Nevro Q2 2022 Earnings Report
Key Takeaways
Nevro reported a 2% increase in worldwide revenue compared to the prior year, with U.S. revenue increasing by 5%. The company reached a settlement agreement in intellectual property litigations with Boston Scientific and saw positive payer coverage updates for Painful Diabetic Neuropathy (PDN).
Second Quarter 2022 Worldwide Revenue was $104.2 Million, representing 2% As Reported growth compared to prior year.
Painful Diabetic Neuropathy (PDN) represented approximately $11.0 Million in Revenue in Second Quarter 2022.
Second Quarter 2022 U.S. Trial Procedures Increased 14% Compared to Prior Year.
Second Quarter 2022 Net Loss from Operations was $23.8 Million.
Nevro
Nevro
Forward Guidance
Nevro expects third quarter of 2022 worldwide revenue of approximately $97 million to $101 million and full-year 2022 worldwide revenue of approximately $400 million to $410 million.
Positive Outlook
- The company expects third quarter of 2022 worldwide revenue of approximately $97 million to $101 million, or growth of 4% to 8% over prior year.
- Assuming foreign currency exchange rates hold at current levels, this guidance includes a negative currency impact of approximately $1 million or growth of 6% to 10% on a constant currency basis.
- This guidance range assumes that the recovery will continue to steadily improve in the quarter.
- Nevro now expects full-year 2022 worldwide revenue of approximately $400 million to $410 million, or growth of 3% to 6% over prior year.
- This full-year 2022 guidance also includes approximately $42 million to $45 million of PDN revenue, an increase from previous guidance of $27 million to $32 million.
Challenges Ahead
- The company expects third quarter of 2022 non-GAAP adjusted EBITDA to be a loss of approximately $6 million to $9 million.
- Nevro now expects full-year 2022 non-GAAP adjusted EBITDA to be a loss of approximately $19 million to $25 million, compared to previous guidance of a loss of $8 million to $18 million and a non-GAAP adjusted EBITDA loss of $17.2 million in 2021.
- This guidance is highly sensitive to the company’s assumptions regarding the pace and sustainability of COVID recovery and its related impacts on patient willingness to seek elective care, healthcare facility restrictions and healthcare facility staffing limitations, all of which are difficult to predict.
- This guidance assumes the remainder of 2022 will see a steady recovery, particularly in the fourth quarter, and includes no significant business impact from new COVID variants or waves and near-term improvement in healthcare facility restrictions and steady improvement in healthcare facility staffing limitations throughout the year.
- Assuming foreign currency exchange rates hold at current levels, this guidance includes a negative currency impact for the second half of the year of approximately $2 million or second half growth of 7% to 12% on a constant currency basis.