NVRO - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Nevro Q1 2018 Earnings 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. you. Thank Instructions] [Operator Director may Development begin Senior from Investor Nevro, you the of Bock, and Corporate Relations Katherine conference.

Katherine Bock

Thank all you, for you participating in Chris, today’s call. and thank

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

Rami Elghandour

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

we’ll our first as call, expectations call your the first increase quarter XXXX For today’s XXXX, our was was Worldwide an quarter prior I’ll then as I’ll Then performance. revenue compared deeper increase and of questions. start first to revenue XX%. as with commercial for details open progress. for follow million, revenue XXXX discuss the of quarter the of year. the with well review on conclude for of review period up of for a million, an same Andrew for reported quarter $XX.X U.S. XX% will a with the $XX.X the guidance

First as our HFXX of quarter scale $XX adoption a representing driven on organization we to deliver increase and patients to best-in-class therapy the around continue demand million, more results international constant-currency world. was basis. revenue to are These our an by continued X% for

and payers. We are and continuing in market on year Reflecting revenue patients, our of business first our achieve full our confident value to to guidance physicians million. I’m to leadership unique fundamentals reiterating of worldwide $XXX to the deliver by $XXX quarter ability in million

in seasonality fourth propelled industry our range at territories first quarter. ramping our the and trends quarter. rate revenue we us by decline our we of growth expected a this an remain As was relative Having our to a marked in that, scale, said quarter to resulting phase high industry dynamic in sequential growth within deliver

both I our with opportunity investment our towards team believe our as to systems recently the and I’m and sales will we’re advance sales structure, time experience he’s our his the particular business. result confident spend field to saw patients seven noted from in leadership. drive low never sales frequency in territories and focus with eliminate having organization prior we in sales and momentum customers completely building our patients continued at growth my our in HFXX, in he’d early in the with real market had had conversations physician the years we I We in how in stimulation. our impact sustainable One I continue optimization them to we’re order which as team their two utilizing growth experienced his deliver in of our is opioid something and scale. and medication,

physicians addiction we clinicians of when are HFXX the uniquely this highlight focus, opioid During a stories stories providing HFXX to reminder This my can the about this practice. progress and types travel I of all Through leading reflection of play of number a sales with challenging a manage new to evidence. excited demonstrating it well deliver. our patients powerful and our is the condition. with particular for time value role their the tool as These is on impact and our who advantage recently as as team in clinical investment met and we’re their

taking of the them the as only of helping elevate the note company a field. array are to committed We’re investing broader patients pain by clinical treat advancing physicians to evidence Nevro neuromodulation in and necessary

the having look in impact a forward supporting and to of meaningful more impact their communities. proud more We’re having we’re physicians and

XX-year several XX found and recent to age helped the the Additionally pet stop more impact of moving the dogs. He full and chronic distract pain, constantly directly His from story hit also time is him looks story that found that Kelly is and busy years. alongside at he moving when to our his really to spinal matters battling Kelly. pain XX, patients we which developed staying back also of active own was their after in to eventually clinicians. of pain very his he continue works wife his leverage fusion drive old. HFXX HFXX captures he that for a legs, store been the Kelly they awareness campaign HFXX of and One the but first last he’s him. managing

was and for was HFXX stimulator week, legs, pain provided That’s days, about his his continues in provide him not story back system. of his to beyond highlight the Within three of it He Kelly Kelly when demonstrates relief HFXX, relief therapy that traditional two such to which SCS the XX in leg improved has SCS. for through times pain. about the an traditional day had all He used how this completely benefit for but time it wasn’t now realize relief above the system much stated the didn’t Kelly both recommended satisfied. with the relief consistently very experiencing time. missing years. past and sleep Kelly also of years, doctor, XX pain I first now and great I the ability physician XX% of back impact a sleeping For with I was little he the its and robustness XX% replace current only use however

richer XX,XXX committed of and live We’re our to believe which QX, like two help bolster progress. lives. the our touch we we mission, them commercial over will patients enabled that key secured lives Kelly In has us fuller to approvals

we rate package. for smaller of HFXX which profile Senza our charging II, longevity more the same a industry approval secured IPG, best refined with and battery in First, couples the full benefit

to our compatibility also Unique Senza with We approach, applies the every MRI system. Senza our retroactive patient approval body and system for for this implanted to percutaneous to I secured approval is full date. I

in we’ve of additional to do the privilege this pleased to supporting. are way and our patient every a benefit proud offer it is patients We that inclusive of had to

pipeline the clinical our the through to clinical expand of research. we On front, high to reach HFXX continue quality commitment

