REDWOOD CITY, Calif.,
Aug. 7, 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 and
six months ended June 30, 2017.
Second Quarter Highlights:
- Achieved revenue of $78.0 million
in the second quarter of 2017, an increase of 41% as reported, over
the same period of the prior year
-
- U.S. revenue of $63.0 million in
the second quarter of 2017, an increase of 55% over the prior
year
- International revenue of $15.0
million in the second quarter of 2017, an increase of 4% in
constant currency and 1% on an as-reported basis, both over the
same period of the prior year
- SENZA-RCT 24-month outcomes publication selected as the Top
Pain Paper of the Year by Neurosurgery, the official journal
of the Congress of Neurological Surgeons (CNS)
- Initiated SENZA-PDN, the largest randomized controlled trial
evaluating spinal cord stimulation (SCS) for the treatment of
painful diabetic neuropathy
Second Quarter Financial Results
Revenue for the three months ended June
30, 2017 was $78.0 million
versus $55.4 million during the same
period of the prior year, representing 41% growth as reported. U.S.
revenue for the three months ended June 30,
2017 was $63.0 million,
representing 55% growth as reported. International revenue was
$15.0 million, representing growth of
4% in constant currency and 1% 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 June 30, 2017 was $53.9
million, representing a 69% gross margin, up from
$36.6 million, representing a 66%
gross margin, in the same period of the prior year.
Operating expenses for the three months ended June 30, 2017 were $63.8
million compared to $42.5
million in the same period of the prior year, representing
an increase of 50%. The increase in operating expenses was driven
primarily by increased headcount and related personnel costs, as
well as legal expenses associated with our intellectual property
litigations.
Loss from operations for the second quarter of 2017 was
$9.9 million compared to $5.9 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. Investors interested in listening
to the conference call may do so by dialing (877) 648-7976 for U.S.
callers, or (617) 826-1698 for international callers (Conference
ID: 52275180), or from the webcast on the "Investors" section of
the Company's website at www.nevro.com/investors. Following the
call, a replay will be available on the Investor Events and
Presentations webpage of the Company's website.
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 August 7, 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
June 30, 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
|
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Revenue
|
|
$
|
78,016
|
|
|
$
|
55,400
|
|
|
$
|
146,455
|
|
|
$
|
97,051
|
|
Cost of
revenue
|
|
|
24,143
|
|
|
|
18,842
|
|
|
|
46,214
|
|
|
|
34,506
|
|
Gross
profit
|
|
|
53,873
|
|
|
|
36,558
|
|
|
|
100,241
|
|
|
|
62,545
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
9,537
|
|
|
|
8,169
|
|
|
|
18,236
|
|
|
|
14,530
|
|
Sales, general and
administrative
|
|
|
54,274
|
|
|
|
34,312
|
|
|
|
104,994
|
|
|
|
62,955
|
|
Total operating
expenses
|
|
|
63,811
|
|
|
|
42,481
|
|
|
|
123,230
|
|
|
|
77,485
|
|
Loss from
operations
|
|
|
(9,938)
|
|
|
|
(5,923)
|
|
|
|
(22,989)
|
|
|
|
(14,940)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
|
(1,707)
|
|
|
|
(677)
|
|
|
|
(3,433)
|
|
|
|
(1,104)
|
|
Other income
(expense), net
|
|
|
416
|
|
|
|
(653)
|
|
|
|
947
|
|
|
|
(163)
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
(1,268)
|
|
|
|
—
|
|
|
|
(1,268)
|
|
Loss before income
taxes
|
|
|
(11,229)
|
|
|
|
(8,521)
|
|
|
|
(25,475)
|
|
|
|
(17,475)
|
|
Provision for income
taxes
|
|
|
381
|
|
|
|
258
|
|
|
|
642
|
|
|
|
592
|
|
Net loss
|
|
|
(11,610)
|
|
|
|
(8,779)
|
|
|
|
(26,117)
|
|
|
|
(18,067)
|
|
Changes in foreign
currency translation adjustment
|
|
|
16
|
|
|
|
(67)
|
|
|
|
(206)
|
|
|
|
(346)
|
|
Changes in unrealized
gains (losses) on short-term
investments
|
|
|
50
|
|
|
|
157
|
|
|
|
94
|
|
|
|
211
|
|
Net change in other
comprehensive loss
|
|
|
66
|
|
|
|
90
|
|
|
|
(112)
|
|
|
|
(135)
|
|
Comprehensive
Loss
|
|
$
|
(11,544)
|
|
|
$
|
(8,689)
|
|
|
$
|
(26,229)
|
|
|
$
|
(18,202)
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.40)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.89)
|
|
|
$
|
(0.64)
|
|
Weighted average
shares used to compute net
loss per share, basic and diluted
|
|
|
29,351,414
|
|
|
|
28,381,253
|
|
|
|
29,255,990
|
|
|
|
28,287,855
|
|
Nevro
Corp.
Consolidated
Balance Sheets
(in thousands,
except share and per share data)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
24,869
|
|
|
$
|
41,406
|
|
Short-term
investments
|
|
|
238,414
|
|
|
|
234,951
|
|
Accounts receivable,
net
|
|
|
53,566
|
|
|
|
52,818
|
|
Inventories,
net
|
|
|
87,016
|
|
|
|
85,221
|
|
Prepaid expenses and
other current assets
|
|
|
6,428
|
|
|
|
5,895
|
|
Total current
assets
|
|
|
410,293
|
|
|
|
420,291
|
|
Property and
equipment, net
|
|
|
7,179
|
|
|
|
7,132
|
|
Other
assets
|
|
|
2,494
|
|
|
|
2,354
|
|
Restricted
cash
|
|
|
806
|
|
|
|
806
|
|
Total
assets
|
|
$
|
420,772
|
|
|
$
|
430,583
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
11,032
|
|
|
$
|
16,162
|
|
Accrued liabilities
and other
|
|
|
26,022
|
|
|
|
26,036
|
|
Total current
liabilities
|
|
|
37,054
|
|
|
|
42,198
|
|
Long-term
debt
|
|
|
141,520
|
|
|
|
138,140
|
|
Other long-term
liabilities
|
|
|
1,408
|
|
|
|
1,211
|
|
Total
liabilities
|
|
|
179,982
|
|
|
|
181,549
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 290,000,000 shares authorized, 29,424,013 and 28,886,862 shares issued and
outstanding at June 30, 2017
and December 31, 2016, respectively
|
|
|
29
|
|
|
|
29
|
|
Additional paid-in
capital
|
|
|
488,854
|
|
|
|
470,869
|
|
Accumulated other
comprehensive loss
|
|
|
(790)
|
|
|
|
(678)
|
|
Accumulated
deficit
|
|
|
(247,303)
|
|
|
|
(221,186)
|
|
Total stockholders'
equity
|
|
|
240,790
|
|
|
|
249,034
|
|
Total liabilities and
stockholders' equity
|
|
$
|
420,772
|
|
|
$
|
430,583
|
|
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SOURCE Nevro Corp.