- Revenue: $11.4 million in Q4 2024, a 27% year-over-year increase; $41 million for full year 2024, a 29% increase from 2023.
- Gross Margin: 75% in Q4 2024 and for the full year.
- Net Income: $1.5 million in Q4 2024; $2.9 million for full year 2024.
- Adjusted EBITDA: $1.4 million in Q4 2024; $4.5 million for full year 2024, representing 11% of revenue.
- Operating Profit: $430,000 in Q4 2024; $1.4 million for full year 2024.
- Cash and Cash Equivalents: $69.4 million as of December 31, 2024.
- Deep TMS Systems Shipped: 75 systems in Q4 2024, a 25% increase year-over-year.
- Total Installed Base: 1,353 systems as of December 31, 2024.
- Sales and Marketing Expenses: $4.5 million in Q4 2024; $16.2 million for full year 2024.
- Research and Development Expenses: $2 million in Q4 2024; $7.2 million for full year 2024.
- General and Administrative Expenses: $1.6 million in Q4 2024; $5.8 million for full year 2024.
- 2025 Revenue Guidance: $49 million to $51 million, representing 20% to 24% growth over 2024.
- 2025 Operating Income Guidance: 3% to 4% of revenue.
- 2025 Adjusted EBITDA Guidance: 11% to 12% of revenue.
- Warning! GuruFocus has detected 4 Warning Signs with BRSYF.
Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BrainsWay Ltd (BRSYF) reported a 27% year-over-year increase in revenue, reaching $11.4 million for the fourth quarter of 2024.
- The company shipped 75 Deep TMS systems in Q4 2024, marking a 25% increase compared to the same period last year.
- BrainsWay Ltd (BRSYF) achieved a positive book-to-build ratio, indicating strong demand and effective execution by the commercial team.
- The company reported a strong gross margin of 75% for both the fourth quarter and the full year 2024.
- BrainsWay Ltd (BRSYF) generated positive quarterly net income for the fifth consecutive quarter and positive adjusted EBITDA and cash flow from operations for the sixth consecutive quarter.
Negative Points
- Research and development expenses increased to $2 million in Q4 2024 from $1.4 million in the same period in 2023.
- General and administrative expenses rose to $1.6 million in Q4 2024 compared to $1.2 million in Q4 2023.
- The company is not actively pursuing acquisitions, which may limit growth opportunities through external expansion.
- BrainsWay Ltd (BRSYF) faces challenges in expanding reimbursement coverage for OCD treatment in the US.
- The company anticipates maintaining the same gross margin level in 2025, indicating limited immediate improvement in cost efficiency.
Q & A Highlights
Q: The 75 placements were impressive. What were the key drivers this quarter? A: Hadar Levy, CEO: The fourth quarter is typically strong for us, but enterprise accounts significantly contributed to our sales. We also saw increased demand for OCD treatments and higher utilization of our devices for MDD, anxious depression, and elderly patients.
Q: What's the latest on the accelerated treatment protocol timing? A: Hadar Levy, CEO: We are in the final recruitment stage and expect to complete the follow-up period soon. We aim to analyze the data and submit it to the FDA, with updates expected in the third quarter of 2025.
Q: Can you discuss the anticipated gross margin for 2025? A: Hadar Levy, CEO: We expect to maintain the gross margin at around 75%, similar to 2024. We are working on improvements but anticipate similar profitability levels for 2025.
Q: Are you seeing an increase in psychedelic therapy at current and new centers? A: Hadar Levy, CEO: Yes, more psychedelic clinics are integrating Deep TMS technology. These centers are interested in combining treatments, and we see potential growth through this channel.
Q: Any changes in the treatment paradigm for MDD and OCD with payers? A: Hadar Levy, CEO: The MDD treatment paradigm has improved, with fewer failures required for eligibility. For OCD, coverage is steadily growing, and we expect peers to continue embracing this technology.
Q: What can we expect regarding the 360 system in 2025? A: Hadar Levy, CEO: We plan to launch a multi-center trial in the US for the 360 system in the second half of 2025, focusing on AUD. We also aim to conduct feasibility studies for Alzheimer's and Parkinson's.
Q: Are there any acquisition opportunities given your cash position? A: Hadar Levy, CEO: We are focused on organic growth and strengthening partnerships with enterprise accounts. While not actively seeking acquisitions, we are open to complementary technologies that align with our Deep TMS system.
Q: Do you foresee any macroeconomic or geopolitical challenges impacting Brainsway in 2025? A: Hadar Levy, CEO: We don't see any current impact. Our business is primarily US-based, and we anticipate positive tailwinds from new indications in the mental health industry.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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