RCT pain refractory neuropathy back and We’re diabetic back pain non-surgical currently our a European initiate refractory to RCT enrolling PDN near-term. in RCT U.S. the in or our are looking painful and non-surgical

the across of on tremendously pipeline. from a based Additionally, continue pilot our be results studies to indications, our about excited number we

have organic long-term in in In medical biotechnology enhance continue of closing, of pipeline more our that unique devices, we’re where need be over lives We’re our position coming is to and near-term typical an the and leverage the many excited in I the patients company. potential it we a to in poised about opportunity years. to more

and call of by the mid-sized that, like dynamic review I’d forward impact us difference driven expanding our the growth doing committed in to reflection we market our company best the Those CFO company turn of foundation technology right what only our to are companies the to mission financials the been we to the our field. building are have inspired of to are recognized, incredible in always more be leadership. detailed of for a to as We Andrew values people Andrew? values over and look make about guidance. be a the that we the organization medical passionate the do success driven have on list high recognized of continue in Notably, places to to and and recently I Galligan, Area. And allowed our our towards work Bay as thing. with one drive

Andrew Galligan

the you, March XX.X% a same our growth first was as during Rami. loss XXXX, of year. million, million first prior than same constant In from as operations for was million year. margin the expenses margin, quarter a related as same to in gross in prior Boston during inventory XXXX the U.S. for $XX by of million the compared was the increase of revenue $XX.X to XX% in International and quarter an million constraints, first XX% the in as compared Gross well Operating Net of with connection to increase the share costs, $XX.X Thank for million, of the increased an associated lower Legal headcount $XX.X and the for $X.X period such million to $XX for basis. the XXXX rate the quarter, XXXX. on up for $X.X revenue international Scientific period Revenue first absence was million in $XX.X of write-downs were compared up the XX% of period the profit of litigations XX, of result markets rates same primarily as increase $XX.X gross million, This reported first expense those quarter year. XXXX. year-over-year primarily represents expenses currency from from or the personnel or operating the in year. The period. period of was million of margin quarter $XX.X compared in The ended legal intellectual current is $XX.X prior property months to with the the the for expenses due growth U.S. XX% X%. litigations. increasing to driven was million of three $XX.X charging related quarter the improvement last quarter XX.X% capitation million gross was in

cash, in We investments. operating loss net of Cash effect excluding and equivalents the million cash as XX% $XXX.X had the XXXX. $X period, in was litigation the litigation to we the Excluding XXXX, improvement spend saw cash and in of operations the this during IP each quarter of $X.X QX relation period. IP end decrease first payments quarter or At less million of used million. for short-term our to than compared

Turning to for guidance XXXX. our

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

believe to should U.S. continued business, the we of believe low balance SCS our In in we to high for XXXX. background, we teen market rate international grow the mid-teens. in can to As constant that currency the low grow the single-digit now

our million to expect to million, As guidance we take of $XXX current to $XXX share. continue

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

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

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

you, to back Rami. Now

Rami Elghandour

Thanks, Andrew.

for remarks open call please So up will prepared today. the questions. conclude for our that Chris,

Operator

JPMorgan. with Your [Operator comes from question Marcus Instructions] Robbie first

Your open. line is

Robbie Marcus

the growth Rami, could question. question. And for thanks maybe Great. market start with taking I

X% at I look quarter when about cord down declined our on fourth stim like was the from market first quarter, XX%. So it Nevro numbers the spinal market and looks for the itself

very that; I a strong driving how give the Nevro was because when as color that the you one, about that little that could what’s maybe much So first market, of: two, of quarter us had? and think fourth of

Rami Elghandour

fact, coming I’ll mentioned, Sure, fourth of strong, us a we’re and of your kind Robbie. record a off in then and little you as back step Maybe into, dive question. quarter Obviously, more the very context provide in a specifically, quarter. bit for

expected stronger the the of guidance a take into that little we for But bit and we and growth. to a industry-leading context, that That year, you And the an for on put path guidance us certainly, XX% QX. delivered share. if puts to on hoped year a so puts certainly us would’ve path, for

