NVRO - Earnings call transcript Q4 2017

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Operator

Good afternoon. My name is Cheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Nevro Fourth Quarter and Full Year 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank Director Nevro, Senior Development Investor and Katherine may of begin from you your Relations Bock, Corporate conference.

Katherine Bock

Thank you, today's in for all Cheryl, and call. thank you participating

annual the February whether to to because by XX, today, is that, required which actual events file you Chief of Securities Galligan, profitability contains place Joining make release and Officer; results forward-looking Please financial or on is Rami. for meaning law, to of only not Accordingly, and estimates the current or the or the should management forward-looking trends of these call you uncertainties discussion company's update on XX, information, securities over for turn with year risks risks of federal on This assumptions. full including with reliance these XX-K, the to uncertainties. today, And are President XXXX. and various Rami statements, involve the and new a me financial Web and available live undue accurate and will obligation, quarter revise like material to and including operating projections future ended are performance, that our Nevro or released cause forward-looking Commission, including statements our based statements, on and statements information Financial to Chief as Exchange I'll any and filings that Form site. within intention guidance time-sensitive except conference upon financial press of year Andrew the with see future Officer. A the Earlier XXXX. laws. results and Elghandour, of expectations we materially call remind Executive the XXXX disclaims call otherwise. expect All our differ. could I'd of any December or broadcast These description full as our expectations report today copy our our statements. regard Nevro events

Rami Elghandour

Katie, everyone dialing you, and in. Thank for thanks

driven for on We are year an an by the revenue our representing revenue represented XX% as with our today’s of For performance. call, on results was revenue a XXXX with prior international constant quarter increase of full million, follow year conclude as of Worldwide revenue your XX%. financials reported currency Then with and team. basis. an questions. adoption same by progress. XX%. represented call quarter globally XXXX. increase we’ll details as XX% our for XX.X constant U.S., full consistent and revenue fourth deeper demand the the XXX.X of will a fourth for an of the year. the XXXX open U.S. of quarter and basis. review increase Andrew review million delivered for quarter well continued XX% increase up compared guidance million, Then an increase and an as sales In expectations XX for increase HFXX These was of XX.X a year commercial to of I’ll the International million, million reported. for revenue million, XX.X on our XXXX quarter XX% of and I’ll period start of Fourth currency revenue a fiscal execution provide of of the was XXX.X fourth for

XXX outcomes the sustainable XXX a organization across foundation globally, at organization nearly patients. for from go-to-market strategy success over to lives can Looking us we to back and growth. and team to building Nevro success performed on product continue the In XXXX, are XX,XXX To-date, coupled around superior while march our standard, XXXX, patient the and our market allowed with our Underpinning passion our I leveraged achieving around We of purpose, our unique teamwork. touch towards people the has maintaining sense our members our differentiated culture. say we scaled delivering leadership. of progress centered

regulatory lead, and Senza surgical three Our secured CE key Full approvals; team I MRI our and Senza Mark. R&D Surpass Mark CE Body II

as made fast-growing of on HFXX SENZA-RCT attractive impact journal post choice publication. market XXXX our brought in from a on the growth seen in clinical initiated many Our HFXX accolades, the HFXX, the SCS. the we sales expect areas. of further and confident of patients Coupling that delivers most our platform Surgeons the HFXX in billion based with the applicability the differentiate half period. a advance in journal’s to has to the market remains organization continued an that Nevro benefits business markets investigators tremendous of in ability success. team the SCS Dr. a to and We study outstanding SENZA-RCT us with which U.S. remain We one That and our exciting Kapural XXXX of technology of physicians delivering for robust and medical in approximately history Year XXXX Paper market and therapy have product We’ve and our market. from of result in for Neurological about which leadership most RCTs for Pain the billion are $XXX long-term in HFXX time our guidance. therapy for in outstanding two on Commercially is the recognition this the to two-thirds as unique Top just official of two based neuromodulation X over best-in-class of contributing a most attain years of the of we million has XXXX X.X and in Congress growth as research a promise categorize the launch, Neurosurgery, demonstrating with best-in-class the establishing potential receiving the XX-month pain the field. garnered XXXX notably honor to number new our

experience to talent, including retain our with top team. attract product organizations allowed addition and uniqueness Jim our welcome he in Our commercial unique clear. a and of ahead of remains Sales. commercial opportunity VP scale The road of is to recent our Alecxih the as addition and success differentiated joins and Jim a our have us selling us Global

to patients deliver built investing the research. and superior are We’re future our outcomes in to through meaningful

