Nevro Reports Third-Quarter 2024 Financial Results
Nevro Corp. (NYSE: NVRO) reported Q3 2024 financial results with worldwide revenue of $96.9 million, down 6.7% year-over-year. U.S. revenue decreased 6.5% to $83.9 million, while international revenue fell 7.7% to $13.0 million. The company reported a net loss from operations of $13.9 million and negative adjusted EBITDA of $1.8 million. Despite challenges, Nevro maintained its full-year 2024 revenue guidance of $400-405 million and raised its adjusted EBITDA guidance to negative $18-16 million. The company announced the release of HFX AdaptivAI and received regulatory approval for HFX iQ in Europe.
Nevro Corp. (NYSE: NVRO) ha riportato i risultati finanziari per il terzo trimestre del 2024, con un fatturato globale di 96,9 milioni di dollari, in diminuzione del 6,7% rispetto all'anno precedente. I ricavi negli Stati Uniti sono scesi del 6,5% a 83,9 milioni di dollari, mentre i ricavi internazionali sono calati del 7,7% a 13,0 milioni di dollari. L'azienda ha registrato una perdita netta da operazioni di 13,9 milioni di dollari e un EBITDA rettificato negativo di 1,8 milioni di dollari. Nonostante le sfide, Nevro ha mantenuto le previsioni di fatturato per l'intero anno 2024 tra 400 e 405 milioni di dollari e ha innalzato la guida per l'EBITDA rettificato a un valore negativo tra 18 e 16 milioni di dollari. L'azienda ha annunciato il rilascio di HFX AdaptivAI e ha ricevuto l'approvazione normativa per HFX iQ in Europa.
Nevro Corp. (NYSE: NVRO) reportó resultados financieros del tercer trimestre de 2024 con ingresos globales de 96,9 millones de dólares, una caída del 6,7% en comparación con el año anterior. Los ingresos en EE. UU. disminuyeron un 6,5% a 83,9 millones de dólares, mientras que los ingresos internacionales cayeron un 7,7% a 13,0 millones de dólares. La compañía reportó una pérdida neta de operaciones de 13,9 millones de dólares y un EBITDA ajustado negativo de 1,8 millones de dólares. A pesar de los desafíos, Nevro mantuvo su guía de ingresos para todo 2024 de 400 a 405 millones de dólares y aumentó su orientación de EBITDA ajustado a entre -18 y -16 millones de dólares. La empresa anunció el lanzamiento de HFX AdaptivAI y recibió la aprobación regulatoria para HFX iQ en Europa.
네브로 코퍼레이션(NYSE: NVRO)는 2024년 3분기 재무 결과를 발표하며 전 세계 매출이 9690만 달러로 작년 대비 6.7% 감소했다고 전했습니다. 미국 매출은 6.5% 감소하여 8390만 달러에 이르렀고, 국제 매출은 7.7% 감소하여 1300만 달러로 떨어졌습니다. 회사는 운영에서 1390만 달러의 순손실과 180만 달러의 부정적인 조정 EBITDA를 기록했습니다. 어려움 속에서도 네브로는 2024년 전체 매출 가이던스를 4억에서 4억 500만 달러로 유지했으며, 조정 EBITDA 가이던스를 -1800만에서 -1600만 달러로 상향 조정했습니다. 회사는 HFX AdaptivAI의 출시를 발표했으며 유럽에서 HFX iQ에 대한 규제 승인을 받았습니다.
Nevro Corp. (NYSE: NVRO) a annoncé les résultats financiers du T3 2024 avec un chiffre d'affaires mondial de 96,9 millions de dollars, en baisse de 6,7 % par rapport à l'année précédente. Le chiffre d'affaires aux États-Unis a diminué de 6,5 % pour atteindre 83,9 millions de dollars, tandis que le chiffre d'affaires international a chuté de 7,7 % pour s'établir à 13,0 millions de dollars. La société a enregistré une perte nette d'exploitation de 13,9 millions de dollars et un EBITDA ajusté négatif de 1,8 million de dollars. Malgré les défis, Nevro a maintenu ses prévisions de chiffre d'affaires pour l'année 2024 entre 400 et 405 millions de dollars et a relevé ses prévisions d'EBITDA ajusté à un chiffre négatif compris entre 18 et 16 millions de dollars. La société a annoncé le lancement de HFX AdaptivAI et a obtenu l'approbation réglementaire pour HFX iQ en Europe.
