Full Press Release Details
Nevro Reports Fourth Quarter and
Full Year 2015 Financial Results
City, Calif., February 29, 2016 /PRNewswire/ - Nevro Corp. (NYSE: NVRO), a global medical device company that is providing innovative evidence-based solutions for the treatment of chronic pain, today reported financial results for the three
months and full year ended December 31, 2015.
2015 Accomplishments & Highlights:
measure, 2015 was a year of very significant achievements and one that strengthened our focus on clinical evidence and patient outcomes in tangible ways, said Michael DeMane, Chairman and CEO of Nevro. We are pleased to report 2015
revenue results at the high end of our preliminary guidance range and to be raising our worldwide revenue outlook for 2016. The organization continues to make impressive progress toward our goal of helping more patients worldwide with Nevro s
innovative HF10 therapy.
As we work towards a successful 2016, I am confident our outstanding team will continue to deliver on the promise of
HF10 therapy through our focus on patient outcomes said Rami Elghandour, President of Nevro. Our top priorities continue to be hiring exceptional talent and scaling the organization to meet demand for HF10 therapy while investing in
key R&D initiatives to expand access to many more patients in need.
Fourth Quarter Financial Results
Revenue for the quarter ended December 31, 2015 was $33.1 million versus $9.7 million during the same period of the prior year, representing 241% growth
as reported. U.S. revenue for the three months ended December 31, 2015 was $19.8 million in the second full quarter of U.S. commercial availability. International revenue was $13.3 million, representing growth of 37% as
reported and 56% in constant currency. The increase in international revenue was primarily attributable to continued adoption of the Senza system.
Gross profit for the fourth quarter of 2015 was $20.4 million, or 61% gross margin, as compared to $6.7 million, or 69% gross margin, in the same period of
the prior year. Gross margins decreased year-over-year primarily as a result of costs incurred in association with building out our operational infrastructure in connection with the U.S. product launch. Additionally, while costs were primarily
incurred in U.S. dollars, international revenue was negatively impacted by the appreciation of the U.S. dollar, which negatively impacted the overall gross margin for the period.
Operating expenses for the fourth quarter of 2015 were $33.5 million, an increase of 143% compared to $13.8 million for the same period of the prior year. The
increase in operating expenses was driven primarily by increased headcount and related personnel costs.
Loss from operations for the fourth quarter of
2015 was $13.1 million, compared to $7.1 million for the same period of the prior year.
Full Year Financial Results
Revenue for the year ended December 31, 2015 increased to $69.6 million, from $32.6 million during the prior year, representing 114% growth as reported.
U.S. revenue for the year ended December 31, 2015, the first year of U.S. commercial availability, was $24.3 million. International revenue was $45.3 million, representing growth of 39% as reported and 62% in constant currency. The
increase in international revenue was primarily attributable to continued adoption of the Senza system.
Gross profit for the year was $41.5 million, or 60% gross margin, as compared to $21.3 million, or 65% gross margin, from the prior year. Gross margins
decreased year-over-year primarily as a result of costs incurred in association with building out our operational infrastructure in connection with the U.S. product launch. Additionally, while costs were primarily incurred in U.S. dollars,
international revenue was negatively impacted by the appreciation of the U.S. dollar, which negatively impacted the overall gross margin for the period.
Operating expenses for 2015 were $103.9 million, an increase of 109% compared to $49.6 million for the prior year. The increase in operating expenses was
driven primarily by increased headcount and related personnel costs.
Loss from operations for 2015 was $62.4 million, compared to $28.3 million for the
Cash, cash equivalents, and short-term investments were $193.7 million as of December 31, 2015.
Guidance for Full Year 2016
Nevro projects worldwide revenue for 2016 to be in the range of $155 to $165 million. This compares to preliminary expectations for 2016 worldwide revenue in
the range of $145 to $155 million announced in January 2016.
Webcast and Conference Call Information
Management will host a conference call today beginning at 1:30 p.m. PT / 4:30 p.m. ET. Individuals interested in listening to the conference call may dial
(877) 201-0168 for domestic callers, or (647) 788-4901 for international callers (Conference ID: 46877325), or access the webcast on the Investors section of the Company s web site at: www.nevro.com. The webcast will be
available on the Company s web site for two weeks following the completion of the call.
Headquartered in Redwood City, California, Nevro is a global medical device company focused on providing innovative products that improve the quality of life
of patients suffering from debilitating chronic pain. Nevro has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. The Senza system is the only
SCS system that delivers Nevro s proprietary HF10 therapy. Senza, HF10, Nevro and the Nevro logo are trademarks of Nevro.