X Our our presented built It by strategy was the remain range also presented competitive success scale is market. of via in data product combining a demonstrating group evident our These we’ve in category a work. data last to neuromodulation. broad differentiated clinicians committed across in our meeting where commitment continued initiatives. of while our future neuromodulation coupled execution long-term during strategy to indications. to of The expansion groundwork our is global attain sustainable evident for laying market we We Nevro in the leveraging commitment commercial leadership the growth with the brand Level growth clinical forward-looking by unique were to of business positive advancing simultaneously

worldwide million are guidance of $XXX We $XXX year million. reiterating to full

this we these hires productivity metric X.X levels. million remains quarter, the of and historical XX expect rep to million XX to our As consistent to months ramp new an to after continue to with of X.X average of

the revenue investor and relevant to and as forward, and our accurate per to communities. rep less becoming commercial the way analyst matured a has the reflect of Going less the scaled, metric is progression business business

with call. for providing from be underlying our the and will the As productivity this way our numbers shift reps rep and we To hire type is clear, we hiring cadence changing. of such, of hiring hire starting process not

longer these metrics. no reporting on simply We’re

and to with on will intend opportunity ahead on our our size of from us, are in continuing pursuit market market. guidance of view in more the the later hire line of our market others the we disclosures Given our color the market coupled the we scale, on overall call. the in believe and goal meaningfully leadership. Andrew provide At appropriate with in

XXXX in foundation We’re is excited ahead, continued we look there for about a and as our success. opportunity

committed our to HFXX things XX's every to A She's life spent from raising oncology positive and over VA. Jane Because also our her therapy, talent work her agency. and back pain going upper lives can and clinically a Jane's have all great all After ensuring to XX-year-old campaign. neck awareness the the extremity had retired swimming, And now, We’re is HFXX spends spent lift she as her zero of I home we a as we in the report the receiving entirely their impact recent now pain. hours amputees. example I our the to in impact up, my years upper for a since Jane, tech. of access a can life with playing back of “Before on Navy campaign time is sales communities. beach time is and Essential to corpsman to medications. to I head outstanding with HFXX, patients. grandchildren, Of work enabling are we exceptional her minimal, need and a the making And afghans who with suffered limb on towards families She has patient a to.” story certified therapy, superior example part has XX for in care thrilled says, off Nevro. relief HFXX, patient XX has her have fun, pain enjoy later health real nurse was is radiology of Vietnam HFXX to a pain. week is up to sharing early organization and committed them the attracted a she the to see diagnosed Matters of also was from both Jane want patients can This pain HFXX continue unable War of to impact as taking on scaling and through Jane our

rate MRI XX% U.S. expanding in HFXX That comparability Our supports world led to the real product the on their success patient perspective, and satisfaction in to RCT. to-date. range Body care outcomes collect the the to has forward commitment X,XXX looking with applicability nearly of Full plus a are with us patients data our focus United From SENZA the on our to data we rates consistent States.

we better platforms goal working of to serve on customers. and advancing the Additionally, SCS are patients next-generation our with

in the scale, and women on a amazing two recently initiated focus to with a and may leverage One area half also is for those on RCPs clinical have also support position progress for missions achievement us brand new in to partnered fronts. organizations to leadership we their to in make read whose positive pursuit of our of our to continued clinical sponsor rates are scientific juncture, be that we difference world. Recently, the a future. support in to make proud work accomplished are events. Diversity the At people inclusion incredibly XXXX. discuss two fields. of a pending success in across On reality enrollment we businesses back and proud at central of a Nevro we’re that neuromodulation and what focuses endeavor in other on everyone I’m I’m our medical is organizations to three best team they we closing, to exceptional truly and and and as our people, In equally that do excited culture technology about a innovation that our At comprised every once and core, of XXXX in generation what day. do a a allowing to Nevro front,

for continue We turn make Galligan, like through lasting to transform lives with financials of over that we Andrew? lead I’d And to more guidance. difference. our CFO, and and will know and Andrew And positive our and a the to work are review to capitalizing our call on I growing detailed large opportunities a and that, a together market. change

