Fourth-Quarter 2023 Worldwide Revenue Exceeds
Company's Expectations
Announces Restructuring to Support Company's
Long-Term Growth and Profitability
REDWOOD
CITY, Calif., Jan. 9, 2024
/PRNewswire/ -- Nevro Corp. (NYSE: NVRO), a global medical device
company that is delivering comprehensive, life-changing solutions
for the treatment of chronic pain, today announced its preliminary,
unaudited fourth-quarter and full-year 2023 revenue results. The
company also announced a restructuring, including laying off 5% of
its workforce, that will be substantially complete by the end of
the first quarter of 2024. The vast majority of layoffs affected
internally focused employees and not customer-facing personnel in
the field.
Financial Highlights
- Fourth-quarter 2023 worldwide revenue of approximately
$116.0 million grew 2% as reported
and 1% constant currency compared with fourth-quarter 2022
- Full-year 2023 worldwide revenue of approximately $425.0 million, representing 5% growth reported
and 4.5% on a constant currency basis
- Painful Diabetic Neuropathy indication (PDN) Q4 sales of
approximately $22.4 million grew 29%
over 2022, bringing full-year 2023 PDN sales to $77.9 million and 63% growth over full-year
2022
Preliminary, Unaudited Fourth-Quarter 2023 Revenue
Results
Preliminary, unaudited fourth-quarter 2023 worldwide revenue is
expected to be approximately $116.0
million, an increase of 2% as reported and 1% on a constant
currency basis, compared with $113.8
million in the fourth quarter of 2022. PDN represented
approximately $22.4 million in
revenue and 20% of worldwide permanent implant procedures in the
fourth quarter of 2023.
Preliminary, unaudited fourth-quarter 2023 U.S. revenue is
expected to be approximately $101.5
million, reflecting growth of 2% compared with $99.8 million in the fourth quarter of 2022.
Fourth-quarter 2023 U.S. trial procedures were down approximately
1% versus the prior-year quarter and in line with the company's
expectations. Fourth-quarter 2023 U.S. PDN trial procedures
represented approximately 24% of total U.S. trial volume.
Preliminary, unaudited fourth-quarter 2023 international revenue
is expected to be approximately $14.5
million, an increase of 3% as reported and a decrease of 1%
on a constant currency basis, compared with $14.1 million in the fourth quarter of 2022.
Preliminary, Unaudited Full-Year 2023 Revenue Results
Nevro's preliminary, unaudited full-year 2023 worldwide revenue
is expected to be approximately $425.0
million, an increase of 5% as reported, or an increase of
4.5% on a constant currency basis, compared with $406.4 million for full-year 2022. Worldwide
revenue for 2023 includes approximately $77.9 million of revenue for PDN, compared with
$48.0 million for full-year 2022.
Preliminary, unaudited full-year 2023 U.S. revenue is expected to
be approximately $366.5 million,
reflecting growth of 5% over $348.2
million in 2022. Preliminary, unaudited full-year 2023
international revenue is expected to be approximately $58.5 million, an increase of 0.5% as reported,
or flat on a constant currency basis, compared with $58.2 million in 2022.
"We are pleased with our preliminary fourth-quarter 2023 revenue
which exceeded our expectations and demonstrates that our
commercial realignment and execution are delivering stronger and
more consistent growth," said Kevin
Thornal, Nevro's CEO. "Also, we are excited to enter the
fast-growing sacroiliac joint space through our recent acquisition
of Vyrsa Technologies, which allows us to leverage one of our
greatest assets – our commercial team. As we look ahead, we remain
focused on delivering on our three key pillars of commercial
execution, market penetration and profit progress."
Nevro expects to report its complete fourth-quarter and
full-year 2023 financial results and provide 2024 financial
guidance in February 2024.
Restructuring
The company also announced a restructuring, including laying off
63 employees, or 5% of its total number of employees, that will be
substantially complete by the end of the first quarter of 2024. The
layoffs affect employees in corporate, sales and marketing, and
operations positions but are largely focused on internally facing
roles within the organization.
