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Dec 31, 2020
Nevro Q4 2020 Earnings Report
Nevro's financial performance decreased slightly due to the impact of COVID-19, but the company believes it continued to capture market share and is well-positioned for future growth.
Key Takeaways
Nevro reported a 4% decrease in worldwide revenue for Q4 2020 compared to the prior year, totaling $109.7 million. The company experienced a net loss from operations of $0.9 million, but achieved a non-GAAP adjusted EBITDA of $15.7 million. Nevro anticipates recovery and growth in 2021, with full-year revenue guidance between $430 million and $450 million.
Worldwide revenue for Q4 2020 was $109.7 million, a decrease of 4% compared to the prior year.
U.S. revenue in Q4 2020 was $94.6 million, a decrease of 3% compared to the prior year.
Net loss from operations for Q4 2020 was $0.9 million, a 93% improvement compared to the prior year.
Non-GAAP adjusted EBITDA for Q4 2020 was $15.7 million, compared to $1.5 million in the prior year.
Nevro
Nevro
Forward Guidance
Nevro expects first quarter of 2021 worldwide revenue of approximately $84 million to $86 million. The company expects operating expenses in the first quarter of 2021 of approximately $83 million to $86 million, including litigation expenses and additional investment in PDN market development. Nevro expects full year 2021 worldwide revenue of approximately $430 million to $450 million.
Positive Outlook
- Ongoing and steady recovery in the U.S. and key international geographies leading to more normalized case scheduling and elective procedure levels beginning in the second quarter of 2021.
- Impact from COVID will diminish with each sequential quarter this year as vaccine availability improves and patients begin to again seek elective care in typical levels.
- FDA approval of PDN at the beginning of the third quarter of 2021.
- Mid-single digit million revenue contribution from PDN in 2021, with the majority generated in the fourth quarter.
- Gross margin is expected to be approximately 69%.
Challenges Ahead
- COVID headwinds in the first two months of the first quarter of 2021.
- Operating expenses in the first quarter of 2021 of approximately $83 million to $86 million, including litigation expenses and additional investment in PDN market development.
- Operating expenses are expected to be approximately $370 million, including litigation expenses and approximately $22 million of investment in a PDN launch and market development.
- Full year 2021 non-GAAP adjusted EBITDA of $0 million to $15 million, which compares to a non-GAAP adjusted EBITDA loss of $3.9 million in 2020.
- Guidance is highly sensitive to the company’s COVID recovery assumptions. If these assumptions differ materially from the actual pace of COVID recovery and its impact on the company’s markets, then the company may need to change or withdraw this guidance in the future.