The real story on Nevro's turnover and layoffs

Listening to the Nevro conference call today was eye opening. Rami never takes responsibility for any of Nevro's shortcomings as he's always blaming someone else. It's never his fault. Is that what happened with the VP that he just fired?

I got the sense that the other analysts on the call have figured this out and are starting to call him on the carpet for his B.S.

When pressed, he wouldn't share how many sales reps were at the company but did acknowledge that the sales turnover is over 20%. One analyst basically said that turnover rate is extremely high. They responded by saying that it is average for the industry.

Rami also said the Nevro job is very hard because the reps have to be in the operating room everyday and those that are leaving don't leave for the competition but rather leave for an easier job outside the industry!!! You can't make this up!

Total nonsense. If true though, it makes Nevro's hiring profile and process for bringing new reps into the company a complete disaster. Is Nevro targeting reps who aren't familiar with these types of jobs? Aren't they hiring reps with previous operating room experience?

I got a lot more questions than answers from the call and I suspect others felt the same way. Where can we get the real story at Nevro? Please share.

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Yep, he doesn't get it.

Does Nevro have a VP of sales yet?

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Sales turnover at Nevro-earlier in the year Rami said it was about 15% I did a double take thinking it was 50% . Today, I thought they said "approaching 20%", whereas I believe its about 50% for the trailing 12 months. Any comments confirming or denying from reps would be appreciated?? What I don't get is why no-one asked about operating losses which greatly exceed analysts models largely due to higher "sales and marketing" expense, despite managements claim they haven't hired enough salespeople. Also, to refuse to divulge a rep count is laughable. I think the problem is twofold: share losses in big accounts (to competition despite their acknowledging competitors it has gotten tougher,) and very little "white space or virgin territory" with accounts of any size.

The 50% number is/was true. In the last 18 months, a region in the west had 50% attrition.

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I'd say that conference call was good for Jim Alecxih because now everyone knows Rami has lost control of the company. He isn't fit to be CEO. He's an amazing engineer and has crazy talent, although being the leader of a public company isn't one of them. He has no sales background and he needs to accept it is one thing he isn't capable of doing. The problem is his ego gets in the way. He thinks he is smarter than the entire sales team. He may be more book smart but that doesn't matter. He doesn't get it though.

Yep, he doesn't get it.

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He DID predict the crypto currency crash though so he's not always wrong.

Haha, when did he do this?

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Even if it was directed at him, Rami is too stubborn to listen.

He DID predict the crypto currency crash though so he's not always wrong.

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Certainly, Mr. White is a CEO in the same market as Nevro, but Rami is categorically better in every way.

He wishes.

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If you are joking, well played.

If you are being serious, well, I am confused, lost and amused. I would be very, very interested in hearing why you think Rami is "categorically better" than White in every way?

it wasn't my comment but a clever comment for sure. It's in reference to a statement Rami made on a prior analyst call.


Medtech[y] | We're in a class of our own

That was a direct quote from Rami.So is this:

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Certainly, Mr. White is a CEO in the same market as Nevro, but Rami is categorically better in every way.

If you are joking, well played.

If you are being serious, well, I am confused, lost and amused. I would be very, very interested in hearing why you think Rami is "categorically better" than White in every way?

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Even if it was directed at him, Rami is too stubborn to listen.

Certainly, Mr. White is a CEO in the same market as Nevro, but Rami is categorically better in every way.

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below is a transcript of Abbott CEO on an earnings call and summarization of his response. Seems like someone is getting called out:

Abbott CEO gives a great lesson in accountability

Posted on July 19, 2018Share This Article:


During Abbott's most recent earnings call, an analyst asked a question about Abbott's neuromod performance and Abbott CEO, Miles White, gave an absolutely brilliant lesson in accountability.

From Seeking Alpha:

David Lewis

All right. Thanks Miles. Very clear. And just another quick focus from me was the neuromod, a focus for the quarter. You are kind of anniversarying some fairly explosive growth in that business. But can you just discuss the relative change in neuromod growth this quarter, the drivers of it? What are you doing to address it? And do you believe this portfolio can get back to market growth? Thanks so much.

Miles White

Yes. Good question. You have got a couple of things going on here, one of which you observed. Explosive growth last year, which is actually interestingly a part of the problem. I think this was a bit of a self-inflicted wound. This is a business where the business is very dependent on the involvement of the representative, the sales representative, et cetera, not only with the physician but also with the patients. And we did not expand our sales force in concert with the rate of explosive growth we experienced. And when we finally did expand our sales force recently, it turned out to pretty disruptive to do that in the way we did it.

And I would say, the issue we created for ourselves was disruption in our own sales here with additions of new salespeople and new service people in the field and so forth. You re-cut territories. You have a lot of training and so forth. So I think we have added to our comp issue here. So do I think it gets back to market growth? Yes, absolutely. I think this is a temporary condition created by us. It will fixed by us.And we will figure out how to successively expand our sales force in concert with our growth in, let's just call it, a smoother fashion in the future. We did this to ourselves.