So despite on good to I a in deliver QX, a to our think of something, being guidance about. in for softness attractive we a growth deliver position an is the bit feel year profile little and

terms In some seasonality on of the is not. specifics obviously, like, we it reality of where do rates, the others growth and experience our the peers seems

experiencing competitors could others the be little roughly particular misleading have when the group, you may at last peer four So the depending mean as, for of fact, seem their average I our at doesn’t be a it manage business, seasonality to – seasonality in look across how on number quarters. same all revenue the consecutive in bit because one

sense But the to be be for hard but at within turned have within range of that, the range end us of it’s So of we felt expected. would’ve higher out to our would what in we still expected in to QX range the the It like seasonality. performance make we what to honest. was

So that’s perspective in the kind our quarter. of

Robbie Marcus

And market, launching talk in you seeing could right. about system. you’re you if All what have the Scientific a Boston maybe new then

launching got a new system Nevro You for approval in a and have Medtronic system first just quarter. the new

flavor then give how of in Nevro you’re your Thanks. for in the product So us maybe seeing terms new and maybe you competition help little the ahead? quarters can could a what

Rami Elghandour

reality really Robbie. less And new of Thanks, competitive internationally been Yes. meaningful that quarter, our the competition of new their right? I don’t talking is launch any years there’s commercial the U.S. in But mean in didn’t our coming of competitive There’s sort Sure. anything nothing that most or we the again, obviously the not And years. off a the much that very the we’ve change eight three a for material strong was there’s I against think, or first landscape from the I reality it’s materially see in can products We’re point. the quarter. change and mean really is perspective quarter, is about just that that more QX a competitive than product. every something, or lot certainly to, landscape. And some world really change right? and in in talking QX. talking there’s all about that incremental for time, the point more we change think and different

Robbie Marcus

Okay, thanks.

Rami Elghandour

Robbie. Thanks,

Operator

question Lewis Morgan next with Your Stanley. comes from David

open. Your line is

David Lewis

so the stable, in a first going Good fourth dramatic the first three lost the There’s for and is little just more market quarter. quarters. first share you If quarter here to time look between afternoon. pretty push quarter. I’m Rami, the it like quarter in the does this growth disconnect a

the first flavor to investors here for want quarter. better get think kind a I of

had investors, So medical It some of initiatives seasonality your where dynamic see because this training, think And does it’s impact like quarter? doesn’t quarter happen of devices. the you little just in particular it leadership? look a like for sales change. some update any give more first most and new sound to competitive across sort kind sales did do can of I with the push change to couple Just an see of here launches. to quarter force you in the us material a broader new look for going believe We’ve that on seen you a also you weather

Rami Elghandour

about what really explains address outside and do – is we business. Thanks, as than change just looked into obviously, seasonality, were still did of my and to again, overwhelmingly are yes, that, to in We best didn’t we our in mean dive very relative that didn’t there. I quarter And with at our Look, a majority saw top that anything that the quarter. QX we in a And I’ll feel three it. the again, different QX, world And we see that really QX. Obviously, it. deep confident every there’s Sure. David. customers do much don’t lot predominantly vast we Nevro pretty of months. down this was we

seasonality at percentage less a also of overall impact your offset to they of scale, to in a have as footprint. think and are in we footprint, I years ramps. than prior to that territory And have are, kind look the because you we ramp have smaller would going of kind early the they’re as your larger of obviously, an just phase territories

seasonality. it’s that, holidays, is, talk for again, and be estimation certainly if of could be could patient we of to that slow going outside the could not of different seasonality really the certainly was it it always change it us But something would be be anything it impact easy customers. outside traffic. it things to some our analysis, quarter. just about. be for for there It’s weather, the in it’s in So idiosyncratic – beyond of in terms that saw there’s Whatever our But

David Lewis

Okay.

