CVRx, Inc. (NASDAQ:CVRX) Q1 2024 Earnings Conference Call April 30, 2024 5:00 PM ET

Company Participants

Mike Vallie - IR
Kevin Hykes - President and CEO
Jared Oasheim - CFO

Conference Call Participants

Lilia-Celine Lozada - JPMorgan
Phillip Dantoin - Piper Sandler
Margaret Kaczor - William Blair
Bill Plovanic - Canaccord
Frank Takkinen - Lake Street Capital Markets
Chase Knickerbocker - Craig-Hallum

Operator

Greetings, and welcome to the CVRx Q1 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Mike Vallie. Thank you. You may begin.

Mike Vallie

Good afternoon. Thank you for joining us today for CVRx's first quarter 2024 earnings conference call. Joining me on today's call are the company's President and Chief Executive Officer, Kevin Hykes; and Chief Financial Officer, Jared Oasheim.

The remarks today will contain forward-looking statements, including statements about financial guidance. The statements are based on plans and expectations as of today, which may change over time. In addition, actual results could differ materially due to a number of risks and uncertainties, including those identified in the earnings release issued prior to this call and in the company's SEC filings, including the upcoming Form 10-K that will be filed with the SEC.

I would now like to turn the call over to CVRx's President and Chief Executive Officer, Kevin Hykes.

Kevin Hykes

Thanks, Mike, and thanks everyone, for joining us. I'll begin today's call by providing a brief overview of our first quarter performance. Then, since this is my first call as the CEO of CVRx, I'd like to share a summary of my background and tell you what I've been doing since joining the company in mid-February. I will then provide you with some of my initial observations on the business and a little more color on our quarterly performance. Jared will then provide a review of our financial results, and I will conclude with our thoughts for the rest of the year before turning to Q&A.

Starting with an overview of our performance during the first quarter, total revenue was $10.8 million, an increase of 35% over the first quarter of 2023. This was below our guidance of $11 million to $12 million. The lower than anticipated revenue was due primarily to the performance of our U.S. Heart Failure business, where there was some disruption within our sales organization at the time of the CEO transition, which led to decreased productivity and some sales force turnover. While stabilizing the team and returning active territories to full productivity will take some time, I'm encouraged that some of the early actions we have taken have led to solid performance in our U.S. Heart Failure business in March.