Nevro Reports First Quarter 2022 Financial Results, Provides Second Quarter 2022 Guidance and Reiterates Full-Year 2022 Guidance
Nevro Corp. (NYSE: NVRO) reported first-quarter 2022 revenue of $87.8 million, a 1% decline from the previous year but a 7% increase compared to 2019. U.S. trial and permanent implant procedures grew by 10% and 2% respectively. The company experienced a net loss from operations of $32.8 million. For Q2 2022, Nevro expects revenues between $103 million and $106 million, and maintains full-year guidance of $415 million to $430 million. Positive payer coverage from UnitedHealthcare and Noridian could enhance access to its therapies.
- U.S. trial procedures increased by 10% year-over-year.
- Positive payer coverage updates for PDN therapy from UnitedHealthcare and Noridian.
- Full-year 2022 revenue guidance increased for PDN to $27 million - $32 million.
- First-quarter 2022 revenue decreased by 1% compared to the previous year.
- Net loss from operations increased to $32.8 million from $22.5 million year-over-year.
- Gross margin decreased to 67.3% from 70.3% in the prior year.
REDWOOD CITY, Calif., May 4, 2022 /PRNewswire/ -- Nevro Corp. (NYSE: NVRO), delivering comprehensive, life-changing solutions for the treatment of chronic pain, today reported its financial results for the first quarter ended March 31, 2022, provided guidance for the second quarter of 2022 and reiterated its full-year 2022 revenue guidance.
Recent Business Highlights and Guidance
- First Quarter 2022 Worldwide Revenue of
$87.8 Million ; Decrease of1% Compared to Prior Year and Increase of7% over First Quarter of 2019 - First Quarter 2022 U.S. Trial Procedures Increased
10% Compared to Prior Year and Increased13% Compared to First Quarter of 2019, while U.S. PDN trial procedures grew to11% of total U.S. trials in the quarter and grew sequentially47% over prior quarter - Painful Diabetic Neuropathy (PDN) Represented
7% of Worldwide Permanent Implant Procedures, Which Resulted in Approximately$6.0 Million in Revenue in First Quarter 2022 - First Quarter 2022 Net Loss from Operations of
$32.8 Million ; First Quarter 2022 Non-GAAP Adjusted EBITDA Loss of$14.0 Million - Positive Payer Coverage Progress from UnitedHealthcare and Noridian for High-Frequency 10 kHz Therapy for Treatment of PDN
- Provides Second Quarter 2022 Revenue Guidance of
$103 Million to$106 Million ; Reiterates Full-Year 2022 Revenue Guidance of$415 Million to$430 Million , Which Now Includes Increased Guidance for the Full-Year PDN Contribution of Approximately$27 Million to$32 Million - Provides Second Quarter 2022 Non-GAAP Adjusted EBITDA Guidance of a Loss of
$7 Million to$9 Million ; Reiterates Full-Year 2022 Non-GAAP Adjusted EBITDA Guidance of a Loss of$8 Million to$18 Million
First Quarter 2022 Financial Overview
Worldwide revenue for the first quarter of 2022 was
U.S. revenue in the first quarter of 2022 was
International revenue in the first quarter of 2022 was
"Following a significant impact on our business in January from the Omicron variant, we made encouraging progress in our core SCS business throughout the remainder of the first quarter as evidenced by the steady improvement in trial activity that improved as the quarter progressed, as well as the ongoing improvement in permanent implant volumes," said D. Keith Grossman, Chairman, CEO and President of Nevro. "Our PDN launch initiatives are continuing to drive awareness with referring physicians and patients, with trials growing throughout the quarter, and representing approximately
Gross profit for the first quarter of 2022 was
Operating expenses for the first quarter of 2022 were
Net loss from operations for the first quarter of 2022 was
Cash, cash equivalents and short-term investments totaled
Second Quarter and Full-Year 2022 Outlook
Nevro continues to monitor and evaluate the impact the global response to the COVID pandemic has had, and will continue to have, on its operations and financial results. This guidance is highly sensitive to the company's assumptions regarding the pace and sustainability of COVID recovery and its related impacts on patient willingness to seek elective care, healthcare facility restrictions and healthcare facility staffing limitations, all of which are difficult to predict. If these assumptions differ from the actual pace of COVID recovery and its impact on the company's markets, then the company may need to change or withdraw this guidance in the future.
Nevro expects second quarter of 2022 worldwide revenue of approximately
The company expects second quarter of 2022 non-GAAP adjusted EBITDA to be a loss of approximately
Nevro continues to expect full-year 2022 worldwide revenue of approximately
The company continues to expect full-year 2022 non-GAAP adjusted EBITDA to be a loss of approximately
An investor presentation for the company's first quarter 2022 financial results is available in the "Investors" section of Nevro's website at www.nevro.com.
