On October 26, 2023, CVRx Inc (CVRX, Financial), a commercial-stage medical device company, announced its financial and operating results for the third quarter of 2023. The company reported a significant increase in revenue, driven by the expansion of its U.S. heart failure business.
Financial Highlights
Revenue for the three months ended September 30, 2023, was $10.5 million, an increase of $4.3 million, or 70%, over the same period in 2022. U.S. revenue for the same period was $9.6 million, a 90% increase from the previous year. The increase was primarily driven by the growth in the U.S. heart failure business, expansion into new sales territories, and increased physician and patient awareness of Barostim.
Gross profit for Q3 2023 was $8.8 million, an increase of $4.0 million, or 82%, over Q3 2022. Gross margin increased to 84% for Q3 2023, compared to 78% for Q3 2022, mainly due to a decrease in the cost per unit driven by an increase in production volume.
Net loss for Q3 2023 was $9.0 million, or $0.43 per share, compared to a net loss of $9.8 million, or $0.48 per share, for Q3 2022.
Operating Results
Research and Development (R&D) expenses increased by $0.4 million, or 18%, to $2.7 million for Q3 2023. This increase was driven by a $0.3 million increase in compensation expenses due to increased headcount and a $0.1 million increase in non-cash stock-based compensation expense.
Selling, General and Administrative (SG&A) expenses increased by $3.0 million, or 23%, to $15.7 million for Q3 2023. This increase was primarily driven by a $1.9 million increase in compensation expenses due to increased headcount, a $0.5 million increase in non-cash stock-based compensation expense, and a $0.3 million increase in marketing and advertising expenses associated with the commercialization of Barostim in the U.S.
Outlook
For the full year of 2023, CVRx Inc (CVRX, Financial) expects to report total revenue between $10.5 million and $11.0 million in the fourth quarter.
In conclusion, CVRx Inc (CVRX, Financial) has demonstrated a strong performance in Q3 2023, with significant growth in revenue driven by its U.S. heart failure business. The company continues to focus on maintaining this positive momentum while expecting a reduction in its quarterly cash burn as it looks towards 2024.
Explore the complete 8-K earnings release (here) from CVRx Inc for further details.