Andrew Galligan

up fourth for reported you, XX.X a on Rami. was million, XX, ended months represents up of quarter basis. This from from prior rate during same million the a increase currency the U.S. the million, the was was the XXXX XX% of million XX.X revenue during Thank XX.X revenue period year. Revenue million an growth constant the December in same XX.X year-over-year XX% of International three XX%. of to period XX% prior XX.X year.

international our and for markets the capitation our in share rate. such moderation result some we’ve time constraints stated, As in as we previously international growth a increasing would of expected

throughout fourth expenses loss to The X.X XX.X the from or gross of litigations related was million operations quarter. XX% Gross EBITDA, operating or million prior fourth was legal our was we the QX expenses of for associated by expense of The of costs, the XX.X% We as same increased well was margin million the personnel property margin as driven those XXXX with litigation. period true period On that excluding in X.X XXXX. quarter million XXXX. primarily XX.X gross XXXX call, the have profit Operating we and intellectual as expenses XX.X compared in connection in XXXX. seen of million, positive headcount increase this quarter Boston the fourth X.X for year. with mentioned compared XX.X% for holds the for compared for increase Net an quarter to Legal Scientific third the quarter litigation quarter expense. million achieved fourth XXXX. to our the of for same were

Now XXX.X XX% which reported. Scientific represents excluding Boston currency growth Operating XX% prior legal was revenue full litigation, million cash, of turning from up of end short-term fourth rate the XXXX. from million, quarter year. for XXXX. and represents were to was XXXX, XX.X the as the cash XX%. XX.X in a Revenue Gross we of up compared million XX.X% XXX.X in represents was million comparable an in million, of XX% XXX.X to with of At U.S. number International the XXXX increase XXXX. million which the year. XX.X% prior connection the investments. constant million expenses revenue XXX.X XXX.X This in was the XXXX expense had year equivalents XX% margins from million, for XXX.X growth for in or

for We’re the quarter you again flow the if litigation. incurred of part cost the exclude positive cash as Boston

Turning XXXX. guidance our to for

reiterating to be XXX XXX of to for in range XXXX We are the million. million worldwide revenue

With SCS As we XXX to for current share. to in should a the mid million to and single expect United high in of to teens the guide background, States believe the take continue XXX we low to million, digits XXXX. mid internationally market grow our

by to In addition, expect SCS we having used their quarter, by part similar our patients U.S. the fourth in the earlier to impacted seasonality. seasonally are be peers, driven the In deductibles year. revenues higher in in

into quarter. typically As sequentially first fourth then in experiences second a SCS preceding market market from growth quarter. down quarter result, the the is the the SCS The sequential

to in for for XX% to range. expenses to For litigation to XXX XXXX, expense. With excluding million margins our be to million gross margins approximately expect of XXXX, we total expect year, a regard we XX% the in operating see XXX the

of revenue We continue to percent experienced expect have decline hired our to hire continue revenue Accordingly, reps to as trials of additionally ahead clinical expansion HFXX. and support in of investing and sales ramp in will and a in of R&D We we development our activities. our not plan do XXXX.

continued business and breakeven upcoming related success of our revenues and full increase, year, result profit as As our long-term a expect expense. our litigation investment in be we gross the of to the around EBITDA excluding for

Rami. you, to back Now

Rami Elghandour

Thanks, Andrew.

for Cheryl, So that for call questions. our remarks please will conclude prepared if would the up you today. open

