ClearPoint Neuro, Inc. Q3 FY2024 earnings call

• The entire team contributed to a record revenue quarter, with all four growth pillars growing over 20%. - Progress in gene and cell therapy includes multiple partners in accelerated FDA pathways, preclinical services expansion, and strategic agreements with pharma. - Neurosurgery navigation saw continued customer site activations, including SmartFrame OR and DBS developments. - Therapy and access products made progress with PRISM packaging and compatibility, and progress on an MRI conditional power drill. - Focus on achieving global scale with reduced operational cash burn and a strong cash position with no debt.

In the third quarter of 2024, ClearPoint Neuro achieved a record revenue of $8.1 million. The revenue is composed of three segments: 1. Biologics and Drug Delivery: Grew 27% to $4.4 million in Q3 2024, with product revenue up 353% and service revenue down $0.7 million. 2. Neurosurgery Navigation and Therapy: Grew 49% to $2.9 million, driven by SmartFrame OR and PRISM Laser Therapy. 3. Capital Equipment and Software: Increased 133% to $0.8 million, from $0.4 million in Q3 2023.

• Full-year revenue expected to fall between $30 million to $33 million, representing 25%-38% growth. - Believes cash flow breakeven is possible by end of 2025. - Strong cash position with over $21.6 million in cash and cash equivalents and no debt.

Q: Just looking to 2025, and any headwinds/tailwinds?

A: Positive tailwinds from more DBS surgeries, growth in laser therapy, progress with cell and gene therapy partners, and potential stock index tailwind.

Q: Follow-up on new system activations, how much from SmartFrame OR?

A: Of 19 activations this year, only a few from SmartFrame OR, with existing customers going deeper.

Q: Follow-up on gross margins and new products?

A: Disposable gross margins could reach 70% with scale, capital margins in 35%-45% range, but mix can affect quarterly margins.