NeuroPace, a commercial-stage medical device company, experienced a surge in its stock price, with shares advancing by 13% to $4.65 following the release of its second-quarter earnings report. The company’s stock has more than tripled in value since the beginning of the year, indicating a strong performance.
In terms of financials, NeuroPace narrowed its loss for the three-month period ended June 30. It reported a loss of $9.1 million, or 36 cents per share, compared to a loss of $12.7 million, or 52 cents per share, during the same period last year. The results exceeded analysts’ expectations, with FactSet predicting a loss of 46 cents per share. Moreover, NeuroPace’s revenue showed significant growth, increasing from $10.2 million to $16.5 million. This positive result also surpassed analysts’ estimates of $12.6 million.
The rise in revenue can be attributed to increased utilization of the company’s RNS System by physicians and higher than expected revenue from DIXI Medical products. NeuroPace was also able to extend its cash runway by reducing its cash burn from $9.8 million to $4 million in the first quarter.
Building on these positive developments, NeuroPace revised its 2023 revenue outlook to a range of $59 million to $61 million, up from the previous projection of $52 million to $54 million.
Overall, NeuroPace’s second-quarter results and improved outlook for 2023 reflect the company’s strong performance and continued growth in the medical device market.
