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Sep 30, 2022

Nevro Q3 2022 Earnings Report

Nevro reported financial results, narrowed full-year 2022 guidance, and raised revenue contribution from painful diabetic neuropathy.

Key Takeaways

Nevro's Q3 2022 worldwide revenue reached $100.5 million, an 8% increase as reported and a 10% increase on a constant currency basis compared to Q3 2021. The company saw encouraging signs of recovery with U.S. trial activity growing by 16% year-over-year and PDN revenue contributing $13.4 million.

Worldwide revenue for Q3 2022 was $100.5 million, representing an 8% increase as reported and a 10% increase on a constant currency basis compared to Q3 2021.

PDN revenue reached approximately $13.4 million in Q3 2022, compared to $2.0 million in Q3 2021.

U.S. trial procedures increased by 16% compared to Q3 2021, with U.S. PDN trial procedures growing to 18% of total U.S. trials in the quarter.

The FDA approved the HFX iQâ„¢ Spinal Cord Stimulation System powered by Artificial Intelligence and new manufacturing operations in Costa Rica.

Total Revenue
$100M
Previous year: $93.2M
+7.8%
EPS
-$0.59
Previous year: -$0.87
-32.2%
Gross Profit
$69.3M
Previous year: $64.6M
+7.2%
Cash and Equivalents
$131M
Previous year: $80.9M
+61.8%
Free Cash Flow
$77.2M
Previous year: -$19M
-505.7%
Total Assets
$606M
Previous year: $582M
+4.0%

Nevro

Nevro

Forward Guidance

Nevro expects full-year 2022 worldwide revenue of approximately $403 million to $407 million and non-GAAP adjusted EBITDA to be a loss of approximately $20 million to $22 million.

Positive Outlook

  • Steady recovery in the fourth quarter of 2022.
  • No significant business impact from new COVID variants or waves.
  • Near-term improvement in healthcare facility restrictions.
  • Steady improvement in healthcare facility staffing limitations.
  • Full-year 2022 PDN revenue is expected to be approximately $45 million to $47 million.

Challenges Ahead

  • Guidance is highly sensitive to the company’s assumptions regarding the pace and sustainability of COVID recovery.
  • Related impacts on patient willingness to seek elective care.
  • Healthcare facility restrictions.
  • Healthcare facility staffing limitations.
  • Negative currency impact for the fourth quarter of 2022 of approximately $1.9 million versus prior year.