完成。

We are incredibly excited about what this means for our organization, the employees of the combined company, our patients and customers as well as our shareholders.

我們非常興奮，這對我們的組織、合併後公司的員工、我們的患者和客戶以及我們的股東意味著什麼。

Today, we are laser-focused on driving the long-term success of the combined company.

今天，我們全心全意致力於推動合併後公司的長期成功。

As we work together to integrate and optimize the new Neuronetics, we have a comprehensive proactive approach that focuses on three key areas to increase shareholder value: operating expense reduction; operational efficiencies; and profitable revenue growth.

在我們共同努力整合和優化新的 Neuronetics 時，我們採取了全面主動的方法，重點關註三個關鍵領域來提高股東價值：降低營運費用；營運效率；以及獲利性收入成長。

Starting with OpEx control.

從 OpEx 控制開始。

When we announced the transaction, we estimated synergies to be approximately $15 million.

當我們宣布交易時，我們估計協同效應約為 1500 萬美元。

As we've dug deeper into both our and Greenbrook's operation, we have identified an incremental $5 million, bringing the new cost synergy target to approximately $20 million.

隨著我們對我們和 Greenbrook 的營運的深入了解，我們確定了增量 500 萬美元，使新的成本協同目標達到約 2000 萬美元。

We have taken definitive action to take costs out that will benefit both businesses.

我們已採取明確措施來削減成本，這對兩家企業都有好處。

On November 8, we implemented a strategic reorganization of Neuronetics, streamlining departments to support our combined business model and reducing costs of programs that no longer align with our go-forward strategy.

11 月 8 日，我們對 Neuronetics 實施了策略重組，精簡部門以支援我們的合併業務模式，並降低不再符合我們未來策略的專案成本。

This reorganization alone will generate approximately $3.5 million in annualized expense reduction with the remaining $16.5 million in annualized synergies to be realized throughout 2024 and 2025.

僅此一項重組就能帶來約 350 萬美元的年度費用削減，剩餘的 1,650 萬美元的年度協同效應將在 2024 年和 2025 年實現。

These synergies include a $6 million reduction in combined marketing spend, along with additional savings from consolidating back-office functions.

這些綜效包括減少 600 萬美元的綜合行銷支出，以及透過整合後台職能而節省的額外開支。

Turning to the operational efficiencies.

轉向營運效率。

Our operational efficiency initiatives are centered on optimizing our commercial organization, including our commercial team structure, the way we target customers and patients, and how we train our employees.

我們的營運效率措施集中在優化我們的商業組織，包括我們的商業團隊結構、我們針對客戶和患者的方式以及我們如何培訓我們的員工。

We are beginning with a reinvigorated focus on driving improved productivity across both Greenbrook sites and our existing customers.

我們首先重新致力於提高 Greenbrook 工廠和現有客戶的生產力。

To support this, we are in the process of introducing a more efficient data-driven approach to help increase patient flow into Greenbrook and our other NeuroStar sites.

為了支持這一點，我們正在引入一種更有效的數據驅動方法，以幫助增加進入 Greenbrook 和我們其他 NeuroStar 站點的患者流量。

We have done an analysis of physician prescription trends in our key markets, which has allowed us to identify psychiatrists and other providers who are currently treating patients for depression or other mental health disorders within a 10-mile radius of a Greenbrook or a NeuroStar site.

我們對主要市場的醫生處方趨勢進行了分析，這使我們能夠識別出 Greenbrook 或 NeuroStar 站點 10 英里範圍內目前正在治療抑鬱症或其他精神疾病患者的精神科醫生和其他醫療服務提供者。

Using this information, field personnel will be able for the first time to actively target providers who have patients who qualify for TMS or SPRAVATO and will then be able to help institute a process for rapidly directing those patients who are seeking an alternative to antidepressants into a Greenbrook or a NeuroStar site.

利用這些信息，現場人員將首次能夠積極地鎖定那些擁有符合 TMS 或 SPRAVATO 治療條件的患者的醫療服務提供者，然後能夠幫助制定流程，快速引導那些尋求抗抑鬱藥替代品的患者進入Greenbrook 或NeuroStar 站點。

We expect that this will allow us to be significantly more efficient at driving patient volume versus traditional broad-based marketing efforts.

我們預計，與傳統的廣泛行銷活動相比，這將使我們在推動患者數量方面更加高效。

Another benefit of this data is that it allows us to more effectively allocate resources to territories and to enhance our efforts to reach the greatest number of patients and rationalize coverage areas.

這些數據的另一個好處是，它使我們能夠更有效地將資源分配到各個地區，並加強惠及最多的患者，並合理化覆蓋區域。

However, simply identifying potential patient referrals isn't enough to improve site productivity.

