• Revenue: $25.2 million for 2024, up 57% from 2023.
• Fourth Quarter Revenue: $7 million, a 36% increase over Q4 2023.
• Gross Margin: 85% for 2024, compared to 83% in 2023.
• Net Loss: $11.9 million for 2024, improved from $18.8 million in 2023.
• Adjusted EBITDA Net Loss: $9 million for 2024, compared to $15.4 million in 2023.
• Cash and Equivalents: $12.2 million as of December 31, 2024, up from $10.6 million in 2023.
• VA Channel Sales: $17.8 million for 2024, up 85% from 2023.
• Truvaga Sales: $2.8 million for 2024, a 174% increase over 2023.
• TAC-STIM Sales: $1.2 million for 2024, down from $1.7 million in 2023.
• Operating Expenses: $33.6 million for 2024, compared to $32.5 million in 2023.
• Research and Development Expense: $2.4 million for 2024, down from $5.3 million in 2023.
• Selling, General, and Administrative Expense: $31.2 million for 2024, up from $27.2 million in 2023.

• Warning! GuruFocus has detected 1 Warning Sign with ECOR.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ElectroCore Inc (NASDAQ:ECOR) reported a 57% increase in revenue for 2024, reaching $25.2 million, driven by growth in both prescription and non-prescription product lines.
• The company achieved a gross margin of 85% for the full year 2024, up from 83% in 2023, indicating improved profitability.
• Sales in the VA channel grew significantly, with an 85% increase to $17.8 million for the full year 2024, highlighting strong demand in this segment.
• The Truvaga brand saw a 174% increase in net sales for 2024, demonstrating successful expansion in the direct-to-consumer wellness market.
• ElectroCore Inc (NASDAQ:ECOR) is making progress towards positive cash flow from operations and GAAP profitability, with a 37% reduction in net loss for the year.

Negative Points

• The US prescription gammaCore channel recorded a 15% decline in revenue for 2024, indicating challenges in this segment.
• The acquisition process for TAC-STIM with the Department of Defense is lengthy and opaque, making revenue from this product line hard to predict.
• The Joerns Healthcare channel has been slower to gain traction than anticipated, with only modest progress in prescription volumes.
• Revenue from channels outside the United States remained flat, suggesting limited growth in international markets.
• The company is refraining from providing guidance for 2025 pending the close of the NeuroMetrix acquisition, creating uncertainty about future performance.

Q & A Highlights

Q: How do you plan to sell the Quell product after the NeuroMetrix acquisition? A: Daniel Goldberger, CEO: After closing the acquisition, we plan to add Quell Fibromyalgia to our FSS contract and other contracting mechanisms to streamline the process. We will train our sales team and customer service shortly after closing and target VA hospitals. We aim to integrate Quell into our existing sales channels, including Kaiser and commercial accounts, and explore over-the-counter opportunities in 2026.

Q: Can you provide more details on the Joerns channel and its progress? A: Daniel Goldberger, CEO: The Joerns channel has been slower than expected, but we are seeing progress with over 30 repeating prescribers, mainly in California. Although current prescription volumes are low, we are optimistic about future growth as prescribers become more familiar with the process.

Q: How does the start in the Kaiser channel compare to the VA system? A: Daniel Goldberger, CEO: The Kaiser channel is taking longer to gain traction compared to the VA system due to its more constrained process. However, once established, it is a sticky business, providing a competitive advantage.

Q: What are your expectations for the Truvaga channel, especially after launching on Amazon? A: Daniel Goldberger, CEO: Truvaga saw significant growth in December due to holiday purchases. While the first quarter has normalized, we expect continued sequential growth. Amazon provides a seamless purchasing process, and we are monitoring its impact on contribution margins.

Q: What is your confidence in achieving mid-80s gross margins in 2025? A: Daniel Goldberger, CEO: We expect to maintain mid-80s gross margins in 2025, primarily driven by our legacy product lines. New products from NeuroMetrix and Spark Biomedical may lower margins slightly, but this is more likely in 2026.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.