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Stereotaxis Reports 2022 Full Year Financial Results

Key Takeaway: Stereotaxis reported its full-year financial results for 2022, highlighting a revenue drop to $28.1 million from $35.0 million in 2021 due to delays in system placements. However, the company anticipates double-digit revenue growth in 2023, supported by a strong order backlog of $14.8 million and new product launches. The CEO emphasized the importance of a strategic transition toward a comprehensive product ecosystem, which aims to tackle existing market limitations and facilitate substantial growth. Despite challenges in 2022, the outlook appears optimistic with a focus on upcoming innovations and sustained order growth.

Market Sentiment Analysis

POSITIVE FACTORS

  • Anticipated double-digit revenue growth in 2023 driven by new system orders.
  • The introduction of a new product ecosystem aims to transform endovascular surgery.
  • A strong balance sheet enables the company to fund and commercialize new technologies.

CONCERNS & RISKS

  • Decline in overall revenue due to delays in system placements.
  • Increased net loss compared to the previous year, raising concerns about financial stability.

Full Press Release Details

Reports 2022 Full Year Financial Results
LOUIS, MO, Mar. 3, 2023 (GLOBE NEWSWIRE) - Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical robotics
for minimally invasive endovascular intervention, today reported financial results for the fourth quarter and full year ended December
year is poised to be an important and exciting year for Stereotaxis, as we bring multiple strategic innovations to key regulatory and
commercial milestones," said David Fischel, Chairman and CEO. "This transition to a new product ecosystem is strategically
transformational as it addresses structural inefficiencies, dependencies and limitations while setting us up for significant growth."
developments continue to advance well, and we expect regulatory approvals and commercial launches this year for our proprietary robotically-navigated
ablation catheter, smaller self-shielding robot, and cloud-based connectivity app. We also expect regulatory submissions for a guidewire
that expands our robotic technology into several new indications, a comprehensive product ecosystem in China, and an integrated operating
room display. These innovations collectively serve as a foundational product ecosystem for a high-growth medical robotics company poised
to transform endovascular surgery."
effort to grow revenues while in the midst of this transition was challenged in 2022. We experienced growth in system orders, but delays
in system placements led to a decline in overall revenue. We continue to see a healthy pipeline for systems and expect growth in orders
this year. We expect double-digit revenue growth in 2023 driven by revenue recognition of our backlog and new system orders."
retain a strong balance sheet which allows us to bring our transformative product ecosystem to market, fund its commercialization, and
reach profitability."
Fourth Quarter and Full Year Financial Results
for the fourth quarter of 2022 totaled $7.3 million, compared to $8.2 million in the prior year fourth quarter. System revenue of $2.2
million and recurring revenue of $5.1 million, compared to $2.3 million and $5.7 million, respectively, in the prior year fourth quarter.
Revenue for the full year 2022 totaled $28.1 million compared to $35.0 million in 2021. Full year system revenue was $6.8 million compared
to $11.2 million in the prior year as hospital construction delays impacted the timing of order conversion. We started 2023 with system
backlog of $14.8 million. Full year recurring revenue was $21.3 million compared to $22.9 million, reflecting procedure volatility and
the timing of service renewals.
margin for the fourth quarter and full year 2022 were approximately 59% and 66% of revenue, respectively. Full year gross margins were
82% for recurring revenue and 15% for system revenue. System gross margins reflect significant allocations of fixed overhead expenses.
Operating expenses in the fourth quarter were $8.8 million. Excluding $2.6 million in non-cash stock compensation expense, adjusted operating
expenses in the current quarter were $6.2 million, down from the prior year adjusted operating expenses of $6.7 million. Adjusted operating
expenses for the full year 2022 were $26.8 million, consistent with $26.9 million in the prior year.
loss and net loss for the fourth quarter of 2022 were ($4.5) million and ($4.2) million, respectively, compared to ($3.4) million for
both in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation expense,
were ($1.9) million, and ($1.6) million, respectively, compared to ($0.8) million for both in the previous year. For the full year 2022,
adjusted operating loss of ($8.3) million and adjusted net loss of ($7.8) million compared to an adjusted operating loss of ($3.6) million
and an adjusted net loss of ($1.4) million in the prior year. Net loss in the prior year included a favorable $2.2 million adjustment
for the forgiveness of the Paycheck Protection Loan. Negative free cash flow for the full year 2022 was ($10.8) million, compared to
($4.3) million for the full year 2021, reflecting a $2.4 million one-time facility investment and an approximately $3.0 million increase
Balance and Liquidity
December 31, 2022, Stereotaxis had cash and investments, including restricted cash, of $29.7 million and no debt.
Looking Expectations
expects double-digit revenue growth in 2023 driven by revenue recognition of system backlog and new system orders. System orders are
also expected to increase compared to 2022, supporting sustained growth expectations. Accelerating
revenue growth in the coming years is expected to be supported by new technology launches, but 2023 revenue expectations do not incorporate
any material contributions from these innovations.
