NeuroPace, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and reduced losses compared to the same periods in 2023. The company generated revenue of $21.1 million for the third quarter, a 28% increase from $16.4 million in Q3 2023. For the nine months ended September 30, 2024, revenue rose to $58.4 million, up 23% from $47.4 million in the prior year. This growth was attributed to increased sales of the RNS System and DIXI Medical products.
Gross profit for the third quarter was $15.4 million, reflecting a 26% increase from $12.2 million in Q3 2023. The gross margin slightly decreased from 74.5% to 73.2% year-over-year, while for the nine-month period, gross profit increased by 24% to $42.9 million, with a gross margin improvement from 72.9% to 73.4%.
NeuroPace's operating loss for the third quarter narrowed to $4.2 million, down from $6.0 million in the same quarter of 2023. The net loss for Q3 2024 was $5.5 million, a 25% reduction from $7.3 million in Q3 2023. For the nine-month period, the net loss decreased to $21.9 million from $26.8 million in the previous year.
The company’s total current assets decreased to $82.6 million as of September 30, 2024, from $92.7 million at the end of 2023. Total assets also fell from $107.7 million to $96.3 million during the same period. Total stockholders’ equity saw a significant decline, dropping from $20.7 million to $9.8 million, primarily due to accumulated losses.
NeuroPace's long-term debt increased to $59.3 million as of September 30, 2024, up from $57.0 million at the end of 2023. The company remains in compliance with its term loan covenants, which include a minimum annual net revenue requirement of $70 million for 2024 and 2025.
Strategically, NeuroPace continues to focus on expanding the market for its RNS System, which treats drug-resistant focal epilepsy. The company has received FDA approval for a Premarket Approval Supplement, allowing it to target additional healthcare providers. Additionally, it has entered into a collaboration with Rapport Therapeutics to enhance its clinical offerings. The company is also investing in training and education for clinicians to drive adoption of its products.
As of September 30, 2024, NeuroPace had approximately 29.8 million shares of common stock outstanding and reported cash, cash equivalents, and short-term investments totaling $56.8 million. The company anticipates continued investments in research and development to support its growth and product enhancements.
About NeuroPace Inc
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