Operator

Instructions]. [Operator

comes Our of the Weinstein ahead. question line Please of JPMorgan. from first Mike go

is open. line Your

Michael Weinstein

thank taking and for Good afternoon, guys, questions. you the

the the Fourth And third guys Can growing market last question highlighting expecting XXXX? us then market. typical think the kind your market. Let with XX% different By XX. what of just, you the the quarter market our XQ math, not for – for of of you don’t U.S. about over obviously I’m anybody’s And quarter was XXXX. guys. part not any backdrop how in surprised seasonality, tell And than also just the I XQ but for seen me talking put the the look seasonality, up for you end together every few except the thoughts with to over to you the SCS Andrew, years? just the specifically you but are that strong was start by XXXX you’ve very north quarter you second

Rami Elghandour

the for Thanks Mike. questions. Hi,

the we’re grow and at think we drive of and the in in to year said I And our take as what historically. the we’ve market. contribute historical the view our might market look believe view described our in Andrew I comments, seasonality, growth players of reasons be past, our they the certainly kind you we generally the a market further is broader any let of on but comment as trends at And there confident have we think to in can again Andrew in of at ability and the for very going the our terms certainly seasonal look a guidance, So But continue in And market Andrew in I’ll obviously this to year. scales, looking of business plus million to that formulates seasonality. kind we’re we’re $XXX and on as experience comment the to that ask the business further. and on trend. sort given outlook of Based I’ll terms market, able

Andrew Galligan

seasonal are understand expect general make in to in we’re than procedure to average large people we sure an different fact terribly be the and the tends we’re that QXs, compared from trying enhanced because electric more that seasonality market just not med it and market I’m other we little that in a that sure Yes, in this tech. has anything element a but the QX to

sure making that emphasize the know you’re good aware industry fully we it’s analysts not everybody participants that for of on to probably that just just call, I we’re our that other So – it’s but as what clear I very sees. that’s think

Michael Weinstein

Andrew, street concur estimates And that first you seasonality? the current reflect quarter for fairly would that Understood. accurately

Andrew Galligan

not want guidance really We’re to gets we to actually that giving way to quarterly do. – to don’t which close going

Michael Weinstein

I had try. to

know had to. You I

Rami Elghandour

say, Mike. nice I try, a going was to

Michael Weinstein

weeds ability your about completely got sales if the the of and reps the point. coming we think – could bit commentary about a to biggest being probably picture this force? talked up kind grow factor I you your ended at and how too reps you much and to up dictating the about and about anything, kind it two productivity being growing more curve discussion understand bigger And the misleading the talk last on just all But then into And of people. years the rep you’ve

here? growing thinking just over you in not about are from And the the of couple force how years. Thanks. sales 'XX next philosophically but So

Rami Elghandour

call lead market. Mike. market. transform achieving of Thanks, to said We this I on market simultaneously opportunity a Sure. certainly also Look, and this confidence have every growing as ahead we of the us leadership massive and have

couple the no Nevro and team to meaningful from position. to see sales we’ve over leadership reason share is investing last of and deviate that taking organization continue members we done the exceptional So attracting which achieving what and years

that ramp onboard And – bring prepared deviation we we’ve I what talk your said particularly my exceptional but we which the I forward. think as have at, scale see to reflect to and said this as them from approach no it we’re that just in you levels in helpful identify comment our that them the doesn’t wasn’t in underlying expect. So change remarks, at done historically continue business see is or going to we talent, about of that up execution any

Michael Weinstein

Understood. some Thank jump guys. you, others I’ll in. let

Rami Elghandour

Mike. Thanks,

Operator

next David Lewis Your from Morgan Please Stanley. line ahead. the of comes of question go

line Your is open.

