Neuronetics (STIM) 12 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Neuronetics Second Quarter 2024 Financial and Operating Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Mark Klausner. Please go ahead.

you conference us call. thank second the and XXXX quarter morning, for for joining Neuronetics Good

Financial Today's Joining the phone President which short Officer, the Chief delay and on on includes slides Chief Steve me today's There audio webcast. Executive being Keith call a slide between Sullivan; shown is live the features and a call are presentation. Neuronetics Officer, webcast, Furlong. a and the over

slide we you our presentation listening the the recommend If independently. from phone, and would along are following website downloading over

including Before listeners Greenbrook the these our we guidance, will associated and by this due results can to uncertainties financial Act and of with begin, statements operational include I and stated would transaction those XXXX, forward-looking Securities company's harbor with call by from safe that the strategy, management TMS, related or metrics. revenue like issues business, implied statements caution Private to differ conference under Actual discussed certain Reform the business. other information and the risks covered provisions forward-looking proposed to statements Litigation during of materially

course and the For filings business, I update forward-looking today, law. August review with disclaims this obligation a with company and except any Neuronetics' of XX-Q, the of you call, statements the to to any the be discussion associated encourage company's including filed later risks uncertainties Exchange as made Securities required Form will Commission, company's which XX. by during The

conjunction our GAAP measures for and noncash call, basis, expenses excluding and viewed taken our results a investors Reconciliations that financial and certain in measures are information U.S. performance financial in GAAP operating non-GAAP the including U.S. tables competitors externally both are plans and forecast we'll website. EBITDA. indicative strategic information financial in believes press non-GAAP relative the by non-GAAP release, our to between also not non-GAAP uses for on of compensation be our on compare decisions. can to useful that management accompanying certain During performance trends Management information our to benchmark against Management results. other provide certain and discuss presented with which

my Chief to Officer, turn call Keith over that, Sullivan. Executive the it's and President Neuronetics' to pleasure With

the followed morning, by thank with discussion and joining I'll by the merger will Mark, thanks for recent and of begin our of all financial our us performance, then update. for operational Good an with introduction. you an I'll overview providing review today. Steve TMS. conclude Greenbrook results,

the our saying cybersecurity Healthcare was lingers. which by below like quarter The impact with of our still breach revenue during X% performance start I'd was to Change expectations, financial of million that down year-over-year. $XX.X

XX% utilization bottlenecks Healthcare. authorization the up our prior local would not have Our consumables impacting in and there related had been was higher Change by caused been segment

utilization underlying in revenue cash positive operations X% forced session their sessions were with the trends, treatment treatment rather to allocate was to purchasing new Despite down than patterns. customers as historical line our support

from payments delays is Change normal return We the patterns will Healthcare balance Change Healthcare. that cash redevelopment This headwinds result transient, year. of believe the revenue continued negative the in a our of are and of over from to

will we of see growth threshold we drive move through trends macro strong treatment motor utilization, once the these on in continue commercial we underlying past our determinations strategy, execution continued and seeing challenges. the long-term session Based are sustainable and to demand, utilizing we

the timing earlier process our equipment purchases. NeuroStar as the financing The financing for our side now On challenging in We've noted experienced companies instead by the capital customers process. of of days. engaging and on weeks takes headwinds adjusting capital last Summit head addressed quarter, securing the these business,

revenue strategy recognize highlights our to NeuroStar diligence increased continued prevailing actions, systems. result is guidance our at execute high able of XX of XX headwinds. requirements, despite our This interest and continuation to quarterly to to of rates systems, end of the the regardless high XX adjust for of our a on demand we which the ability and As were NeuroStar

to future are of our results launched be July, Neuronetics In the Me we continue successful on based We the tremendously pilot. we bullish after nationwide Better from on fully program the program. seeing a

the with Let me share of you some results.