然而，僅僅識別潛在的患者轉診還不足以提高站點的生產力。

We need to put best practices in place to allow our field personnel to educate providers on connecting patients with a Greenbrook or other NeuroStar site.

我們需要實施最佳實踐，以便我們的現場人員能夠教育提供者將患者與 Greenbrook 或其他 NeuroStar 站點聯繫起來。

What we know from our study of patient experience is there is a significant drop-off in patients continuing into TMS therapy if they are not contacted almost immediately after expressing interest in the treatment.

我們從患者體驗研究中了解到，如果患者在表達對治療的興趣後沒有立即得到聯繫，繼續接受 TMS 治療的患者數量將顯著減少。

We are in the process of developing a comprehensive training program for our field personnel, which ensures that providers who are looking for an alternative to traditional pharmaceutical options for their patients are fully educated on our offerings and how they fit with a patient's care continuum.

我們正在為現場人員制定全面的培訓計劃，確保那些為患者尋找傳統藥物替代品的供應商能夠充分了解我們的產品以及它們如何適應患者的護理過程。

Under this new process, patients who qualify for one of those services will be immediately contacted by one of our providers to begin the process of exploring the next step in their treatment paradigm.

根據這項新流程，符合資格的患者將立即接到我們的一位服務提供者的聯繫，開始探索其治療方案的下一步。

To complement this, we are also developing a training protocol for our field personnel related to managing the patient care continuum.

為了補充這一點，我們還正在為我們的現場人員制定與管理患者護理過程相關的培訓協議。

This ensures that Greenbrook sites as well as our other NeuroStar customers are well-versed on how to help patients move on to the next step in their treatment.

這確保了 Greenbrook 站點以及我們的其他 NeuroStar 客戶都了解如何幫助患者進入治療的下一步。

This includes the progression from traditional medical therapy to the most appropriate next therapy, whether it's TMS or SPRAVATO and if they do not achieve the desired result, continuing on to the therapy they have not yet tried.

這包括從傳統醫學療法進展到最合適的下一種療法，無論是 TMS 還是 SPRAVATO，如果沒有達到預期的效果，則繼續進行尚未嘗試過的療法。

While we have been working with Greenbrook over the last few quarters to operationalize key tenets of our Better Me Provider Program, we are scheduling comprehensive training in November at NeuroStar University to ensure consistent implementation of our new commercial structure and priorities.

過去幾季我們一直在與 Greenbrook 合作，以實施我們的 Better Me Provider 計劃的關鍵原則，同時我們計劃於 11 月在 NeuroStar 大學進行全面培訓，以確保一致實施我們的新商業結構和優先事項。

This includes establishing a patient review process to ensure optimal treatment outcomes across our network.

這包括建立患者審查流程，以確保整個網路獲得最佳治療效果。

Beyond cost and operational efficiencies, we are also focused on driving revenue growth.

除了成本和營運效率之外，我們還致力於推動營收成長。

We are aggressively optimizing and expanding the ability to offer SPRAVATO into all appropriate Greenbrook clinics and implementing the buy-and-build program across all sites that offer SPRAVATO treatment.

我們正在積極優化和擴大向所有合適的 Greenbrook 診所提供 SPRAVATO 的能力，並在所有提供 SPRAVATO 治療的站點實施購買和建設計劃。

There are currently 83 Greenbrook sites utilizing SPRAVATO and we are planning to expand to all facilities in 2025.

目前，Greenbrook 共有 83 個站點採用 SPRAVATO，我們計劃在 2025 年擴展到所有設施。

To maximize the revenue potential of our SPRAVATO program, we are implementing a buy-and-bill model across all treatment sites.

為了最大限度地發揮 SPRAVATO 計劃的收入潛力，我們在所有治療站點實施了購買和付款模式。

Under this model, Greenbrook directly purchases and maintains drug inventory at each practice location.

在這種模式下，Greenbrook 直接在各個執業地點購買和維護藥品庫存。

Greenbrook then bills the patient insurance provider for both the drug itself as well as the administration and observation services.

然後，Greenbrook 向患者保險提供者收取藥物本身以及管理和觀察服務的費用。

While this requires managing medication inventory, it results in a higher overall reimbursement compared to billing for administration services.

雖然這需要管理藥物庫存，但與管理服務收費相比，其總報銷金額更高。

This enhanced reimbursement structure creates an additional revenue stream alongside our TMS treatments.

這種增強的報銷結構為我們的 TMS 治療創造了額外的收入來源。

As previously outlined, one of the key benefits of this transaction is that our scale allows us to provide broader service offerings to all of our customers.

