REDWOOD CITY, Calif. - Nevro Corp . (NYSE: NYSE:NVRO), a global medical device company specializing in chronic pain treatment with a current market capitalization of $123 million, released preliminary financial results for the fourth quarter and full year of 2024. According to InvestingPro analysis, the company's stock is currently trading near its 52-week low, having declined over 82% in the past year. The company reported a decline in revenue but an increase in cash reserves.
According to the unaudited report, fourth-quarter worldwide revenue is expected to be between $105 million and $106 million, marking a decrease of 9% to 10% from the same period in 2023. U.S. revenue for the quarter is projected to be around $91 million to $92 million, similarly down by 9% to 10%. For the full year, Nevro anticipates worldwide revenue to be approximately $408 million to $409 million, which is a 4% decrease compared to 2023. U.S. revenue for the entire year is expected to be between $352.5 million and $353.5 million.
Despite the revenue decline, the company's cash, cash equivalents, and short-term investments rose by approximately $15.5 million in the fourth quarter, totaling around $292.5 million as of December 31, 2024. InvestingPro data shows that while Nevro maintains strong liquidity with a current ratio of 5.02 and holds more cash than debt, the company is quickly burning through its cash reserves. Nevro attributes the revenue figures exceeding their previous guidance to a higher number of spinal cord stimulation (SCS) device replacement procedures in the last quarter of 2024.
Kevin Thornal, CEO of Nevro, expressed satisfaction with the full-year revenue exceeding expectations and credited the company's direct-to-consumer advertising efforts for generating patient interest. He also highlighted the strong balance sheet and the benefits of the company's restructuring in 2024.
Nevro will provide full-year 2025 guidance and report its final fourth-quarter and full-year 2024 financial results in an earnings call scheduled for early March 2025. With InvestingPro showing 13 additional key insights and a comprehensive Pro Research Report available for this stock, investors can access detailed analysis of Nevro's financial health and future prospects. The company is currently exploring strategic options to accelerate growth and diversify its product portfolio, but it has not provided further details on this process.
The information in this article is based on a press release statement from Nevro Corp.
In other recent news, Nevro Corp has seen several adjustments in its stock targets by various analyst firms. Mizuho (NYSE:MFG) Securities lowered its price target from $8.00 to $6.00 but maintained a Neutral rating. This adjustment follows observations of Nevro's potential in the painful diabetic neuropathy (PDN) market, with the company expected to publish sensory studies related to its PDN system at the American Diabetes Association 2025 event.
Morgan Stanley (NYSE:MS) downgraded Nevro's stock from Equalweight to Underweight and slashed its price target to $4.00. This downgrade was influenced by challenges faced by Nevro, especially within its Spinal Cord Stimulation (SCS) business. Piper Sandler reduced Nevro's price target to $6 while retaining an Underweight rating, expressing concerns about the company's growth prospects.
Nevro's Q3 earnings report showed revenues of $96.9 million and an adjusted EBITDA loss of $1.8 million, surpassing consensus expectations. Despite a decrease in worldwide revenue and U.S. spinal cord stimulation trial procedures, the company reported improvements in its net loss from operations and adjusted EBITDA. Nevro continues to target expansion in the underpenetrated PDN market, leveraging promising clinical study results.
Baird has increased Nevro Corp's price target to $6, maintaining a neutral rating due to potential margin improvements in 2025. Canaccord Genuity reduced Nevro's price target to $7 from $8, maintaining a hold rating, following the company's Q3 earnings report and ongoing market challenges. These are some of the recent developments with Nevro Corp.
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