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Neuronetics, Inc. (STIM) Q1 2019 Earnings Call Transcript

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STIM earnings call for the period ending March 31, 2019.

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Neuronetics, Inc. (STIM 5.58%)
Q1 2019 Earnings Call
May. 07, 2019, 8:30 a.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Good morning, ladies and gentlemen. And welcome to the Q1 2019 Neuronetics Incorprated earnings call. [Operator instructions] I would now like to turn conference over to your host. Mr.

Mark Klausner. Please go ahead.

Mark Klausner -- Investor Relations

Thank you. operator. Good morning and thank you for joining us for Neuronetics first-quarter 2019 conference call. A replay of this call will be available on our website for 30 days.

Joining me on today's call are; Neuronetics chief executive officer, Chris Thatcher, and chief financial officer, Peter Donato. Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 including, statements related to our business strategy, financial and revenue guidance, and other operational items in metrics. Actual results could differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business. For discussion of risks and uncertainties associated with Neuronetics business, I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K filed on March 5th 2019, and the Form 10-Q expected to be filed later today.The company disclaims any obligation to update any forward-looking statements made during the course of this call except as required by law. During the call will also discuss certain financial information on a non-GAAP basis that includes EBITDA. Management believes that non-GAAP financial information taken in conjunction with U.S.

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GAAP financial measures provide useful information for both management and investors by excluding certain non-GAAP and other expenses that are not indicative of our core operating results.Management uses non-GAAP measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions. Reconciliation between U.S. GAAP and non-GAAP results are presented in tables accompanying our press release which can be viewed on our website. With that, it's my pleasure to turn the call over to Neuronetics chief executive officer, Chris Thatcher.

Chris Thatcher -- Chief Executive Officer

Good morning, everyone. And thank you for joining us on today's call. I'll start by providing an update on our performance during the first quarter followed by an update on the progress we made toward our key priorities. I'll then hand the call over to Peter, to walk through our financial performance and guidance for Q2 and 2019.

After which we will provide our closing remarks before opening up the line to take your questions.The first quarter was a good start to the year as we continue to drive the adoption, NeuroStar Advanced Therapy. Total revenue was $12.7 million, an increase of 25% over the prior-year primarily driven by 41% growth in the U.S. NeuroStar Advanced Therapy revenue, and 21% growth in U.S. Treatment session revenue. Our growth continues to validate our strategy.

Our ability to execute NeuroStar Advanced Therapy proven clinical outcomes for patients which offers a viable alternative for psychiatrist serving their patients with treatment resistant depression.On our fourth quarter call, we laid out our focus for the year which was to drive the adoption of NeuroStar Advanced Therapy. In order to do so, we provided a list of our strategic priorities for 2019. As a reminder, these priorities are; to continue the expansion of our sales force and marketing efforts, focus on driving long-term increases in system utilization, development of our next generation NeuroStar system, begin the clinical work to set the stage for the expansion of new indications, and launch NeuroStar Advanced Therapy in Japan, and selectively evaluate entry into other international markets.Taking each of these in order, as we look to continue the expansion of our sales force and related market efforts in 2019, our goal is to add an incremental 15 BDM territories bringing our total to 59 by the end of the year. In the first quarter, we filled four of those territories, all of which are now fully trained and active.

We continue to be very excited about the quality of the salespeople were able to attract, and we feel very confident that we can continue to drive predictable growth, and new system sales, and subsequent treatment session pull through as a result. In addition to the expansion of our sales force, we continue to utilize DTC marketing campaigns. In 2018, we launched multiple campaigns at turning a viewer of a television ad into a patient undergoing treatment with NeuroStar Advanced Therapy. Each of these campaigns provided greater insight into the most effective way to increase patient awareness, generate leads for the practice, and ultimately drive system utilization. In a most recently completed campaign, we gained further insight into campaign frequency, ad duration, and the importance of the speed of practice follow up. Leveraging those learnings and with a focus on effectively managing the patient's psychiatrist touchpoint, we launch a nationwide TV ad campaign at the end of the first quarter.