如前所述，此交易的一個主要好處是，我們的規模使我們能夠為所有客戶提供更廣泛的服務。

First, we can leverage our combined network of approximately 400 customer sites across Greenbrook and BMP customers to negotiate favorable regional and national payer contracts.

首先，我們可以利用遍布 Greenbrook 和 BMP 客戶的約 400 個客戶站點的綜合網路來協商有利的地區和國家付款人合約。

Negotiating a block of contracts at once offers efficiencies to the payer while potentially leading to better reimbursement rates and improved TMS economics, ultimately increasing practice profitability for our customers.

一次性協商一批合約不僅能為付款人提高效率，同時還可能帶來更好的報銷率和改善的 TMS 經濟效益，最終提高我們客戶的實踐獲利能力。

These benefits also extend to medical management and SPRAVATO services, making it easier for customers to expand their practice offerings.

這些優勢也延伸到醫療管理和 SPRAVATO 服務，使客戶更容易擴展其實踐服務。

Secondly, we will also be able to offer more robust support in navigating the complex landscape of insurance reimbursement by providing billing services to our customers, which could speed up payment processing and reduce denied claims.

其次，我們還將透過向客戶提供計費服務，為客戶提供更有力的支持，以應對複雜的保險報銷形勢，從而加快付款處理速度並減少拒絕索賠。

Finally, we are also working to provide NeuroStar customer access to Greenbrook's existing call center.

最後，我們也致力於讓 NeuroStar 客戶提供存取 Greenbrook 現有呼叫中心的權限。

By leveraging this centralized call center operation, we can help manage patient calls and education more efficiently, potentially increasing conversion rates and reducing the administrative burden required to meet the demand for TMS.

透過利用這種集中式呼叫中心操作，我們可以幫助更有效地管理病患呼叫和教育，從而有可能提高轉換率並減少滿足 TMS 需求所需的管理負擔。

As we move forward, we are focused on two main goals: advancing mental health treatment; and increasing shareholder value.

隨著我們不斷前進，我們專注於兩個主要目標：推進心理健康治療；並增加股東價值。

Through disciplined execution of our cost controls, operational improvements, and revenue growth initiatives, we have a clear path to profitability while expanding access to critical mental health treatments.

透過嚴格執行成本控制、營運改善和收入成長計劃，我們在擴大關鍵心理健康治療覆蓋率的同時，找到了一條明確的獲利之路。

The Greenbrook combination represents a transformative step in this journey.

Greenbrook 的合併代表了這段旅程中的變革一步。

And based on what we have learned since announcing the transaction, we now believe that the combined organization will achieve cash flow breakeven by the third quarter of 2025.

根據我們自宣布交易以來所了解到的情況，我們現在相信合併後的公司將在 2025 年第三季實現現金流收支平衡。

And we're confident in our ability to deliver meaningful care for our patients and true value to our shareholders.

我們有信心為患者提供有意義的護理，並為股東帶來真正的價值。

With that, I'd like to turn the call over to Steve.

說到這裡，我想把電話轉給史蒂夫。

Thank you, Keith.

謝謝你，基斯。

Unless otherwise noted, all performance comparisons are being made for the third quarter of 2024 versus the third quarter of 2023.

除非另有說明，所有業績比較均針對 2024 年第三季與 2023 年第三季進行。

Total revenue was $18.5 million, an increase of 4% over prior year revenue of $17.9 million, primarily driven by increased capital sales in the quarter.

總收入為 1,850 萬美元，比去年同期的 1,790 萬美元增長 4%，主要由於本季資本銷售額增加。

US NeuroStar Advanced Therapy System revenue was $4.1 million and we shipped 49 systems in the quarter.

美國 NeuroStar 先進治療系統收入為 410 萬美元，本季我們出貨了 49 套系統。

US treatment session revenue was $13.3 million, an increase of 2% year-over-year.

美國治療收入為 1,330 萬美元，年增 2%。

Revenue per active site was approximately $11,400 in the quarter compared to approximately $11,900 in the prior year quarter.

本季每個活躍站點的收入約為 11,400 美元，而去年同期約為 11,900 美元。

Gross margin was 75.6% compared to 65.8% in the prior year quarter, up 980 basis points from the prior year.

毛利率為 75.6%，去年同期為 65.8%，較去年同期成長 980 個基點。

The increase in gross margin was a result of the change in product mix, the absence of a onetime manufacturing cost related to our new contract manufacturer, and an inventory impairment charge in 2023.

毛利率的增加是由於產品結構的變化、缺乏與我們的新合約製造商相關的一次性製造成本以及 2023 年的存貨減損費用。

Operating expenses during the quarter were $21.7 million, an increase of [$1.1 million] or 5% compared to $20.6 million in the third quarter of 2023.

