CVRx (CVRX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $13.4 million, up 27% year-over-year, driven by strong U.S. heart failure business and Barostim adoption, with increased physician and patient awareness.

• Net loss widened to $13.1 million ($0.57/share) from $9.0 million ($0.43/share) last year, mainly due to higher SG&A and interest expenses.

• U.S. active implanting centers rose to 208 from 159 year-over-year, and sales territories expanded to 45 from 35.

• Barostim received favorable Medicare inpatient payment reassignment, increasing average payment to $43,000 as of October 2024, and new Category I CPT codes effective January 2026.

• Expanded leadership team and board, adding expertise in commercialization and financial operations to support growth.

Financial highlights

• U.S. revenue was $12.3 million, up 28% year-over-year; U.S. heart failure revenue was $12.2 million on 391 units, compared to $9.4 million on 303 units last year.

• European revenue was $1.1 million, up 15% year-over-year, with 56 revenue units sold.

• Gross profit for Q3 2024 was $11.1 million, with gross margin at 83% (down from 84% last year).

• R&D expenses decreased 7% to $2.5 million; SG&A expenses rose 38% to $21.6 million, mainly due to increased headcount and compensation.

• Cash and cash equivalents stood at $100.2 million as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue expected between $50.5 million and $51.5 million; Q4 revenue guidance is $14.5–$15.5 million.

• Full-year gross margin expected between 83% and 85%; operating expenses projected at approximately $100 million.

• OpEx expected to be lower in Q4 due to absence of one-time expenses seen in Q3; 2025 OpEx growth expected to be modest.

• Management expects continued operating losses and negative cash flows for the foreseeable future as investments in commercialization and R&D persist.

• Existing cash and equivalents are expected to fund operations for at least three years.