Robin [on for Robbie Marcus]'s questions to NVRO leadership • Q1 2024
Question
Asked for clarification on the Vyrsa revenue contribution baked into guidance and for an explanation of why full-year gross margin is expected to be flat despite a strong Q1 and the Costa Rica manufacturing ramp.
Answer
Vyrsa's revenue contribution is expected to be immaterial in 2024 as the company focuses on training and scaling, and they refuted any prior commentary suggesting a $20 million figure. The flat full-year gross margin guidance is due to manufacturing overhead variances related to the transition to the Costa Rica facility, which are expected to impact COGS in the second half of the year, despite strong long-term prospects for cost savings.