本季營運費用為 2,170 萬美元，較 2023 年第三季的 2,060 萬美元增加 [110 萬美元] 或 5%。

The increase was primarily due to transaction expenses, which were incurred prior to the transaction closing.

增加的主要原因是交易費用是在交易結束前產生的。

During the quarter, we incurred approximately $1.4 million of noncash stock-based compensation expense.

本季度，我們發生了約 140 萬美元的非現金股票薪資費用。

Net loss for the third quarter was $13.3 million or $0.44 per share as compared to a net loss of $9.4 million or $0.33 per share in the prior year quarter.

第三季淨虧損為 1,330 萬美元，即每股 0.44 美元，去年同期淨虧損為 940 萬美元，即每股 0.33 美元。

As of September 30, 2024, cash and cash equivalents were $20.9 million.

截至 2024 年 9 月 30 日，現金及現金等價物為 2,090 萬美元。

Now turning to guidance.

現在轉向指導。

For the fourth quarter, we expect stand-alone revenue of $19 million to $20 million.

對於第四季度，我們預計獨立收入為 1900 萬至 2000 萬美元。

We now expect full year stand-alone revenue in the range of $71 million to $72 million.

我們現在預計全年獨立收入將在 7,100 萬美元至 7,200 萬美元之間。

We expect total stand-alone operating expenses for the full year to be in the range of $81 million to $82 million, which excludes approximately $2 million of pre-close transaction expenses.

我們預計全年獨立營運費用總額將在 8,100 萬美元至 8,200 萬美元之間，其中不包括約 200 萬美元的收盤前交易費用。

I would now like to turn the call back over to Keith.

現在我想把電話轉回給 Keith。

Thank you, Steve.

謝謝你，史蒂夫。

Let me leave you with some key thoughts on our path forward.

讓我給你們留下一些關於我們前進道路的關鍵想法。

Integration is at the center of everything we're focused on right now.

整合是我們現在關注的一切的核心。

The combination of our organizations presents immediate opportunities from unified commercial teams to streamlined operations, but more importantly, it creates a platform for sustainable long-term growth.

我們組織的合併帶來了從統一的商業團隊到精簡營運的直接機會，但更重要的是，它創造了一個可持續的長期成長平台。

Our progress in the first phase of integration planning has exceeded our initial expectations, particularly in identifying and capturing initial synergies.

我們在整合規劃第一階段的進展已經超出了我們最初的預期，特別是在識別和獲得初步協同效應方面。

Looking ahead to 2025, we have a clear line of sight to cash flow breakeven by the third quarter.

展望 2025 年，我們預計在第三季實現現金流收支平衡。

This milestone reflects both our integration execution and our ability to drive meaningful growth through our expanded capabilities and footprint.

這一里程碑既反映了我們的整合執行力，也反映了我們透過擴大能力和影響力來推動有意義的成長的能力。

I'm particularly encouraged by how our teams have worked together since the acquisition announcement.

自從收購公告發布以來，我們團隊的合作令我特別受鼓舞。

The collaborative spirit and shared commitment to our mission are evident in the early wins we're seeing across the organization.

我們在整個組織中看到的早期勝利充分體現了協作精神和對我們使命的共同承諾。

We look forward to updating you on our milestones and overall progress in the coming quarters as we work to transform both our business and patient care.

我們期待在未來幾季向您通報我們的里程碑和整體進展，因為我們致力於改變我們的業務和患者護理。

With that, I'd like to open the line for questions.

現在，我想開始回答大家的提問。

(Operator Instructions)

（操作員指令）

Adam Maeder, Piper Sandler.

亞當梅德，派珀桑德勒。

This is [Kyle] on for Adam.

這是 [Kyle] 為 Adam 表演的。

I guess, first, as we just look at the guidance reduction for full year 2024, can you just help us understand a bit what changed in terms of your expectations?

我想，首先，當我們只看 2024 年全年的指導減少時，您能否幫助我們了解您的預期發生了哪些變化？

And then how that should help us think about 2025 looking forward?

那麼這如何幫助我們展望2025年呢？

Hey Kyle, this is Steve.

嘿凱爾，我是史蒂夫。

Yes.

是的。

So we really base Q4 guidance on the, the trends that we continue to see.

因此，我們確實是根據我們持續看到的趨勢來製定第四季度的指導的。

In Q3, the -- essentially there's been a change in purchasing patterns from our customers due to the reimbursement and cash flow issues they experienced in Q1.

在第三季度，由於客戶在第一季遇到的報銷和現金流問題，他們的購買模式基本上發生了變化。

We have seen some recovery with Q3 being our largest collection quarter in about a year and a half.

