Financial Performance - LivaNova reported a total revenue of $287.5 million for the quarter, reflecting a 10% increase year-over-year[2]. - The company achieved a gross margin of 65%, up from 62% in the previous year, indicating improved operational efficiency[2]. - LivaNova's Neuromodulation segment generated $150 million in revenue, representing a 15% growth compared to the same quarter last year[2]. - The Cardiopulmonary segment saw a revenue increase of 8%, totaling $137.5 million for the quarter[2]. - Net income for the nine months ended September 30, 2024, was $32,953,000, compared to a loss of $7,318,000 for the same period in 2023, representing a significant turnaround[13]. - Comprehensive income for the nine months ended September 30, 2024, was $59,069,000, compared to a loss of $26,540,000 in the prior year[13]. - Total revenue for the nine months ended September 30, 2024, reached $931.607 million, compared to $843.413 million for the same period in 2023, reflecting an increase of 10.4%[78]. - Operating income for the three months ended September 30, 2024, was $35.618 million, compared to $4.458 million in Q3 2023, indicating a substantial improvement in profitability[80]. - Basic earnings per share for Q3 2024 was $0.61, compared to a loss of $0.14 in Q3 2023, while diluted earnings per share was $0.60 versus a loss of $0.14 in the same period[10][76]. Cash and Assets - Cash and cash equivalents increased to $346,366,000 as of September 30, 2024, from $266,504,000 at the end of 2023, reflecting a growth of 30%[14]. - Total assets rose to $2,521,958,000 as of September 30, 2024, compared to $2,429,563,000 at the end of 2023, indicating an increase of approximately 3.8%[14]. - Total stockholders' equity increased to $1,310,044,000 as of September 30, 2024, from $1,277,628,000 at the end of 2023, showing a growth of 2.5%[15]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $104,331,000, significantly higher than $20,956,000 for the same period in 2023[16]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $666.576 million as of September 30, 2024, compared to $532.722 million at the end of September 2023, marking an increase of approximately 25%[16]. Research and Development - LivaNova plans to invest $50 million in R&D for new product development in the next fiscal year[2]. - Research and development costs increased to $6.2 million as of September 30, 2024, from $2.5 million in the previous year[90]. - The company is focused on enhancing its core Cardiopulmonary and Neuromodulation segments as part of its restructuring plan initiated in early 2024[3]. Restructuring and Strategic Initiatives - The company has initiated a restructuring plan aimed at enhancing focus on its core segments, expected to yield $30 million in annual savings[2]. - LivaNova's restructuring plan aims to enhance focus on its core Cardiopulmonary and Neuromodulation segments by winding down the ACS segment[20]. - The company plans to discontinue operations for certain ACS products by the end of 2024 as part of its restructuring plan[77]. Debt and Financial Obligations - Long-term debt obligations increased to $604,287,000 as of September 30, 2024, from $568,543,000 at the end of 2023, reflecting a rise of 6.3%[14]. - The company issued $345.0 million of 2.50% notes due 2029, with net proceeds of $332.1 million after deducting issuance costs[47][48]. - The effective interest rate for the 2029 Notes is 9.79% as of September 30, 2024[48]. - The company has a revolving credit facility of $225.0 million, maturing on March 8, 2029, available for working capital[45]. Legal and Compliance Matters - The provision for product liability litigation increased to $19.2 million as of September 30, 2024, up from $13.9 million as of December 31, 2023, due to new claims information[58]. - The company is involved in various pending legal actions that may materially affect its financial position, but outcomes are uncertain[63]. - The company has not recognized a liability related to the environmental litigation as any potential loss is not currently probable[57]. Market Expansion and Future Outlook - The company is focusing on expanding its market presence in Europe and Asia, targeting a 20% market share increase by 2025[2]. - LivaNova's recent acquisition of ImThera Medical is projected to contribute an additional $25 million in revenue by 2025[2]. - The company has set a performance guidance of $1.2 billion in total revenue for the upcoming fiscal year, with an expected growth rate of 12%[2]. Cybersecurity Incident - LivaNova incurred direct costs of $10.8 million related to a cybersecurity incident, with $2.5 million and $8.2 million incurred during the three and nine months ended September 30, 2024, respectively[18]. - The company expects to incur additional costs related to the cybersecurity incident in the future, with insurance coverage likely insufficient to cover all expenses[18]. - A settlement related to a cybersecurity incident led to an accrual of $1.2 million during the quarter ended September 30, 2024[62].