The results we have seen so far have been excellent. With significant increases in web traffic, appointment requests, and patient conversions which improve the overall cost per patient conversion.At this stage, we know that we have optimized our marketing spend to get a patient to contact a psychiatrist. We're optimistic that with each iteration, we will continue to create increased demand and the more efficient rate and improve our ability to convert patients who respond to the TV campaign. Our second strategic priority for the year is to drive long-term utilization increases. As we have noted previously, we will continue to increase the number of CPCs or Clinical Practice Consultants, and CTCs or Clinical Training Consultants in order to maximize the utility of NeuroStar Advanced Therapy for our customers and patients. Our goal for 2019 is to add an incremental five CPCs and an additional of six CPCs to keep up with new system sales and optimize the CPCs territories based on the uneven distribution of systems sales in 2018.During the first quarter, we hired all five of the CPC, and five of the six CTC slightly ahead of our expectations for the year.

Another of our strategic priorities is the development and future lines of our next generation NeuroStar System. We're in the early stages of a multi-year process to create the next iteration of NeuroStar System. During the first quarter, we continue to drive toward that goal as we look to maintain our industry leadership position by continually advancing the capabilities of our system for use in both clinical and research settings. This initiative starts with our voice of customer, and fundamental research, and I'm pleased to share that we've completed that and we've begun our product development process.Our fourth strategic priority for 2019 is to begin the clinical work to set the stage for the expansion of indications for use for the NeuroStar Advanced Therapy System. Our current focus is the build out of our clinical science team in advance of planned discussions later this year with the FDA on clinical trials for PTSD and bipolar.

This team is building out nicely, and I'm pleased with the talent we're bringing into this function.Our final strategic priority for the year is the prudent expansion of our global footprint. Our near-term focus is on the commercial launch in Japan. As announced in March, Japan's Central Social Insurance Medical Council has approved the recommendation by Japan's Ministry of Health, Labor and Welfare to provide reimbursement for NeuroStar Advanced Therapy. The reimbursement is expected to go into effect on or about June 1st 2019.Obtaining reimbursement approval in Japan, a single payer healthcare system is a critical milestone to facilitate psychiatrist and facilities implementing NeuroStar Advanced Therapy into their treatment continuum, to provide a much needed and affordable treatment alternative for MDD patients.

The initial reimbursement approval for NeuroStar Advanced Therapy is expected to cover patients treated at approximately 160 of the largest inpatient, outpatient psychiatric facilities, with the most comprehensive mental health services in Japan. The reimbursement rate at these facilities will be 12,000 Japanese yen per session. Initially, Teijin Pharmaceuticals our distribution partner will have the ability to market to the largest inpatient, outpatient centers in Japan which aligns with our market segmentation and go to market strategy. As of today, approximately 30 doctors from the qualifying facilities have been trained. As part of the product approval process, a physician needs to be trained by both the JSPN, and by Teijin.

While the level of reimbursement didn't come in lower than the U.S., we're comfortable that this level supports commercializing the product in Japan. I would note that there is a process for us to collect clinical and economic data in a Japanese market, subsequent to the launch that we will utilize over the next few years to try to potentially increase both the level of reimbursement, as well as increase the number of facilities Teijin can sell to. While we remain enthusiastic about the Japanese market, we do not anticipate material revenue in 2019, when anticipate that revenue will grow in 2020 and beyond as Teijin sales and marketing efforts mature.Overall, we're very excited about the progress we made in the first quarter, and our ability to continue drive strong topline growth in the business. And maintain our market leadership position. I would now like to hand the call over to Peter, to discuss our financial performance.

Peter Donato -- Chief Financial Officer

Thanks, Chris. Total revenue for the quarter was $12.7 million, a 25% increase over the prior-year quarter. U.S. revenue was$12.5 million, an increase of 26% over the fourth quarter of 2018.

Outside the U.S. revenue, was approximately $182,000, an increase of 1% versus the prior-year period.U.S. NeuroStar Advanced Therapy System revenue for the first quarter of 2019 was $3.4 million, an increase of 41% over the first quarter 2018 revenue of $2.4 million. The increase in U.S. NeuroStar Advanced Therapy System revenue was primarily driven by higher capital and rent-to-own revenue. Capital units increased by 42% while average selling prices declined by 8% as compared to last year.

on a sequential quarterly basis, average selling prices for capital sales were up approximately one half of one point.During the quarter, we saw our active install base increased to 931 units, and that increase of 150 units from the first quarter of 2018, and an increase of 24 units from year-end 2018. Please note that we had an a typical number of systems go inactive during the first quarter related to a single-large customer who had to return a group of their systems, and these were pulled out of the active installed base.U.S. treatment session revenue was $8.8 million for the first quarter of 2019, an increase of 21% over the prior-year quarter. The increase was primarily due to an approximate 18% increase in treatment sessions purchased, as well as an increase in other treatment session revenue.