just on of So a kind follow-up guidance. here

up million So a about seasonality can in $XXX what the disadvantage and confidence looks confidence the so quarter in that’s first trend to last can last maybe with your the year. the guidance international And relative year lot of range? you your it’s Andrew, some of where a midpoint saw kind just gives last like you to the year, a start take true, to similar guidance, you year. the that much. maybe given quarter then, this, related to range Basically, started? simply that? Thanks just did that in looked Is million give it We first guidance slower around this revenue a little weaker $XXX quarter you talk just factors range. But percentage to you international of even similar bit other

Rami Elghandour

Sure. at mean Look, Thanks, a – we lot again, I looked David. Yes. things. of

look trend and I view in my one highlighted thing. think on a year, is that your your the I certainly you within thing at so the growth we you that and your for comments, does quarter put rate see achieve that first to the and within guidance certainly

basis and what a I is you of historical percentage and tends those allocated at trends. the said, throughout your year, think what which be quarterly exactly David, at performance your revenue look to you you look on

So we year we’re a I your in what guidance reiterating of couple ask international. like here, first at on mean look kind question different and why we that’s least regarding of ways. of I’ll that’s the And ways to light at about the quarter. two Andrew And our felt good our it. looks output of comment

Andrew Galligan

Yes. Sure, correctly. picked up you David. Yes,

the currency we’re constant I actually how together cautious year, operate we from territories about of I and of at to the Year’s But we We’ve believe were And to budgets market growth. to think the the digits, at over industry at basis, we low-teen the in that think international produce high-single present. have everybody there’s we at the year tailwinds more now some in able going those and has vis-a-vis in of positioned balance the various have beginning are budgets than moment. from be are New the the then had obviously, reported currency. look the come

Operator

with question America. from Bank Hopkins of Bob next Your comes

is line Your open.

Bob Hopkins

With good QX one and here. more just Thanks, afternoon. Yes. apologies, on

was their the the kind and QX, bit issue and you little At assume end it I QX of March. in thought the going primarily late February the business, the quirkiness, in XXXX. you QX was that just of you point in when of gave slower if U.S. than at to be the super so guidance a that with confident given tone seemed was reported You it so for

granular, it that? I’m if, about be might of around just an that of So And color so way but a it? a accurate is curious, little bit any kind thinking

Rami Elghandour

and we think the plays actually results some Look, so so or you in and February, – you visibility that it strong have Sure, February really on January so third I as week have of the I mean might think have on. way obviously, under of we I belt reported out a Bob. your are really week right clear

I it’s not third I – of certainly granular – terms as think was of I it think But March. the So put don’t quite the as in there’s it’s in Thursday think that week do just on it reporting that February. you calendar

still for as would business in perhaps are not you’re far year. think. again, say I And So as along confident we to tend people the very that the

I for We But fundamentally nothing at quarter We, and again, results very people the We bit the our beyond. beginning. coming of such taking great year a – great stronger about business a good a would’ve really little in about business. and the obviously, it think hoped has changed QX. where this transparent we’re was the off it. feel feel

And – for it’s it on so don’t notwithstanding of kind still puts us year. landed, and guidance the for of within kind the I we track where seasonality range

Bob Hopkins

in thank anything here calling the terms terms you. exactly the answer of cadence from quarters Andrew, Okay, the And just sorry, out I’m you’re of OUS. understood a really the in guidance Thank you year? I’m last the of boosting worth rest the question sure to just why for that. I And for for not David’s of quick as then follow-up,

Andrew Galligan

And revenue important have is visibility for issuing what’s to going budget worldwide two, what really we we be, one; the back primarily driven are think more is OUS rechargeable systems when versus overall is and by the now primary availability we where number we had guidance. than sale. where run number we SCS government were

a short that doing internationally So we to expected we’re to ago. tell people to think while I going we bit be little it’s think a had than do better appropriate

Bob Hopkins

give Can anything the cadence? on you

Andrew Galligan

see pickup then a that second see think continues in we’ll I quarter the quarter. – we each

Bob Hopkins

very you Thank much. Okay.

