Nevro Q4 Earnings & Revenues Beat Estimates, Gross Margin Down

Core Insights - Nevro Corp. reported a wider loss per share of 64 cents in Q4 2024 compared to a loss of 15 cents in the same quarter last year, while the Zacks Consensus Estimate was a loss of 79 cents [1] - The company's worldwide revenues for Q4 2024 were $105.5 million, reflecting a decline of 9.1% year over year, but exceeding the Zacks Consensus Estimate by 1.5% [2] - Nevro's gross profit decreased by 19.1% year over year to $65.1 million, resulting in a gross margin of 62.5%, down from 70.1% in the prior year [8] Revenue Details - International revenues were $14.4 million, down 3.8% year over year, while U.S. revenues totaled $91.4 million, down 9.9% year over year [3] - Total U.S. permanent implant procedures declined by 7% year over year, and U.S. trial procedures decreased by 14.2% year over year [3] Product Developments - Nevro launched the full market release of HFX iQ with HFX AdaptivAI, a personalized pain management platform, in the U.S. and select European countries [4] - Key publications highlighted the effectiveness of Nevro's 10 kHz high-frequency SCS therapy in providing significant pain relief and other health benefits [5][6] Acquisition Announcement - Nevro entered into a definitive agreement with Globus Medical for an all-cash acquisition valued at approximately $250 million, or $5.85 per share, expected to close in Q2 2025 [7] Financial Position - At the end of Q4 2024, Nevro had cash and cash equivalents of $292.5 million, an increase from $277 million at the end of Q3 2024, while long-term debt rose to $187.7 million from $184.4 million [12] Guidance and Market Outlook - Nevro has not issued full-year 2025 guidance due to the pending acquisition [13] - Despite challenges in the U.S. SCS market, Nevro is positioned for growth with new product launches and diversification into the SI joint fusion market [15]