CVRx’s Earnings Call: Growth Amid Challenges

Cvrx, Inc. ((CVRX)) has held its Q4 earnings call. Read on for the main highlights of the call.

During the recent earnings call, CVRx, Inc. showcased a strong performance with significant revenue growth and successful expansion efforts in the U.S. market. The company reported key reimbursement milestones and emphasized educational initiatives. However, challenges in the European market and increased operating expenses, coupled with higher interest expenses, led to a greater net loss, reflecting a mixed sentiment overall.

Strong Revenue Growth

CVRx reported an impressive total revenue of $15.3 million for the fourth quarter of 2024, marking a 36% increase over the same period in 2023. Notably, U.S. Heart Failure revenue grew by 41%, underlining the company’s successful market strategies in the United States.

Expansion and Market Penetration

The company expanded its reach to 48 territories within the United States, ending the year with 223 active and planning centers, up from 178 at the end of 2023. This expansion reflects CVRx’s strategic focus on penetrating the U.S. market more deeply.

Reimbursement Milestones

A significant achievement for CVRx was maintaining Barostim in the new technology APC 1580 for 2025, preserving the reimbursement level for outpatient procedures. Additionally, inpatient payment saw a notable increase, enhancing the financial viability of the therapy.

New Category 1 CPT Codes

The acceptance of new Category 1 CPT codes for Barostim therapy by the American Medical Association is expected to streamline prior authorization processes. This is anticipated to be implemented by January 1, 2026, which will likely improve market access and throughput.

Clinical Evidence and Education Initiatives

CVRx expanded its educational programs and published significant clinical evidence showing a five-fold decrease in hospitalization rates one year after Barostim therapy. These initiatives are key to increasing therapy adoption and acceptance.

European Market Performance

The European market posed challenges, with revenue remaining flat at $1 million for Q4 2024, compared to the previous year. A decline in total revenue units from 52 to 41 highlights the struggles faced in this region.

Increased Operating Expenses

There was a noticeable increase in operating expenses, with research and development costs rising by 25% and SG&A expenses by 19%. These increases were primarily driven by higher headcount and compensation expenses.

Interest Expense and Net Loss

Interest expenses climbed to $1.5 million from $0.9 million, contributing to a net loss of $10.7 million for the fourth quarter, compared to a $9.2 million loss in the previous year. This underscores the financial pressures faced by the company.

Forward-Looking Guidance

CVRx’s guidance for 2025 includes a projected total revenue between $63 million and $65 million, with a gross margin of 83% to 84%. Operating expenses are expected to range from $100 million to $104 million. For Q1 2025, revenue is anticipated to be between $14.5 million and $15 million. The company plans to focus on building a sustainable Barostim program, optimizing reimbursement strategies, and expanding clinical evidence.

In summary, CVRx’s earnings call highlighted strong growth and strategic advancements in the U.S. market, bolstered by significant reimbursement and educational milestones. Despite notable challenges in the European market and increased expenses, the company’s forward-looking guidance reflects optimism for continued growth and expansion. Investors and stakeholders will be keenly watching how CVRx navigates these dynamics in the coming year.