Operator

with Danielle from question next Your Leerink Antalffy Partners. comes

open. Your line is

Danielle Antalffy

so good question. you taking afternoon, much and guys, thank for the Hey

hoped, then have Do Rami, relates Nevro two harp on their to on so some sense any Nevro? total use things. their And And sorry high- of implant time mentioned little worse or trial the declined. trialing follow-up as Number you and seen given just number a you you given but I QX. timing department you to follow-up or procedures bit you some – Have users QX this shift – you’d ratios you level is declined volume here. versus a of just have commentary now? so is here that it around of my my lead of than doing when do a in understanding second one, have much. reported material a have Thanks

Rami Elghandour

my Obviously, share or was share, very We kind a didn’t grown dominant that’s the already with share Danielle. any reference we’re Sure, and in specifically And to accounts only time. to of obviously, and overall procedure a change that see that lot in us in. we any accounts in we’re have volumes. of our the anticipate tend

that that some due the seasonality practices impact down regard, those perhaps larger footprint slow in to So of when was overall.

drive kind ability build some tend In more to to in as QX. really record quarter which to terms your implants, you and just and on is a quickly replenish you permanent intra-quarter up that well, replenish you role that in ability best of comment And trialing, to that do try Obviously, kind trials and QX. that what obviously, in do the this more would QX of the quarter, happens of relative of played their fourth that momentum to those through help nothing you here. can I robs in

the of the seasonality do But trying the in sure, makes well. two bit largely, that, I of face little that things a to which mean the as difficult. it we’re I’m combination there’s So of

Danielle Antalffy

if stable? wondering much. have here? could on did has impact any all, Thanks pricing so just And been Or you relatively comment pricing

Rami Elghandour

pricing quarter. all this No at on Yes. impact

Operator

from Turkaly comes with Securities. Your next question JMP David

open. is line Your

David Turkaly

a data curious want on to trend of I patient of and on was collect the you’re that, confirm And of explants sort sort by your overall color as And seeing. just seeing or Thanks. I changes just docs. you outcomes any just like well know no and anything you’re lot guys –

Rami Elghandour

fake Dave. on updates news, No

roughly the success launch think trial historical was our think I national since yes, still is latest – versus same XX%. XX% So a the I rate

at fronts. nothing yes, – nothing those So on all

deliver know know are position our that collect. to continued given We uniquely actually type outcomes patients and to we the versus to we a data in of claiming best-in-class that

we both us the our big continues in to feel so and And world the long-term market. clinical for great well real studies, We the therapy. to in be our a about great as feel about differentiation outcomes as that

David Turkaly

Great. color be to on U.S. be that size NSRBP great. quick of the a follow-up give willing in And Thanks. trial. then Any us or would you’d terms timing

Rami Elghandour

Sure, trying off mean we’re that Dave. I the ground. to get

obviously, kind we’re have. the we bit and but study combined PDN study think, the realize as realized talked we help as about a of we health kind impact kind And behind that’s one through running get it’s environments the so good of sufficiently which having part study. best cadence and that little different I to about and feel the the soon that can obviously, of potential where up And somewhat it we we it economic But I prior it’s are. think hope that study just it’s is to of we the distinct thinking at beginning, we are studies instead, can.

David Turkaly

Thank you.

Rami Elghandour

David. Thanks,

Operator

Markets. from with question next Capital Joanne Your comes BMO Wuensch

open. line Your is

Joanne Wuensch

Anyway one name. That’s my you a say hi. new for me, last that

You’ve got products of a out. you’ve couple that come

came paddle Your the last lead out of year. in middle

You have as you rapidly of introduction? how Can MRI-safe factor bit product with you using about information changing new that’s a have a on product a give us think label. an and differentiated second a pretty in generation market little you that

Rami Elghandour

million, we’re trying business that Look, where to $XXX of this on $XXX here and the look think I years for we’ve we’re not therapy, scaling of do, driven well we business the a when the hopefully U.S. Thanks of our I business Joanne. in think Sure, track significant delivers short done the and deliver according widget at couple to you exceptionally largely launch question. on the our based our year, over differentiating million pretty last by of therapy. a to built time our that the very guidance period a kind

kind as talk – our real a about outcomes physician from clinical product the widget of on from can just when with largely community. capture we asset product, we our work therapeutic So the based so and them world we of last not ultimately question, but very share differentiating our clearly we continuing sell of and hard evidence, when short on falls deliver and competitors we launches to enhancement that the and to we can the see can

allow the we Senza So to that paddle the we our are, the field. relative therapy II offerings like the certainly, to continue ability differentiate feel about bring, And and just competitive our I to the prevent great us the that product MRI other to and of by array example. patient products our an particular a may having expand MRI, like that cases from as getting us an think some just footprint addresses of

think but core our they’re enhancements against competition. really So I marketing necessarily not are to those

think better marketing patient competition, foremost, treat. that and to opportunity down for deliver we have we first the against to our that comes I therapy every

