NevroReportsFirstQuarter2017FinancialResults

RedwoodCity,Calif.,May8,2017NevroCorp.(NYSE:NVRO),aglobalmedicaldevicecompanythatis
providinginnovativeevidencebasedsolutionsforthetreatmentofchronicpain,todayreported
financialresultsforthethreemonthsendedMarch31,2017.

FirstQuarterHighlights:
Achievedrevenueof$68.4millioninthefirstquarterof2017,anincreaseof64%asreported,
overthesameperiodoftheprioryear
o U.S.revenueof$53.1millioninthefirstquarterof2017,anincreaseof80%overthe
prioryear
o Internationalrevenueof$15.3millioninthefirstquarterof2017,anincreaseof30%in
constantcurrencyand26%onanasreportedbasis,bothoverthesameperiodofthe
prioryear
InitiatedcontrolledcommerciallaunchofSurpasssurgicalleadsfortheSenzaSpinalCord
Stimulation(SCS)System
Presentedonclinicalandscientificprogressatthe2017NorthAmericanNeuromodulation
Society(NANS)meeting

FirstQuarterFinancialResults
RevenueforthethreemonthsendedMarch31,2017was$68.4millionversus$41.7millionduringthe
sameperiodoftheprioryear,representing64%growthasreported.U.S.revenueforthethreemonths
endedMarch31,2017was$53.1million,representing80%growthasreported.Internationalrevenue
was$15.3million,representinggrowthof30%inconstantcurrencyand26%onanasreportedbasis.
TheincreaseinrevenuewasprimarilyattributabletothecontinuedadoptionoftheSenzasystem.

GrossprofitforthethreemonthsendedMarch31,2017was$46.4million,representinga68%gross
margin,upfrom$26.0million,representinga62%grossmargin,inthesameperiodoftheprioryear.

OperatingexpensesforthethreemonthsendedMarch31,2017were$59.4millioncomparedto$35.0
millioninthesameperiodoftheprioryear,representinganincreaseof70%.Theincreaseinoperating
expenseswasdrivenprimarilybyincreasedheadcountandrelatedpersonnelcosts.

Lossfromoperationsforthefirstquarterof2017was$13.1millioncomparedto$9.0millionforthe
sameperiodoftheprioryear.

RevenueGuidanceforFullYear2017
Nevroreiteratesitsexpectationsforworldwiderevenuefor2017tobeintherangeof$310to$320
million.

WebcastandConferenceCallInformation
Managementwillhostaconferencecalltodaybeginningat1:30p.m.PT/4:30p.m.ET.Individuals
interestedinlisteningtotheconferencecallmaydial(877)2010168fordomesticcallers,or(647)788
4901forinternationalcallers(ConferenceID:6073641),oraccessthewebcastontheInvestors
sectionofthecompanyswebsiteat:www.nevro.com/investors.

AboutNevro
HeadquarteredinRedwoodCity,California,Nevroisaglobalmedicaldevicecompanyfocusedon
providinginnovativeproductsthatimprovethequalityoflifeofpatientssufferingfromdebilitating
chronicpain.NevrohasdevelopedandcommercializedtheSenzaspinalcordstimulation(SCS)system,
anevidencebasedneuromodulationplatformforthetreatmentofchronicpain.TheSenzasystemisthe
onlySCSsystemthatdeliversNevro'sproprietaryHF10therapy.Senza,HF10,NevroandtheNevrologo
aretrademarksofNevro.