Nevro Corp. (NYSE: NVRO) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht und einen weltweiten Umsatz von 96,9 Millionen Dollar gemeldet, was einem Rückgang von 6,7% im Vergleich zum Vorjahr entspricht. Der Umsatz in den USA sank um 6,5% auf 83,9 Millionen Dollar, während der internationale Umsatz um 7,7% auf 13,0 Millionen Dollar fiel. Das Unternehmen berichtete von einem Nettoverlust aus dem operativen Geschäft in Höhe von 13,9 Millionen Dollar und einem negativen bereinigten EBITDA von 1,8 Millionen Dollar. Trotz der Herausforderungen hielt Nevro seine Umsatzprognose für das Gesamtjahr 2024 in Höhe von 400 bis 405 Millionen Dollar aufrecht und hob seine Prognose für das bereinigte EBITDA auf negative 18 bis 16 Millionen Dollar an. Das Unternehmen gab die Veröffentlichung von HFX AdaptivAI bekannt und erhielt die behördliche Genehmigung für HFX iQ in Europa.
- Raised full-year 2024 adjusted EBITDA guidance
- Cash position increased by $3.3M to $277.0M in Q3
- Operating expenses decreased by 12.2% year-over-year
- Received FDA approval for HFX iQ AdaptivAI
- Obtained CE mark approval for HFX iQ system in Europe
- Worldwide revenue declined 6.7% to $96.9M
- U.S. trial procedures decreased 15.2%
- U.S. permanent implant procedures decreased 9.6%
- Net loss from operations of $13.9M
- Negative adjusted EBITDA of $1.8M
Insights
The Q3 2024 results reveal concerning trends for Nevro, with worldwide revenue declining -6.7% to
Key positives include improved cash position at
While management maintained revenue guidance of
The launch of HFX AdaptivAI represents a significant technological advancement as the first AI-driven spinal cord stimulation system, potentially differentiating Nevro in a competitive market. However, market adoption challenges are evident in the declining trial procedures.
The publication of positive clinical data showing durable pain relief and metabolic improvements in diabetic neuropathy patients, combined with the biomechanical validation of Nevro1 cage system, strengthens the company's scientific foundation. Yet, regional challenges like negative media impact in Australia and healthcare reforms in Germany are affecting international market performance.
The expansion into Europe with HFX iQ system approval provides new market opportunities, but execution will be critical given current commercial headwinds.
Reaffirms Full-Year 2024 Revenue Guidance and Raises Full-Year 2024 Adjusted EBITDA Guidance
"Our worldwide revenue and adjusted EBITDA came in better than we anticipated in the third quarter of 2024. In addition, our cash position reflects the benefits from our restructurings earlier this year as well as our focus on working capital management," said Kevin Thornal, Nevro's CEO. "We continue to make improvements in our commercial execution and allocation of marketing resources to address ongoing market challenges and return to top-line growth."
"We are excited about our recent limited market launch of HFX AdaptivAI™, the only artificial intelligence (AI)-driven technology in spinal cord stimulation, which delivers responsive and personalized pain relief in real time. We anticipate the full market release of HFX AdaptivAI by the end of November," continued Thornal. "We are also thrilled to receive regulatory approval to now offer our HFX iQ system in CE-marked countries in
"In addition, we continue to explore strategic options to accelerate our growth, diversify our product portfolio and deliver shareholder value," said Thornal. "While this process is ongoing and we are in discussions, we remain focused on our strategy to become the leading provider of treatment options with the most diversified, differentiated and innovative product portfolio in the pain management space."
Third-Quarter 2024 Financial and Recent Business Highlights
(As compared with third-quarter 2023)
- Worldwide revenue was
$96.9 million 6.7% as reported and7.0% on a constant currency basis.U.S. revenue was$83.9 million 6.5% .- International revenue was
$13.0 million 7.7% as reported and9.6% on a constant currency basis.
U.S. trial procedures decreased15.2% .- Net loss from operations was
$13.9 million $1.8 million - Cash, cash equivalents and short-term investments totaled
$277.0 million $3.3 million - On September 24, 2024, Nevro announced the US Food and Drug Administration approval and limited market release of HFX iQ AdaptivAI, a responsive, personalized pain management platform powering the HFX iQ spinal cord stimulation (SCS) system. The company anticipates a full market release of HFX AdaptivAI in the
U.S. in the fourth quarter of 2024. - On October 29, 2024, Nevro announced the publication of new data in the Journal of Pain Research demonstrating significant, durable pain relief and long-term and clinically meaningful reductions in hemoglobin A1c (HbA1c) and weight in study participants with painful diabetic neuropathy (PDN) and Type 2 diabetes who received 10kHz high-frequency spinal cord stimulation (SCS) therapy.
- Nevro received regulatory approval to sell its HFX iQ system in CE-marked countries in the European Union and expects to begin the limited market release in select regions of
Europe in the fourth quarter of 2024 with the full market release planned for the first quarter of 2025. - Comparative biomechanical data on Nevro1™, a novel posterior integrated single-cage system has been accepted for publication in Medical Devices: Evidence and Research. Nevro1 was found to provide equivalent and superior motion reduction respectively with a less invasive and less destructive approach while providing the largest surface area for fusion.
