Nevro Corp. reported financial results for the fourth quarter and full year ended December 31, 2018.
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Revenue for the fourth quarter of 2018 was $107.9 million, a 10% increase compared to $98.0 million during the prior year quarter.
U.S. revenue for the fourth quarter of 2018 was $91.6 million, a 13% increase over $81.1 million in the prior year period.
International revenue was $16.3 million, compared to $16.9 million in the prior year period, which was a 1% increase on a constant currency basis or a 4% decrease on an as-reported basis.
The increase in U.S. revenue was primarily attributable to the continued adoption of the Senza system.
Gross profit for the fourth quarter of 2018 was $76.2 million compared to $69.5 million in the prior year period.
Gross margins were 70.5% in the fourth quarter of 2018 compared to 71.0% in the prior year period.
Operating expenses for the fourth quarter of 2018 were $84.8 million, an 18% increase compared to $71.7 million in the prior year period.
Higher operating expenses were primarily driven by increased headcount and related costs.
Loss from operations for the fourth quarter of 2018 was $8.6 million compared to $2.2 million for the same period of the prior year.
Revenue for the full year 2018 was $387.3 million, a 19% increase, as reported, compared to $326.7 million in 2017.
U.S. revenue was $321.8 million, a 22% increase compared to $263.5 million in the prior year.
International revenue was $65.5 million compared to $63.2 million in 2017, which was a 2% increase on a constant currency basis or a 4% increase on an as-reported basis.
Gross profit for the full year 2018 was $273.3 million, a 20% increase compared to $227.7 million in 2017.
Gross margins were 70.6% for the full year 2018, a 90-basis point increase compared to 69.7% gross margin in 2017.
Operating expenses for the full year 2018 were $315.1 million, a 22% increase compared to $257.3 million in 2017.
Higher operating expenses were primarily driven by increased headcount and related costs especially in the second half of 2018.
Loss from operations for the full year 2018 was $41.7 million, a 41% increase compared to $29.6 million in 2017.
The balance of cash, cash equivalents and short-term investments was $264.5 million as of December 31, 2018 compared to $269.3 million at December 31, 2017. ■