electroCore (ECOR) Q2 2024 earnings summary

Executive summary

• Achieved seventh consecutive record quarterly net sales of $6.1 million in Q2 2024, up 73% year-over-year, driven by strong VA/DoD and Truvaga product growth.

• Net loss narrowed to $2.7 million, a 46% improvement over Q2 2023, reflecting higher sales and improved gross margin.

• Gross margin reached 86%, up from 84% in Q2 2023.

• Launched Truvaga Plus, a direct-to-consumer wellness product, and next-generation TAC-STIM.

• Raised $9 million in June 2024 through registered direct offering and private placements, with majority from management and affiliates.

Financial highlights

• Net sales for Q2 2024 were $6.1 million, up from $3.6 million in Q2 2023; six-month net sales reached $11.6 million.

• Gross profit increased by $2.3 million year-over-year; gross margin improved to 86%.

• GAAP net loss was $2.7 million (38 cents/share), improved from $4.9 million ($1.03/share) in Q2 2023.

• Adjusted EBITDA net loss improved to $1.9 million from $4.5 million in Q2 2023.

• Cash, equivalents, and marketable securities totaled $14.5 million at June 30, 2024.

Outlook and guidance

• Expect TAC-STIM revenues to increase in the second half of 2024 due to new product launch and bulk military orders.

• Anticipate continued growth in VA and Joerns managed care channels; positive cash flow targeted for early 2025.

• UK NHS business expected to grow at mid-single digits; other ex-US geographies seen as 2025 opportunities.

• Management expects majority of 2024 revenue to continue coming from VA/DoD channel.

• Current cash position expected to fund operations for at least the next 12 months.