我們已經看到了一些復甦，第三季是我們大約一年半以來最大的收款季度。

But their cash flows were slowed and so it, it did change the way they were historically purchasing treatment sessions.

但他們的現金流放緩了，因此，這確實改變了他們過去購買治療方式。

Right now what we're seeing in our TrakStar databases is our inventory levels are at historic lows actually in approaching the pre-COVID levels.

目前，我們在 TrakStar 資料庫中看到，我們的庫存水準實際上處於歷史低位，接近 COVID 之前的水平。

So whereas customers used to purchase almost a quarter's worth of inventory to be able to treat their next quarter's worth of patients, they really cut back and they're probably holding or they are holding between one and two months inventory.

因此，儘管客戶過去總是購買近一個季度的庫存，以便能夠治療下一季的患者，但他們實際上削減了庫存，並且可能持有或持有一到兩個月的庫存。

And so we have seen some stabilization and improvement.

因此我們看到了一些穩定和改善。

But again, it's -- it wouldn't be responsible to forecast a full recovery in Q4, which impacted the treatment session forecast for Q4.

但同樣，預測第四季將全面復甦是不負責任的，這影響了第四季的治療會話預測。

I will say that our system utilizations remain very strong.

我想說的是，我們的系統利用率仍然非常高。

And in our business, if we have a strong October, it bodes well for the rest of the quarter.

就我們的業務而言，如果十月份業績表現強勁，那麼本季剩餘時間的業績也將表現良好。

And again, we had a very strong October from a utilization perspective.

從利用率的角度來看，我們十月份的表現非常強勁。

So no, we are disappointed the impact that the reimbursement had, but we are seeing stabilization and some improvement as we close out the year.

因此，我們對報銷的影響感到失望，但在今年年底時，我們看到了穩定性和一些改善。

It is important to note, though, that, as Keith mentioned in the script, we are focusing more on profitability and some of the restructuring that we did last week did impact the commercial team.

但值得注意的是，正如基斯在劇本中提到的那樣，我們更加關注獲利能力，而我們上週進行的一些重組確實對商業團隊產生了影響。

So that is forecast to have some impact on revenues in Q4.

因此預計這將對第四季度的收入產生一定影響。

Okay.

好的。

Yeah, that's super helpful.

是的，這非常有幫助。

I guess as a second question then with regards to Greenbrook and congrats on the progress there.

我想第二個問題是關於 Greenbrook 的，祝賀那裡的進展。

Are you still committed to mid-teens growth for the combined entity as we look into '25 and '26?

展望25年和26年，您是否仍致力於使合併後的實體實現十五、六歲的成長？

And if so can you remind us of what is kind of driving that growth acceleration?

如果可以的話，您能否提醒我們一下推動這種成長加速的因素是什麼？

Thanks.

謝謝。

Yeah.

是的。

And so I realize we did state that in the proxy and that is one of our internal goals.

因此我意識到我們確實在代理中說明了這一點，這是我們的內部目標之一。

But it's -- there are a lot of moving parts with the transaction at this point.

但目前，交易中有很多不確定因素。

And so again, our primary focus is not top line growth.

所以，我們主要的關注點不是營收成長。

It is profitability.

這就是盈利能力。

And our goal is to get to cash flow breakeven in Q3 and it may come at the expense of losing some top line revenue to improve profitability.

我們的目標是在第三季實現現金流收支平衡，這可能會以損失部分營業收入為代價來提高獲利能力。

And so that's really our focus.

這確實是我們的重點。

And I think as we work through -- and a reminder, we obviously haven't closed yet, we will be providing updates as to where the top line number will be in 2025.

我認為，隨著我們的工作進展——提醒一下，我們顯然還沒有結束，我們將提供有關 2025 年營收數字的​​更新。

That's all for me.

對我來說這就是全部了。

Thanks.

謝謝。

William Plovanic, Canaccord Genuity.

威廉‧普洛瓦尼克 (William Plovanic)，Canaccord Genuity。

Hey, great, thanks, good morning.

嘿，太好了，謝謝，早安。

Can you just give us -- in quarters past, we've talked about kind of the business and separated out between Greenbrook and non-Greenbrook.

您能否告訴我們——在過去的幾個季度裡，我們討論過業務類型，並將 Greenbrook 和非 Greenbrook 區分開來。

I was wondering if you'd just give us a little granularity on kind of how those separate businesses are trending today and then even including the threshold testing, which is a predictive for kind of future treatments?

我想知道您是否能為我們稍微介紹一下這些獨立業務目前的趨勢，甚至包括閾值測試，這對未來的治療方法有預測作用？

Yeah.

是的。

This is Keith, Bill.