David Lewis

competitive and afternoon. follow 'XX? have start you to structure I continue manage can than are 'XX on attrition, to Rami, higher to Jim? And ups. related to want just you you and any the couple share, the Good just your relative that, Can generally changes maybe I side sales view kind talk material on about the to of early gain. a commercial see environment leadership, appreciate any off the you market Nevro you how in for new quick share organizational observations with expecting other obviously

Rami Elghandour

Sure.

questions, the David. for thanks So

seven eight look, or would competition, thing here. think I haven’t for the the years last of always we say had We’ve competition. first terms a been In is, monopoly I

reasonable in have that I in the what seeing message. over marketing than what do and different a for seeing large several seen competition years. competitors. every They isn’t And 'XX think we’ve us last year 'XX their what is been we have take interest my sort on tweaking we’re of and job we

kind Mike maybe looking to seem who us the look refreshed perhaps people pretty closer it closely think normal of comment I of similar different. saw But may as messaging. made, and weren’t when just or people new they before, to kind to that marketing maybe was something that’s

to of performance certainly initiatives and our I think the material we for impact been and it’s three over the been lot would heading certainly years. a that we growth. plus that in clear on launches and from that in our our they’ve from don’t have years see hasn’t that many competitors our around had product of think instances guidance, several reflected 'XX 'XX. And change on in anything our saw again execute last been into ability And I lot a that a 'XX

team. couple And As Jim, we a analysts, quarter investors last as in I business. far performance and welcome had are think to to our fourth where as the I he’s I said reflects opportunities said, absolutely as we’ve of addition the talk as a to

continuing We grow. have a to healthy business. It’s

level product help not to reach platform certainly us our for think excited on is to the him and our next to continue to potential the have I go very Jim going really board. and existing we’re full just

David Lewis

some high, because for already is has just sort around very Boston? and Can update Andrew something happened? this Legal expense much. discovery Okay, quick Is on of timelines process us expenses. update reasonable probably Andrew guidance, clear. expenses with maybe were you on the or XX And a of million for – year that a 'XX. so this legal excluding for legal the Thanks but 'XX some operating of Rami, just estimate the

Andrew Galligan

that – the in in don’t October is think some I changed trial quite and fall think that’s and hasn’t so The I time.

Rami Elghandour

as to we’re it – to report is this not done, so I takes on we’re have that, relative us think OpEx. spend Obviously Having litigation we and what understand to will we’re spend going to an actual can the that expenses. planning actual continue to Yes, important that forecast and said win. not we folks out for

David Lewis

Okay. so Thanks much.

Operator

Please go America. question comes Bank Hopkins the of ahead. Your line Bob of next from of

is open. line Your

Bob Hopkins

I noise. for question. the airport. for Thanks I’m very an background in taking the apologize much

again. sequentially. Andrew, guidance more differently. X% historical know quarter first a roughly bit me That’s little down So but be the phrase brief. seasonality. I’ll it on I let has don’t just just than Consensus I’ll you try you

going would be QX exacerbated abnormally in why in of be, year? Is would the is on would my be there anything So that high any marketplace? there there unique this seasonality sort reason question

Andrew Galligan

we’ve there’s I As that said earlier, unique nothing said.

you last at actually of market years, the between seasonality there’s permutation number think look I a quite large various declines. if over the

it’s to to something it’s of. be just But does on a aware precise put your actually everybody number hard So finger there. need

Bob Hopkins

Okay. little more other competition. to a on bit just push is And then the to ask question wanted I

think lot big of pretty double-digit arms I big is trying the term a the people the growth one particular reasons reported question asking long Medtronic are in quarter our competition. I’m business around a get to United this good believers the in that of And obviously and turnaround in States. their with

Rami And more was can market give you’re trialing. so Obviously Intellis? were launch seeing the common just specifically little maybe a The some strong. there you on what of from

So maybe turnaround sequential color big was more such since from there front them? that just on a little a

Rami Elghandour

about I you don’t historically know we think competition. look, talk Yes, guys generally

and I for for questions quarter them. U.S. a only a was thing are is also record The think these in us great us record for quarter internationally. Bob, incidentally I’ll that say, that

but not a quarterly that message execute, us. market we’re or are frequency or our a that a like relevant better So of another on to to to we gainer I the think to my continue market these Frankly product we have largely occupy from way. same that for still class is point happen and leadership. will players share extent Certainly And in-sample going the as stands. view feel every categorically product The in in own. continue our marketing things and to we our of basis we’re launches be achieve this