Thoughts

We've listened to our fair share of earnings calls in the neuromod space, and compared to the others, this was a a refreshing take. There are a number of CEO's that never take accountability, blaming sales management or someone besides themselves.Questions from analysts are brushed off and not answered thoughtfully, or at all.

For this, Miles White deserves a lot of credit. He answered the question honestly, without throwing anyone under the bus and held himself accountable for the neuromod's performance.

Here's to hoping other CEO's in the space listened to the call and took some leadership notes from Mr. White.

Abbott CEO gives a great lesson in accountability

Even if it was directed at him, Rami is too stubborn to listen.

post

below is a transcript of Abbott CEO on an earnings call and summarization of his response. Seems like someone is getting called out:

Abbott CEO gives a great lesson in accountability

Posted on July 19, 2018Share This Article:


During Abbott's most recent earnings call, an analyst asked a question about Abbott's neuromod performance and Abbott CEO, Miles White, gave an absolutely brilliant lesson in accountability.

From Seeking Alpha:

David Lewis

All right. Thanks Miles. Very clear. And just another quick focus from me was the neuromod, a focus for the quarter. You are kind of anniversarying some fairly explosive growth in that business. But can you just discuss the relative change in neuromod growth this quarter, the drivers of it? What are you doing to address it? And do you believe this portfolio can get back to market growth? Thanks so much.

Miles White

Yes. Good question. You have got a couple of things going on here, one of which you observed. Explosive growth last year, which is actually interestingly a part of the problem. I think this was a bit of a self-inflicted wound. This is a business where the business is very dependent on the involvement of the representative, the sales representative, et cetera, not only with the physician but also with the patients. And we did not expand our sales force in concert with the rate of explosive growth we experienced. And when we finally did expand our sales force recently, it turned out to pretty disruptive to do that in the way we did it.

And I would say, the issue we created for ourselves was disruption in our own sales here with additions of new salespeople and new service people in the field and so forth. You re-cut territories. You have a lot of training and so forth. So I think we have added to our comp issue here. So do I think it gets back to market growth? Yes, absolutely. I think this is a temporary condition created by us. It will fixed by us.And we will figure out how to successively expand our sales force in concert with our growth in, let's just call it, a smoother fashion in the future. We did this to ourselves.

Thoughts

We've listened to our fair share of earnings calls in the neuromod space, and compared to the others, this was a a refreshing take. There are a number of CEO's that never take accountability, blaming sales management or someone besides themselves.Questions from analysts are brushed off and not answered thoughtfully, or at all.

For this, Miles White deserves a lot of credit. He answered the question honestly, without throwing anyone under the bus and held himself accountable for the neuromod's performance.

Here's to hoping other CEO's in the space listened to the call and took some leadership notes from Mr. White.

Abbott CEO gives a great lesson in accountability

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my favorite question was from an analyst that asked directly if Nevro needs a management change. Haha. The balls on that chick that asked!

Ask any Nuvectra employee what its like to have a CEO who is all sales and knows nothing of operations and engineering.

You will have a product that is not approved for the therapy you are banking on in Europe, peripherals that are horribly unreliable and supply chain issues because you didn't staff for and keep up with engineering tasks that every single competent device/tech company in history realizes you have to stay on top of.

I'm not sure what the story is with Nevro but it sounds like a dream to have a CEO that understand Engineering which is the heart of the company. Sure sales may be the lungs but you can last longer holding your breath than you can your heart stopping.

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Sales turnover at Nevro-earlier in the year Rami said it was about 15% I did a double take thinking it was 50% . Today, I thought they said "approaching 20%", whereas I believe its about 50% for the trailing 12 months. Any comments confirming or denying from reps would be appreciated?? What I don't get is why no-one asked about operating losses which greatly exceed analysts models largely due to higher "sales and marketing" expense, despite managements claim they haven't hired enough salespeople. Also, to refuse to divulge a rep count is laughable. I think the problem is twofold: share losses in big accounts (to competition despite their acknowledging competitors it has gotten tougher,) and very little "white space or virgin territory" with accounts of any size.

I'd say that conference call was good for Jim Alecxih because now everyone knows Rami has lost control of the company. He isn't fit to be CEO. He's an amazing engineer and has crazy talent, although being the leader of a public company isn't one of them. He has no sales background and he needs to accept it is one thing he isn't capable of doing. The problem is his ego gets in the way. He thinks he is smarter than the entire sales team. He may be more book smart but that doesn't matter. He doesn't get it though.

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Good for her. It's clear to me that the company will not improve until there is a new CEO, not just a new VP or RSD's.

Sales turnover at Nevro-earlier in the year Rami said it was about 15% I did a double take thinking it was 50% . Today, I thought they said "approaching 20%", whereas I believe its about 50% for the trailing 12 months. Any comments confirming or denying from reps would be appreciated?? What I don't get is why no-one asked about operating losses which greatly exceed analysts models largely due to higher "sales and marketing" expense, despite managements claim they haven't hired enough salespeople. Also, to refuse to divulge a rep count is laughable. I think the problem is twofold: share losses in big accounts (to competition despite their acknowledging competitors it has gotten tougher,) and very little "white space or virgin territory" with accounts of any size.

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