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Nevro Reports Second Quarter 2018 Financial Results

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Nevro Reports Second Quarter 2018 Financial Results

PR Newswire

REDWOOD CITY, Calif., Aug. 2, 2018 /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, 2018.

Second Quarter Financial Results

Revenue for the three months ended June 30, 2018 was $96.1 million versus $78.0 million during the same period of the prior year, representing 23% growth as reported. U.S. revenue for the three months ended June 30, 2018 was $79.9 million, representing 27% growth as reported. International revenue was $16.2 million, representing growth of 4% in constant currency and 8% 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, 2018 was $67.9 million, representing a 71% gross margin, up from $53.9 million, representing a 69% gross margin, in the same period of the prior year.

Operating expenses for the three months ended June 30, 2018 were $76.1 million compared to $63.8 million in the same period of the prior year, representing an increase of 19%. The increase in operating expenses was driven primarily by increased headcount and related personnel costs, as well as legal expenses associated with intellectual property litigations.

Loss from operations for the second quarter of 2018 was $8.2 million compared to $9.9 million for the same period of the prior year.

Revenue Guidance for Full Year 2018

Nevro expects worldwide revenue for 2018 to be in the range of $385 to $390 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 (866) 393-4306 for U.S. callers, or (734) 385-2616 for international callers (Conference ID: 9865398), 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, non-pharmacologic neuromodulation platform for the treatment of chronic pain. The Senza® System and Senza II™ System are the only SCS systems that deliver Nevro's proprietary HF10® therapy. Senza, Senza II, HF10, Nevro and the Nevro logo are trademarks of Nevro Corp.

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 2018. 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 22, 2018 and our Quarterly Report on Form 10-Q that we expect to file on August 2, 2018, 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, 2018 are not necessarily indicative of our operating results for any future periods.

Investor Relations Contact:
Nevro Investor Relations
(415) 937-5402
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,


2018


2017


2018


2017


(unaudited)


(unaudited)

Revenue

$

96,080


$

78,016


$

183,715


$

146,455

Cost of revenue


28,159



24,143



53,793



46,214

Gross profit


67,921



53,873



129,922



100,241

Operating expenses:












Research and development


11,416



9,537



22,501



18,236

Sales, general and administrative


64,706



54,274



131,324



104,994

Total operating expenses


76,122



63,811



153,825



123,230

Loss from operations


(8,201)



(9,938)



(23,903)



(22,989)

Other income (expense):












Interest income (expense), net


(1,444)



(1,707)



(2,989)



(3,433)

Other income (expense), net


(592)



416



(715)



947

Loss before income taxes


(10,237)



(11,229)



(27,607)



(25,475)

Provision for income taxes


383



381



726



642

Net loss


(10,620)



(11,610)



(28,333)



(26,117)

Changes in foreign currency translation adjustment


(318)



16



259



(206)

Changes in unrealized gains (losses) on short-term investments


273



50



(78)



94

Net change in other comprehensive loss


(45)



66



181



(112)

Comprehensive Loss

$

(10,665)


$

(11,544)


$

(28,152)


$

(26,229)

Net loss per share, basic and diluted

$

(0.35)


$

(0.40)


$

(0.95)


$

(0.89)

Weighted average shares used to compute net loss per share, basic and diluted


30,028,985



29,351,414



29,933,164



29,255,990

 

Nevro Corp.

Consolidated Balance Sheets

(in thousands, except share and per share data)



June 30,


December 31,


2018


2017


(unaudited)




Assets






Current assets






Cash and cash equivalents

$

40,838


$

42,845

Short-term investments


223,018



226,467

Accounts receivable, net


66,042



67,287

Inventories, net


94,994



98,119

Prepaid expenses and other current assets


6,752



6,463

Total current assets


431,644



441,181

Property and equipment, net


13,610



8,819

Other assets


3,829



3,250

Restricted cash


806



806

Total assets

$

449,889


$

454,056

Liabilities and stockholders' equity






Current liabilities






Accounts payable

$

23,543


$

18,492

Accrued liabilities and other


29,992



39,512

Total current liabilities


53,535



58,004

Long-term debt


148,643



145,019

Other long-term liabilities


2,122



1,861

Total liabilities


204,300



204,884

Stockholders' equity






Common stock, $0.001 par value, 290,000,000 shares authorized, 30,094,631 and 29,737,561 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively


30



30

Additional paid-in capital


531,830



508,228

Accumulated other comprehensive loss


(1,061)



(1,242)

Accumulated deficit


(285,210)



(257,844)

Total stockholders' equity


245,589



249,172

Total liabilities and stockholders' equity

$

449,889


$

454,056

 

.

 

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SOURCE Nevro Corp.

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