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Nevro NVRO recently announced preliminary revenues for fourth-quarter and full year 2024. Investors seem to panic eyeing the preliminary results, as the company’s shares declined nearly 8% at yesterday’s closing.
The company expects to release fourth-quarter results in early March 2025.
Per the preliminary report, fourth-quarter 2024 worldwide revenues are expected to be in the range of $105 million-$106 million, representing a decrease of 9% to 10% on a reported and constant currency basis compared with the fourth quarter of 2023. NVRO expects fourth-quarter 2024 U.S. revenues to be in the range of $91 million-$92 million, representing a decrease of 9% to 10% compared with the fourth quarter of 2023. The Zacks Consensus Estimate of $100 million lies below the preliminary figure.
Per the preliminary report, full-year 2024 worldwide revenues are expected to be in the range of $408 million-$409 million, representing a year-over-year decrease of approximately 4% on a reported and constant currency basis compared with the full-year 2023. Full-year 2024 U.S. revenues are expected to be in the range of $352.5 million-$353.5 million, or an approximately 4% decrease compared with full-year 2023.The Zacks Consensus Estimate of $403.3 million lies below the preliminary figure.
Per the report, cash, cash equivalents and short-term investments are expected to be approximately $292.5 million as of Dec. 31, 2024, an increase of approximately $15.5 million from Sept. 30, 2024.
Per management, the full-year 2024 worldwide revenues are higher than the guidance provided in November 2024 primarily due to the impact of greater-than-anticipated spinal cord stimulation (SCS) device replacement procedures in the fourth quarter of 2024. The company reallocated investments to its direct-to-consumer (DTC) advertising efforts in the third quarter of 2024, and has continued to witness patient interest and response as a result. NVRO anticipates that the benefit from DTC advertising will ramp throughout 2025, with a more meaningful impact in the second half of the year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
A Brief Q4 Analysis of Nevro
During the fourth quarter, NVRO announced the publication of new data demonstrating that Nevro’s SI Joint Fusion System (Nevro1) offers significant advantages over traditional approaches, improving surgical outcomes. This is likely to strengthen Nevro's position in the market, showcasing innovation in spinal procedures and potentially attracting more healthcare professionals and patients, thus benefiting their business and growth prospects.