training, on participate follow-up Participating compared who program, providers attendance need. practices to interest We've motor NeuroStar first patients leading X.Xx a patient for more which time providers. determinations. customers a improved also by initial treatment, at their X.Xx University, reduced received Through rates to to nonparticipating clinical more in average, in requirement advanced to XX-hour from is threshold treated significantly XX% the the

NeuroStar more treatment room from Despite improvements there suffering life-changing OCD depression. and to results, making we our outstanding NDD, millions patients believe still these for of accessible These are improvement. is anxious

throughout for BMP we a of participating our With will markets the mass now have customers providers manner education the growing NeuroStar. focused program, that confidence increases This awareness respond investments the U.S. of patient expansion our key a to within many in and timely critical of in

accounts of to a of as providers awareness other the connect in and the to medium highly second group because has this a TV with We effectiveness accounts. patients BMP high to BMP campaigns This across Tampa, facilitates have chose in using digital will will campaign campaign So the existing Florida. concentration effective. be it of we specific test campaign half are TV BMP TV that TMS NeuroStar representative we market. increase year, during supplement advertising will This of of practices advertising country. of the a Tampa proven to And be new our this seeks a confident piloting be

life-changing for a participate more the receive providers and we to of in more practices in this benefits pilot out kickoff to customers other held wanting get our excited very the deliver NeuroStar. Tampa and as value event came BMP to even seek to We month the They into this program. even event help earlier patients BMP of

encouraging for was the the since We're highlight April. the by feedback TMS new adoption Another this to having XXX and Physicians positive seeing providers responding are option, in positively therapy for rates effective adolescent treated this need the NeuroStar critical been over in highlighted age quarter recognizing patients of adolescents. launch from group. treatments

With of are X.X in crisis. to XX U.S. represents health paradigm adolescents estimated of many poorly by addressing a our in million depression, whom growing for limited the number this served treatment ages an by the impacted antidepressants, mental FDA-cleared approved XX shift

Health Following over updated million XX XX.X insurance combined, include our policies blue Major clearance, Blue XX. Aetna, young providers, for we've adolescents Blue Shield, Cambia ages California their significant Premera Blue nationwide expanding covering as Cross to strides have FDA Cross in lives Michigan, as and coverage Shield Solutions, Medicaid, of to XX. including made adolescents

and Our advocate providers with dedicated payers. health further policy -- for to policy updates providers and team continues

at-risk of NeuroStar can and a therapy "I course I to from the have wanted on of completed expanding particularly As when we for TMS patient started TMS share I a population. treatment. company this recently the first adolescent who was a to underserved note treatment, at To a with And clearance FDA XX.X. access for patients, only received I quote, benefits highlight vital adolescent patient forefront of the and we're

my my I to dropped stopped medications worked felt so friends school, had hopes have I I My dreams for depression of bad, depression no in on socializing, then, isolated and or future. was many hopeless. too of out or none or anxiety. count I Before myself. high been lost for them life and

first. get I over anxious was less my the scared weeks, to the first, love. It "At up to else depression. TMS. and had do easier started But feel starting used didn't the for I at because hard It was about want of my nothing few span I time happier. a became all hopes things to to worked I

I TMS, realize much notice I how even finally TMS things truly could make can goals me I to and started better," other am of moment. have my ambitions people now, happy and future was. in happier jokes end am my making so end for the get that real I plans life. helped and enjoy every laugh, quote. and Towards

to that patients because is results bring this suffering It hard conditions. mental to patient therapy from this at like we health so NeuroStar work of

now on an the would turn provide Steve performance. update to financial to to I call like over our

all of of XXXX. Unless XXXX the quarter Keith. performance noted, quarter made second are being you, versus the for comparisons second otherwise Thank

primarily Therapy expectations. XX million, System Advanced $XX.X Total decrease lower by the of a million. revenue revenue the decrease a session NeuroStar was systems, was revenue our $XX.X X%, treatment revenue on quarter, of impacted was In X% line recognized session million, with treatment U.S. U.S. $X revenue quarter. year-over-year. in we in

compared per impacts $XX,XXX year on approximately the patterns active that in discussed. to due treatment Keith ordering session approximately in site Revenue the unfavorable to prior was the quarter, quarter, $XX,XXX

margin gross the of points to contract of increase part an XX%, a the of was in approximately margin shift XX.X%, second from positive basis XXXX quarter XXX manufacturer. to due impact our new Gross of

