Nevro Revenue Growth Slows in the Third Quarter
Nevro ($NVRO) shares were down 14% in early morning trading as the company reported third quarter earnings, bringing in revenue of $95.6 million versus $82.3 million during the third quarter of 2017, resulting in 16% year-over- year growth. Of Nevro's total revenue, in the quarter, $79.6 million came from the U.S.
The company ended the quarter with a loss of $9.2 million compared to $4.4 million in the third quarter of 2017.
Nevro also confirmed that their 2018 revenue will be at the low end of their projected range of $385 million to $390 million.
In looking deeper at the quarterly numbers, a glaring concern comes from operational expenses as they were $76.5 million compared to $62.4 million last year in the third quarter. Nevro attributed the increase in operational expenses to an increase in headcount as they continue to develop their U.S. sales force.
The problem with the uptick in operational expenses is Nevro has had visible management turnover as they fired their VP of Sales earlier this year and their sales turnover is reportedly over 20%. On top of this, the SCS market has become increasingly competitive as players like Abbott, Medtronic and Boston Scientific are posting strong growth numbers for their SCS business.
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