Nevro Corp. (NYSE:NVRO) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 04:30 pm ET

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Nevro Corp. (NYSE:NVRO) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Nevro Third Quarter 2019 Earnings Conference Call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I'd now like to turn the call over to Juliet Cunningham, Vice President of Investor Relations for Nevro.

Executive
Juliet Cunningham

Thank you, and good afternoon. Joining me today are Keith Grossman, Chairman and CEO; Andrew Galligan, Chief Financial Officer. Keith will review the Company's progress during the third quarter and Andrew will provide detailed financial results and guidance later in the call.

Earlier today, Nevro released its financial results for the third quarter, which ended September 30, 2019. A copy of our earnings release is available on the Company's Investor Relations website. This call is being broadcast live over the Internet to all interested parties and an archived copy of this webcast will be available on our IR website.

Before we begin, I'd like to remind you that management will make forward-looking statements on this call within the meaning of Federal Securities laws. All forward-looking statements, including discussion of operating trends and expectations of future financial performance, as well as full-year 2019 guidance, are based upon current estimates and various assumptions. These statements involve risks and uncertainty that could cause actual results or events to differ materially. Accordingly, you should not place undue reliance on these statements. In addition, we will refer to adjusted EBITDA, which is a non-GAAP measure. Please refer to the GAAP to non-GAAP reconciliation table included with our earnings release.

Please also review our filings with the Securities and Exchange Commission, including our Quarterly report on Form 10-Q, which we expect to file today for a full description of risks and uncertainties. Nevro disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward-looking statements because of new information, future events or otherwise. This conference call contains time-sensitive information and is accurate only as of today, November 6, 2019.

And with that, I'll turn the call over to Keith.

Executive
D. Keith Grossman

Thanks Juliet, and good afternoon everyone. Today we reported third quarter 2019 revenue of $100.2 million worldwide, reflecting year-over-year growth of 5% and sequential growth of 7%. We were really encouraged by the fact that patient trials and permanent implants in the US, each grew by 18% compared to the prior-year period.

As we've said, looking at the underlying procedural growth, it is particularly important this year, as year-over-year revenue comparisons are complicated by our decision to end certain high-volume ordering patterns in 2019. If we net out the prior-year stocking and current-year destocking impact of this particular decision, real US sales growth would have otherwise been approximately 17%. Our strong quarterly results are largely attributable to the operating initiatives we began at the end of Q1, and while typically these types of initiatives take several quarters to bear fruit, I've been really impressed by the positive response from our team, as well as our customers.

During our last two quarterly calls, I've spoken in