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CVRx(CVRX) - 2025 Q1 - Earnings Call Transcript
CVRxCVRx(US:CVRX)2025-05-08 21:30

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $12.3 million, representing a 15% increase compared to Q1 2024 [4][17] - Gross profit was $10.3 million, a 13% increase year-over-year, with a gross margin of 84% [19] - Net loss for Q1 2025 was $13.8 million, or $0.53 per share, compared to a net loss of $22.2 million, or $1.04 per share in Q1 2024 [21] - Cash and cash equivalents as of March 31, 2025, were $102.7 million [21] Business Line Data and Key Metrics Changes - Heart failure revenue in the US totaled $11.1 million for Q1 2025, up from $9.7 million in Q1 2024 [17] - The number of active implanting centers in the US increased to 227 from 223 as of December 31, 2024 [18] - Revenue generated in Europe was $1.1 million for Q1 2025, a 23% increase year-over-year [18] Market Data and Key Metrics Changes - The number of sales territories in the US decreased by three to a total of 45 [18] - Total revenue units in Europe increased to 59 for Q1 2025 from 44 in the prior year [19] Company Strategy and Development Direction - The company is focused on three strategic priorities: building a world-class sales organization, targeting high-potential centers, and addressing barriers to adoption [7][8][9] - A new compensation plan was introduced to align with a program-focused selling approach, generating strong enthusiasm among the sales team [8] - The company is working with CMS to create a level six neurostimulator APC within the outpatient prospective payment system [9][10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term prospects despite Q1 revenue performance, citing low exposure to macroeconomic uncertainties [23][24] - The company expects to see productivity improvement and account stabilization as new sales representatives gain experience [5][16] - Management highlighted the importance of compelling clinical evidence, including an 85% reduction in heart failure hospitalizations, to drive adoption [25] Other Important Information - R&D expenses decreased by 18% to $2.5 million, driven by a reduction in consulting expenses [20] - The company plans to conduct a pragmatic randomized controlled trial to expand its total addressable market [15] Q&A Session Summary Question: How much of the sales force changes were self-inflicted versus natural turnover? - The majority of changes were initiated by the company due to a reevaluation of the sales organization [27][28] Question: What does the 2025 guidance imply regarding new center additions and overall utilization? - The company expects high single to low double-digit new center additions and plans to add around three territories per quarter [31][32] Question: How much of the softness in Q1 was related to seasonality versus sales rep challenges? - The majority of the softness was attributed to disruptions in the sales team rather than seasonality [37][38] Question: What is the current mix of the sales team in terms of tenure? - About 50% of territory managers were hired in the last 15 months, with the other half being more tenured staff [41] Question: Are there specific patient segments where Barostim adoption has shown good signs of penetration? - There is no specific patient segment; the adoption is more dependent on physician behavior and conservatism [60] Question: What are the timelines for the potential randomized controlled trial? - The company hopes to reach an agreement with the FDA in the next month or two and plans to enroll between 1,000 to 2,000 patients across 100 to 150 centers [68][69]