Nevro Corp (NVRO, Financial) released its 8-K filing on August 6, 2024, detailing its second-quarter 2024 financial results. Nevro Corp is a medical device company specializing in the HFX spinal cord stimulation (SCS) platform, which includes the Senza SCS system for chronic pain treatment. The company generates the majority of its revenue in the United States.
Performance and Challenges
Nevro Corp reported worldwide revenue of $104.2 million for Q2 2024, a 4.3% decrease from $108.8 million in Q2 2023. U.S. revenue was $90.7 million, down 2.4% year-over-year, while international revenue fell by 15.0% to $13.5 million. The decline was attributed to competitive pressures and ongoing softness in the U.S. SCS market.
Kevin Thornal, Nevro’s CEO, commented,
“Our second-quarter 2024 results were primarily driven by ongoing softness in the U.S. spinal cord stimulation (SCS) market and competitive pressures.”
Financial Achievements
Despite the challenges, Nevro Corp achieved an adjusted EBITDA of $3.0 million for Q2 2024, compared to a loss of $3.1 million in Q2 2023. This improvement was driven by disciplined expense management and restructuring efforts. However, the company reported a net loss from operations of $19.6 million.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $104.2 million | $108.8 million |
| Gross Profit | $67.5 million | $74.4 million |
| Operating Expenses | $92.6 million | $100.1 million |
| Net Loss | $19.6 million | $25.6 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Nevro Corp had cash, cash equivalents, and short-term investments totaling $273.7 million, a decrease of $7.8 million from March 31, 2024. This decline was primarily due to cash used in operations.
Revised Guidance
Nevro Corp revised its full-year 2024 revenue guidance to a range of $400 million to $405 million, down from the previous range of $435 million to $445 million. The company also adjusted its full-year 2024 adjusted EBITDA guidance to a range of negative $20 million to negative $18 million, from the previous range of negative $5 million to positive $2 million.
For Q3 2024, Nevro expects worldwide revenue to be in the range of $92 million to $94 million and adjusted EBITDA to be in the range of negative $10 million to negative $9 million.
Analysis
Nevro Corp's Q2 2024 performance highlights the challenges the company faces in a competitive and evolving market. The decline in revenue and the revised guidance indicate that the company needs to adapt its strategy to maintain its market position. However, the improvement in adjusted EBITDA and disciplined expense management are positive signs that the company is taking steps to address these challenges.
Investors will be closely watching Nevro Corp's efforts to diversify its product portfolio and accelerate growth, as these initiatives will be crucial for the company's long-term success.
Explore the complete 8-K earnings release (here) from Nevro Corp for further details.
