REDWOOD CITY, Calif., Aug. 8, 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 and six months ended June 30, 2016.
Second Quarter Highlights:
- Achieved revenue of $55.4 million in the second quarter of 2016, an increase of 385% as reported, over the same period of the prior year
- U.S. revenue of $40.6 million for the second quarter of 2016, the fourth full quarter of commercial availability of the company's HF10 therapy in the U.S.
- International revenue of $14.8 million in the second quarter of 2016 increased 33% in constant currency and 30% on an as-reported basis, both over the same period of the prior year
- Raised gross proceeds of $172.5 million in public offering of convertible senior notes due 2021
- Publication of the 24-month SENZA-RCT results accepted by Neurosurgery, the official Journal of the Congress of Neurological Surgeons
"I am excited by our progress in becoming a leader in Neuromodulation," said Rami Elghandour, President and CEO of Nevro. "Our focus on improving patient outcomes continues to guide our research and commercial efforts, and we are well-positioned for sustainable success. With global adoption broadening, two-year evidence supporting the superiority of HF10 therapy accepted for publication, and growth of our team, we are raising our revenue expectations for 2016."
Second Quarter Financial Results
Revenue for the three months ended June 30, 2016 was $55.4 million versus $11.4 million during the same period of the prior year, representing 385% growth as reported. U.S. revenue for the three months ended June 30, 2016 was $40.6 million in the fourth full quarter of U.S. commercial availability. International revenue was $14.8 million, representing growth of 33% in constant currency and 30% 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 June 30, 2016 was $36.6 million, representing a 66% gross margin, up from $5.9 million, representing a 52% gross margin, in the same period of the prior year.
Operating expenses for the three months ended June 30, 2016 were $42.5 million compared to $25.1 million in the same period of the prior year, representing an increase of 69%. The increase in operating expenses was driven primarily by increased headcount and related personnel costs.
Loss from operations for the second quarter of 2016 was $5.9 million compared to $19.2 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 $210 to $220 million. This compares to previous expectations for 2016 worldwide revenue in the range of $175 to $185 million announced in May 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: 48763854), 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.
To read full press release, please click here.
