Neuronetics Announces Q3 2024 Financial Results and Greenbrook TMS Acquisition Approval

Neuronetics, Inc

MALVERN, PANeuronetics, Inc. (NASDAQ: STIM) has reported its financial and operational results for the third quarter of 2024, amid significant developments including the approval of its acquisition of Greenbrook TMS. This strategic move is poised to bolster Neuronetics’ position as a leading provider of mental health solutions in the United States.

The company recorded a 4% increase in revenue, reaching $18.5 million in the third quarter compared to $17.9 million in the same period last year. This growth is attributed to increased sales of the NeuroStar Advanced Therapy system in the U.S., with revenue from these systems up by 14% to $4.1 million.

Keith J. Sullivan, President and CEO of Neuronetics, expressed enthusiasm about the acquisition, stating, “We are very excited about the approval of the acquisition of Greenbrook TMS, which positions Neuronetics to be one of the largest, and most innovative provider of mental health care in the United States.” Sullivan highlighted the strategic benefits, emphasizing the enhanced ability to expand access to mental health solutions through a unified commercial entity.

In addition to the acquisition, Neuronetics presented promising data at the AACAP 2024, showcasing the efficacy of the NeuroStar system in treating adolescent depression. The study recorded a 78% response rate and 48% remission rate in adolescents, reaffirming NeuroStar’s effectiveness and leadership in mental health treatment.

Despite these operational highlights, the company reported a net loss of $13.3 million for the quarter, up from a loss of $9.4 million in the same period last year. The increase is largely due to higher operating expenses, which reached $21.7 million.

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Looking ahead, Neuronetics projects fourth-quarter revenue to be between $19.0 million and $20.0 million and anticipates full-year revenue to fall between $71.0 million and $72.0 million. The company also expects to achieve cash flow breakeven by the second quarter of 2025, leveraging synergies from the Greenbrook acquisition.

Neuronetics continues to build on its strategic initiatives, particularly the integration of Greenbrook’s operations and the expansion of its innovative treatment offerings, aiming to enhance patient outcomes and drive value for its stakeholders.

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