X%, $XXX,XXX expenses to expenses Operating million The due was were or primarily the in the to compared increase XXXX. of second utilization quarter million, expanded slight of NeuroStar related University. to $XX.X an of increase $XX.X

$X.X the share per million or or to compensation approximately of $X.XX $X.X quarter, in million $X.X per was we a of incurred stock-based $X.XX loss loss Net the noncash prior quarter. quarter During expense. year the net for compared share, million as

of second retention recur million we not $X.X which a benefited quarter in XXXX. During XXXX, the credit, did from employee

similarly XXXX second as the the from benefited negative of of ERC in $X for second which million, quarter EBITDA negative XXXX. EBITDA the XXXX million, of was compared $X.X to credit quarter

to balance Turning sheet. the

As investment late million. Advisors, initial with facility our to we This efforts meeting providing funding tranches of and Neuronetics' July, entered SLR support in allowed to The is cash care loan, $XX closing, additional indication clinical additional and June into million capital financial ongoing drive with NeuroStar. investments at debt of to initiatives, fund. $XX This $XX additional upon term X equivalents debt commercial existing total agreement $XX In million up off a million of flexibility. million certain available XX, the leading were provided of new to reducing of available health Perceptive an XXXX, cash pay expansion full conditions. $XX.X and adoption tranche in us a also facility and new

remain to to to we continue the confident flow in of our XXXX. expect and positive path cash profitability, fourth continue We be to in quarter

turning Now guidance. to

$XX.X million. we the million For expect third of $XX.X to revenue quarter,

full year year to customer and guidance We inventory range in third million the during of assumes of to session a year. quarter normalized the back full revenue and the million. patterns to the ordering $XX return Revenue management $XX half treatment for expect continue

year We of operating total full the be to expenses range the expect to $XX in continue million for million. to $XX

I back Keith. the over like turn call to would to now

Steve. Thanks,

signed today, to agreement As mentioned have in press we our announce to acquire release are that TMS. excited definitive a earlier we Greenbrook

This the systems. will the X have provider NeuroStar TMS that you followed in acquisition patients to vertically is leaders possible. and a industry, of together integrated Greenbrook health company health bring be footprint unique as past, brings a mental the with user as significant cutting-edge Neuronetics many the If benefits in largest largest nation's aware the of creating therapies you the to of mental

being the large treatment anxious depression relief of fraction than TMS into for currently just businesses we significant treated with million represents OCD. and transaction, and who opportunities poorly finding Within Neuronetics as like with a adolescents, they that that currently mental diving and XX There a This more the massive for for the X.X desperately health to of innovative the adults million qualify are Before are population, patient seek. who over are U.S. suffer review are patients they exist are for nondrug and patients, being people within alternatives. served wanted depression, medication solutions including Greenbrook treated the not as opportunity conditions from

points merger, pro XX%. long-term through existing Greenbrook's shareholders Neuronetics you basis, all converted Greenbrook some key walk common be of me to debt the On of a Prior TMS the to Let shares. will forma transaction. Greenbrook will the X.XXXXX Neuronetics to of prior combined with expected into convert is common remaining to entity, owning approximately to own the adjustment subject stock, of shares closing. Greenbrook of XX% share Each

its Peter Officer; Our Officer, Financial Greenbrook the Geoffrey roles, NASDAQ team, team. Greenbrook's join among symbol listing their President TMS continue Greenbrook will combined on company Bill Neuronetics, Chief Officer; ticker Chief others, to management operate key members management STIM. leadership maintain Medical the and The of management team will including Grammer, Neuronetics in will Greenbrook's Willett, under and remain will Chief as Inc. and Neuronetics and Dr. existing Executive Leonard,

shareholders merger of any is subject This and place deal of Greenbrook the scale, of closing fourth by includes conditions. with the to in closing customary Neuronetics take As the anticipate We XXXX. approval to this both quarter TMS.