Financial Data and Key Metrics Changes - The company reported an 11% revenue increase year-over-year, marking the seventh consecutive quarter of double-digit growth [7][14] - Adjusted diluted earnings per share increased to $0.90 from $0.73 in the prior year [30] - Adjusted operating income rose to $64 million, with an operating income margin of 20%, up from 16% in the previous year [29] Business Segment Data and Key Metrics Changes - Cardiopulmonary segment revenue was $172 million, a 15% increase compared to Q3 2023, driven by over 20% growth in heart-lung machine revenue [15] - Epilepsy segment revenue increased by 9%, with U.S. epilepsy revenue growing 10% year-over-year [17] Market Data and Key Metrics Changes - U.S. revenue grew by 15%, while Europe and the rest of the world saw a 9% increase [8] - The company gained market share in the oxygenator market, increasing from the low 30s to the mid-30s percentage [9] Company Strategy and Development Direction - The company aims to maximize core businesses in epilepsy and cardiopulmonary while exploring growth in difficult-to-treat depression and obstructive sleep apnea [44] - A focus on innovation is evident, with ongoing development in cardiopulmonary and epilepsy pipelines, as well as new products in the oxygenator segment [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining above-market growth, supported by healthy market conditions and successful product launches [10][12] - The company anticipates a slowdown in revenue growth in Q4 due to strong performance comparisons from the previous year [48] Other Important Information - The company is increasing its 2024 full-year guidance, expecting revenue growth between 8.5% and 9.5% on a constant currency basis [33] - Adjusted free cash flow is projected to be between $110 million and $130 million, reflecting a 25% increase at midpoint compared to the prior year [36] Q&A Session Summary Question: Strategy on portfolio management and R&D deployment - Management highlighted a focus on maximizing core businesses and reinvesting in R&D for sustainable innovation [42][44] Question: Assumptions for Q4 revenue growth - The anticipated slowdown is attributed to strong performance in Q4 2023, not a decline in fundamentals [48][49] Question: 2025 growth expectations - Management refrained from providing specific guidance for 2025 but indicated potential for high single-digit growth if all growth levers perform positively [50][52] Question: Oxygenator market outlook - The company noted ongoing supply constraints in the oxygenator market, driven by increased procedure growth and capacity limitations among competitors [55][62] Question: Innovation timelines for new products - Management indicated that many innovation programs are in mid-to-late development stages, with some expected to progress in 2025 [66] Question: Impact of potential reimbursement changes for epilepsy - Management expressed optimism that changes in Medicare reimbursement could lead to increased utilization of VNS therapy for drug-resistant epilepsy [84][86]

| --- | --- | --- | --- | --- | |------------------------------|-------|-------|-------|-------| | | | | | | | Liva Nova Third-Quarter 2024 | | | | | | Earnings Update | | | | | | October 30, 2024 | | | | | Safe Harbor 2 Certain statements in this material, other than statements of historical or current fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. These statements inc ...

LivaNova (LIVN) came out with quarterly earnings of $0.90 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 26.76%. A quarter ago, it was expected that this medical technology company would post earnings of $0.79 per share when it actually produced earnings of $0.93, delivering a surprise of 17.72%. Over the last four quarters, ...

EXHIBIT 99.1 NEWS RELEASE LivaNova Reports Third-Quarter 2024 Results London, October 30, 2024 – LivaNova PLC (Nasdaq: LIVN), a market-leading medical technology company, today reported results for the quarter ended September 30, 2024 and raised full-year 2024 guidance. Financial Summary and Highlights (1) • Third-quarter revenue of $318.1 million increased 11.2% on both a reported and constant-currency basis, as compared to the prior-year period. Excluding the impact of the Advanced Circulatory Support (AC ...

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Shares of LivaNova Plc LIVN Tuesday climbed along with several other big stocks. There is high visibility into the company's near-term baseline growth, with potential upside to revenue and earnings from "new product cycles and pipeline optionality," according to Goldman Sachs. Analyst David Roman initiated coverage of LivaNova with a Buy rating and price target of $65. The LivaNova Thesis: LivaNova's earnings had been under pressure due to strategic shifts in the company's business and pipeline setbacks. Ro ...

Financial Performance - Net revenue increased by 9.6% on a constant-currency basis to $318.6 million[1,4] - Excluding the ACS segment wind down, net revenue increased 10.8% on a constant-currency basis[94,73] - The company is targeting $95 - $115 million of adjusted free cash flow for full-year 2024[11] - LTM adjusted free cash flow was $139.9 million with an LTM adjusted free cash flow conversion ratio of 79%[11] Segment Performance - Cardiopulmonary revenue increased 14.5% to $173.7 million, driven by strong demand for consumables and Essenz sales[80,81] - Neuromodulation revenue increased 7.8% to $142.9 million, with growth across all regions[83,84] - United States Cardiopulmonary revenue increased 29.7% to $64.9 million[77] - United States Neuromodulation revenue increased 7.3% to $111.7 million[77] Guidance - The company is raising full-year guidance for net revenue growth to 7-8% and net revenue growth, excluding ACS, to 9-10%[31] - The company is raising full-year guidance for adjusted diluted EPS to $3.10 - $3.20[31]

LivaNova (LIVN) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 17.72%. A quarter ago, it was expected that this medical technology company would post earnings of $0.45 per share when it actually produced earnings of $0.73, delivering a surprise of 62.22%. Over the last four quarters, ...

EXHIBIT 99.1 London, July 31, 2024 – LivaNova PLC (Nasdaq: LIVN), a market-leading medical technology company, today reported results for the quarter ended June 30, 2024 and raised full-year 2024 revenue and adjusted diluted earnings per share guidance. • Announced the preliminary results for the unipolar patient cohort of the RECOVER clinical study on June 6, 2024. Following additional in-depth analyses of the data, intends to pursue U.S. Centers for Medicare and Medicaid Services coverage for VNS Therapy™ ...