Third-Quarter 2024 Financial Results
Worldwide revenue for the third quarter of 2024 was
International revenue in the third quarter of 2024 was
Gross profit for the third quarter of 2024 was
Operating expenses for the third quarter of 2024 were
Litigation-related legal expenses were a credit of
Net loss from operations for the third quarter of 2024 was
Adjusted EBITDA for the third quarter of 2024 was a loss of
Cash, cash equivalents and short-term investments totaled
Full-Year 2024 Financial Guidance
Based on its third-quarter 2024 performance and outlook for the remainder of this year, Nevro continues to expect its full-year 2024 worldwide revenue to be in the range of approximately
Nevro has not provided a quantitative reconciliation of forecasted adjusted EBITDA to forecasted net income (loss) within this press release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. For more information regarding the non-GAAP financial measures discussed in this press release, please see the financial table at the end of this release for GAAP to non-GAAP reconciliations, definitions and further information regarding the use of non-GAAP metrics.
Conference Call and Webcast
Nevro will host a conference call and webcast today beginning at 1:30 p.m. PDT (4:30 p.m. EDT) to discuss its financial results. The live webcast and replay of the conference call will be available in the Investor Relations section of the company's website at Events & Presentations. The webcast can be accessed 10 minutes prior to the conference call start time.
For those parties that do not have internet access, the conference call can be accessed by calling one of the below telephone numbers and providing conference ID 5980028:
1-(888) 596-4144 | |
International participant dial-in number: | 1-(646) 968-2525 |
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
Nevro recently added a minimally invasive treatment option for patients in the
Senza®, Senza II®, Senza Omnia™, and HFX iQ 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 Nevrocloud™ insights for enhanced patient and practice management.
SENZA, SENZA II, SENZA OMNIA, OMNIA, HF10, the HF10 logo, 10 kHz Therapy, HFX, the HFX logo, HFX iQ, the HFX iQ logo, HFX Algorithm, HFX CONNECT, the HFX Connect logo, HFX ACCESS, the HFX Access logo, HFX COACH, the HFX Coach logo, Nevrocloud, RELIEF MULTIPLIED, HFX AdaptivAI, the X logo, NEVRO, and the NEVRO logo are trademarks or registered trademarks of Nevro Corp. Patents covering Senza HFX iQ and other Nevro products are listed at Nevro.com/patents. Bluetooth® and the Bluetooth symbol are registered trademarks of their respective owners.
To learn more about Nevro, connect with us on LinkedIn, X, Facebook, and Instagram.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements reflecting the current beliefs and expectations of the company's management, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including: our full-year 2024 financial guidance; our belief that the actions we have taken and intend to take will further position us for a return to growth, success in the marketplace, profitability and shareholder value creation; our belief that execution improvements and our reallocation of marketing resources will allow us to return to sustainable growth; our belief that the market release of HFX AdaptivAI™ in
Investor and Media Contact:
Angie McCabe
Vice President, Investor Relations & Corporate Communications
angeline.mccabe@nevro.com
Nevro Corp. | ||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||
(in thousands, except share and per share data) | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2024 | 2023 | |||||||
(unaudited) | ||||||||
Revenue | $ | 96,910 | $ | 103,862 | ||||
Cost of revenue | 32,296 | 34,346 | ||||||
Gross profit | 64,614 | 69,516 | ||||||
Operating expenses: | ||||||||
Research and development | 10,579 | 13,923 | ||||||
Sales, general and administrative | 68,471 | 81,152 | ||||||
Amortization of intangibles | 737 | — | ||||||
Change in fair value of contingent consideration | (1,307) | — | ||||||
Total operating expenses | 78,480 | 95,075 | ||||||
Loss from operations | (13,866) | (25,559) | ||||||
Other income (expense): | ||||||||
Interest income (expense), net | (3,782) | 1,976 | ||||||
Change in fair market value of warrants | 3,438 | — | ||||||
Other income (expense), net | (854) | 234 | ||||||
Loss before income taxes | (15,064) | (23,349) | ||||||
Provision for income taxes | 280 | 130 | ||||||
Net loss | (15,344) | (23,479) | ||||||
Changes in foreign currency translation adjustment | 1,337 | (765) | ||||||
Changes in unrealized gains (losses) on short-term investments | 1,239 | 470 | ||||||
Net change in other comprehensive income (loss) | 2,576 | (295) | ||||||
Comprehensive loss | $ | (12,768) | $ | (23,774) | ||||
Net loss per share, basic and diluted | $ | (0.41) | $ | (0.65) | ||||
Weighted average shares used to compute | 37,324,907 | 36,142,255 | ||||||
