Nevro (NYSE:NVRO) today reported preliminary fourth-quarter revenue numbers were down year-over-year but were better than Wall Street analyst expectations.
The developer of implantable spinal cord stimulation (SCS) tech also said that it remains in ongoing discussions as it continues to explore strategic options to accelerate its growth, diversify its product portfolio and deliver shareholder value.
Investors reacted by sending NVRO shares up more than 18% to $3.90 apiece by midday trading today.
Nevro first announced in August 2024 that it was looking into potential partnerships, mergers or even a sale of the company. “While timing of any decisions remains unclear, our conversations with management suggest they are looking to make a strategic decision as soon as possible,” William Blair analysts Brandon Vazquez and Russell Yuen said in a report.
Redwood City, California–based Nevro reported today that Q4 revenue was down 9–10% year-over-year, to $105–106 million. The consensus among Wall Street analysts had been $100.08 million.
Nevro plans to provide a full Q4 and full-year 2024 report, as well as 2025 guidance, in early March.
“We are pleased that our full-year 2024 worldwide revenue is coming in ahead of our expectations,” Nevro CEO Kevin Thornal said in a news release.
“Also, as we previously communicated, we reallocated investments to our direct-to-consumer (DTC) advertising efforts in the third quarter of 2024, and we continue to see patient interest and response as a result. We anticipate that the benefit from our DTC advertising will ramp throughout 2025, with a more meaningful impact in the second half of the year. Importantly, our balance sheet remains strong, reflecting our continued focus on working capital management and the benefits from our 2024 restructurings.”
Vazquez and Yuen at William Blair kept their Market Perform rating on NVRO shares: “Overall, it’s encouraging to see Nevro continue to deliver on expectations and management guidance. That said, sales are still down high single digits to double digits on a year-over-year basis, calling into question when its top line can durably reaccelerate.”