這是基思，比爾。

I'm hesitant to comment on Greenbrook's progress since we haven't closed the deal yet, but our business with Greenbrook is still very strong.

由於我們尚未完成交易，因此我不願意評論 Greenbrook 的進展，但我們與 Greenbrook 的業務仍然非常強勁。

One of the things in our Q4 guidance was the intercompany revenue had been removed also.

我們第四季指引中的一項內容是，公司間收入也已被刪除。

So that was taken out of it.

所以，它就被去掉了。

But I think we're looking at our local consumable business.

但我認為我們正在關注本地消費品業務。

And as Steve mentioned, that business is up significantly and continues to be strong.

正如史蒂夫所提到的，該業務大幅增長並且持續保持強勁勢頭。

So on the Greenbrook side, their business on both -- well, on TMS is very strong.

因此，就 Greenbrook 方面而言，他們在 TMS 上的業務都非常強勁。

And they'll report on their business on both sides, SPRAVATO and TMS shortly.

他們將很快報告 SPRAVATO 和 TMS 雙方的業務情況。

Okay.

好的。

And then just, Steve, could you help us understand in terms of that guidance, I mean, it's a pretty big cut down to $19 million, $20 million, Street sitting at $25 million.

然後，史蒂夫，您能否幫助我們理解該指導方針，我的意思是，這是一個相當大的削減，降至 1900 萬美元、2000 萬美元，而華爾街的預期是 2500 萬美元。

How much of that was just removal of the intercompany revenue?

其中有多少是扣除公司間收入之後的金額？

To clarify, the guidance that we had, it is stand-alone, so it does include projected Greenbrook purchases.

需要澄清的是，我們的指導是獨立的，因此它確實包括預期的 Greenbrook 購買量。

And so I would say the bulk of the shortfall to the Street of [$25 million] is due to the restructuring.

因此，我認為華爾街的 2500 萬美元缺口大部分是由於重組造成的。

And so it did impact the commercial team across the board.

所以它確實對整個商業團隊產生了影響。

And again, internally, we've made the decision to really focus on profitability and getting to cash flow breakeven.

再次，從內部來看，我們決定真正專注於獲利能力和實現現金流收支平衡。

And that did come at the expense of some commercial team members and it will have an impact on our Q4 revenues.

這確實是以犧牲一些商業團隊成員為代價的，這將對我們第四季的收入產生影響。

Okay.

好的。

And then just last question for me.

這是我的最後一個問題。

Just as you talk about the commercial restructuring, just help us understand exactly strategically what you're doing differently.

正如您談到商業重組一樣，請幫助我們從策略上準確地理解您所採取的不同措施。

I mean, is it -- was it a change in capital rep, so you sell less capital?

我的意思是，這是資本代表的變化嗎，所以你出售的資本減少了？

Was it a change in field force?

是野戰部隊的變動嗎？

It sounds like you're tightening up the territories when you talked about the 10-mile radius in the physicians.

當您談到醫生的 10 英里半徑範圍時，聽起來您正在縮小領土範圍。

Just help us understand how we should think about this?

只是幫助我們理解我們應該如何看待這個問題？

Was this a 20% lift to the commercial or a 10% lift?

這對商業來說是提升了 20% 還是 10%？

Just anything you can help us give us -- provide us to help us understand a little better.

只要您能幫助我們，給我們任何東西，幫助我們更好地理解。

Sure.

當然。

So Bill, the change in commercial strategy is really just a shift.

所以比爾，商業策略的改變其實只是一種轉變。

One of the aspects, one of the business models that Greenbrook has is utilization of what they refer to as RAMs, their regional area managers.

Greenbrook 的商業模式之一就是利用他們所謂的 RAM，即區域經理。

The RAMs' responsibility is to work with local providers around their Greenbrook centers to talk to those providers about SPRAVATO and TMS and the benefits that they can bring to patients that have failed multiple drugs.

RAM 的職責是與 Greenbrook 中心周圍的當地供應商合作，與這些供應商討論 SPRAVATO 和 TMS，以及它們可以為多種藥物治療失敗的患者帶來的好處。

These are providers that currently don't offer TMS or don't plan to offer TMS or SPRAVATO.

這些提供者目前不提供 TMS 或不計劃提供 TMS 或 SPRAVATO。

So that model has worked very well for Greenbrook and that team has been an excellent driver of revenue to Greenbrook locations.

所以這個模式對 Greenbrook 來說非常有效，而且這個團隊也成為了 Greenbrook 各分店收入的卓越推動力。

So we are using the data that we have to help make that group more efficient.

因此，我們正在利用我們擁有的數據來幫助該群體提高效率。

The -- and we are also going to be doing the same training with our practice development managers so that they can also work with our BMP accounts with local providers around their locations and drive patients more efficiently into those practices.

