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• Organic Revenue Growth (2024): 11% for the full year.

• Revenue Growth (Q4 2024): 5% overall, 7% organic growth compared to Q4 2023.

• Adjusted Operating Income Growth (2024): 41% increase.

• Adjusted Diluted Earnings Per Share Growth (2024): 21% increase.

• Adjusted Free Cash Flow (2024): $163 million, up 70% from the prior year.

• Cardiopulmonary Segment Revenue (Q4 2024): $182 million, 11% increase from Q4 2023.

• Cardiopulmonary Segment Revenue (2024): $684 million, 14% growth for the full year.

• Epilepsy Revenue Growth (2024): 7% for the full year.

• Adjusted Gross Margin (Q4 2024): 69%, up from 68% in Q4 2023.

• Adjusted R&D Expense (Q4 2024): $40 million, down from $42 million in Q4 2023.

• Adjusted SG&A Expense (Q4 2024): $127 million, up from $120 million in Q4 2023.

• Adjusted Operating Income (Q4 2024): $56 million, up from $48 million in Q4 2023.

• Adjusted Diluted Earnings Per Share (Q4 2024): $0.81, down from $0.87 in Q4 2023.

• Cash Balance (End of 2024): $429 million, up from $267 million at the end of 2023.

• Total Debt (End of 2024): $628 million, up from $587 million at the end of 2023.

• 2025 Revenue Growth Guidance: 5% to 6% constant currency, 6% to 7% organic.

• 2025 Adjusted Diluted EPS Guidance: $3.65 to $3.75.

• 2025 Adjusted Free Cash Flow Guidance: $135 million to $155 million.

• Warning! GuruFocus has detected 3 Warning Signs with LIVN.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• LivaNova PLC (NASDAQ:LIVN) achieved 11% organic revenue growth in 2024, marking the second consecutive year of double-digit organic growth.

• The company expanded operating margins and increased free cash flow, delivering $163 million in adjusted free cash flow for the full year 2024.

• Significant clinical milestones were achieved in obstructive sleep apnea (OSA) and difficult-to-treat depression (DTD), with the OSPREY clinical study meeting its primary efficacy and safety endpoints.

• LivaNova PLC (NASDAQ:LIVN) successfully launched the ProtekDuo Plus in the US and Canada, strengthening its cardiopulmonary solutions.

• The company enhanced its executive leadership team and focused on talent development, with 30% of director-level positions filled by new hires or promotions.

Negative Points

• Epilepsy revenue in Europe and the rest of the world declined by a combined 9% in the fourth quarter of 2024, indicating challenges in international markets.

• The adjusted diluted earnings per share decreased to $0.81 from $0.87 in the fourth quarter of 2023, primarily due to a higher effective tax rate.

• The company faces ongoing litigation with the SNIA case, with potential financial implications not included in the 2025 guidance.

• Foreign exchange had an unfavorable impact on revenue, with a $3 million or 1% negative effect in the fourth quarter.

• The adjusted effective tax rate increased to 20% in the fourth quarter of 2024, compared to negative 3% in the same period of 2023, impacting net earnings.