This was partially offset by a 3% decline in treatment session ASPs, due to pre-determined volume pricing discounts within our existing customer base. This is in line with expectations, and these discounts are triggered when customers surpass certain pre-defined high volume thresholds. U.S. service and other revenue was approximately $418,000, a 16% as a result of our expanded installed base. Gross profit for the first quarter of 2019 with $9.9 million, an increase of $2.2 million from $7.7 million during the first quarter of 2018.

Gross margin for the first quarter of 2019 was 77.9% which was higher than the first quarter of 2018 gross margin of 75.8%. The majority of the increase in gross margin was the result of increased leverage on our service and operations cost, as a result of higher sales compared to the prior-year period. Sales and marketing expenses for the first quarter of 2019 were $9.6 million, an increase of a $1.5 million over the prior year. The increase was primarily due to the increased size of our sales force spending on our marketing campaigns, and support of a larger installed base.General administrative expenses were $4.6 million, an increase of about $2.0 million compared to the prior year. The increase was primarily driven by increased costs related to being a public company, as well as legal and tax charges. Research and development expenses for the first quarter of 2019 were $2.8 million, an increase of approximately $1.2 million from the prior-year period.

The increase was primarily due to higher personnel, and product development costs related to the commencement of our next generation platform.Net loss for the first quarter was $7.5 million, compared to a net loss of $5.5 million in the first quarter of 2018. EBITDA which is a non-GAAP measure for the first quarter of 2019 was a loss of $6.4 million, compared to an EBITDA loss of $4.4 million in the first quarter of 2018. Moving to the balance sheet, we ended the quarter with cash and cash equivalents of $96.1 million, compared to $104.6 million on year-end 2018. Cash usage during the quarter was in line with our expectations.Turning the guidance. For the full year of 2019, we are reiterating our guidance of total worldwide revenue of between $62.5 million, and $64.5 million.

Representing approximately 18% and 22% year-over-year growth respectively. For the full-year 2019, we continue to expect gross margins to be in the mid-70s range, in line with full-year 2018 margins, and our previous guidance. For the full-year 2019, we continue to expect operating expenses to be between $71.5 million, and $76.5 million, primarily due to continued investment in our sales force expansion efforts, marketing, research and development related to the development of our next generation NeuroStar platform, and clinical spending as we pursue additional indications namely, PTSD and bipolar disorders.For the second quarter of 2019, we expect total worldwide revenue between $15.6 million, and $16.2 million, representing 18% and 22% year over year growth respectively. I'll now turn the call back over to Chris.

Chris Thatcher -- Chief Executive Officer

Thanks, Peter. 2019 is off to a great start. As we continue to drive strong revenue growth, and enable a greater number of patients to get treatment using NeuroStar Advanced Therapy. The sustained growth is a direct reflection of our ability to successfully execute in the long-term commercial strategy that we put in place in combination with the development of our industry leading NeuroStar Advanced Therapy System for the treatment of drug resistant depression.We're very excited about the future in Neuronetics. With that, I'd like now to open up the line for questions.

Questions & Answers:


[Operator instructions]. Your first question comes from the line of Jason Mills with Canaccord Genuity. Your line is now open. Mr.

Jason Mills of Canaccord, your line is now open. Your next question comes from the line of David Turkaley with JMP securities. Your line is now open.

David Turkaley -- JMP Securities -- Analyst

Good morning guys. I just wanted to add a quick one for you about the upcoming APA meeting. I just wondered if there's anything there that you're expecting to see any data releases, or anything else that we can look forward to out in San Fran in a couple of weeks.

Chris Thatcher -- Chief Executive Officer

We view this as our largest sales call the year. We have tons of customers that were planning to meet and greet to Booth and introduce our NeuroStar Advanced Therapy System to is a great opportunity for us to create increase awareness around the difference in our product, as well as convert our leads into sales. So we view this as our biggest sales call. We will have at the booth, we will have a series of psychiatrist talking about their experience with NeuroStar throughout the conference.