Joanne Wuensch

maybe on were Thank And then as holding update the you back possible enrollment? physicians that the follow-up, us is diabetes for a II it can then And give you. waiting approval? Senza an

Rami Elghandour

Joanne. Sure,

something prefer thing. segment to coming was newest of some to I you have mean when want first In case, there’s to going in the that who have be a sure. up, the again, access of terms physicians question, – your know certainly, you instances, for

I think effort the sometimes same. the despite is team therapy of best that our exactly reiterating delivered

half an as in where the the at to I in update terms certainly. kind So the on year. and on said, we think quarter studies of try then we’ll the enrollment, provide we we’re and the see get kind in year of PDM environment various kind of of midpoint of some back want the to did through of And see that of I

Joanne Wuensch

you. Thank

Rami Elghandour

Joanne. Thanks,

Operator

comes question next Wells from Biegelsen Your Fargo. Larry with

Your is open. line

Larry Biegelsen

for Hey the thanks guys, taking question.

said growth to think something of Were in Andrew, talking in to you Bob’s Just questions. – about pickup U.S., quarter. said worldwide, clarify response the wanted rates? I earlier you think or you dollars second expect I first, one that the you

Andrew Galligan

talking question specifically international. and a We’re on specifically international, answering was that question about

So we’re talking about, yes.

Rami Elghandour

between. U.S. quarter seasonality before QX your QX obviously, somewhere QX this to from tends talked be the We strongers about tend the quarter weakest in be in and perspective, a to and QX and

in that there’s expectation and covered we’ve in change past think the no there. I So

Larry Biegelsen

a Okay, to wanted then of more. I got it. couple ask And just

asked industry. QX surprised in how in QX there So Was was guess don’t guess stocking know Saluda I’m that curious before, I did have kind based. I general. can on QX? paresthesia potential And questions in I impact guess in Is else then I some market? strong of competitor. any for just heard trial guys. to just clinicaltrials.gov. around Rami, any the why on that it’s you the was hear as And I May right, about validity share we’ve I’ve to the threat? your see taking ends about there And their you according rumors just, stocking as thoughts Thanks to anything to and a is pivotal new

Rami Elghandour

I Thanks, talk clarification, you when our Larry. referring about to a I stocking. assume mean just you’re correct? competitors’,

Larry Biegelsen

I in some we’ve just mean about QX. it in that stocking heard general were there

would it impact be don’t didn’t know you on impacted you, I to good that? Any that If if it So competitors, market. your color know. or the

Rami Elghandour

that that not business and stocking trends we kind QX we didn’t We Yes. aware us see business. factor impacted looked as them any at of within our nature. we’re didn’t seasonal the in as our saw in have a QX. that would Again, in I have in of. we mean Obviously, certainly

from we So of we’re look, are, and impact. as from time get approaches external feel past, and we’ve with so not could terms therapy again, delivered there the I’ve we’re lot for us competitive the us, paresthesia-free pretty your a lot, we again, to hard at the react aware. attempts successful to – for measure certainly in have react was it’s approaches. internally a something different this and with of any there’s But differentiated that a lot a superiority other as you questions, see in competitive until no And an sorts we company of they’re only seen to. perspective, going to we

Larry Biegelsen

Thanks questions. for the Got it. taking

Operator

Your next the Blair. William question comes from Margaret with Kaczor

line Your open. is

Margaret Kaczor

that reps. nice the early questions. My past which and in on question But in us of of XXXX. take increase you data have the the good reps. late is aren’t historical giving And they if for sales we rep initially, seems Hey, some guys sales like of gave XXXX know I number you adds, the regarding a Thanks afternoon your number taking guys.

at new contributors focusing referenced those you they the look some of call. to some results of we earlier Or contributors As primarily sales? on these the or territories now, have reps larger become that in

to of more is so impact still their And we those at hires? come. How look do Thanks.

