• Total Revenue: $15.3 million, a 36% increase over Q4 2023.
• US Heart Failure Revenue: $14.3 million, a 41% increase over Q4 2023.
• Gross Profit: $12.8 million, up $3.2 million from Q4 2023.
• Gross Margin: 83%, compared to 85% in Q4 2023.
• Research and Development Expenses: $2.8 million, a 25% increase from Q4 2023.
• SG&A Expenses: $20.2 million, a 19% increase from Q4 2023.
• Net Loss: $10.7 million or $0.43 per share, compared to $9.2 million or $0.44 per share in Q4 2023.
• Cash and Cash Equivalents: $105.9 million as of December 31, 2024.
• Active Implanting Centers: 223 centers, up from 178 at the end of 2023.
• Sales Territories in the US: 48 territories, up from 38 at the end of 2023.
• Revenue Guidance for 2025: Expected between $63 million and $65 million.
• Gross Margin Guidance for 2025: Expected between 83% and 84%.
• Operating Expenses Guidance for 2025: Expected between $100 million and $104 million.

• Warning! GuruFocus has detected 4 Warning Signs with CVRX.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CVRx Inc (NASDAQ:CVRX) reported a strong revenue growth of 36% year-over-year for Q4 2024, driven by a 41% increase in the US heart failure segment.
• The company successfully expanded its sales territories in the US from 38 to 48 by the end of 2024, enhancing market reach.
• CVRx Inc (NASDAQ:CVRX) achieved significant reimbursement milestones, equalizing hospital reimbursement for inpatient and outpatient settings, which supports patient access.
• The transition to Category One CPT codes for Barostim Therapy is expected to improve prior authorization processes and unlock new market opportunities.
• The company ended 2024 with 223 active implanting centers, up from 178 in 2023, indicating successful market penetration and adoption.

Negative Points

• Despite revenue growth, CVRx Inc (NASDAQ:CVRX) reported a net loss of $10.7 million for Q4 2024, slightly higher than the $9.2 million loss in the same period last year.
• The gross margin decreased slightly from 85% in Q4 2023 to 83% in Q4 2024, indicating potential cost pressures.
• Research and development expenses increased by 25% year-over-year, driven by higher clinical study and consulting expenses.
• The company experienced a reduction in sales territories in Europe, from six to five, reflecting challenges in international market expansion.
• Interest expenses increased due to higher levels of borrowings, impacting overall financial performance.

Q & A Highlights

Q: Can you provide more details on the revenue guidance for 2025, specifically regarding new center additions and utilization? A: Jared Oasheim, CFO: For 2025, we expect total revenue between $63 million and $65 million. This includes maintaining similar average selling prices as in 2024, around $31,000 per device. We anticipate high single-digit to low double-digit net new active implanting centers added quarterly. Utilization is expected to return to Q4 2024 levels after a seasonal dip in Q1.

Q: What are the spending priorities for 2025, and how do you plan to manage operating expenses? A: Jared Oasheim, CFO: We ended 2024 with $102 million in operating expenses, including a one-time stock option modification expense. For 2025, we expect operating expenses between $100 million and $104 million, with most growth in sales and marketing. We plan to add about three new sales territories quarterly and continue marketing efforts to drive utilization.

Q: How are you aligning sales rep compensation to drive deeper adoption in high-volume accounts? A: Kevin Hykes, CEO: We've developed a new compensation structure with input from top sales leaders, focusing on revenue and program-related accelerators. This includes consistency of implants and diversification of referral sources. The new plan was well-received at our global sales meeting, and our team is energized for the year ahead.

Q: What are the key barriers to adoption for heart failure specialists, and how are you addressing them? A: Kevin Hykes, CEO: The three main barriers are awareness, evidence, and patient access. We're increasing awareness through education, developing clinical and mechanistic evidence, and ensuring patient access by working on reimbursement and coverage policies. This is a gradual process, but we're making steady progress.

Q: With the increased inpatient reimbursement, have you seen a shift in the business, and what are your plans for international territories? A: Jared Oasheim, CFO: We haven't seen a material shift in inpatient versus outpatient procedures yet, but we'll continue to monitor this. Internationally, we reduced territories from six to five due to revenue levels, but we expect revenue to remain flat despite this reduction.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.