XXX therapy in U.S. TMS network provider Now reach operating This in health them need a of are of for mental treatment in range United TMS. an wide the the approximately overview States, of centers markets. of country's across of They patients services in the to states allows extensive Greenbrook some largest the largest XX

therapy broad spectrum of X offers This care. allows to for distinct treatment. management, address med mental health patients: them services of approach through a aspects comprehensive and various Greenbrook of NeuroStar TMS the continuum care SPRAVATO

Greenbrook over demand their suffering been treating has scale health the services. patients operation been and for these prolific to treated, mental the which with from of in having patients growing XX,XXX disorders speaks

disorders We strongly believe nation's suffering to have organization care nation's in creates the that a Therapy seen advance combination largest leading health of technology industry. the NeuroStar single TMS the levels to that of mental this provider of the of the developer not before will and from ability patients

to broader vertically creates capable management, in awareness and NeuroStar the treatment has of from integrated merger allows benefits. SPRAVATO, array of us a with med access a U.S. integration including optimize of therapies, providing this to every foremost, significant downstream variety the step and to First This journey, of scale patient organization health mental a which

gives to a through therapy addition, unified it awareness of single us NeuroStar the drive In increased brand. ability

regardless patients relatively ensure today, for effective, could nation's consolidated which who reputations the highly this more center educate approach highest As practices merger efficient We the from best Specific on fragmented benefit focused delivery and they on market reaching be that treatment. and capabilities will businesses to TMS quality small patients treatment This the it care Greenbrook, of of the more sits NeuroStar. of marketing TMS provider network. is patients this receive and visit. and allows can leading across consistent to

base, will centralized these to cover training in the how shortly. recognition, the expand offerings increased to patient addition to Importantly, into variety incorporate customer their this on positive NeuroStar and including transaction of each providing provides services, for by entire of a potential I brand customer business benefits improve our to opportunities ability additional operations practices. opportunities

resources financial a larger opportunities of the of transforms to be significantly advantage to available perspective, not a profile a either model, take company this diversified and From independently. increased entity. base, the merger With will combined we able revenue

of in opportunities we addition, discuss advantage which substantial take cost In shortly. see detail to synergies, more we will

and a forward Lastly, and achieving merger stronger substantial crucially, of X financial path much combined our time this to us our profitability. strength our The for accelerates puts position in companies brings line profitability.

merger organization alike. that therapy this come. TMS stronger, the the value more significant the effective is patients serve NeuroStar and positions better In for more creating essence, sets efficient clear years a can in space leader and be the about It and creation stage providers in and to us growth to

not NeuroStar approximately negatively the pursuing would it impact sites this if be U.S., With we customers' would X,XXX across businesses. our transaction

about variety our customer organization matter the the the new a across opportunity deliver enthusiastic entire fact, As base. of a scale to I'm positive will benefits of provide of

will about drive the help patient Firstly, will of enhanced visibility increased under practices. our through our therapies, expect for recognition increase to more significantly educate benefits we This new NeuroStar. we will which marketing volume brand customers' development, patients

that unique customers now the ability What about is expertise have to operationalize for on it to opportunities our is this expand help services gives will transaction within we training practices. their current additional us the

medication is on care these partner familiar our and educate with how their includes already incorporate training will NeuroStar approach practice their potentially trusted and on can development offering, into operations. This with more help treatment a while alongside to provide revenue effectively University working intimately customers practices. hands-on their TMS SPRAVATO and programs management increase comprehensive patients who This through This existing our comprehensive their partnership managers. be through and

we to a to provide other customers, of our ability also can business improve contracts. the care solutions to solutions number one, payer offer Number their operations. With expanded

