Neuronetics, Inc. (NASDAQ:STIM) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 08:30 am ET

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Neuronetics, Inc. (NASDAQ:STIM) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Q1, 2019 Neuronetics Incorporated Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Mr. Mark Klausner. Please go ahead.

Executive
Mark R. Klausner

Thank you, operator. Good morning, and thank you for joining us for Neuronetics first quarter 2019 conference call. A replay of this call will be available on our website for 30 days. Joining me on today's call are Neuronetics' Chief Executive Officer, Chris Thatcher; and its Chief Financial Officer, Peter Donato.

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 and other operational items and metrics. Actual results could differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the Company's business.

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-K filed on March 5th, 2019 and the Form 10-Q expected to be filed later today. The Company disclaims any obligation to update any forward-looking statements made during the course of this call except as required by law.

During the call, we will also discuss certain financial information on a non-GAAP basis that includes 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 non-cash and other expenses that are not indicative of our core operating results.

Management uses non-GAAP measures to compare our performance relative to forecasts and strategic plans, to benchmark our performance externally against competitors and for certain compensation decisions. Reconciliations between US GAAP and non-GAAP results are presented in tables accompanying our press release, which can be viewed on our Website.

With that, it's my pleasure to turn the call over to Neuronetics' Chief Executive Officer, Chris Thatcher.

Executive
Chris Thatcher

Good morning, everyone and thank you for joining us on today's call. I'll start by providing an update on our performance during the first quarter followed by an update and the progress we made towards our key priorities. I'll then hand the call over to Peter to walk through our financial performance and guidance for Q2 and 2019. After which, we will provide our closing remarks before opening up the line to take your questions.

The first quarter was a good start to the year, as we continue to drive the adoption of NeuroStar Advanced Therapy. Total revenue was $12.7 million, an increase of 25% over the prior year, primarily driven by 41%