David Turkaley -- JMP Securities -- Analyst

About hopping back and forth between a few day, but I noticed in your remarks you talked about higher capital and then also rent-to-own revenue as well. Is any color in terms of the split where that stands today.

Chris Thatcher -- Chief Executive Officer

Yes. Thanks, David. This is where we thought we'd be in total NeuroStar Advanced Therapy System  revenue. It is a little bit higher in rental, but a little bit lower in capital.

But our ultimate goal is to expand our install base and we're really able to do that in the first quarter. And the mix is just slightly higher and slightly different than we anticipated. There's no underlying trend in the business, we just had a slightly different mix than we expected. Do you want to talk a little bit about the accounting, Peter.

Peter Donato -- Chief Financial Officer

Yes, sure. In addition Dave, this quarter some of the leases were accounted for and they'll say places as opposed to operating leases. I'm sure you see that elsewhere as well. The impact of this is that all the revenue from the lease is recognized upfront as opposed to being recognized over the top of the list.

And that's an assessment Dave that will have to be done each quarter. Customer made customer, lease by lease, and that could cause some volatility in the NeuroStar Therapy revenue line. At least between the categories of capital sales and rental.

David Turkaley -- JMP Securities -- Analyst

You mentioned the active installed base 931, any color there. And I'm just curious how many of the centers are using more than one system. And just remind us the 931, how many do you think you can actually get to penetrate over time. Thanks a lot.

Chris Thatcher -- Chief Executive Officer

David we don't have the that number at our fingertips here as it relates to the number of centers that have multiple system. But it's more than 100 for sure. They have more than one system. Our whole goal is to increase system utilization.

And if you look at our system utilization, we're quite proud of what we've accomplished in the first quarter. System utilization is actually up. And when you think about the number of system installs in Q1 versus prior yea, we're up almost right around 19%, and system installs with some pricing decline in NeuroStar Treatment session. Pricing when you think about those two numbers combined, those are really deluded the utilization and what you see is in the first quarter is utilization is actually up.

So we're quite enthusiastic about our ability to ramp up our current systems with the face of that delusion.


Your next question comes from the line of Margaret Kaczor with William Blair. Your line is now open.

Margaret Kaczor -- William Blair and Company -- Analyst

Good morning, everyone. Thanks for taking the question. First one for me, just a little bit more color on the one customer that you guys spoke about in the morning comment that maybe pulled systems from the field. Can you give us any more clarity about whether that's competitive operational or something else.

And then, did that also impact consumable sales for this quarter.

Chris Thatcher -- Chief Executive Officer

Good morning, Margaret. Thanks for the question. This was primarily driven by one large customer, and the business venture did not work out for them. And the systems were pulled out of the active install base.

They had a very aggressive plan to grow their business and they were not able to get the business capitalized. So these systems were low performing systems, we don't expect any material impact on loss revenues in NeuroStar Treatment sessions going forward.

Peter Donato -- Chief Financial Officer

Wasn't finished the question Margaret not competitive and no impact on the quarter. Keep in mind that we use a rolling year. You know a lot of these fell out a while back. So it's incorporated into our guidance.

No impact on the quarter. Not a competitive situation.

Margaret Kaczor -- William Blair and Company -- Analyst

Perfect. And then in terms of the year over year utilization growth you guys referred to on the call. Can you give us a number around that. And then whether or not the ad that utilization growth.

How should we think about that throughout the year especially as you guys have started investing in international DTC advertising campaign.

Chris Thatcher -- Chief Executive Officer

That utilization is up mid to low single digits in the face of a 20% dilution. And when we talk about dilution in this case, it's a positive event as you well know when we're adding 18% new systems. Those systems are typically dilutive to the utilization number, coupled with a several point decline in pricing. So we're quite pleased with 20% dilution that our system utilization is actually up low to mid single digits, that's a good thing.

We're not going to forecast the next couple of quarters on utilization. But we've been able to maintain this trend now for several quarters, and we're quite excited about our ability to ramp our existing customers. And the fact that number is even positive is I think a wonderful thing, based on all the systems that we sold in the last couple of quarters.

Margaret Kaczor -- William Blair and Company -- Analyst

And then maybe last one for me, you reference a little bit more mix on the rental side. You kind the last question. But in terms of other clarity on the system sales we saw this quarter, are you continuing to see strong repeat purchases from those existing accounts. Those high volume focused accounts.