ForwardLookingStatements
Inadditiontohistoricalinformation,thispressreleasecontainsforwardlookingstatementswithrespect
toourbusiness,capitalresources,revenueprojections,strategicinitiativesandgrowth,reflectingthe
currentbeliefsandexpectationsofmanagementmadepursuanttothesafeharborprovisionsofthe
PrivateSecuritiesLitigationReformActof1995,includingcontinuingadoptionof,andinterestin,Senza
intheU.S.andinternationalmarketsandourexpectationsforworldwiderevenueforthefullyear2017.
Theseforwardlookingstatementsarebaseduponinformationthatiscurrentlyavailabletousorour
currentexpectations,speakonlyasofthedatehereof,andaresubjecttonumerousrisksand
uncertainties,includingourabilitytosuccessfullycommercializeourproducts;ourabilitytomanufacture
ourproductstomeetdemand;thelevelandavailabilityofthirdpartypayorreimbursementforour
products;ourabilitytoeffectivelymanageouranticipatedgrowth;ourabilitytoprotectourintellectual
propertyrightsandproprietarytechnologies;ourabilitytooperateourbusinesswithoutinfringingthe
intellectualpropertyrightsandproprietarytechnologyofthirdparties;competitioninourindustry;
additionalcapitalandcreditavailability;ourabilitytoattractandretainqualifiedpersonnel;andproduct
liabilityclaims.Thesefactors,togetherwiththosethataredescribedingreaterdetailinourAnnual
ReportonForm10KfiledonFebruary23,2017andourQuarterlyReportonForm10Qthatweexpect
tofileonMay8,2017,aswellasanyreportsthatwemayfilewiththeSECinthefuture,maycauseour
actualresults,performanceorachievementstodiffermateriallyandadverselyfromthoseanticipatedor
impliedbyourforwardlookingstatements.Weexpresslydisclaimanyobligation,exceptasrequiredby
law,orundertakingtoupdateorreviseanysuchforwardlookingstatements.Ourresultsforthequarter
endedMarch31,2017arenotnecessarilyindicativeofouroperatingresultsforanyfutureperiods.

InvestorRelationsContact:
NevroInvestorRelations
KatherineBock
(650)4333247
ir@nevro.com

NevroCorp.
ConsolidatedStatementsofOperationsandComprehensiveLoss
(inthousands,exceptshareandpersharedata)

ThreeMonthsEnded
March31,
2017 2016
(unaudited)
Revenue $ 68,439 $ 41,651
Costofrevenue 22,071 15,664
Grossprofit 46,368 25,987
Operatingexpenses:
Researchanddevelopment 8,699 6,361
Sales,generalandadministrative 50,720 28,643
Totaloperatingexpenses 59,419 35,004
Lossfromoperations (13,051) (9,017)
Otherincome(expense):
Interestincome(expense),net (1,726) (427)
Otherincome(expense),net 531 490
Lossbeforeincometaxes (14,246) (8,954)
Provisionforincometaxes 261 334
Netloss (14,507) (9,288)
Changesinforeigncurrencytranslationadjustment (222) (279)
Changesinunrealizedgainsonshortterminvestments 44 54
Netchangeinothercomprehensiveloss (178) (225)
Comprehensiveloss $ (14,685) $ (9,513)
Netlosspershare,basicanddiluted $ (0.50) $ (0.33)
Weightedaveragesharesusedtocompute
netlosspershare,basicanddiluted 29,159,509 28,194,457

NevroCorp.
ConsolidatedBalanceSheets
(inthousands,exceptshareandpersharedata)

March 31, December 31,
2017 2016
(unaudited)
Assets
Currentassets
Cashandcashequivalents $ 19,196 $ 41,406
Shortterminvestments 244,952 234,951
Accountsreceivable,net 50,824 52,818
Inventories,net 84,735 85,221
Prepaidexpensesandothercurrentassets 7,652 5,895
Totalcurrentassets 407,359 420,291
Propertyandequipment,net 7,390 7,132
Otherassets 2,310 2,354
Restrictedcash 806 806
Totalassets $ 417,865 $ 430,583
Liabilitiesandstockholdersequity
Currentliabilities
Accountspayable $ 12,095 $ 16,162
Accruedliabilitiesandother 22,109 26,036
Totalcurrentliabilities 34,204 42,198
Longtermdebt 139,820 138,140
Otherlongtermliabilities 1,307 1,211
Totalliabilities 175,331 181,549
Stockholdersequity
Commonstock,$0.001parvalue,290,000,000sharesauthorized,
29,264,423and28,886,862sharesissuedandoutstandingat
March31,2017andDecember31,2016,respectively 29 29
Additionalpaidincapital 479,055 470,869
Accumulatedothercomprehensiveloss (857) (678)
Accumulateddeficit (235,693) (221,186)
Totalstockholdersequity 242,534 249,034
Totalliabilitiesandstockholdersequity $ 417,865 $ 430,583

SOURCENevroCorp.