Rami Elghandour

the It’s folks approach level sense to ramp the come about really mean perspective. revenue to they and hard – to nothing’s that it a kind up changed of come in certain we’ve that board and try terms they on Margaret. a sales in answer our talked the I question, in that past we of as level that territory, from a into way build

in we’ve added industry. of take are can in share, kind sustainability as order continue about manage of Additional to of revenue terms that resources this to amount in any of talked person the just

So hasn’t really that changed.

don’t of but are were when question on particular territories or reps are, I’m in individual really sure depending they I So of that’s what your get – terms I specifics not hired. can’t not, into they answering the where

Margaret Kaczor

Okay.

territories a Or Thanks. on accounts? So with in pace those to ago at of there year guys And the change new at opening. to mind, the in the with. pace opening, account or they, you’re you the accounts some that those of terms new to quarters some if coming few a you Has some new ago? that same are relative ramp, we territories new that, of relative any that been I relative guess look are of faster

Rami Elghandour

past. look, about mean, about feel the talked kind relative the in expectation to we’ve we I good which yes. pace Sure, of our

hit bit be I seasonally inflection if on could it being lower it their sort the little quarter, end a to a range. sometimes, quarter, people when the at of depending of down comes think

quarter, hit seasonally your of positive If and of it range. infection higher end quarter the you could sort the be

bounces we’re have our throughout ramp we within see positive but certainly feel of people contribution the we expectation, continuing year. well kind going to it a to like around and So

Operator

Genuity. Jason Canaccord comes Mills with from next question Your

Your line is open.

Jason Mills

Thanks, Rami for taking the question. Can you hear me, okay.

Rami Elghandour

Yes. Hi, Jason.

Jason Mills

Hey.

sales So expense backing legal The just way, rep is the Rami. expenses, growth, different question little the even asking a higher. operating a out

you’re of been. reps suppose curve than the and seeing maybe adding be there. perhaps to with is would’ve you’re change reps that wondering obviously, newer but them backed period reps question attrition, you’re takes, mind question for good, time it seeing expected, more generally where I is any The comes up to – mature whether if we not new that So or speed is are some about productive just should attrition whether to in of a productive longer which to rather few being the get up reps the

Rami Elghandour

Yes.

seen attrition at haven’t in curve We any change QX including all the and QX.

ramp. So have your in quarter, given obviously any you

or negative topic got anything on the – this we’ve impact outcome. particular quarter your then in you’ve some factored quarter past was You’ve see didn’t positive QX seen attrition in. we and the different this got explained seasonality of that would’ve on than your past that that – And

Jason Mills

Okay.

productive, So played trend change a the in terms sales it the in dynamics to force not the – is rep a follow-up sounds of being seasonality discernible general role. But lines? a the like bigger Just of how from the sales that. U.S.

Rami Elghandour

us that Correct, was helped what provided guidance within it the arrive for other year. we’ve the we the but modeled at yes. attrition we’re that In seeing, words,

what XXXX, been had the in not XXXX, had, our our that we QX. in maybe of positively there’s the QX, make attrition of QX sort Does we say we in we’ve guidance than necessarily that higher. have somehow, or experienced, view kind reality modeling throughout but then of to different, out I on a contribution say experience, sense? – wouldn’t had year lower net consistent and no actually with But it So impact was would’ve

Jason Mills

about bit on senior harder trials, would suggest on excitement PDM Based that and the study. to of from It because of push there’s does. because of suffers lot wanted of could conditional, your a population role I’d a very lastly just the they does. clinical growth It you. this the that size and on And [indiscernible] for other for works me patient opportunity the a little large little there’s unfortunately, be there,

you And So so, started? has trends what sort here? enrollment days early seen have of if

Rami Elghandour

Yes. Enrollment of it’s look, the in started and has early. study, PBM kind

of same of a of beginning intensive at that like the So at sure of exclusion doing in study of in Not time. our There’s there’s you’re a lights up criteria. match the making of that the online a things terms team site lot starting sent of in sort training beginning patient that’s terms every tactical the at from and this. lot the inclusion coming sort

little curve on. a a there’s of So bit so learning and

some of it have more that’s of view now enrollment and to hard we accurate to and time it because handicap an wanted in the a of right expect got would kind you’ve line trend data. kind we we dynamics all kind update on it’s these give happening kind of why folks before when So giving of

Jason Mills

Okay, great. Thanks.