And again, how should we think about this relative to your expectations both this quarter and throughout the rest of the year.

Chris Thatcher -- Chief Executive Officer

We are seeing a slight increase over the last four quarters, and second, third, fourth and 14th system purchased within our install base. And we're seeing a slight increase. We're not reporting out on how we're breaking it out, but most of our systems are first time purchases in Q1.


Your next question comes from the line of Jason Mills with Canaccord Genuity. Your line is now open.

Jason Mills -- Canaccord Genuity -- Analyst

So just start a couple of good questions already for my colleague. So let's start in Japan. You commented about the reimbursement level. I just would like a bit more color on your strategy there.

Let's say 2020 through 2022. I understand you're probably not willing to give us quantitative metrics, but what is your strategy nonetheless as it relates to attempting to renegotiate reimbursement rates higher. What you think that will take ultimately within those 160 centers you're allowed to start in. What can be the treatments testing utilization.

What can be the market opportunity from a TAM perspective within that cohort of centers.

Chris Thatcher -- Chief Executive Officer

Let's talk about our market segmentation strategy. No matter how many sites were approved to go into sell to. We want to go into the the highest, the most respected psychiatric institutes in Japan. And then, these are well-known institutes.

All of these are on the list and we were planning on going into the places that had the highest inpatient and outpatient volume.160 facilities are aligned with what I would call our inner bull's eye core first mover commercial strategy, and it'll take us a couple of years to penetrate these facilities. We expect these facilities to be able to handle multiple NeuroStar and they currently have tens of thousands of patients, in-patients in these facilities. We haven't--because of the new news around these 160 facilities. At this stage we don't have the total number of inpatient and outpatient, but you should consider these opportunities as some of the largest psychiatric opportunities for us in the U.S.

and in Japan and [inaudible] those accordingly. Remember we're just starting here in June, and Japan has already--Teijin has already bought a handful of more systems, so they have an inventory in place and they're going to start selling aggressively come June 1st. It's uncertain if they're going to order again and in the back half of this year, it takes a little bit of time to get this thin up and running, we won't see much NeuroStar Treatment sessions probably into 2020 and beyond. So let me stop there Jason.

Jason Mills -- Canaccord Genuity -- Analyst

That's helpful, thank you for that. Second question, just circling back to the install base. Thank you for the color on that one customer. That having been said, the average install base for active units was a little lower than what we were modeling.

So we just wanted to maybe have a new conversation here about what you see as the market opportunity. In our model we're expecting you to exit the year of in around a couple of hundred active installed, higher than you are currently. So that would imply good growth of somewhere in the range of 50 to 60 average ads per quarter. Is that the right way to think about the progress of your business through this year.

Chris Thatcher -- Chief Executive Officer

Our guidance to the market has always been--take a look at a number of business event managers we have selling systems. Those have been pretty consistent for this quarter, as well as for last year. And as we add more business development, we sell more systems, and that's really how the capital equipment revenue is built, that in conjunction with rental revenue gives you over all NeuroStar revenue. And we're excited where we came in for the quarter at 41% growth.

That's impressive. Impressive NueroStar revenue growth for us right at where we expected.

Jason Mills -- Canaccord Genuity Inc. -- Analyst

And then lastly, Peter maybe bringing you into the conversation about the ASPs going forward for some on the two sessions. The 3% decline was at the lower end of the 3% to 5% expectation. It's been trending a little higher than that in the past couple of quarters. What are the implications as we think about that juxtaposed to the HbT, the high value target initiative.

It is the deceleration in decline due to coming up against template comps there. Are you indeed seeing a stabilization around this level going forward. What do you think. Thanks for taking all the questions.

Peter Donato -- Chief Financial Officer

Good question Jason. this is Peter. The three or five remains intact and I think we've been pretty consistent that when the growth rate tends to be in the low 20s which it was this quarter 21%. And keep in mind, Q1 is historically a low utilization month due to starts.

People aren't starting after Thanksgiving, so you see a slowdown in Q4 and then it's the big bowl of the systems that are just getting up to speed. So the 21% is in line with expectations. And with that Jason, that pushed us toward the lower end of the range which is 3%. And as we've said before, when that number ticked up into the mid 20s or closer to 30%, then you could see the tier pricing break that would take you about or above the 5% range and we've seen that in the past.