In addition to historical information, this press release contains forward-looking statements with respect to our business, capital
resources, strategic initiatives and growth reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including continuing adoption of, and
interest in, Senza in the U.S. and international markets; and our expectations for worldwide revenue for the full year 2016. These forward-looking statements are based upon information that is currently available to us or our current expectations,
speak only as of the date hereof, and are subject to numerous risks and uncertainties, including our ability to successfully commercialize our products; our ability to manufacture our products to meet demand; the level and availability of
third-party payor reimbursement for our products; our ability to effectively manage our anticipated growth; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing
the intellectual property rights and proprietary technology of third parties; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; and product liability claims. These
factors, together with those that are described in greater detail in our Annual Report on Form 10-K that we expect to file on February 29, 2016, as well as any reports that we may file with the SEC in the future, may cause our actual results,
performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any such
forward-looking statements. Our results for the full year and quarter ended December 31, 2015 are not necessarily indicative of our operating results for any future periods.
Investor Relations Contact:
Nevro Investor Relations
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share data)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Revenue | $ | 33,124 | $ | 9,715 | $ | 69,606 | $ | 32,573 | ||||||||
| Cost of revenue | 12,771 | 3,020 | 28,120 | 11,278 | ||||||||||||
| Gross profit | 20,353 | 6,695 | 41,486 | 21,295 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 5,874 | 4,743 | 21,382 | 19,824 | ||||||||||||
| Sales, general and administrative | 27,623 | 9,058 | 82,471 | 29,777 | ||||||||||||
| Total operating expenses | 33,497 | 13,801 | 103,853 | 49,601 | ||||||||||||
| Loss from operations | (13,144 | ) | (7,106 | ) | (62,367 | ) | (28,306 | ) | ||||||||
| Interest and other income (expense): | ||||||||||||||||
| Interest income (expense), net | (463 | ) | (109 | ) | (2,157 | ) | (16 | ) | ||||||||
| Other income (expense), net | 16 | (991 | ) | (1,741 | ) | (1,880 | ) | |||||||||
| Loss before income taxes | (13,591 | ) | (8,206 | ) | (66,265 | ) | (30,202 | ) | ||||||||
| Provision for income taxes | 600 | 104 | 1,166 | 478 | ||||||||||||
| Net loss | (14,191 | ) | (8,310 | ) | (67,431 | ) | (30,680 | ) | ||||||||
| Accretion of convertible preferred stock to redemption value | (16 | ) | (147 | ) | ||||||||||||
| Net loss attributable to common stockholders | (14,191 | ) | (8,326 | ) | (67,431 | ) | (30,827 | ) | ||||||||
| Changes in foreign currency translation adjustment | 13 | (110 | ) | (178 | ) | (147 | ) | |||||||||
| Changes in gains (losses) on short-term investments | (70 | ) | 205 | (74 | ) | 196 | ||||||||||
| Net change in other comprehensive income (loss) | (57 | ) | 95 | (252 | ) | 49 | ||||||||||
| Comprehensive loss | $ | (14,248 | ) | $ | (8,231 | ) | $ | (67,683 | ) | $ | (30,778 | ) | ||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.51 | ) | $ | (0.59 | ) | $ | (2.54 | ) | $ | (6.94 | ) | ||||
| Weighted average shares used to compute net loss per share, basic and diluted | 28,003,957 | 14,229,775 | 26,581,890 | 4,440,663 |
Consolidated Balance Sheets
(in thousands, except share and per share data)
| December 31, 2015 | December 31, 2014 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 87,036 | $ | 25,287 | ||||
| Short-term investments | 106,634 | 151,521 | ||||||
| Accounts receivable, net | 22,522 | 6,610 | ||||||
| Inventories | 62,430 | 14,856 | ||||||
| Prepaid expenses and other current assets | 4,009 | 2,851 | ||||||
| Total current assets | 282,631 | 201,125 | ||||||
| Property and equipment, net | 5,794 | 647 | ||||||
| Other assets | 1,852 | 424 | ||||||
| Restricted cash | 906 | 300 | ||||||
| Total assets | $ | 291,183 | $ | 202,496 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 21,887 | $ | 4,460 | ||||
| Accrued liabilities and other | 14,502 | 6,338 | ||||||
| Total current liabilities | 36,389 | 10,798 | ||||||
| Notes payable | 19,740 | 19,511 | ||||||
| Other long-term liabilities | 462 | 117 | ||||||
| Total liabilities | 56,591 | 30,426 | ||||||
| Stockholders equity | ||||||||
| Common stock, $0.001 par value 290,000,000 shares authorized, 28,143,573 and 24,865,491 shares issued and outstanding at December 31, 2015 and 2014, respectively | 28 | 25 | ||||||
| Additional paid-in capital | 424,147 | 293,945 | ||||||
| Accumulated other comprehensive income (loss) | (175 | ) | 77 | |||||
| Accumulated deficit | (189,408 | ) | (121,977 | ) | ||||
| Total stockholders equity | 234,592 | 172,070 | ||||||
| Total liabilities and stockholders equity | $ | 291,183 | $ | 202,496 |