Sign in
SI

Stereotaxis, Inc. (STXS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $6.34M, up 39% year-over-year (Q4 2023: $4.57M), with system revenue of $1.39M and recurring revenue of $4.95M; gross margin was approximately 51% and EPS was $-0.09 .
  • Positive free cash flow of $1.3M in Q4 and year-end cash of $12.4M with no debt; system backlog entering 2025 was $15.2M, supporting visibility into near-term capital revenue .
  • 2025 outlook: double-digit revenue growth; recurring revenue expected to scale from $5M in Q1 to $7M in Q4; system revenue guided to $2–$3M per quarter, with modest contributions from GenesisX (EU) and Genesis (China) .
  • Strategic catalysts: CE Mark approval of MAGiC ablation catheter in Europe, first GenesisX order, China approvals (Genesis robot and Magbot), and FDA submissions for MAGiC Sweep high-density mapping and EMAGIN 5F vascular guidance catheters, setting up broader adoption and potential “breakout growth” in 2026 .

What Went Well and What Went Wrong

What Went Well

  • “We have started a milestone rich year… strategic transformation into a company with an easily adopted robot that can navigate a proprietary set of catheters in EP and broadly across endovascular procedures.” – CEO David Fischel .
  • CE Mark for MAGiC ablation catheter in Europe and first GenesisX order; regulatory submissions for MAGiC Sweep and EMAGIN 5F broaden the catheter ecosystem and endovascular reach .
  • Positive Q4 free cash flow ($1.3M), year-end cash $12.4M, no debt; recurring revenue benefits from APT integration, and backlog of $15.2M supports capital revenue .

What Went Wrong

  • Operating loss widened YoY in Q4 ($7.63M vs. $5.30M); adjusted operating loss also increased ($4.0M vs. $2.7M), reflecting non-cash stock comp and earnout mark-to-market .
  • Recurring margins temporarily depressed by acquisition-related accounting (minimal margin on acquired inventory), and system margins pressured by fixed overhead over low production volumes .
  • Near-term China commercialization visibility is limited amid macro and anti-corruption headwinds, prompting conservative system revenue guidance despite approvals and a pipeline of engaged hospitals .

Financial Results

Quarterly P&L and Key Metrics

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$4.502 $9.196 $6.340
Gross Margin %74% 45% ~51%
Systems Revenue ($USD Millions)$0.240 $4.391 $1.389
Recurring Revenue ($USD Millions)$4.262 $4.805 $4.951
Operating Loss ($USD Millions)($6.021) ($6.345) ($7.627)
Net Loss ($USD Millions)($5.833) ($6.190) ($7.515)
EPS (Basic, $USD)$-0.07 $-0.08 $-0.09
Cash & Equivalents ($USD Millions, period-end)$15.2 $11.0 $12.4
Free Cash Flow ($USD Millions)($3.1) ($4.2) $1.3

Q4 YoY Comparison

MetricQ4 2023Q4 2024
Total Revenue ($USD Millions)$4.565 $6.340
Systems Revenue ($USD Millions)$0.066 $1.389
Recurring Revenue ($USD Millions)$4.499 $4.951
EPS (Basic, $USD)$-0.07 $-0.09
YoY Revenue Growth %39% 39%

Segment Breakdown (Systems vs. Recurring)

Segment Revenue ($USD Millions)Q2 2024Q3 2024Q4 2024
Systems$0.240 $4.391 $1.389
Disposables, Service & Accessories$4.262 $4.805 $4.951

KPIs and Margins

KPIQ2 2024Q3 2024Q4 2024
System Backlog ($USD Millions)—>$15 $15.2
Gross Margin %74% 45% ~51%
Adjusted Operating Expenses ($USD Millions)$6.8 $7.2 $7.2
Recurring Gross Margin (FY 2024)——70%
System Gross Margin (FY 2024)——20%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Full-Year Revenue (FY2024)FY2024Approximately equal to prior year Actual $26.9M (≈prior year $26.8M) Maintained/Achieved
Year-End Cash (FY2024)FY2024~$13M cash, no debt ~$12M cash reiterated; Actual $12.4M Lowered vs Q2 guide, Achieved actual
Full-Year Revenue GrowthFY2025—Double-digit growth New
Recurring Revenue per QuarterFY2025—$5M (Q1) scaling to $7M (Q4) New
System Revenue per QuarterFY2025—$2–$3M per quarter; modest EU GenesisX and China Genesis New
Cash UseFY2025—Reduced vs. 2024 FCF of ($8.5M) New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Robotic System Launch (GenesisX)CE Mark obtained; US 510(k) submitted; initial conference visibility planned First EU order; US approval expected ahead of catheter approvals; full launch H2 2025 Execution progressing; commercial ramp H2 2025
EP Catheters (MAGiC, Sweep, PFA)MAGiC regulatory progress; APT acquisition to accelerate catheter dev MAGiC CE Mark (EU); MAGiC Sweep 510(k) submitted; PFA partners in preclinical with first-in-human expected in 2025 Portfolio broadening; disposables mix improving
Vascular Expansion (EMAGIN 5F)Early dev; submission expected next quarter EMAGIN 5F 510(k) submitted; EU submission imminent; approvals expected Q3 New endovascular indications; strategic platform expansion
China CommercializationSuccessful NMPA audit; approvals near-term Approvals for Genesis robot, Magbot catheter, Columbus mapping; macro headwinds temper near-term expectations Ecosystem approved; cautious near-term modeling
Digital Surgery Platform (Synchrony/SynX)—Connectivity + AI features; unveil at HRS; initial ~$1M revenue in 2025 Early monetization; larger 2026+ potential
Margins & OpEx DisciplineGross margin variability from mix; OpEx flat ex non-cash Recurring margin temp depressed by APT accounting; System margin impacted by fixed overhead; adjusted OpEx held flat near-term Margins to normalize; OpEx leverage with launches

