CVRx, Inc. Q4 FY2024 earnings call

• US Heart Failure business drove strong performance with 36% revenue growth year-over-year, with US Heart Failure revenue up 41%. • Stabilized sales organization, brought in new commercial leadership, and expanded to 48 territories in the US, ending the year with 223 active and planning centers. • Secured CMS maintaining Barostim in new technology APC 1580 for outpatient and reassignment to DRG 276 for inpatient, equalizing reimbursement. New Category 1 CPT codes for Barostim to be implemented in 2026, improving access and payment predictability. • Expanded therapy educational programs, including ASCEND for heart failure fellows and Barostim Connect for patient education. • Developed clinical evidence, including long-term post-COVID data showing five-fold decrease in hospitalizations with Barostim therapy.

In the fourth quarter of 2024, total revenue was $15.3 million. The US Heart Failure segment contributed $14.3 million, a 41% increase from the fourth quarter of 2023. Revenue from Europe was $1 million, with total revenue units in Europe decreasing from 52 in Q4 2023 to 41 in Q4 2024. US Heart Failure revenue represented 93.4% of total revenue ($14.3 million / $15.3 million), and Europe contributed 6.6% ($1 million / $15.3 million).

• For full year 2025, expect total revenue between $63 million and $65 million, gross margin between 83% and 84%, and operating expenses between $100 million and $104 million. • For Q1 2025, expect total revenue between $14.5 million and $15 million.

• Reimbursement uncertainties could impact patient access and adoption.• Market adoption challenges related to physician and patient awareness of Barostim therapy.• Execution risks associated with building and managing the sales organization effectively.

Q: Regarding revenue guidance for 2025 and utilization, what's the assumption on net new active implanting centers and ASP?

A: ASP assumed similar to 2024 at ~$31,000 per device, expecting high single digits to low double-digit net new active implanting centers quarterly.

Q: On OpEx guidance for 2025, what's the breakdown between SG&A and R&D and confidence in maintaining levels?

A: Vast majority of OpEx growth in 2025 is for sales and marketing, adding ~3 new territories quarterly, and expectation of utilization growth leading to leverage over time.

Q: On sales rep compensation alignment, how was the rollout and reception?

A: Rollout was more inclusive than last year, involving top sales leaders and lieutenants, with comp plan built around revenue drivers and program-related accelerators for consistent implants and referral diversification. Reception was positive.

Q: On inpatient reimbursement shift, any observed change?

A: No material shift in Q4 after new inpatient code, but will track CMS reported data for confirmation.

Q: On international territory loss, plans to replace?

A: Decision to pull back in Europe due to revenue, not unprofitable, and expectation revenue levels to stay flat despite one less territory.

Q: On Q1 deceleration and rest of year cadence, any seasonality?

A: Slight Q1 deceleration due to seasonality, but expect consistent growth from Q1 throughout rest of 2025.

Q: On North Star account characteristics and comp plan, details?

A: North Star accounts have clinical and administrative champions, multiple prescribers, referrals from multiple sources, and redundant implanters. Comp plan rewards implants from centers with these components.

Q: On reimbursement advocacy for 2026 and RVUs for Cat 1 code?

A: Market access team engaged in advocacy for permanent Level 6 code, first visibility to RVUs in July proposed rule, expected to be in range of current payer negotiations (~$500-$850 per procedure).