REDWOOD CITY, Calif., May 9, 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 ended March 31, 2016.
First Quarter Highlights:
- Achieved revenue of $41.7 million in the first quarter of 2016, an increase of 331% as reported, over the same period of the prior year
- U.S. revenue of $29.5 million for the first quarter of 2016, the third full quarter of commercial availability of the company's HF10TM therapy in the U.S.
- International revenue of $12.2 million in the first quarter of 2016 increased 31% in constant currency and 26% on an as-reported basis, both over the same period of the prior year
- On April 15, 2016, received FDA approval for surgical leads for the Senza® Spinal Cord Stimulation (SCS) System
"I am pleased that the adoption of HF10 therapy has continued at a strong pace in the first quarter in both the U.S. and international markets," said Michael DeMane, Chairman and CEO of Nevro. "The organization is making meaningful strides toward our goal of helping more chronic pain patients with Nevro's innovative and best-in-class spinal cord therapy. We are pleased to raise our worldwide revenue guidance based on strong customer demand."
"With over 7,000 patients now benefiting from HF10 therapy, I'm excited about the momentum created by our team in working towards the goal of ensuring patients have access to this clinically superior therapy," said Rami Elghandour, President of Nevro. "We will build on this momentum by broadening access to HF10 therapy through continued sales force expansion as well as the launch of our surgical lead in the fourth quarter of this year. As always, we remain committed to patient outcomes as the foundation for everything we do."
First Quarter Financial Results
Revenue for the three months ended March 31, 2016 was $41.7 million versus $9.7 million during the same period of the prior year, representing 331% growth as reported. U.S. revenue for the three months ended March 31, 2016 was $29.5 million in the third full quarter of U.S. commercial availability. International revenue was $12.2 million, representing growth of 31% in constant currency and 26% on an as-reported basis. The increase in international revenue was primarily attributable to the continued adoption of the Senza system.
Gross profit for the three months ended March 31, 2016 was $26.0 million, representing a 62% gross margin, up from $5.8 million, representing a 60% gross margin, in the same period of the prior year.
Operating expenses for the three months ended March 31, 2016 were $35.0 million compared to $18.1 million in the same period of the prior year, representing an increase of 93%. The increase in operating expenses was driven primarily by increased headcount and related personnel costs.
Loss from operations for the first quarter of 2016 was $9.0 million compared to $12.3 million for the same period of the prior year.
Guidance for Full Year 2016
Nevro projects worldwide revenue for 2016 to be in the range of $175 to $185 million. This compares to previous expectations for 2016 worldwide revenue in the range of $155 to $165 million announced in February 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: 89195333), or access the webcast on the "Investors" section of the company's web site at: www.nevro.com.
About Nevro
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.
Forward-Looking Statements
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; our plans for continued commercialization of Senza, including sales force expansion and launch of a surgical lead; and our expectations for worldwide revenue for the full year 2016.
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