In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nexstim Oyj (FRA:5NX) reported a 21% growth in total net sales for the full year 2024, reaching 8.7 million.
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The company achieved a positive EBITDA for the first time, excluding non-recurring license income, indicating operational profitability.
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The partnership with Brainlab is expected to significantly increase system and service sales volume, leveraging Brainlab's extensive customer base and market presence.
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The therapy business saw a substantial growth of 42% in 2024, driven by the successful launch of the NBS 6 therapy system.
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Nexstim Oyj (FRA:5NX) has a strong cash flow from operating activities, which was positive at 1.9 million, reflecting improved financial stability.
Negative Points
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Operating expenses increased by approximately 8%, with notable rises in sales, marketing, and administrative costs.
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The company reported an operating loss of 0.5 million, despite improvements from the previous year.
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There is a high accounts receivable balance of 3.9 million due to strong system sales in December, which could impact cash flow if not managed properly.
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The equity ratio remained relatively unchanged at around 31%, indicating limited improvement in financial leverage.
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The company faces regulatory challenges in launching the NBS 6 diagnostic system in key markets, with no specific timeline provided for approvals.
Q & A Highlights
Q: Do the stakeholders, CEO, CFO, and CCO have plans to invest their own money in Nexstim stock? If not, what are the reasons preventing them from doing so? A: Mikko Carvinin, CEO, stated that he is already a shareholder and plans to invest more when possible. He mentioned that insider regulations have prevented him from investing recently, but he holds over 30,000 shares and stock options. Other executives' investment plans were not disclosed.
Q: What are the key strategic objectives for Nexstim in 2025? A: The main objectives include focusing on profitable growth, expanding strategic partnerships, particularly with Brainlab, and launching the new NBS 6 diagnostic system in key markets. These initiatives aim to enhance sales, improve operating results, and minimize future capital requirements.
Q: Can you provide more details on the Brainlab partnership and its significance? A: The partnership with Brainlab is crucial for Nexstim's diagnostic business. It involves development and distribution collaboration, with Brainlab investing over 11 million in Nexstim shares. This partnership is expected to enhance market access and technological development.