REDWOOD CITY, Calif.,
May 8, 2017 /PRNewswire/
-- Nevro Corp. (NYSE: NVRO), a global medical device company
that is providing innovative evidence-based solutions for the
treatment of chronic pain, today reported financial results for the
three months ended March 31,
2017.
First Quarter Highlights:
- Achieved revenue of $68.4 million
in the first quarter of 2017, an increase of 64% as reported, over
the same period of the prior year
-
- U.S. revenue of $53.1 million in
the first quarter of 2017, an increase of 80% over the prior
year
- International revenue of $15.3
million in the first quarter of 2017, an increase of 30% in
constant currency and 26% on an as-reported basis, both over the
same period of the prior year
- Initiated controlled commercial launch of Surpass™ surgical
leads for the Senza® Spinal Cord Stimulation (SCS) System
- Presented on clinical and scientific progress at the 2017 North
American Neuromodulation Society (NANS) meeting
First Quarter Financial Results
Revenue for the three months ended March
31, 2017 was $68.4 million
versus $41.7 million during the same
period of the prior year, representing 64% growth as reported. U.S.
revenue for the three months ended March 31,
2017 was $53.1 million,
representing 80% growth as reported. International revenue was
$15.3 million, representing growth of
30% in constant currency and 26% on an as-reported basis. The
increase in revenue was primarily attributable to the continued
adoption of the Senza system.
Gross profit for the three months ended March 31, 2017 was $46.4
million, representing a 68% gross margin, up from
$26.0 million, representing a 62%
gross margin, in the same period of the prior year.
Operating expenses for the three months ended March 31, 2017 were $59.4
million compared to $35.0
million in the same period of the prior year, representing
an increase of 70%. The increase in operating expenses was driven
primarily by increased headcount and related personnel costs.
Loss from operations for the first quarter of 2017 was
$13.1 million compared to
$9.0 million for the same period of
the prior year.
Revenue Guidance for Full Year 2017
Nevro reiterates its expectations for worldwide revenue for 2017
to be in the range of $310 to $320
million.
Webcast and Conference Call Information
Management will host a conference call today beginning at
1:30 p.m. PT / 4:30 p.m. ET. Individuals interested in listening
to the conference call may dial (877) 201-0168 for domestic
callers, or (647) 788-4901 for international callers (Conference
ID: 6073641), or access the webcast on the "Investors" section of
the company's web site at: www.nevro.com/investors.
About Nevro
Headquartered in Redwood City,
California, Nevro is a global medical device company focused
on providing innovative products that improve the quality of life
of patients suffering from debilitating chronic pain. Nevro has
developed and commercialized the Senza spinal cord stimulation
(SCS) system, an evidence-based neuromodulation platform for the
treatment of chronic pain. The Senza system is the only SCS system
that delivers Nevro's proprietary HF10 therapy. Senza, HF10, Nevro
and the Nevro logo are trademarks of Nevro.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements with respect to our
business, capital resources, revenue projections, strategic
initiatives and growth, reflecting the current beliefs and
expectations of management made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including continuing adoption of, and interest in, Senza in the
U.S. and international markets and our expectations for worldwide
revenue for the full year 2017. 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; 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,
2017 and our Quarterly Report on Form 10-Q that we expect to
file on May 8, 2017, as well as any
reports that we may file with the SEC 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. Our results for the quarter ended
March 31, 2017 are not necessarily
indicative of our operating results for any future periods.
Investor Relations Contact:
Nevro Investor
Relations
Katherine Bock
(650) 433-3247
ir@nevro.com
Nevro
Corp.
Consolidated
Statements of Operations and Comprehensive Loss
(in thousands,
except share and per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
Revenue
|
|
$
|
68,439
|
|
|
$
|
41,651
|
|
Cost of
revenue
|
|
|
22,071
|
|
|
|
15,664
|
|
Gross
profit
|
|
|
46,368
|
|
|
|
25,987
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
8,699
|
|
|
|
6,361
|
|
Sales, general and
administrative
|
|
|
50,720
|
|
|
|
28,643
|
|
Total operating
expenses
|
|
|
59,419
|
|
|
|
35,004
|
|
Loss from
operations
|
|
|
(13,051)
|
|
|
|
(9,017)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
|
(1,726)
|
|
|
|
(427)
|
|
Other income
(expense), net
|
|
|
531
|
|
|
|
490
|
|
Loss before income
taxes
|
|
|
(14,246)
|
|
|
|
(8,954)
|
|
Provision for income
taxes
|
|
|
261
|
|
|
|
334
|
|
Net loss
|
|
|
(14,507)
|
|
|
|
(9,288)
|
|
Changes in foreign
currency translation adjustment
|
|
|
(222)
|
|
|
|
(279)
|
|
Changes in unrealized
gains on short-term investments
|
|
|
44
|
|
|
|
54
|
|
Net change in other
comprehensive loss
|
|
|
(178)
|
|
|
|
(225)
|
|
Comprehensive
loss
|
|
$
|
(14,685)
|
|
|
$
|
(9,513)
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.50)
|
|
|
$
|
(0.33)
|
|
Weighted average
shares used to compute net loss
per share, basic and diluted
|
|
|
29,159,509
|
|
|
|
28,194,457
|
|
Nevro
Corp.
Consolidated
Balance Sheets
(in thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
19,196
|
|
|
$
|
41,406
|
|
Short-term
investments
|
|
|
244,952
|
|
|
|
234,951
|
|
Accounts receivable,
net
|
|
|
50,824
|
|
|
|
52,818
|
|
Inventories,
net
|
|
|
84,735
|
|
|
|
85,221
|
|
Prepaid expenses and
other current assets
|
|
|
7,652
|
|
|
|
5,895
|
|
Total current
assets
|
|
|
407,359
|
|
|
|
420,291
|
|
Property and
equipment, net
|
|
|
7,390
|
|
|
|
7,132
|
|
Other
assets
|
|
|
2,310
|
|
|
|
2,354
|
|
Restricted
cash
|
|
|
806
|
|
|
|
806
|
|
Total
assets
|
|
$
|
417,865
|
|
|
$
|
430,583
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
12,095
|
|
|
$
|
16,162
|
|
Accrued liabilities
and other
|
|
|
22,109
|
|
|
|
26,036
|
|
Total current
liabilities
|
|
|
34,204
|
|
|
|
42,198
|
|
Long-term
debt
|
|
|
139,820
|
|
|
|
138,140
|
|
Other long-term
liabilities
|
|
|
1,307
|
|
|
|
1,211
|
|
Total
liabilities
|
|
|
175,331
|
|
|
|
181,549
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 290,000,000 shares authorized, 29,264,423 and 28,886,862 shares issued and
outstanding at March 31, 2017
and December 31, 2016, respectively
|
|
|
29
|
|
|
|
29
|
|
Additional paid-in
capital
|
|
|
479,055
|
|
|
|
470,869
|
|
Accumulated other
comprehensive loss
|
|
|
(857)
|
|
|
|
(678)
|
|
Accumulated
deficit
|
|
|
(235,693)
|
|
|
|
(221,186)
|
|
Total stockholders'
equity
|
|
|
242,534
|
|
|
|
249,034
|
|
Total liabilities and
stockholders' equity
|
|
$
|
417,865
|
|
|
$
|
430,583
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nevro-reports-first-quarter-2017-financial-results-300453431.html
SOURCE Nevro Corp.