LivaNova(LIVN) - 2024 Q4 - Annual Results

Revenue Performance - Fourth-quarter 2024 revenue was $321.8 million, representing a 3.8% increase on a reported basis and a 6.8% increase on an organic basis compared to the prior-year period[4]. - Full-year 2024 revenue reached $1.25 billion, an 8.7% increase on a reported basis and a 10.7% increase on an organic basis compared to 2023[4]. - LivaNova's net revenue for Q4 2024 was $321.8 million, representing a 3.8% increase compared to $310.1 million in Q4 2023[34]. - For the full year 2024, net revenue reached $1,253.4 million, an 8.7% increase from $1,153.5 million in 2023[43]. - Organic net revenue for the year ended December 31, 2024, was $1,241.8 million, reflecting a 10.1% growth compared to $1,128.4 million in 2023[56]. Earnings and Profitability - Fourth-quarter 2024 U.S. GAAP diluted earnings per share was $1.02, up from $0.30 in the fourth quarter of 2023[10]. - Full-year 2024 adjusted diluted earnings per share was $3.38, compared to $2.80 for the full-year 2023[14]. - The company reported a net income of $55.9 million for Q4 2024, a significant increase from $16.3 million in Q4 2023[38]. - Diluted EPS for 2024 was $1.16, up from $0.30 in 2023, with adjusted diluted EPS reaching $3.38 compared to $0.87[49]. - Adjusted operating income for the year was $239.2 million, compared to $169.3 million in 2023, reflecting a strong operational performance[44]. Operating Performance - Fourth-quarter 2024 operating income was $37.0 million, a significant improvement from an operating loss of $88.0 million in the fourth quarter of 2023[9]. - Operating income for 2024 was $129.1 million, significantly improved from an operating loss of $88.0 million in 2023, with adjusted operating income at $239.2 million[49]. - Gross profit margin improved to 68.2% in Q4 2024, up from 61.3% in Q4 2023[41]. - Gross profit margin increased to 69.5% in 2024 from 66.9% in 2023, while adjusted gross profit margin rose to 70.2% from 69.6%[45]. - Operating income margin increased to 10.3% in 2024 from a loss of 5.9% in 2023, while adjusted operating margin rose to 19.1% from 14.7%[45]. Cash Flow and Financial Position - Full-year 2024 net cash provided by operating activities was $183.0 million, with adjusted free cash flow of $162.9 million[4]. - The company generated $183.0 million in net cash from operating activities in 2024, a significant increase from $74.9 million in 2023[54]. - The total current assets increased to $1,127.2 million as of December 31, 2024, up from $988.2 million in 2023, primarily driven by an increase in cash and cash equivalents from $266.5 million to $428.9 million[52]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $145.7 million in 2024, compared to $62.3 million in 2023[54]. - Adjusted free cash flow for the year ended December 31, 2024, was $162.9 million after accounting for various adjustments[57]. Segment Performance - The cardiopulmonary segment reported a 13.1% increase in revenue for full-year 2024, driven by strong demand for the Essenz Perfusion System[12]. - Cardiopulmonary segment revenue increased by 9.9% year-over-year to $181.7 million, with the Rest of World showing the highest growth at 18.6%[34]. - Neuromodulation segment revenue remained relatively stable, with a slight increase of 0.5% to $137.6 million, while Europe experienced a decline of 14.6%[34]. - The company reported a significant decline in ACS revenue, down 98.7% in Q4 2024 compared to Q4 2023[56]. Future Outlook - The company expects full-year 2025 revenue growth between 5.0% and 6.0% on a constant-currency basis and between 6.0% and 7.0% on an organic basis[16]. - Adjusted diluted earnings per share for 2025 is projected to be in the range of $3.65 to $3.75[17]. - The company plans to continue focusing on R&D investments to drive future growth despite facing challenges in the market[30]. - The company plans to continue focusing on market expansion and new product development to drive future growth[46].