Stereotaxis ((STXS)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Stereotaxis’ recent earnings call presented a balanced view of the company’s performance, with solid revenue growth and successful product launches, particularly in Europe. However, the company faces challenges with operating losses, uncertainties in the Chinese market, and temporary impacts on recurring revenue margins. The overall sentiment of the call was neutral, highlighting both positive developments and existing challenges.
Revenue Growth
The company reported a 9% year-over-year revenue growth for the first quarter, with total revenue reaching $7.5 million, up from $6.9 million in the prior year. This growth reflects the company’s efforts to expand its market presence and improve its financial performance.
Map-iT Portfolio Success
The Map-iT family of EP catheters achieved impressive sales, surpassing $1 million in the first quarter. U.S. sales grew 30% sequentially from the fourth quarter, indicating strong demand and successful market penetration.
MAGiC Catheter European Approval
The MAGiC ablation catheter received European approval, marking a significant milestone for the company. Initial adoption has been promising, with approximately 20% of hospital customers integrating the product into their operations.
GenesisX Launch
Stereotaxis announced its first GenesisX purchase order and showcased the system at major electrophysiology conferences, where it received positive feedback. This launch represents a strategic step forward in expanding the company’s product offerings.
Regulatory Progress
The company made significant progress on multiple regulatory fronts, with ongoing reviews of key technologies such as MAGiC in the U.S., GenesisX in the U.S., and MAGiC Sweep. These advancements are crucial for future growth and market expansion.
Operating Loss
The company reported an operating loss of $5.9 million for the first quarter, compared to $4.7 million in the previous year. This increase highlights the financial challenges Stereotaxis faces as it invests in growth and development.
Challenges in China
Uncertainty in the Chinese market due to macroeconomic conditions is affecting potential sales of Genesis systems. This presents a significant challenge for the company as it seeks to expand its global footprint.
System Revenue Decline
System revenue decreased from $2.6 million in the prior year first quarter to $2 million in the current quarter, indicating a need for strategic adjustments to address this decline.
Recurring Revenue Margin Impact
Recurring revenue gross margins were temporarily reduced due to acquisition-related accounting, impacting disposable margins. This is a short-term challenge that the company is addressing.
Forward-Looking Guidance
Stereotaxis reiterated its guidance for double-digit revenue growth for the full year 2025, with recurring revenue expected to reach $7 million in the fourth quarter. The company anticipates U.S. regulatory approval for MAGiC in the second half of the year and GenesisX approval in the summer, which are critical for future growth.
In summary, Stereotaxis’ earnings call reflected a neutral sentiment, balancing solid revenue growth and successful product launches with ongoing challenges such as operating losses and market uncertainties. The company’s forward-looking guidance remains optimistic, with expectations for continued growth and regulatory approvals that could drive future success.