So I would characterize this quarter consistent with what we were expecting. And obviously right on the low-end of the range.


Your next question comes from the line of Matthew O'Brien with Piper Jaffrey. Your line is now open.

Matthew O'Brien -- Piper Jaffray-- Analyst

Morning. Thanks for taking the question. Hopefully you can hear me Okay. I just wanted to follow up on the one larger customer that returned their systems to you.

Is this something that that you've seen historically with some customers doing something along those lines. Maybe more of a single customer to doing something like that just given this was in multiple systems. I'm sure that's going to draw a lot of attention among investors, and they want to make sure there's nothing that's really systematically wrong with the ability to build models for a lot of these centers going forward.

Chris Thatcher -- Chief Executive Officer

This is just one customer. All right. And we've done this now. We have over 500 customers out there.

This is one customer, and this is a business that had a very aggressive plan to grow their business and they didn't get capitalized to grow the business. So this is what I would say is an isolated issue. You can see what our inactive turnover rate has been historically. And historically, it's been very low.

And this is just a just a one off. But we wanted to call it out because it was a group within one customer.

Matthew O'Brien -- Piper Jaffray-- Analyst

Got it. And then another thing that comes up quite a bit is the competitive environment. With 41% system growth in the quarter, clearly you're not seeing much of an impact at this point. I would just love if you could comment a little bit more about the landscape that you're seeing out there as far as accounts go.

And time that it takes to do attract and then closed accounts does that growing. That taking longer just given some more of the competitive commentary coming out. Anything along those lines that you're seeing head to head winds or any other commentary you can provide there.

Chris Thatcher -- Chief Executive Officer

So as we all know, this is a very large market opportunity. Overall, the categories well under penetrated, and we've been competing against the current market entrees to anywhere from five to three years, and nothing's really changed. We have a sales and market organization that we estimate to be four to five times the total size of all the competitors combined. And we're executing as planned.

We think this is a really terrific first quarter 25% top-line growth. This is the highest revenue growth in the company's history for Q1, and 41% NeuroStar system growth. So we feel we're executing as planned against the competitors out there.

Matthew O'Brien -- Piper Jaffray-- Analyst

And last one for me and there's two parts to it. But I'm just asking both here and maybe for Peter, the I think you have the tough. You just came out of the toughest top of the year. You put a very good performance in Q1 didn't change guidance at all.

And so I just want to make sure that's not signaling anything that you're worried about something in the last three quarters of the year. Maybe you could say something along the lines of feel more comfortable with the midpoint of the range or even a little bit higher end of the range. And then the other question would be given your commentary about the new system that you're investing in right now, some thoughts among investors that it's really just a pricing game of environment. What can you add to the feature set equation that makes this bigger investment that you're making in next generation system worth it to really continue to differentiate yourself and win in this market.

Peter Donato -- Chief Financial Officer

I think the first part that I'll pass for the second part. S0 to answer your question Matt, we feel really comfortable where we're at. We're right in line, we guide that we give a range. We're in the midpoint of the range which is implicitly we feel really good about the 62.5% to 64.5% for the full yea, and we're just executing to that plan.

Chris Thatcher -- Chief Executive Officer

And then as it relates to the new system, we think that as good as our system is today. It could be better and we're focused on feature set that are starting to make us more efficient, more precise, and more reproducible. And we are looking forward to delighting our customers in the future when they see this next generation system. And the system will also be compatible and able to deliver our new indications as well.

Matthew O'Brien -- Piper Jaffray-- Analyst

Very helpful. Thank you.


That's it for our Q&A for today. I will now turn the call back to Chris Thatcher for closing remarks.

Chris Thatcher -- Chief Executive Officer

Thanks for joining us on today's call. And we look forward to updating you on our next quarterly conference call. Have a good week.


[Operator signoff]

Duration: 37 minutes

Call participants:

Mark Klausner -- Investor Relations

Chris Thatcher -- Chief Executive Officer

Peter Donato -- Chief Financial Officer

David Turkaley -- JMP Securities -- Analyst

Margaret Kaczor -- William Blair and Company -- Analyst

Jason Mills -- Canaccord Genuity -- Analyst

Matthew O'Brien -- Piper Jaffray-- Analyst

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