"This restructuring supports our strategy and allows us to focus
our investments to further position Nevro for long-term growth and
profitability. This was a difficult decision that impacts some of
our team members who have been committed to our mission. We
appreciate their dedication and contributions to Nevro," Thornal
said. "As we look ahead, we remain focused on bringing innovative
products to market, working closely with physicians treating
patients living with chronic pain and creating value for all our
stakeholders."
Nevro expects the restructuring to have a $14 million to $15
million positive impact on its full-year 2024 adjusted
EBITDA, which will be largely offset by normal operating expense
increases, including inflation, merit increases and other
acquisition-related expenses. Excluding acquisition-related
operating expenses, the company expects 2024 operating expenses to
be approximately flat compared with 2023 operating expenses. In
addition, GAAP operating expenses in the first quarter of 2024 will
reflect a $5 million to $6 million restructuring charge. The company will
provide more details on the restructuring during its fourth-quarter
2023 earnings call in February.
Nevro to Participate in J.P. Morgan 42nd Annual
Healthcare Conference
As previously announced, members of Nevro's management team will
participate in the J.P. Morgan 42nd Annual Healthcare
Conference on Thursday, January 11,
2024. The company's formal presentation will begin at
8:15 am PST (11:15 am EST).
A live webcast of the formal presentation and Q&A session,
as well as an archived recording, will be available on the Events
and Presentations page in the Investors section of the company's
website at www.nevro.com.
About Nevro
Headquartered in Redwood City,
California, Nevro is a global medical device company focused
on delivering comprehensive, life-changing solutions that continue
to set the standard for enduring patient outcomes in chronic pain
treatment. The company started with a simple mission to help more
patients suffering from debilitating pain and developed its
proprietary 10 kHz Therapy™, an evidence-based, non-pharmacologic
innovation that has impacted the lives of more than 115,000
patients globally. Nevro's comprehensive HFX™ spinal cord
stimulation (SCS) platform includes a Senza™ SCS system and support
services for the treatment of chronic pain of the trunk and limb
and painful diabetic neuropathy. Nevro recently added a
minimally invasive treatment option for patients suffering from
chronic sacroiliac joint ("SI joint") pain and now provides the
most comprehensive portfolio of products in the SI joint fusion
space, designed to meet the preferences of physicians and varying
patient needs in order to improve outcomes and quality of life for
patients.
Senza®, Senza II®, Senza Omnia™, and HFX iQ™ are the only SCS
systems that deliver Nevro's proprietary 10 kHz Therapy. Nevro's
unique support services provide every patient with an HFX Coach™
throughout their pain relief journey and every physician with HFX
Cloud™ insights for enhanced patient and practice management.
SENZA, SENZA II, SENZA OMNIA, OMNIA, HF10, the HF10 logo, 10 kHz
Therapy, HFX, the HFX logo, HFX iQ, the HFX iQ logo, HFX Algorithm,
HFX CONNECT, the HFX Connect logo, HFX ACCESS, the HFX Access logo,
HFX COACH, the HFX Coach logo, HFX CLOUD, the HFX Cloud logo,
RELIEF MULTIPLIED, the X logo, NEVRO, and the NEVRO logo are
trademarks or registered trademarks of Nevro Corp. Patents covering
Senza HFX iQ and other Nevro products are listed at
Nevro.com/patents.
To learn more about Nevro, connect with us
on LinkedIn, Twitter, Facebook,
and Instagram.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements reflecting the company's
current beliefs and expectations of management made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including: our preliminary, unaudited estimated
fourth-quarter and full-year 2023 revenue results; the prospects of
Vyrsa, its products and the U.S. SI joint market; the expected
timing, cost savings, costs to incurred and long-term benefits of
our restructuring and layoffs; and our expected operating expense
in 2024. 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 integrate Vyrsa with Nevro's existing business, our
ability to successfully continue to develop and 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 and the costs and expenses of operating our business; 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; our ability to accurately forecast
financial and operating results, including in connection with the
restructuring and layoffs; and product liability claims, in each
case, including with respect to Vyrsa. These factors, together with
those that are described in greater detail in our Annual Report on
Form 10-K filed on February 21, 2023,
as well as any subsequent reports filed with the Securities and
Exchange Commission, 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.
Investors and Media:
Angie McCabe
Vice President, Investor Relations &
Corporate Communications
angeline.mccabe@nevro.com
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SOURCE Nevro Corp.