strong balance sheet allows it to advance its transformative product ecosystem to market, fund its commercialization, and reach profitability
without the need for additional financings.
will host a conference call and webcast today, March 3, 2023, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-800-715-9871
(US and Canada) or 1-646-307-1963 (International) and give the participant pass code 6529896. Participants are asked to call 5-10 minutes
prior to the start time. To access the live and replay webcast, please visit the investor relations section of the Stereotaxis website
(NYSE: STXS) is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention. Its mission
is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory.
These innovations help physicians provide unsurpassed patient care with robotic precision and safety, expand access to minimally invasive
therapy, and enhance the productivity, connectivity, and intelligence in the operating room. Stereotaxis technology has been used to
treat over 100,000 patients across the United States, Europe, Asia, and elsewhere. For more information, please visit www.Stereotaxis.com.
press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe",
"estimate", "project", "expect" or similar expressions. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially. Factors that would cause or contribute to such differences
include, but are not limited to, the Company's ability to manage expenses at sustainable levels, acceptance of the Company's
products in the marketplace, the effect of global economic conditions on the ability and willingness of customers to purchase its technology,
competitive factors, changes resulting from healthcare policy, dependence upon third-party vendors, timing of regulatory approvals, the
impact of pandemics or other disasters, and other risks discussed in the Company's periodic and other filings with the Securities
and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements
for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to
its purchase orders and other commitments because some of these purchase orders and other commitments are subject to contingencies that
are outside of the Company's control and may be revised, modified, delayed, or canceled.
and Chief Executive Officer
(in thousands, except share and per share amounts) Three Months Ended December 31, Year Ended December 31,
2022 2021 2022 2021
Revenue:
Systems $ 2,196 $ 2,338 $ 6,845 $ 11,168
Disposables, service and accessories 5,105 5,656 21,302 22,867
Sublease - 246 - 986
Total revenue 7,301 8,240 28,147 35,021
Cost of revenue:
Systems 1,985 1,327 5,802 7,527
Disposables, service and accessories 1,007 718 3,875 3,276
Sublease - 246 - 986
Total cost of revenue 2,992 2,291 9,677 11,789
Gross margin 4,309 5,949 18,470 23,232
Operating expenses:
Research and development 2,400 2,615 10,558 10,199
Sales and marketing 2,988 3,046 12,325 11,948
General and administrative 3,377 3,638 14,363 13,973
Total operating expenses 8,765 9,299 37,246 36,120
Operating loss (4,456 ) (3,350 ) (18,776 ) (12,888 )
Interest income (expense), net 302 (4 ) 484 (11 )
Gain on extinguishment of debt - - - 2,183
Net loss $ (4,154 ) $ (3,354 ) $ (18,292 ) $ (10,716 )
Cumulative dividend on convertible preferred stock (338 ) (339 ) (1,343 ) (1,345 )
Net loss attributable to common stockholders $ (4,492 ) $ (3,693 ) $ (19,635 ) $ (12,061 )
Net loss per share attributed to common stockholders:
Basic $ (0.06 ) $ (0.05 ) $ (0.26 ) $ (0.16 )
-
Diluted $ (0.06 ) $ (0.05 ) $ (0.26 ) $ (0.16 )
Weighted average number of common shares and equivalents:
Basic 76,308,259 75,801,866 76,061,183 75,558,233
Diluted 76,308,259 75,801,866 76,061,183 75,558,233
(in thousands, except share amounts) December 31, 2022 December 31, 2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,586 $ 38,739
Restricted cash - current 525 453
Short-term investments 19,844 -
Accounts receivable, net of allowance of $235 and $180 at 2022 and 2021, respectively 5,090 5,406
Inventories, net 7,876 4,433
Prepaid expenses and other current assets 1,325 2,356
Total current assets 43,246 51,387
Property and equipment, net 3,831 2,632
Restricted cash 744 952
Operating lease right-of-use assets 5,384 5,736
Prepaid and other non-current assets 208 278
Total assets $ 53,413 $ 60,985
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,270 $ 4,189
Accrued liabilities 3,306 2,528
Deferred revenue 7,342 6,277
Current portion of operating lease liabilities 373 268
Total current liabilities 14,291 13,262
Long-term deferred revenue 1,654 2,238
Operating lease liabilities 5,488 5,842
Other liabilities 51 218
Total liabilities 21,484 21,560
Series A - Convertible preferred stock:
Convertible preferred stock, Series A, par value $0.001; 22,383 and 22,387 shares outstanding at 2022 and 2021, respectively Stockholders' equity: 5,583 5,584
Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2022 and 2021 6 6
Common stock, par value $0.001; 300,000,000 shares authorized, 74,874,459 and 74,618,240 shares issued at 2022 and 2021, respectively 75 75
Additional paid-in capital 543,438 532,641
Treasury stock, 4,015 shares at 2022 and 2021 (206 ) (206 )
Accumulated deficit (516,967 ) (498,675 )
Total stockholders' equity 26,346 33,841
Total liabilities and stockholders' equity $ 53,413 $ 60,985

Frequently Asked Questions

What were Stereotaxis' fourth quarter revenues in 2022?

Stereotaxis reported fourth quarter revenues of $7.3 million in 2022.

What is the expected revenue growth for Stereotaxis in 2023?

Stereotaxis anticipates double-digit revenue growth driven by system backlog and new orders.

What were the full year revenues for Stereotaxis in 2022?

Stereotaxis' total revenue for the full year 2022 was $28.1 million.

How did operating expenses change in Q4 2022?

Operating expenses in Q4 2022 were $8.8 million, down from the previous year's $9.3 million.

What was Stereotaxis' cash position at the end of 2022?

As of December 31, 2022, Stereotaxis had cash and investments of $29.7 million.

Last updated: Mar 3, 2023