Nevro (NVRO) Q3 2024 earnings summary

Executive summary

• Q3 2024 worldwide revenue was $96.9M, down 6.7% year-over-year, with U.S. revenue at $83.9M and international revenue at $13.0M, both declining due to market softness and competitive pressures.

• Net loss from operations improved to $13.9M from $25.6M in Q3 2023; adjusted EBITDA loss narrowed to $1.8M from $5.8M, reflecting restructuring and expense management.

• Cash, cash equivalents, and short-term investments increased by $3.3M to $277M as of September 30, 2024, due to restructuring and working capital management.

• Strategic focus includes sales territory changes, DTC advertising reinvestment, and new product launches such as HFX AdaptivAI and HFX iQ to drive growth and profitability.

• FY2024 revenue guidance reaffirmed at $400M–$405M and adjusted EBITDA guidance raised to -$18M to -$16M.

Financial highlights

• Gross profit was $64.6M, with gross margin at 66.7%–67%, nearly flat year-over-year due to charges for previously capitalized variances and overhead.

• Operating expenses dropped to $78.5M from $95.1M, driven by restructuring, lower SG&A, and R&D costs.

• Net loss per share improved to $0.41 from $0.65 in Q3 2023.

• Adjusted EBITDA loss improved to $1.8M from $5.8M in Q3 2023.

• Cash and short-term investments totaled $277M at quarter end.

Outlook and guidance

• Full-year 2024 worldwide revenue guidance reaffirmed at $400M–$405M; adjusted EBITDA guidance raised to -$18M to -$16M.

• Gross margin for FY2024 expected at 66–68%, excluding a $6M one-time supplier charge.

• Operating expenses projected at ~$369.1M, down from previous guidance.

• Guidance assumes no improvement in Q4 2024 U.S. SCS trialing growth rate from Q3 2024.

• Cash position expected to increase further in Q4.