Webcast and Conference Call Information
As previously announced, Nevro management will host a conference call starting at 1:30 pm PT / 4:30 pm ET today. Investors interested in listening to the call may do so by dialing (888) 330-2443 in the U.S. or +1 (240) 789-2728 internationally, using Conference ID: 3583097. A live webcast, as well as an archived recording, will also be available in the "Investors" section of Nevro's website at: www.nevro.com.
Internet Posting of Information
Nevro routinely posts information that may be important to investors in the "Investor Relations" section of its website at www.nevro.com. The company encourages investors and potential investors to consult the Nevro website regularly for important information about Nevro.
About Nevro
Headquartered in Redwood City, California, Nevro is a global medical device company focused on delivering comprehensive, life-changing solutions that continue to set the standard for enduring patient outcomes in chronic pain treatment. The company started with a simple mission to help more patients suffering from debilitating pain and developed its proprietary 10 kHz Therapy, an evidence-based, non-pharmacologic innovation that has impacted the lives of more than 80,000 patients globally.
Nevro's comprehensive HFX™ spinal cord stimulation (SCS) platform includes a Senza SCS system and support services for the treatment of chronic trunk and limb pain and painful diabetic neuropathy. Senza®, Senza II®, and Senza Omnia™ are the only SCS systems that deliver Nevro's proprietary 10 kHz Therapy. Nevro's unique support services provide every patient with an HFX Coach™ throughout their pain relief journey and every physician with HFX Cloud™ insights for enhanced patient and practice management.
Senza, Senza II, Senza Omnia, HFX, HXF Coach, HFX Cloud, HFX Connect, Nevro and the Nevro logo are trademarks of Nevro Corp.
To learn more about Nevro, connect with us on LinkedIn, Twitter, Facebook and Instagram.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements reflecting the company's current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including: our second quarter and full-year 2022 financial guidance, including our expectations for PDN revenue in 2022; our belief that the recent positive payer coverage updates by UnitedHealthcare and Noridian to include PDN patients will significantly increase patient access to our 10 kHz Therapy; our belief that our recent FDA approval for treating NSRBP patients further differentiates our high-frequency, paresthesia-free SCS technology and uniquely positions us to deliver relief to the many patients in need of our HFX solution to free them from the burden of chronic pain; and our belief that we have laid a very strong foundation for attractive future growth, and that we are very well-positioned for a strong second half of 2022 and beyond as the impact and uncertainties of COVID on our market continue to subside. These forward-looking statements are based upon information that is currently available to us or our current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, including our ability to successfully commercialize our products; our ability to manufacture our products to meet demand; the level and availability of third-party payor reimbursement for our products; our ability to effectively manage our anticipated growth and the costs and expenses of operating our business; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing the intellectual property rights and proprietary technology of third parties; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; and product liability claims. These factors, together with those that are described in greater detail in our Annual Report on Form 10-K filed on February 23, 2022, as well as any reports that we may file with the Securities and Exchange Commission in the future, may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements. Nevro's operating results for the first quarter ended March 31, 2022 are not necessarily indicative of our operating results for any future periods.
Nevro Corp. | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
Revenue | $ | 87,842 | $ | 88,610 | ||||
Cost of revenue | 28,750 | 26,316 | ||||||
Gross profit | 59,092 | 62,294 | ||||||
Operating expenses: | ||||||||
Research and development | 12,536 | 11,534 | ||||||
Sales, general and administrative | 79,325 | 73,272 | ||||||
Total operating expenses | 91,861 | 84,806 | ||||||
Loss from operations | (32,769) | (22,512) | ||||||
Other income (expense): | ||||||||
Interest income (expense), net | (1,460) | (6,250) | ||||||
Other income (expense), net | 85 | (457) | ||||||
Loss before income taxes | (34,144) | (29,219) | ||||||
Provision for income taxes | 181 | 342 | ||||||
Net loss | (34,325) | (29,561) | ||||||
Changes in foreign currency translation adjustment | (192) | (312) | ||||||
Changes in unrealized gains (losses) on short-term investments | (1,021) | (147) | ||||||
Net change in other comprehensive loss | (1,213) | (459) | ||||||
Comprehensive Loss | $ | (35,538) | $ | (30,020) | ||||