With which reimbursement could the for customer national more with represents of to more to the Greenbrook regional increased practice rates, negotiations which scale XXX our insurance which collectively lead lead base. in have we network, of This customer would our extend greater improvement to companies in customers. we'll potential would TMS, to profitability approximately contracts, economics and BMP develop leverage our sites, favorable and

will for these makes this addition, to In Management SPRAVATO, customers into our practices. Med both incorporate leverage contracting which easier it to and their apply

Number processing billing. reimbursement and two,

treating able customers, be of complex insurance to could reimbursement do landscape support speed up also by services navigating to more will the and allowing which patients. providing billing We on to offer robust processing payment claims, in our denied the they best: our customers reduce what focus

and potentially leveraging combined cash Number flow and collection we three, By improving expertise can our management. profitability. help our process, their revenue customers cycle their improving and optimize resources, billing

to require Greenbrook customers XX typical As the most forced days an that XX most are contracts days than to payment within tolerate. current XX example, rather

to operation, more calls efficiently, the four, required potentially existing call centralized a we and conversion center rates leveraging the can Number demand increasing and burden Greenbrook's access patient call center. reducing meet manage TMS. for education help By administrative to

growing merger run ecosystem our about practices, more provide a This treat support. stronger isn't creating of in efficient an more even better health need care, enable to more Neuronetics. to about customers mental patients and ultimately It's powerful

doubling the strong revenue combined this one, transaction combined of fiscal Beyond forma revenue Number strategic to the offers pro the year for $XXX stand-alone XXXX, the existing have the company In been are financial the company. benefits customers, compelling approximately trajectory. benefits scale would there growth and scale increased of million, compelling effectively businesses.

in expects combined company revenue XXXX. fiscal year-over-year XXXX years Additionally, growth and mid-teen the

be cost at the marketing million of company majority Number synergies. functions, spend come which annual combined expects $XX cost two, optimization well year will of material in as to the realize able XXXX. as savings, least Through of back-office the fiscal to

and a XXXX. year positive cash anticipates revenue for to adjusted cost as of realization Coming profitability. both of growth synergies, positive fiscal full strong be the Number company flow three, EBITDA and accelerated result path the combined to expected

bolstered And sheet. lastly, a balance

As the of into to and pre-transaction on a debt result common leverage improve of combination shares, its strategy. company consolidated be will the business scale to post of Greenbrook's able in conversion execute sheet the acquisition, long-term with growth balance

really can Neuronetics accomplish I about Greenbrook and am together. what excited

this and, it systems the be will customers' become making patients, We this TMS making that our patients awareness in approach, to for name recognizable with treat unified means therapy. even What practices more household brand NeuroStar will able brand is their all amplify to boost the need. recognition, easier to inside NeuroStar

mental brings its together leading transaction believe capabilities suffering value provide the health the to with transformative mental health to become We to and to from shareholders. to organization practices scale care create patients for organization X treat ability leverage of solutions innovative the this ultimately an to deliver companies conditions and looking

would to line with I questions. open like And that, for the

Our with from Blair. line Andrew question first Instructions] [Operator the will William come Margaret of

that this X or on -- weren't and lingering bit dynamics. longer by then Change expected, when Change X support additional me, maybe going any Healthcare than forward, it's that and that about isolated impacted for in I'll little is grow expected guess, you Maybe us with QX as that other maybe a and centers Healthcare. maybe Change fact, metrics X well? we as happen, to Maybe and I you the is, the continuing churn think on provide to and as certainly we event an can start acquisition

is This Margaret. Thanks, Keith.

we metrics we each as grow. continues we look to So can ] the see you it as utilization And in week and -- [ my staff at call. know,

our the inventory of at look can each had. also that customers We

comfortable those so And have that QX hit the out. feel we'll that and trends we positive both guidance of we in laid seeing are

pharmacy, is private the the think on way then And I their and they they Change groups, large So then working we private information Healthcare are that that to focus the physicians. then first our is hospitals, the physicians. that on get information

next over months, anticipate back And end normal. the year, we be to we'll of the the by so few