Bob Hopkins

Perfect.

take. your get Thanks. to wanted Just

Operator

ahead. Your of of Antalffy question the comes go from next Danielle Please Leerink Partners. line

line is open. Your

Danielle Antalffy

Hi. just the year. or this, wants whoever the take guys. Good much taking guidance so Andrew annual for question. Rami, afternoon, you on Thank to the for

last expect that over to last eight market continues continue so. and have I’d pace you’re a say if imagine been gains. the I So in what XXX market pointed to higher the of assume we actually share a easy to get guys It’s that’s Even market, XXX. Mike done those some gain share. gain modeling to to the in clear Andrew, slowdown is share trying quarters the number you with to were years XX% accelerate very just you to Nevro for This majority or you than much as growing, few out, on

you’re and am any on much in what that don’t bullish growth if accelerating share you you would Can color being provide drive I in too moderation a So are I on U.S. more little or a into what of factoring guidance guidance, know could there? you bit that, more color how gains? that market assuming give

Andrew Galligan

our I the think first is guidance. our say, I’ll Danielle, thing is guidance

there’s So providing sort get again But in to don’t think we there. want obviously guidance assumptions this I baked of into our parallel to guidance.

Our numbers are our number.

we you not parallel get a think think to in else is can lot growth want obviously calculate implied what rate kind there’s I the I that. And really of into that style.

Danielle Antalffy

I don’t would moderate it where to is know Is there the --? meaningfully any reason to today market from that believe

Andrew Galligan

certainly guidance I is than saw our as you more in 'XX. moderate market on the think highlighted Yes,

sort in of that’s some at the that we that to part rate and of that that part assume can other of we growth that at, the it I rate part maintain commentary. of I it But scale the around certainly think think saw the that the we’re of question a three growth a is have kind large scale a on. med 'XX? We which hope be can the particularly we growth tech companies from we’ve the do able again to we’re of sort factor So is best certainly they our at assumption in and well both factors being know. the point of based in. as on a time of our We of in lot market the market delivered It’s as this that at to group perspective, peer don’t rates our I to consistently exceed continue think that. read achieve

Danielle Antalffy

that. that’s Thank to mean on you that. too Don’t Okay, fair. I appreciate hard you. push

that’s markets upcoming I’m which the a be, high at about Just about – guys are And at type drive the predominant we are that you’re since back correctly. that about give today? color we models on it potential Are it growing entered to of be of or the going look very then appreciate last updates indications these market these as not how the similar indications, markets area was but more for make inflection how thinking a like big our we you pain – lot a want the could to really the as that could market. should just the level, these thinking incremental really those Is felt it on view? been type sure your of think in today potential incremental

Rami Elghandour

in the I we’ve past. a this Look, talked think about There’s range.

incremental, talked we The being view development opportunity I reimbursement about a market indications potentially potentially opportunities. we as also as think some ones these view market requires work. level some larger others larger having for as of we’ve size of that

non-surgical indication an to As make is a pain example, and an large in we refractory we talked not generate generally that change. need we’ve like payers feel about degree covered that to commercial as by the back evidence

could moderate. So example out an of on scope while turn that that’s opportunity market to an more efforts the development depending in limited could be or larger be others

So sorting of lot a through that. I kind of think we’re

sorted that about through of have and a more year We them the as talk and we’ll lot more progresses.

Danielle Antalffy

so guys. Thanks All much, right.

Operator

JMP from of Please Securities. comes Your ahead. go next the of Turkaly question Dave line

open. is line Your

David Turkaly

you guys. Hi, Can me? hear

Rami Elghandour

David. Hi, Yes.

