MENLO PARK, Calif., March 18, 2015 /PRNewswire/ -- Nevro Corp. (NYSE: NVRO), a medical device company that has developed and commercialized an innovative, evidence-based neuromodulation platform for the treatment of chronic pain, today reported financial results for the three months and full year ended December 31, 2014.
Recent Accomplishments & Highlights:
- In November 2014, completed initial public offering, receiving net proceeds of approximately $131 million
- Revenue of $9.7 million in the fourth quarter of 2014, an increase of 57% over the same period of the prior year
- In January 2015, received an approvable letter from the U.S. Food & Drug Administration (FDA) in response to the company’s pre-market approval (PMA) application for the Senza Spinal Cord Stimulator (SCS) System
“The Nevro team delivered an impressive fourth quarter to round out a productive 2014,” said Michael DeMane, Chairman and CEO of Nevro. “I am very pleased with the continued adoption of HF10 therapy in international markets, bringing relief to more patients suffering from debilitating chronic pain. Moreover, the company has made tangible progress to advance the PMA approval process in the United States with the recent receipt of an approvable letter from the FDA pursuant to its PMA application for the Senza SCS system.”
Fourth Quarter Financial Results
Revenue for the three months ended December 31, 2014 increased 57% to $9.7 million, from $6.2 million during the same period of the prior year. This increase was primarily attributable to continued adoption of the Senza system in the markets where it is available.
Gross profit for the fourth quarter of 2014 was $6.7 million, or 69% gross margin, up from $3.6 million, or 59% gross margin, in the same period of the prior year. The increase in gross profit was primarily due to higher revenue coupled with decreased cost of revenue as a percentage of sales.
Operating expenses for the fourth quarter of 2014 were $13.8 million, an increase of 36% compared to $10.2 million for the same period of the prior year. The increase in operating expenses was driven primarily by increased headcount and related personnel costs, as well as expenses incurred in preparation for becoming and operating as a publicly-traded company.
Loss from operations for the fourth quarter of 2014 was $7.1 million, compared to $6.5 million for the same period of the prior year.
Full Year Financial Results
Revenue for the year ended December 31, 2014 increased 39% to $32.6 million, from $23.5 million during the prior year. This increase was primarily attributable to continued adoption of the Senza system in the markets where it is available.
Gross profit for the year was $21.3 million, or 65% gross margin, up from $14.0 million, or 60% gross margin, from the prior year. The increase in gross profit was primarily due to higher revenue coupled with decreased cost of revenue as a percentage of sales.
Operating expenses for 2014 were $49.6 million, an increase of 27% compared to $39.2 million for the prior year. The increase in operating expenses was driven primarily by increased headcount and related personnel costs, as well as expenses incurred in preparation for becoming and operating as a publicly-traded company, partially offset by decreased clinical trial expenses year over year.
Loss from operations for 2014 was $28.3 million, compared to $25.2 million for the prior year.
Cash, cash equivalents, and short-term investments were $176.8 million as of December 31, 2014.
Guidance for Full Year 2015
The company estimates international revenue for the full year 2015 to be in a range of $36-38 million, which would represent an 11 to 17 percent increase versus 2014.
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: 70460099), 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.
About Nevro
Headquartered in Menlo Park, California, Nevro is a 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. In the United States, the Senza system is limited by federal law to investigational use only. Senza, HF10, Nevro and the Nevro logo are trademarks of Nevro.
Forward-Looking Statements
In addition to the historical information, this press release contains forward-looking statementswith 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 regarding our beliefs about accelerating adoption of Senza in international markets; the timing, if any, of FDA marketing approval of Senza in the U.S., and our expectations for international revenue for the full year 2015.
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