Neuronetics the acquiring sense with the to we building equally clinics? core of capital both a about opportunities keep this Okay. then, Are you from kind I'm And what kind I allocation, then spend just we we capital will of continue on think franchises said, to X the of new franchise, as from the X and guess, adolescent companies, between right going versus another trying move out allocation. profile get about as opportunity? expect time merger, waiting growth a especially why And is towards the then like year? or the the you you to think

take first. Neuronetics So the I'll side

expand able of to We our TMS being we how customer reimbursement. Neuronetics-Greenbrook our phone, reimbursement done the constantly will through our capital teach the have ongoing as answer We're over the to solve to how base. that teachings team continue are PDMs. better them to believe some I those our can sell all had equipment and billing, how consult, and and now over combination, well But over do customers problems and to how that to get patient as through policy along.

the we answer their it as With helping the accounts our them things, actually doing with their doing actually of combination Greenbrook, further these phone transparent service. would though them, some the we're be can offering by own help call billing Neuronetics office. center to and for them, answering And phones by

problems, think who I the pain industry where identified -- have solve the want for experience but not business to basis, it we have have we and in how teach them. the that those them do daily we can customers those can now for point a points to on further evolved we our only all the So help,

behalf allocation capital of Greenbrook? And Okay. the part on

Steve. it's Margaret,

common I Greenbrook's think for Obviously, of to really it's change really financial why supporting us. answer the $XX now, companies, critical in now load with lenders' $XXX combined our game do shares. to their it willingness debt was million debt to million the roughly a just convert

tranches, additional the do necessary. debt And the Perceptive, ability revenue so And ratio to much is we with if have stronger. for obviously,

really now or to as the this my was to which year changed variable But another tables again, X. waiting really turned and another minds perspective, opposed our it that from do

their been to each initial the existing our Margaret, with with expand Greenbrook, team, this is utilization So has and Bill and of his X focus centers. discussion in Leonard

to plan to today a or full It's to point, are build from take to where really to they this buy current isn't up able be and other their additional and So them stores get sites. there systems brick-and-mortar at utilization.

Adam will the Our Maeder next Piper of with come line Sandler. question from

Congrats on merger. the Greenbrook

one the Just in are the cybersecurity Change impact quantify quarter I to Healthcare for able would one you issue? the guess, start, quick me, be, to from .

pretty I all of much miss. the mean, was it yes,

$X next to say what would would that size had, at our place Adam, the is, segments that is, range. I was year-over-year. low just high teens a in customer to worked they nicely, we large flow the say, saw utilization depleted patient million normal purchasing of we of So quarter-end we inventory with and Star [ had during our through What order there quarter, inventory support really, up really would cash levels. change a their the ] Track some all traditionally they to quarter's was pattern what off medium on the where flow, they be found and held the double-digit across XX% customers issues our would where

that revenue. so impacted And really

up But my the still significantly year-over-year. utilization to earlier is point,

so full play. a and, And the are with queue the prior left They there. the from what have back slowed down we're we is from still why that's hearing will patients the our customers, ultimately, alone. The patterns historic little But bit into may purchasing auths. been come year-end guidance

And on back QX X to with the I into is to relates if segue $XX.X earlier as thus seen million it like outlook. to kind a far And a it into half kind the informed heard next Margaret's of provided. the the million comfortable guidance, And the you're That's you've guidance Keith's $XX.X comments that's little what helpful, I wanted ask quarter. Steve. question, you just I to which sounds more weeks that bit outlook question, of good pretty on guess about the

to, correctly. Just wanted I about that guess, thinking I'm ensure that

a it then It's the with normalized even relates a to number, so trends. I'm there ramp. And is guide QX, sizable -- just pretty steep implied as

just contemplated there's contribution there So that's residual from if wondering for Greenbrook. anything revenue adolescents,

outlook comfortable for QX. I and bit follow-up. get then help little QX the more X And a Just us have with

to Yes. the say, number. for between I with comfortable very implied the is expectation didn't balance with that. QX ourselves that what's QX. would there want very would And and say we're We Adam, with QX. of I ahead QX we're comfortable again, But a get

collections. June. key us bring And money. did our data last couple highest collection the amount My since One of an for good was is to able And of impressive fourth rebound the collection then in a point team of we quarter. XXXX see July pretty month weeks was in