Rami Elghandour

Jason. Thanks,

Operator

Northland Your next question comes with from Suraj Kalia Securities.

Your is line open.

Suraj Kalia

afternoon, Good everyone.

for Rami, for So, sales. OUS Andrew question one you, one both on

this can in it guys’ you are get seeing love high reflective a platforms can what on hey, I between of you terms recent anecdotal Andrew, you some Rami, stratify in Senza it’s markets, ASP switch. rather these mid currency to specifically, terms information net us, clinicians the constant you or telling in that of that perspective qualitative model to one to of for come keep up year-over-year and low international things has waveforms? what we taking you’re And the any my impact So desire outlook Thank the for single-digit your is Is dynamics. newer the just basis, market on changes? II questions. if teens FX coming checks. just love different hearing out. number and shares, key in field is in We keep And a that of of more of not we

Rami Elghandour

at of think your I kind marketing Thanks, of Suraj. I’d what’s our look, the about least by competitors, a question terms two of called, I what the right, first deployed – message. call just been option that’s mean in that’s strategy, three

depends it on So who to. you talk

our in growth something of regular pretty haven’t likely physicians basis a think that here. if them. pursuit overcome are not that to competitors, for that yet that’s they’re heavily on we obviously more talk of one our we a our you the I camp of and in key that, than to factor say But goal converted it’s

frankly, something, and Andrew, well. for as been not years that an been and consider particularly We’ve the different not last as on that the and couple new this of we’ve to objection you it if doing it’s we at So want point. international. overcoming saying or comment

Andrew Galligan

bit Sure. there. A little complex

and currencies recovered currency about the because in that the over last balance FX rates quarter current see and the of XX% impact can You XXXX. QX one of they one year. than were quarter that’s significantly Then better of was are

things, of equal, on over modeling currency you add to all if of a mix the single kind XXXX other on then you tailwind current teen a year. combination average numbers is high reported constant, is X%-ish probably that low and average that on being together, And XXXX, but So things all over that thinking. our

Suraj Kalia

Thank you.

Operator

Goldman Your Ro next Sachs. with Isaac comes question from

is open. line Your

Isaac Ro

you. Thank afternoon. Good

Just a question you on for guidance.

for do it as XQ, revenue as would XQ Just annualize thinking in $XXX this had under you your that prior reiterated were of of – stronger million periods you full where pointed in year reconcile that year, about XQ, I XQ did Can year? or your in you help year prior embedded results. on of to X what’s through second guidance out XX% full us you the XX% year if rev. quarter. be But range, and of midpoint X you in come think Because

acceleration big a would obviously, require in pretty back So the that half.

of to trying prior of the year acceleration throughout relative kind just seasonality. reconcile course year the to expected the So

Rami Elghandour

broadly. maybe I’ll think little this answer a I

reason I don’t we of there’s guidance. – a think that kind we give quarterly

think be pretty we that year a careful first numbers there’s number, public our nuance time, annual have about quarter. I for a the history We to company. scale But good bit the at around demonstrated if we just – – want – fidelity especially this a we’re specific on little through as there’s as

quarter quarterly basis trend per going general the but forward given specifically prior years, a we’ve think I year. want to rest with for really that’s on the the don’t percentages on year consistent the So for of we comment

Isaac Ro

hitting follow-up in impact. the terms just And Obviously, what’s measure Thank your to how this the little year the from that year, that II. Can Okay. as guidance a to is goals a Senza contribution think probably it’s revenue? But through full about in whole help your you. early for us embedded of then important on product? you think quarter we

Rami Elghandour

what’s Yes. level going overwhelmingly, It’s to granularity margin Again, performance not our to We guidance. on kind product some we’re guidance not these of the to feel and is introductions we terms get And that drive about our team. in going of obviously, of about. of by it. good our be into going factors talked that

Isaac Ro

it, Got you. thank

Operator

it turn the Q&A for concludes now to to conference. back session the This remarks. like Rami any I’d for closing

Rami Elghandour

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

Operator

This concludes conference today’s call.

You disconnect. now may

Nevro (NVRO) 7 May 182018 Q1 Earnings call transcript