Brainsway ((BWAY)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for BrainsWay painted a positive picture of the company’s financial health and strategic direction. The sentiment was overwhelmingly optimistic, driven by significant revenue growth, successful expansion of their Deep TMS system, and a consistent track record of positive financial performance. Despite a rise in operating expenses, the company’s strategic initiatives and future growth prospects appear robust.
Record Revenue and Strong Growth
BrainsWay reported a remarkable $11.4 million in revenue for the fourth quarter of 2024, marking a 27% increase year-over-year. The full-year revenue for 2024 reached $41 million, reflecting a 29% increase from the previous year. This impressive growth underscores the company’s strong market position and successful business strategies.
Expansion of Deep TMS System
The company shipped 75 Deep TMS systems in Q4 2024, a 25% increase compared to the same period last year. By the end of the year, the total installed base had grown to 1,353 systems, demonstrating BrainsWay’s effective expansion efforts and the growing demand for their innovative technology.
Positive Earnings and Financial Stability
BrainsWay achieved positive quarterly net income for the fifth consecutive quarter and positive adjusted EBITDA for the sixth consecutive quarter. They ended the year with a healthy $69.4 million in cash and no debt, highlighting their financial stability and operational efficiency.
Strategic Growth Initiatives
Looking forward, BrainsWay plans to achieve revenue growth of 20% to 24% in 2025, with operating income of 3% to 4% and adjusted EBITDA of 11% to 12%. The company is focused on expanding its market presence and advancing its next-generation Deep TMS 360 system, which is expected to drive future growth.
Regulatory Approvals and Clinical Advances
The company received FDA clearance for treating elderly patients with major depressive disorder (MDD) and expanded Deep TMS indications to include obsessive-compulsive disorder (OCD). They are also exploring potential treatments for adolescent depression and have reported positive pilot data for treating alcohol addiction with Deep TMS.
Increased Operating Expenses
Operating expenses saw an increase, with sales and marketing expenses rising to $4.5 million in Q4 2024 from $4 million the previous year. Research and development expenses also increased to $2 million from $1.4 million, reflecting the company’s investment in growth and innovation.
Forward-Looking Guidance
BrainsWay provided robust guidance for 2025, anticipating full-year revenue of $49 million to $51 million, representing a growth of 20% to 24%. The company expects operating income of 3% to 4% and adjusted EBITDA between 11% and 12%. Key growth strategies include advancing the Deep TMS 360 system, expanding international presence, and increasing sales in OCD and depression treatments.
In conclusion, BrainsWay’s earnings call highlighted a period of strong financial performance and strategic growth. The company is well-positioned for future success, with a clear focus on expanding its market presence and advancing its innovative Deep TMS technology. Despite increased operating expenses, the overall sentiment remains positive, with promising growth prospects on the horizon.