CVRx (CVRX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $11.8 million, up 24% year-over-year, driven by strong U.S. heart failure business and expansion into new sales territories.

• U.S. heart failure revenue grew to $10.5 million on 339 units, with active implanting centers rising to 189 year-over-year.

• Leadership team expanded with key hires in sales, medical, patient access, clinical research, and HR to support growth and market development.

• Focus shifted to driving deeper utilization in existing accounts rather than rapid expansion into new centers.

• Company continues to invest in commercial infrastructure and R&D, expecting ongoing net losses.

Financial highlights

• U.S. revenue was $10.7 million, up 29% year-over-year; European revenue was $1.1 million, down 6% year-over-year, with 63 revenue units sold.

• Gross profit was $9.9 million, gross margin steady at 84%.

• R&D expenses decreased 16% to $2.8 million; SG&A expenses rose 28% to $21.1 million, mainly due to increased headcount and compensation.

• Net loss was $14.0 million ($0.65/share), compared to $11.6 million ($0.56/share) last year.

• Cash and equivalents stood at $70.4 million at quarter end; net cash used in operations and investing was $10.2 million for the quarter.

Outlook and guidance

• Full-year 2024 revenue expected between $50 million and $53 million; gross margin between 83% and 85%.

• Operating expenses for 2024 projected at $95–$98 million, up from prior guidance.

• Q3 2024 revenue guidance is $12.7 million to $13.7 million.

• Management expects continued operating losses and negative cash flows for the foreseeable future.

• Existing cash, loan facility, and revenue expected to cover liquidity needs for at least the next three years.