Net loss per share, basic and diluted | $ | (0.98) | $ | (0.85) | ||||
Weighted average shares used to compute net loss per share, basic and diluted | 35,073,862 | 34,633,749 | ||||||
Nevro Corp. | ||||||||
March 31, | December 31, | |||||||
2022 | 2021 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 49,471 | $ | 34,710 | ||||
Short-term investments | 274,171 | 327,317 | ||||||
Accounts receivable, net | 63,054 | 70,475 | ||||||
Inventories, net | 90,588 | 93,517 | ||||||
Prepaid expenses and other current assets | 13,095 | 5,185 | ||||||
Total current assets | 490,379 | 531,204 | ||||||
Property and equipment, net | 20,837 | 20,664 | ||||||
Operating lease assets | 16,569 | 17,577 | ||||||
Other assets | 4,488 | 4,493 | ||||||
Restricted cash | 606 | 606 | ||||||
Total assets | $ | 532,879 | $ | 574,544 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 27,135 | $ | 31,999 | ||||
Accrued liabilities and other | 43,189 | 50,204 | ||||||
Total current liabilities | 70,324 | 82,203 | ||||||
Long-term debt | 185,953 | 151,310 | ||||||
Long-term operating lease liabilities | 14,185 | 15,402 | ||||||
Other long-term liabilities | 22,031 | 22,013 | ||||||
Total liabilities | 292,493 | 270,928 | ||||||
Stockholders' equity | ||||||||
Common stock, 35,876,367 and 35,709,570 shares issued at March 31, 2022 and December 31, 2021, respectively; 35,193,451 and 35,026,654 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 35 | 35 | ||||||
Additional paid-in capital | 886,451 | 928,138 | ||||||
Accumulated other comprehensive loss | (1,577) | (364) | ||||||
Accumulated deficit | (644,523) | (624,193) | ||||||
Total stockholders' equity | 240,386 | 303,616 | ||||||
Total liabilities and stockholders' equity | $ | 532,879 | $ | 574,544 | ||||
Nevro Corp. | ||||||||||||
The following table presents a reconciliation of GAAP net loss, as prepared in accordance with U.S. Generally | ||||||||||||
Reconciliation of actual results: | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2022 | 2021 | 2019 | ||||||||||
(unaudited) | ||||||||||||
GAAP Net loss | $ | (34,325) | $ | (29,561) | $ | (44,076) | ||||||
Non-GAAP Adjustments: | ||||||||||||
Interest (income) expense, net | 1,460 | 6,250 | 1,139 | |||||||||
Provision for income taxes | 181 | 342 | 340 | |||||||||
Depreciation and amortization | 1,536 | 1,142 | 1,126 | |||||||||
Stock-based compensation expense | 13,408 | 9,237 | 10,402 | |||||||||
Litigation related expenses | 3,676 | 5,942 | 2,347 | |||||||||
Adjusted EBITDA | $ | (14,064) | $ | (6,648) | $ | (28,722) | ||||||
Reconciliation of guidance: | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
June 30, 2022 | December 31, 2022 | |||||||||||||||
(Low Case) | (High Case) | (Low Case) | (High Case) | |||||||||||||
GAAP Net loss | $ | (31,100) | $ | (29,100) | $ | (107,200) | $ | (97,200) | ||||||||
Non-GAAP Adjustments | 22,100 | 22,100 | 89,200 | 89,200 | ||||||||||||
Adjusted EBITDA | $ | (9,000) | $ | (7,000) | $ | (18,000) | $ | (8,000) | ||||||||
Management uses certain non-GAAP financial measures, most specifically Adjusted EBITDA, as a supplement to GAAP financial measures to further evaluate the company's operating performance period over period, analyze the underlying business trends, assess performance relative to competitors and establish operational objectives.
Management believes it is important to provide investors with the same non-GAAP metrics it uses to evaluate the performance and underlying trends of the company's business operations to facilitate comparisons to its historical operating results and evaluate the effectiveness of its operating strategies. Disclosure of these non-GAAP financial measures also facilitates comparisons of the company's underlying operating performance with other companies in the industry that also supplement their GAAP results with non-GAAP financial measures.
EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating non-GAAP Adjusted EBITDA, the company further adjusts for the following items:
- Stock-based compensation expense – The company excludes non-cash costs related to the company's stock-based plans, which include stock options, restricted stock units and performance-based restricted stock units as these expenses do not require cash settlement from the company.
- Litigation related expenses – The company excludes legal and professional fees associated with certain legal matters, which management considers not related to the underlying operating performance of the business.
Full-year guidance excludes the impact of foreign currency fluctuations.
The non-GAAP financial measure should not be considered in isolation from, or as a replacement for, the most directly comparable GAAP financial measures, as it is not prepared in accordance with U.S. GAAP.
Amounts may not add due to rounding.
Investors and Media:
Julie Dewey, IRC
Nevro Corp.
Chief Corp Communications & Investor Relations Officer
650-433-3247 | julie.dewey@nevro.com
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SOURCE Nevro Corp.
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