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Dec 31, 2021

Nevro Q4 2021 Earnings Report

Nevro's financial performance decreased compared to the prior year, but the company saw progress in the core SCS business and PDN launch initiatives.

Key Takeaways

Nevro reported a decrease in worldwide revenue for Q4 2021, with $102.8 million, a 6% decrease compared to the prior year. The company's net loss from operations was $26.2 million, and non-GAAP adjusted EBITDA was negative $7.5 million. Despite the challenges, Nevro saw progress in its core SCS business and PDN launch initiatives and received FDA approval for 10 kHz High-Frequency Spinal Cord Stimulation Therapy for Non-Surgical Refractory Back Pain.

Worldwide revenue for Q4 2021 was $102.8 million, a decrease of 6% compared to the prior year.

U.S. revenue in Q4 2021 was $88.4 million, a decrease of 7% compared to the prior year.

Net loss from operations for Q4 2021 was $26.2 million.

Non-GAAP adjusted EBITDA for Q4 2021 was negative $7.5 million.

Total Revenue
$103M
Previous year: $110M
-6.4%
EPS
-$0.86
Previous year: -$0.21
+309.5%
Gross Profit
$69.1M
Previous year: $78M
-11.4%
Cash and Equivalents
$34.7M
Previous year: $44.6M
-22.2%
Free Cash Flow
-$16.9M
Previous year: $9.22M
-283.2%
Total Assets
$575M
Previous year: $789M
-27.2%

Nevro

Nevro

Nevro Revenue by Geographic Location

Forward Guidance

Nevro expects first quarter 2022 worldwide revenue of approximately $85 million to $87 million and full-year 2022 worldwide revenue of approximately $415 million to $430 million. The company expects first quarter of 2022 non-GAAP adjusted EBITDA to be approximately negative $19 million to negative $20 million and full-year 2022 non-GAAP adjusted EBITDA of negative $8 million to negative $18 million.

Positive Outlook

  • Full-year 2022 revenue guidance includes approximately $25 million to $30 million of PDN revenue.
  • Expects steady recovery throughout 2022, with no new significant COVID variants or waves.
  • Anticipates near-term improvement in healthcare facility restrictions.
  • Expects steady improvement in healthcare facility staffing limitations throughout the year.
  • Most of the annual growth is expected to be driven by the second half of 2022.

Challenges Ahead

  • First quarter of 2022 will be strongly impacted by Omicron and COVID-related issues.
  • First quarter of 2022 will experience the typical seasonal decrease from the fourth quarter.
  • Guidance is highly sensitive to assumptions regarding the pace and sustainability of COVID recovery.
  • Guidance is sensitive to COVID-related impacts on patient willingness to seek elective care.
  • Guidance is sensitive to COVID-related impacts on healthcare facility restrictions and staffing limitations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income