Nevro Corp. (NYSE:NVRO) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 04:30 pm ET


Nevro Corp. (NYSE:NVRO) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to Nevro's Fourth Quarter and Full Year 2019 Conference Call. [Operator Instructions]

And now I would like to introduce Julia Cunningham, Nevro's Vice President of Investor Relations. Please go ahead, Ms. Cunningham.

Juliet Cunningham

Thank you so much. Good afternoon and thanks for joining us. Our speakers today are Keith Grossman, Chairman, CEO and President; and Andrew Galligan, Chief Financial Officer. Keith will review the company's progress during the fourth quarter and full year 2019, and Andrew will provide detailed financial results and 2020 guidance. Earlier today, Nevro released its financial results for the fourth quarter excuse me, which ended December 31, 2019. A copy of our earnings press 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 Investor Relations website. Also, we have included an earnings slide presentation on our IR web page to summarize our results and 2020 guidance. 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 our discussion of operating trends and expectations of future financial performance as well as 2020 guidance are based upon our current estimates and various assumptions.

The statements involve risks and uncertainties that could cause actual results or events to differ materially. Accordingly, you should not place undue reliance on these statements. In addition, we'll 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 review our filings with the Securities and Exchange Commission, including our Form 10-K, 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 only accurate as of today, February 25, 2020.

And now I'd like to turn the call over to Keith.

D. Keith Grossman

Thanks, Juliet. Good afternoon, and thank you, everyone, for joining us on the call and the webcast today. I'll begin today with our fourth quarter 2019 results. Consistent with our pre-announcement last month. Today, we reported fourth quarter 2019 worldwide revenue of $114.4 million, which reflects year-over-year growth of 6% and sequential growth of 14%. U.S. revenue was $97.9 million, which was a 7% year-over-year increase. Now if we net out the prior year stocking impact, actual U.S. sales growth would have been approximately 19%. The 2018 stocking issue anniversaried at the end of the fourth quarter of 2019 shows this should be the last year-over-year comparable that will include stocking as a factor.

As a reminder, during 2020, we'll be comparing to 2019 numbers that had destocking in much of the years we unwound the 2018 stocking. U.S. patient trials grew 17% and