我們也將對我們的實踐發展經理進行相同的培訓，以便他們能夠利用我們的 BMP 帳戶與他們所在地周圍的本地供應商合作，更有效地將患者引導到這些實踐中。

So that's really the major shift in the business model.

這其實是商業模式的重大轉變。

With that would come a true focus on these accounts on the treatment session side of the business.

這樣一來，我們就會真正關注業務治療環節的這些帳戶。

And as a result, we will be driving more capital systems as second system sales into those existing accounts.

因此，我們將推動更多的資本系統作為第二系統銷售到這些現有帳戶。

James Beers, William Blair.

詹姆斯比爾斯、威廉布萊爾。

It's Jimmy on for

Jimmy 上場

[Margaret].

[瑪格麗特]。

I just want to clarify one thing in terms of your guidance reduction.

我只想澄清關於你減少指導的一件事。

Is this primarily coming from treatment sessions, I guess, as I'm looking at it?

我猜，據我所知，這主要來自於治療過程嗎？

And then just maybe talk to why -- or maybe just give us an update on adolescent adoption.

然後也許可以談談原因——或者只是給我們一些青少年收養的最新情況。

And then you've also opened up BNP to all accounts.

然後你們也向所有帳戶開放了法國巴黎銀行。

So maybe just talk to why that isn't offsetting or contributing?

那麼也許只是談談為什麼這沒有抵消或貢獻？

And then are you assuming any contribution in Q4?

那麼您是否假設第四季會有任何貢獻？

And then as we look to '25, I guess, do you start seeing those initiatives begin to bear fruit?

然後當我們展望25年時，我想，您是否開始看到這些舉措開始取得成果？

Or is it -- are expectations pushed further along?

還是——期望被進一步推高了？

Yeah.

是的。

Hi Jimmy.

嗨，吉米。

I would say the majority of the Q4 weakness is related to treatment sessions.

我想說第四季的大部分疲軟與治療過程有關。

We have seen a stabilization of the credit and lending environment.

我們看到信貸和貸款環境趨於穩定。

So we may be a little short from historic Q4 capital levels.

因此，我們的資本水準可能略低於歷史第四季的水準。

But again, with the change of focus on really getting our existing customers as well as Greenbrook's current systems to capacity, it will take a little bit of time.

但是，隨著我們真正專注於現有客戶以及 Greenbrook 當前系統的容量，這需要一點時間。

And so I would say the shortfall is more related to the treatment session side.

所以我認為，不足之處更與治療環節有關。

And regarding adolescents, it remains extremely strong.

對青少年來說，這種勢頭仍然十分強勁。

It's a big opportunity with Greenbrook as well.

這對 Greenbrook 來說也是一個很好的機會。

And so if we look at the adolescents treated and we look at both patients and providers, it's significantly up through the end of Q3 as to where it was in March when we received approval.

因此，如果我們觀察接受治療的青少年，並觀察患者和提供者，就會發現到第三季末，該數字與我們 3 月獲得批准時的數字相比有顯著上升。

Okay.

好的。

That's helpful.

這很有幫助。

And then maybe just one on international and this is something we talked about last time.

然後可能只討論一個國際問題，這是我們上次討論的內容。

But in terms of Japan, I believe there was an over-the-air update opportunity and that would drive some sort of upgrade cycle.

但就日本而言，我相信存在無線更新的機會，這將推動某種升級週期。

So maybe can you just talk to what you're seeing there and if that's still the implication for Q4?

那麼您能否談談您看到的情況以及這是否仍然對第四季度有影響？

So our business in Japan is growing, also in Korea.

因此，我們在日本的業務正在成長，在韓國也是如此。

So our focus over there is really to take advantage of the hospital systems that are now providing -- are now broadening it throughout their entire system.

因此，我們的重點實際上是利用現在提供的醫院系統——現在正在將其擴展到整個系統。

It's quite honestly though -- and we've said it before, our focus is to sustain our business in -- on the international markets.

不過坦白地說——我們之前也說過——我們的重點是維持我們在國際市場上的業務。

Our focus is in the United States.

我們的重點在美國。

And as Steve indicated, we have a great opportunity with the Greenbrook team.

正如史蒂夫所說，我們與 Greenbrook 團隊合作非常順利，並且擁有非常好的機會。

You mentioned adolescents.

您提到了青少年。

The focus in the Greenbrook location has not been on the adolescent front, but we have an opportunity now through the trainings that we're going to provide the RAMS, which starts tomorrow and it goes for a few days to really educate them on the benefits for adolescents and continue that growth.

