REDWOOD CITY, Calif. - Nevro Corp. (NYSE: NVRO), a leader in medical devices for chronic pain treatment, reported a smaller-than-expected loss for the fourth quarter, with earnings per share (EPS) of ($0.25), which was $0.24 better than the analyst consensus of ($0.49). The company's revenue for the quarter reached $116.17 million, exceeding the consensus estimate of $111.92 million and marking a 2% increase from the $113.84 million reported in the same quarter last year.
The company's stock rose by 3% following the announcement, indicating a positive investor response to the earnings beat and the company's strategic advancements. CEO Kevin Thornal attributed the quarter's success to the execution of Nevro's three-pillar strategy, which includes commercial realignment and the acquisition of Vyrsa Technologies. Thornal praised the Nevro team's dedication to alleviating chronic pain, which has been central to the company's progress.
Nevro's full-year 2024 guidance forecasts revenue to be between $435 million and $445 million, representing a 2% to 5% growth on a reported and constant currency basis over 2023. The midpoint of this range, $440 million, is above the analyst consensus for full-year revenue. Adjusted EBITDA is expected to be a loss in the range of $8 million to $14 million, an improvement over the adjusted EBITDA loss of $17.7 million in 2023. For the first quarter of 2024, Nevro anticipates revenue to be in the range of $97 million to $99 million, which would be a 1% to 3% increase on a constant currency basis compared to the first quarter of 2023. The adjusted EBITDA is projected to be a loss of $15 million to $16 million for the same period.
In the fourth quarter, Nevro saw a net loss from operations of $11.8 million, a significant improvement from the net loss of $19.4 million in the same quarter the previous year. The adjusted EBITDA was $8.4 million, compared to a loss of $1.4 million in the fourth quarter of 2022. The company's gross margin also improved, rising to 70.1% from 66.1% the prior year, driven by a shift to higher margin products and reduced scrap-related charges.
Nevro's full-year 2023 worldwide revenue was $425.2 million, a 5% increase from $406.4 million in 2022, with U.S. revenue showing a 5% growth. The company's net loss from operations for the full year was $99.3 million, compared to a net income from operations of $6.2 million in 2022, which included significant litigation-related credits.
The company's financial health remains solid with cash, cash equivalents, and short-term investments totaling $322.7 million as of December 31, 2023. Looking forward, Nevro's management remains focused on commercial execution, market penetration, and profit progress to deliver value for stakeholders and achieve profitable, long-term growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.