And so customers gives business. confidence their that us they coming and our reimbursed their cash some claims that have do into getting are

and up So we little have on $XX throw then left pretty to in But still a would think again, And liked sense. the that I makes there's said a million our QX time comfort less Yes. QX? given I it quarter, where is level strong.

stand-alone sense bit you could more strategically, more, a revenue combined that 'XX, guys, that's The Greenbrook. makes versus you hoping mid-teens you maybe an but acceleration little deal some expect of the Neuronetics. the the And if deal just and growth about 'XX was just I both could that referenced, obviously X on in in for entity squeeze synergies speak

would anything about that. that you'd So bit little more And like to the touch on to hear as on then just a synergies love well. cost

a point between that the really losing is Thanks, were surprise Adam. the our Yes, the synergies X Directors. $XX this was of stated the companies It's money. we both take initial million that But companies. key on with Board no

under leader. spend the marketing much We will in be efficient systems. X the spend, more synergies become some ones, G&A, have There'll vendor obvious

have before, integration that it's that these X action day have place we as integrations been swift so very synergies through the have those and the your ensure possible. are of us quickly so as important realized you through of take next work ability. months, as couple And we'll plan to that in on many you And then

don't, assessment the together. out. to able you there. combined usually it's But get one early take confident really, of load companies have you off conversion again, And we're have teams that was the be the a we'll that to And entity. in putting is So the death of cost That completed if the great debt thing.

So into the team not made probably looking they're what closer LOI. target. 'XX. our it exit clear we XXXX about But as million. 'XX That's goal is $XX to weeks management our past And for very it's the our Board again, we're X understands

have QX, close ground then of in running upon transaction. and So some time and the we'll hit the QX

question next Bill come Plovanic from Canaccord. line the with Our of will

Bill for This is John on this morning.

on But us starting there too. to the first move touch the the that guidance, Just I'll on may merger. guidance,

in expecting you that reflected expecting of for Steve, are customers to receivables going QX as reordering customers? lower extending forward? And level were you carry guidance? are more you you inventory, bolus return implied And a inventory normal expected will also, a just these Or that just just wind-down is a seasonal the and are First, patterns mentioning? just of bolus the given

with inventory we Healthcare breach. Change inventory So by And site. comfortable we the track prior were the levels to

really do we stock will so back of level. do think customers ultimately to up revert they And Again, next that quarter. advance in the

see And we so that happening. do

that impacted. all receivables, as of customers far again, were As our it's

like reimbursed. underperforming trouble it's having customers getting Customers are paying not us. it's So not weren't

so so can hard. push only you And

our We have customers. great relationship with all of

nature. never we're threatening in So

them. have respectful work with to You be and

predicament the understand totally they're we in. And

lot one what such And can a I for there's mercy. so having don't us we But you a a pay there's think, have whole And in July, in, willingness month their purchased. either not of any do. strong to are indicates always money at again, collection they if

is we the guidance expecting are to why rebound return in inventories fourth like QX. yes, full a year which good at. And hopefully, we kept the so a it told I Adam, normal where those in And then, again, was quarter,

maybe know And way but has this maybe ways I just to, couple another of a ask different Great. it. to question already, asked for been Keith

to cost forma pro that the color at the mid-teens like just color revenue the it's point companies? does being synergies maybe any expect, here. are both should combined any revenue ] in ] [ on [ Just assumed the for additional to? and end that nice that what see on the forecast you're growing we the And XXXX But look of starting the growth

are growth That we additional companies that of balance out under X XX the of I'm and for is XXXX, for that synergies company more combined Greenbrook year. for and a name not mid-teens, by X But marketing from X. to -- to anticipating the but give we we having the John, up would come next would accounts between growth well, want XX% brand guidance -- sure more generate going opportunities SPRAVATO be for instead and patients the opening efficient yet.

get to I be would a So business across going that so Greenbrook able of also we uniform all within stores. training drive And experience. mentioned we're that greater we provide comfortable we're get the think that pretty they those stores uniform that to

will line Our last Stauder Citizens JMP. with question from the Danny of come

Yes. Great.