David Turkaly

and at competition the appreciate the then and the I out seen you on you? are of made you past commentary the things faced How in sort obviously guys you NAMs.

physician sort doctor the there of that implanters? noise commentary take the with of with the us from conversations conference just you’ll feedback. of side? sure the at confident You share you the sort wanted – Rami, or actual and terms I Did your to incremental to in color was be willing on just actual I seem any doc Any get your sense

Rami Elghandour

we NAMs Yes, meeting. fantastic a had look,

would who you have I that. there of most think think I were seen

the get lot in this years. I a data of marketing getting the have about presented kind lot in or around to about go we’ve forward details studies didn’t been a we specific of we’re a just me couple are things tend anything want Lunch felt versus to our I think the much talked has been our been see. the our I like of paradoxical, if of the that and like company frankly kind at a a and over a around of presented you the in think of future was that saturated to – for uniqueness it’s And world strength we and relaxed where to don’t studies is messages last highlighting I A the that But I respects a script last didn’t of across Symposium the certainly of in investing that marketing our highlight XX which rise me small cetera. the think from felt of of over and et scale the platform. this I – little the we into of questions lot for – lot products, lot years NAM looking the most of it’s had. this of this reaction. bit or terms really things point like competitive stuff largely again Honestly,

competition. I’m So that’s to I willing as far comment on think as

David Turkaly

that. appreciate I

guess I’ll spend sort move on to commentary we I I’ve or as going forward tried that initiative? on program, before you’re this what focusing you’re of to but direct try Any I again. what Thanks. think on your consumer early

Rami Elghandour

we No. in No we’re committed to and further a have leader early product a And as what our to particularly awareness avenues. material exploring very raise a to can of people. Again, for doing a space lot those comment. which we’re impact for in this and really steward can good

David Turkaly

Thank you.

Rami Elghandour

Thanks, David.

Operator

comes question ahead. of from line BMO Markets. next Please Wuensch Capital of Your go the Joanne

is Your line open.

Joanne Wuensch

a I I am the that’s question. Is trajectory that for next annoying that, or on XXXX, one down something the missing Good given and has this something? year? been picture XX% taking there margins for annoying the gross in evening weighing company year developing is one. that The and big thank little a one you have

Andrew Galligan

then outsourced. in normally up. Yes, efficiencies comes experience take we’re we Senza of here II. basic is as you making And down the are we’re they splitting XXXX actually bit product volume higher doing more structure initial a puts people because get with that aware, that that we’re hopefully actually as some our we in pause the allied – of And And are fully have would more but a a little that’s to aware volume you complex them. what product cost of the probably with as launch the bit have structure, tend little is period introduction in

more XXXX breath I but So a will well. we’ll it on taken margins make as think be some progress

Joanne Wuensch

is, he’s the have of marching to What he be does Then sales. the think you that doing you can head Helpful. share? have going picture of kind big than question new a differently do or orders And different previous you what person?

Rami Elghandour

billion Jim X product of a I to in therapy getting platform also of a this I’ve X as plus having I the wealth particularly in brings just a it think to sales. past. to and sales, about offering Joanne. close experience terms in in relates talked and launching Thanks, unique think billion Look,

differently up refocus bring will he and of syncs with with – opportunity us maximizing the as question to And he the ahead it does up ahead the I a what of really doing value what he of us? that think bring be So from ton the syncs organization. opportunity I an

Joanne Wuensch

you. great Terrific. a Thank evening. Have

Rami Elghandour

Joanne. Thanks,

Operator

Wells line question of of next Please ahead. Fargo. the Your Larry Biegelsen go from comes

Your is line open.

Larry Biegelsen

Hi, question. guys. for taking the Thanks

couple quick kind expectation? me. you ones of international XXXX profitable street that a now XXXX. has at just the Andrew, up. embedded Is GAAP right Just guidance? in a one your in had in growth for And I the follow what’s of

Andrew Galligan

going the so. guidance do the investing long all investing us, said ahead opportunity have giving enormous continue in continue not We’re but ability that and business as far, actually that have of we have we is we’re the we to to in along out to as

Larry Biegelsen

the o-U.S. I platforms was mentioned right if your don’t next now. generation And know the follow ask first then my platforms. in talked growth you’ve prepared I Okay. before, Rami, the those about time up you heard I’ll embedded next had remarks but generation guidance, in it XXXX just

Thanks to disclose or a taking us the I can know visibility tell we more going but not you’re So provide guys. when get might color lot for now, any on there is right questions, those? you

Andrew Galligan

international, digits, expecting single remarks low we’re think I that we prepared said our in on Quickly the digits. low to single mid

Larry Biegelsen

it. Got

Rami Elghandour

provide on closer to it’s to is of highlight Thanks, as But point. color that something not Look, Larry. there. kind going against we definitely for realization, more just lot at radar. a get we’ll that There’s to working more this our really I’m of certainly we’re provide folks

Larry Biegelsen

Thanks Got the it. for taking guys. questions,

Rami Elghandour

Thanks, Larry.