Greenbrook 分公司的重點一直不是青少年方面，但現在我們有機會透過為 RAMS 提供的培訓來真正教育他們了解其好處。

Our number of centers that has -- is now treating adolescent patients has grown significantly.

目前，我們治療青少年患者的中心數量已顯著增加。

Okay.

好的。

That's helpful.

這很有幫助。

And just maybe one last clarifying question.

也許還有最後一個澄清問題。

I believe you said reaching cash flow breakeven by the third quarter.

我相信您說過到第三季將達到現金流收支平衡。

I might be reading this wrong, but I believe the press release says the second quarter.

我可能讀錯了，但我相信新聞稿上說的是第二季。

So if you could just clarify what the timing is there.

所以如果你能澄清一下當時的時間安排的話。

It's the third quarter.

這是第三季。

Okay, great.

好的，太好了。

Thanks guys.

謝謝大家。

Danny Stauder, JMP.

丹尼·斯托德，JMP。

Yeah, great.

是的，很棒。

Thanks for the question.

謝謝你的提問。

Just on synergies, you updated that number to $20 million.

僅從協同效應來看，您將該數字更新為 2000 萬美元。

Where is that other $5 million coming from?

另外的500萬美元從哪裡來？

Is it primarily the strategic reorg you called out?

您所提的主要是策略重組嗎？

And just as you sit here today, having had more time to digest what this combined entity will look like, are there any other areas where there could be some additional opportunities for synergies?

今天，你們坐在這裡，已經有了更多的時間來消化這個合併後的實體將會是什麼樣子，還有哪些領域可以出現更多的協同機會？

Or do you feel that $20 million is more of the ceiling at this point?

還是您覺得目前 2000 萬美元已經是上限了？

Yeah, the newest increment came from the restructuring within Neuronetics.

是的，最新的成長來自於 Neuronetics 內部的重組。

So that really wasn't anticipated during the summer as we were working through the definitive agreement.

所以，當我們在夏天制定最終協議時，確實沒有預料到這種情況。

I do not think the $20 million is the ceiling.

我不認為2000萬美元是上限。

Again, a lot of these activities have been at the higher level and have not included all of the parties within specific departments.

再一次，許多此類活動都是在較高層次上進行的，並未涵蓋具體部門內的所有政黨。

So I think you'll see that number inch up as we work more closely with more involvement post-close.

因此我認為，隨著我們合作更加緊密，並在交易結束後更多地參與，你會看到這個數字逐漸上升。

Great.

偉大的。

And then just one follow-up on the cash flow breakeven timing.

然後只需跟進一下現金流量損益平衡時間。

How should we think about cash usage in 4Q into the first half of 2025, just given that new timing?

考慮到新的時間安排，我們應該如何考慮 2025 年上半年第四季的現金使用？

And then how comfortable are you with the cash position here?

那麼您對於目前的現金狀況有何感想？

And do you anticipate drawing down that second tranche of debt?

您預計會償還第二筆債務嗎？

Yes.

是的。

I mean, we're comfortable with our cash position right now and also with the burn that's forecast by both companies in Q4.

我的意思是，我們對目前的現金狀況感到滿意，並且對兩家公司預測的第四季度現金消耗情況也感到滿意。

There are significant deal expenses that we'll incur on close.

我們在交易結束時會產生大量交易費用。

So again, we think we're exiting with a healthy balance and are forecasting a reduced burn in Q1 of '25.

因此，我們再次認為我們將以健康的平衡狀態退出，並預測 25 年第一季的燒錢情況將會減少。

We are in conversations with our lender, Perceptive Advisors.

我們正在與我們的貸款方 Perceptive Advisors 進行洽談。

And so I think it's a little early to say if we're going to draw down or not.

因此我認為現在說我們是否要削減兵力還為時過早。

Again, from a company perspective, we'd always like a little bit of cash cushion.

再說一次，從公司的角度來看，我們總是希望有一點現金緩衝。

But again, our forecasts and models do predict a decent cash balance as we work through the initial months of the transaction close.

但是，我們的預測和模型確實預測，在交易結束後的最初幾個月裡，現金餘額將相當可觀。

Great.

偉大的。

Thank you very Much.

非常感謝。

Thank you.

謝謝。

The question-and-answer session is now closed.

問答環節現已結束。

I will now turn it back to Keith Sullivan for closing remarks.

現在我將請基思·沙利文作最後發言。

Thank you for your interest in Neuronetics.

感謝您對 Neuronetics 的關注。

And we look forward to updating you on the next quarterly call.

我們期待在下次季度電話會議上向您通報最新情況。

Thank you for your participation in today's conference.

感謝您參加今天的會議。

This does conclude the program.

該計劃確實結束了。

You may now disconnect.

您現在可以斷開連線。