BrainsWay – Aiming For Revenue Growth And Profitability

BrainsWay Ltd. (BWAY), a commercial stage medical device company developing non-invasive neurostimulation products for brain disorders, is not just focused on growing its revenue but also committed to achieving profitability.

The company’s flagship technology is Deep Transcranial Magnetic Stimulation, which has received FDA clearance for three indications namely major depressive disorder (including reduction of anxiety symptoms, commonly referred to as anxious depression), obsessive-compulsive disorder, and smoking addiction.

As of March 31, 2023, BrainsWay’s total Deep TMS installed base was 932 systems, an 18% increase from the installed base at the same point in the prior year.

For the first quarter ended Mar.31, 2023, the results of which were reported yesterday, total revenue was $6.6 million, a decline of 17% from the year-ago quarter. However, it represents a 10% increase compared to the fourth quarter of 2022.

Net loss for the first quarter of 2023 widened to $2.4 million or $0.07 per share from $2.0 million or $0.05 per share for the same period in 2022, due to higher operating expenses.

Operating expenses for the first quarter of 2023 increased to $8.5 million from $7.6 million in the year-ago quarter.

Optimizing for Efficiency

Hadar Levy, BrainsWay’s Chief Executive Officer, recently disclosed that several cost optimization measures were implemented late in the first quarter, and these are anticipated to yield benefits starting in the second quarter and, more significantly, in the second half of this year.

Near-term Goals

The company remains committed to achieving breakeven operating income by the fourth quarter of 2023, while simultaneously demonstrating year-over-year revenue growth compared to 2022.

The American Depositary Shares (ADS) of BrainsWay made their debut on the Nasdaq Global Market on April 17, 2019, priced at $11.00 per ADS.

In the last 1 year, BWAY has traded in a range of $1.38 to $7.44. The stock closed yesterday’s trading at $1.57, up 7.14%.

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