13-05-2025
Stereotaxis Inc (STXS) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Stereotaxis Inc (STXS) reported a solid 9% year-over-year revenue growth for Q1 2025.
The company is seeing commercial progress with its differentiated EP catheters, including the recently approved Magic catheter in Europe.
Recurring revenue growth is driven by the Mapi family of diagnostic EP catheters, with sales in the US growing 30% sequentially.
Stereotaxis Inc (STXS) received European approval for the Magic ablation catheter, with initial sales expected to ramp up significantly.
The company is preparing for the first commercial installation of Genesis X, which is expected to drive robotic system growth.
Structural challenges of the old product ecosystem remain a significant headwind for Stereotaxis Inc (STXS).
The process of getting catheters adopted is gradual, requiring administrative efforts and clinical support.
Recurring revenue gross margins are impacted by acquisition-related accounting, temporarily reducing disposable margins.
Operating loss and net loss increased compared to the previous year, with operating expenses rising due to acquisition-related costs.
Uncertainty in the Chinese market and macroeconomic conditions could impact potential revenue from Genesis systems.
Warning! GuruFocus has detected 8 Warning Signs with STXS.
Q: Can you provide more details on the backlog for Genesis and Genesis X systems in the US and Europe, and how the capital equipment environment is affecting these? A: David Fischer, CEO: The capital environment varies by region. In the US, the ecosystem is less advanced due to pending approvals for Genesis X and related catheters. Interest exists, but actionable steps await regulatory clearance. In Europe, there's a robust pipeline for both Genesis and Genesis X, with some hospitals already planning for Genesis. In China, despite macroeconomic uncertainties, there's potential upside with recent regulatory approval.
Q: How is the Magic RF ablation catheter performing in Europe, and what is the expected scaling over the next quarters? A: David Fischer, CEO: The reception has been positive, with usage across a variety of procedures. The catheter is predominantly used in complex cases like VTs and PVCs. We expect Magic to reach a $1 million quarterly run rate in Europe by year-end, with full market conversion anticipated over two years.
Q: What are the ordering patterns for the 20% of European customers using Magic, and how is the adoption process? A: David Fischer, CEO: Initial orders typically consist of 5-10 catheters, with hospitals testing them before full adoption. Feedback has been positive, and repeat orders are starting. The adoption process involves hospital reviews and national approvals, which is progressing well.
Q: What is the status of the Magic catheter's FDA approval in the US, and what remains in the submission process? A: David Fischer, CEO: The FDA review is ongoing, with detailed questions being addressed. Most supplementary tests are complete, and clinical data from European studies are being shared with the FDA. An on-site audit may be required, but the timeline for approval remains realistic for the second half of the year.
Q: How do you envision the case mix for robotic magnetic navigation cardiac ablation procedures evolving with the expanded catheter portfolio? A: David Fischer, CEO: The focus remains on complex cases like VTs, PVCs, and congenital patients, where robotic navigation offers the most value. While there's potential to expand into atrial ablations, the current strategy is to capitalize on the significant growth opportunity within complex ablations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
