On July 29, 2024, CVRx Inc (CVRX, Financial) released its 8-K filing detailing the financial and operating results for the second quarter of 2024. CVRx Inc is a commercial-stage medical device company focused on developing, manufacturing, and commercializing minimally invasive neuromodulation solutions for patients with cardiovascular diseases. Its proprietary platform technology, Barostim, is designed to leverage the power of the brain to address the imbalance of the Autonomic Nervous System, which causes heart failure and other cardiovascular diseases. The majority of revenue is derived from the USA market.
Second Quarter 2024 Financial and Operating Results
CVRx Inc (CVRX, Financial) reported revenue of $11.8 million for the three months ended June 30, 2024, which aligns closely with the analyst estimate of $11.79 million. This represents a 24% increase compared to the $9.5 million reported in the same period last year. The growth was primarily driven by the U.S. Heart Failure (HF) business, which saw revenue increase by 29% to $10.7 million.
Despite the revenue growth, the company reported a net loss of $14.0 million, or $0.65 per share, missing the analyst estimate of -$0.53 per share. This compares to a net loss of $11.6 million, or $0.56 per share, in the same period last year. The increase in net loss was attributed to higher Selling, General, and Administrative (SG&A) expenses, which rose by 28% to $21.1 million.
Key Financial Metrics
Gross profit for the quarter was $9.9 million, up 24% from $8.0 million in the same period last year, maintaining a gross margin of 84%. Research and Development (R&D) expenses decreased by 16% to $2.8 million, driven by lower consulting and compensation expenses. However, SG&A expenses saw a significant increase, primarily due to higher compensation, stock-based compensation, advertising, travel, and consulting expenses.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $11.8 million | $9.5 million |
| Gross Profit | $9.9 million | $8.0 million |
| Net Loss | -$14.0 million | -$11.6 million |
| Net Loss per Share | -$0.65 | -$0.56 |
Operational Highlights
As of June 30, 2024, CVRx Inc (CVRX, Financial) had 189 active implanting centers, a slight decrease from 190 as of March 31, 2024. The number of sales territories in the U.S. increased by three to a total of 42. In Europe, revenue decreased by 6% to $1.1 million, despite an increase in total revenue units from 56 to 63.
Leadership Team Expansion
During the quarter, CVRx Inc (CVRX, Financial) strengthened its executive team with key appointments, including Robert John as Chief Revenue Officer and Dr. Philip Adamson as Chief Medical Officer. These strategic hires are expected to drive market development priorities and enhance clinical evidence for Barostim.
Financial Position
As of June 30, 2024, the company had cash and cash equivalents of $70.4 million. Net cash used in operating and investing activities was $10.2 million for the quarter, compared to $11.8 million in the previous quarter.
Conclusion
While CVRx Inc (CVRX, Financial) demonstrated strong revenue growth driven by its U.S. Heart Failure business, the widening net loss and increased SG&A expenses present challenges. The company's strategic leadership appointments and focus on expanding market presence and clinical evidence are expected to drive future growth. Investors will be keen to see how these initiatives impact the company's financial performance in the coming quarters.
Explore the complete 8-K earnings release (here) from CVRx Inc for further details.