Management Commentary

  • “These innovations will increasingly contribute to commercial growth… The impact from new innovations will be modest initially but increasingly provide the opportunity for breakout growth.” – CEO .
  • “Recurring revenue should steadily grow… $5 million in the first quarter growing… to $7 million in the fourth quarter… system revenue in any given quarter of $2 million to $3 million.” – CEO .
  • “Gross margin… 51%… Recurring margins remain negatively impacted by the accounting related to the acquisition of APT… We expect to work through this inventory by the middle of this year.” – CFO .
  • “We are setting the stage for a successful full launch of GenesisX in both Europe and the U.S. in the second half of this year.” – CEO .

Q&A Highlights

  • MAGiC (US) approval path: Ongoing PMA review with patient enrollment in Europe; collaborative FDA dialogue; potential manufacturing audit; second-half approval viewed as reasonable .
  • System revenue guidance conservatism: Volatility in recognition; backlog conversion visibility; China sales uncertain amid macro; prefer to beat rather than over-guide .
  • GenesisX US timing: Responding imminently to FDA questions; expect robot approval ahead of compatible catheters (MAGiC, MAGiC Sweep, or MAGiC 5F) with Q3 approvals enabling launch .
  • EMAGIN monetization/priorities: Low near-term revenue assumed; strategic value in enabling multi-specialty platform; focus on early procedures in stroke, RDN, complex PCI, oncology .
  • MAGiC manufacturing ramp: Administrative onboarding at EU hospitals plus manufacturing scale-up; initial sales in March, tenders may elongate timelines in some countries .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at time of analysis due to S&P Global request-limit constraints; as a result, comparisons vs. consensus could not be provided [Values retrieved from S&P Global]*.
  • Given management’s 2025 framework (recurring $5M→$7M; systems $2–$3M/quarter), we expect models to shift mix toward disposables, improving gross margin as APT accounting effects roll off by mid-2025 .

Financial Results vs. Consensus (Q4 2024)

MetricActualConsensus (S&P Global)
Revenue ($USD Millions)$6.340 N/A [Values retrieved from S&P Global]*
EPS (Basic, $USD)$-0.09 N/A [Values retrieved from S&P Global]*

Key Takeaways for Investors

  • Mix shift: Recurring revenue is set to step up sequentially through 2025 as MAGiC (EU) ramps and MAGiC Sweep approvals approach; disposable margin normalization expected after APT accounting clears by midyear .
  • Capital visibility: Backlog of $15.2M and guided $2–$3M quarterly system revenue provide baseline capital contribution; upside tied to GenesisX launch cadence (EU/US) and China conversion .
  • Platform expansion: EMAGIN 5F opens large endovascular indications (neuro, interventional cardiology, IR), potentially broadening hospital ROI and multi-specialty adoption over time .
  • 2025 catalysts: EU MAGiC sales, MAGiC Sweep and EMAGIN approvals (target Q3), GenesisX first clinical use (summer EU) and H2 launches; digital platform unveil and initial ~$1M revenue contribution .
  • Margin trajectory: Near-term gross margin pressured by system mix and APT accounting, but should improve as disposables ramp and fixed overhead dilutes over higher production volumes .
  • Cash discipline: Positive Q4 FCF and guided lower cash use in 2025 reduce financing risk while supporting commercialization milestones; year-end cash $12.4M, no debt .
  • Modeling implications: Consider rebalancing revenue mix toward disposables, embedding conservative China contributions and staged GenesisX adoption; monitor EU hospital onboarding pace and regulatory outcomes to adjust near-term estimates .