Nevro Corp. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands, except share and per share data) | ||||||||
September 30, | December 31, | |||||||
2024 | 2023 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 71,982 | $ | 104,217 | ||||
Short-term investments | 205,056 | 218,506 | ||||||
Accounts receivable, net | 70,601 | 79,377 | ||||||
Inventories, net | 120,412 | 118,676 | ||||||
Prepaid expenses and other current assets | 11,189 | 10,145 | ||||||
Total current assets | 479,240 | 530,921 | ||||||
Property and equipment, net | 24,928 | 24,568 | ||||||
Operating lease assets | 21,776 | 8,944 | ||||||
Goodwill | 38,209 | 38,164 | ||||||
Other intangible assets, net | 25,144 | 27,354 | ||||||
Other assets | 5,745 | 5,156 | ||||||
Restricted cash | 606 | 606 | ||||||
Total assets | $ | 595,648 | $ | 635,713 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 20,309 | $ | 22,520 | ||||
Accrued liabilities and other | 34,943 | 45,297 | ||||||
Short-term debt | 37,906 | — | ||||||
Contingent liabilities, current portion | 1,912 | 9,836 | ||||||
Other current liabilities | 343 | 5,722 | ||||||
Total current liabilities | 95,413 | 83,375 | ||||||
Long-term debt | 184,364 | 211,471 | ||||||
Long-term operating lease liabilities | 24,321 | 4,634 | ||||||
Contingent liabilities, non-current portion | 13,501 | 12,257 | ||||||
Warrant liability | 2,238 | 28,739 | ||||||
Other long-term liabilities | 2,168 | 2,092 | ||||||
Total liabilities | 322,005 | 342,568 | ||||||
Stockholders' equity | ||||||||
Common stock, | 37 | 36 | ||||||
Additional paid-in capital | 1,031,899 | 992,762 | ||||||
Accumulated other comprehensive income (loss) | 1,445 | (243) | ||||||
Accumulated deficit | (759,738) | (699,410) | ||||||
Total stockholders' equity | 273,643 | 293,145 | ||||||
Total liabilities and stockholders' equity | $ | 595,648 | $ | 635,713 | ||||
Nevro Corp. | ||||||||
GAAP to Non-GAAP Adjusted EBITDA Reconciliation | ||||||||
(unaudited) | ||||||||
(in thousands) | ||||||||
The following table presents a reconciliation of GAAP net loss, as prepared in accordance with | ||||||||
Reconciliation of actual results: | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2024 | 2023 | |||||||
(unaudited) | ||||||||
GAAP Net Income (Loss) | $ | (15,344) | $ | (23,479) | ||||
Non-GAAP Adjustments: | ||||||||
Interest (income) expense, net | 3,782 | (1,976) | ||||||
Provision for income taxes | 280 | 130 | ||||||
Depreciation and amortization | 1,908 | 1,723 | ||||||
Stock-based compensation expense and other equity related charges | 11,423 | 13,523 | ||||||
Amortization of intangibles | 737 | — | ||||||
Change in fair value of contingent consideration | (1,307) | — | ||||||
Change in fair market value of warrants | (3,438) | — | ||||||
Litigation-related expenses | (582) | 4,284 | ||||||
Restructuring charges | 730 | — | ||||||
Supplier renegotiation charge | — | — | ||||||
Adjusted EBITDA | $ | (1,811) | $ | (5,795) | ||||
Reconciliation of guidance: | ||||||||||||||
Year Ended | ||||||||||||||
December 31, 2024 | ||||||||||||||
(Low Case) | (High Case) | |||||||||||||
GAAP Net Loss | $ | (92,100) | $ | (88,700) | ||||||||||
Non-GAAP Adjustments | 74,100 | 72,700 | ||||||||||||
Adjusted EBITDA | $ | (18,000) | $ | (16,000) | ||||||||||
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 and other equity-related charges – 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.
- Amortization of intangibles – The company excludes amortization of intangibles from the acquisition of businesses.
- Change in fair value of contingent consideration – The company excludes the changes in the fair value of its contingent consideration liability.
- Change in fair market value of warrants – The company excludes the changes in the fair value of its warrant liability.
- Litigation-related expenses – The company excludes legal and professional fees as well as charges and credits associated with certain legal matters, which management considers not related to the underlying operating performance of the business.
- Restructuring charges – The company excludes charges incurred as a direct result of restructuring programs, such as salaries and other compensation-related expenses.
- Supplier contract renegotiation charge – The company excluded one-time costs associated with the renegotiation of a supplier contract.
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
Nevro has not provided a quantitative reconciliation of forecasted adjusted EBITDA to forecasted net income (loss) within this press release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, stock-based compensation expenses, amortization of intangibles, change in fair value of contingent consideration, change in fair value of warrants, and litigation-related expenses.
Amounts may not add due to rounding and percentages are calculated using thousands not millions.
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SOURCE Nevro Corp.
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