Greenbrook. on So just first

begin strokes your would You on be guess including broad -- some as thinking gave as phase about What's as great I well here? What more a some color the far sense high would just payer look on road the us like? give financials. But about there, as X as you phase a should does great. map marketing, X we on you integration those to what immediate order the level, benefits What's pecking Any be contracts like? look focus? could

It total, between teams, in Steve. the be. leadership plan of it's what will converse time priorities the Again, the Danny, guess, haven't both had a integration of a high at really level and the I companies. lot was to done Yes. teams about

synergy we be cash to the efficiency stores. really as flow the Our or $XX that XXXX. in million Again, Greenbrook want the as ground increasing hit want it's closes. deal positive first priority to in also so running that, soon we XXX in the to number. And is After utilization getting

the education on program year. back earlier efforts in seen impact training pilot of and part Greenbrook stores of the that NeuroStar We've the the were BMP University our

know the the we have on impact all to and when board so will our trainings, a that applied across stores, revenue. And pretty significant utilization

And for enable with again, to enable will continue to it which with been revised impressive. rollout, the of their date structure Greenbrook has the companies, very capital to SPRAVATO

So cost the synergies be will top priority.

the make out continued the roll sure it being program. the part well, and behind goal expansion then be still We now, aren't to of XXX program that that revenue BMP realize the the to program. it's to the the in continues benefits of in And and customers not will Second be synergies. but the again, we have only, -- sites only be going

their and partners Our really are performance. successful the in utilization overall increased just and have BMP wildly business

integration I close. that a And post company so really successful think or create it's will post those priorities

but Greenbrook I been But expansion patients And has and key generating Greenbrook the Greenbrook treatment of an patients them the to have Danny, priority. good sales offices on interested job or treat physicians' into commercial themselves. SPRAVATO educate the is front, with excellent aren't balance that getting and willing the done aren't then at learnings of also both on the care some of the mentioned depression to a into that able primary in stores the TMS there offices are sent and we organizations. that within they've those sites. have awareness

We have our for current also. customers that opportunity

So that that turns Greenbrook of help, existing within we same on out to also team system. but are from And rate our doing PDMs for a great can educate our only the will source they thing patients the learnings be we have the the not the highest customers. have Greenbrook for conversion it patients into how are looking

So I Sara opportunity and with Bill huge team, standpoint drive commercial growth. a think us greater for Grubbs is with a from her this to and

and all commentary. extra No, great. appreciate I that color that's

you level stepped that a that terms X as a sustainable feel level level just me, remind far long-term in due per think of Just here, these you about the some is per your What's in down just headwinds? you site, Change as on se? for some us excluding of what the normalized disruption. Healthcare follow-up of obviously, little average But just bit quarter. that's revenue Could active to here

all capacity. is NeuroStars I to goal get mean our of our to customers

day. patients be So that to per would X X roughly

those And would quarter. partners. a seeing so revenue $XX,XXX to with site to CFO see types I Again, BMP $XX,XXX we're from per like a our perspective, of levels

So is customers be And am is and But I there's XXXX of focus stores the a our that's to I their $XX,XXX, going to No? increase going think really in from even XXX get lot Greenbrook $XX,XXX do there. possible. very again, XXX% that runway BMP also utilization. confident to we'll help our

today's I'd back concludes the for to call to Sullivan question-and-answer That remarks. turn like closing session. Keith

you, for today. next you us progress during on everybody, the forward call. and to our We joining quarterly Thank updating you, look thank operator,

concludes This participating. you today's Thank call. for conference

disconnect. now may You