Loading...
•
Jun 30, 2020
Nevro Q2 2020 Earnings Report
Nevro's financial performance significantly impacted by COVID-19 restrictions, with revenue and gross profit decreasing compared to the prior year, but showing signs of recovery in procedure volumes.
Key Takeaways
Nevro Corp. reported a 40% decrease in worldwide revenue for Q2 2020, totaling $56.4 million, due to COVID-19 restrictions. U.S. revenue decreased by 35% to $51.0 million, while international revenue decreased by 65% on a constant currency basis to $5.4 million. The company experienced a net loss from operations of $35.4 million and an adjusted EBITDA of negative $22.1 million.
Worldwide revenue decreased by 40% year-over-year to $56.4 million due to COVID-19 restrictions.
U.S. revenue decreased by 35% year-over-year to $51.0 million.
International revenue decreased by 65% year-over-year to $5.4 million on a constant currency basis.
Net loss from operations increased to $35.4 million, and adjusted EBITDA was negative $22.1 million.
Nevro
Nevro
Forward Guidance
Despite encouraging signs of early recovery in the U.S., the company remains cautious about the visibility and predictability of its environment through the end of 2020 and is closely monitoring new pandemic developments.
Positive Outlook
- Signs of recovery in procedure volumes, particularly in the U.S.
- Sequential improvements in procedure volumes in May and June that have exceeded expectations.
- Daily U.S. trial and permanent procedure volumes in June were approximately equal to the prior year period.
- Continued improvement in procedure volumes in the month of July.
- Strong financial position with $562.3 million in cash, cash equivalents and short-term investments.
Challenges Ahead
- COVID-19 global pandemic took a severe toll on business in the second quarter of 2020.
- April was the most impacted month with a reduction of approximately 85% in U.S. case volume.
- International volumes during the second quarter were deeply impacted and slower to recover.
- Uncertainty and unpredictability in the environment through the end of 2020 due to the pandemic.
- Monitoring new pandemic developments closely.