CVRx(US:CVRX)2024-08-02 20:05Revenue Performance - Revenue for the three months ended June 30, 2024, was $11.8 million, an increase of $2.3 million, or 24%, compared to the same period in 2023[87]. - U.S. sales accounted for $10.7 million, representing a 29% increase from $8.3 million in the prior year[88]. - Total revenue for the six months ended June 30, 2024, was $22.6 million, an increase of $5.1 million, or 29%, compared to the same period in 2023[95]. - Revenue in the U.S. for the six months ended June 30, 2024, was $20.5 million, an increase of $5.3 million, or 35%, over the same period in 2023[96]. - Total revenue units in the U.S. increased to 339 for the three months ended June 30, 2024, up from 265 in the prior year[89]. Gross Profit and Margin - Gross margin remained stable at 84% for both periods, with gross profit increasing to $9.9 million from $8.0 million[87]. - Gross profit for the three months ended June 30, 2024, was $9.9 million, an increase of $1.9 million, or 24%, over the same period in 2023, with a gross margin of 84%[90]. Operating Expenses - Total operating expenses increased by 21% to $23.9 million, driven by a 28% rise in selling, general, and administrative expenses[87]. - SG&A expenses increased by $4.7 million, or 28%, to $21.1 million for the three months ended June 30, 2024, primarily due to increased compensation expenses[91]. - Research and development expenses decreased by 16% to $2.8 million, reflecting ongoing optimization efforts[87]. - R&D expenses decreased by $0.5 million, or 16%, to $2.8 million for the three months ended June 30, 2024, compared to the same period in 2023[91]. Net Loss - The company expects to continue incurring net losses, with a net loss of $14.0 million for the three months ended June 30, 2024, compared to $11.7 million in the same period last year[87]. - Net loss for the six months ended June 30, 2024, was $36.2 million, compared to a net loss of $23.0 million for the same period in 2023[99]. Cash and Financing Activities - As of June 30, 2024, the company had $70.4 million in cash and cash equivalents, down from $90.6 million as of December 31, 2023[99]. - Net cash used in operating activities for the six months ended June 30, 2024 was $20.7 million, primarily due to a net loss of $36.2 million, offset by a non-cash charge of $13.7 million related to stock-based compensation[103]. - Cash used in investing activities was $1.3 million for the six months ended June 30, 2024, compared to $0.4 million for the same period in 2023, indicating increased investment in property and equipment[104]. - Net cash provided by financing activities for the six months ended June 30, 2024 was $1.8 million, consisting of $0.9 million from stock options, $0.5 million from the ATM offering, and $0.4 million from the ESPP[104]. - The company reported a net change in cash and cash equivalents of $(20.2) million for the six months ended June 30, 2024, compared to $(15.4) million for the same period in 2023[102]. - The company believes existing cash resources and a Loan Agreement will be sufficient for operating liquidity and capital expenditures for at least the next three years[101]. Strategic Initiatives - The company plans to expand its U.S. sales force and increase awareness of Barostim among physicians and patients to drive future revenue growth[67]. - The reimbursement strategy includes broadening current coverage and building an in-house market access team to secure prior authorization approvals[69]. - The company has hired new leaders across various departments to enhance its operational capabilities and support growth initiatives[75]. Other Financial Information - Interest expense increased by $0.5 million for the three months ended June 30, 2024, driven by borrowings under a Loan Agreement[92]. - The company entered into an Equity Distribution Agreement with Piper Sandler for an ATM offering with an aggregate price of up to $50.0 million, issuing 23,364 shares for gross proceeds of $0.6 million during the six months ended June 30, 2024, leaving approximately $49.4 million capacity remaining[101]. - There have been no material changes to the company's contractual obligations as of June 30, 2024, compared to the previous year[106]. - The company has not engaged in foreign currency hedging transactions, and foreign currency transaction gains and losses have not been material to its financial statements[111]. - The company has elected to use an extended transition period under the JOBS Act for compliance with new accounting standards, which may affect comparability with other public companies[108]. - The company is not currently a party to any material legal proceedings[116].