Operator

Please from line ahead. comes William go the Kaczor Blair. Margaret Your of next of question

line Your is open.

Margaret Kaczor

Good the guys. for questions. afternoon, taking Hi. Thanks

see for we one growth is First me perspective more XXXX. kind the did of market picture really in in market strong because big

So really whether maybe in to that if market from, SCS? do any growth so that the are or implanting of the physicians from context I’m not, is existing done past, coming have that’s the the surgeons where starting in coming implanters around haven’t whether it’s just orthopedic for you play or curious think new guys now this you

Rami Elghandour

end and Sure, elements where coming share some Margaret. capture Obviously we know of our it’s and market from it’s on obviously growth.

For based learn we infer of what only the marketplace. can rest market, sort of on our the we in the –

sustainability for getting had of think I think you those some questions year. their to into kind some growth guided of players for driving the questions how of say of on certainly it’s market if they’re and more those view tactics are we see answer to the without willing suffice our But and overall specificity plenty great I and they’re it the other that’s detail them give growth. of

Margaret Kaczor

in then in marketing majority we talk gets What that back that and past, Thanks. on the guys of mid guys similar is to are as kind out of terms R&D from? year? going you kind implied let’s us percentage as more you growth, you this about throughout guys coming if growth. to DTC? of Can that reps, be sales we spending Is Okay. teens, for a And say expense operating the your have that where on sales go is growth had

Rami Elghandour

Sure.

I and things sure questions. of couple a clarify let’s there your make answer think I

and sort think DTC it DTC, phase blown get this of a more an what a than to of stage. guys categorize necessary would exploratory I you lot think I awareness So in at generating I as would full we’re

our I because been to our since time. talking ramp, the about think this sales et cetera, sort which in talked IPO time past takes we’ve hiring of about about of we’ve

year this not support generally future, So this really necessarily of in for we that hiring is do year. the

to continuing committed as So just in and to to we’re as said, I our the think ability as I not to meaningfully certainly over next years. continue several we’re hire year but we – much this grow believe

And certainly to to doing that. so committed going we’re be

Margaret Kaczor

Okay. Thanks.

Rami Elghandour

Margaret. Thanks,

Operator

of of comes the Your Please next Securities. question Northland Suraj go line Kalia from ahead.

open. Your line is

Suraj Kalia

a to general. or for how so on see you be do price taking for just everyone. II impact Thank you one out and week perspective Andrew, differential the Good and impact to guidelines statement in you questions. on my they’re or Rami, your And I’d of afternoon, the believe for terms in in get one of Andrew, Senza love just Rami. the upcoming going UK I NICE that in the it. a Europe putting in Europe.

Rami Elghandour

Sure.

say interest our going to So, we the And Suraj, on or calls pricing to Senza these too strategies reasons. II any any on obvious There’s don’t application. get detail. competitors NICE further want not I’ll much for we’re comment into further that from just same principally for just the goes

we’re further to have comment clarity we until further. think not decision, and I going

Suraj Kalia

Thank you. it. Got

Rami Elghandour

Suraj. Thanks,

Operator

further turn this the back to the call no over will time. at presenters. There are questions I

Rami Elghandour

much appreciate interest very We again great continued Great. Thanks, the joining and in look all our a update. progress Cheryl, and thank day. Nevro next for to Have call your you certainly today. forward

Operator

This concludes today’s conference call.

may disconnect. You now

Nevro (NVRO) 22 Feb 182017 Q4 Earnings call transcript