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LivaNova (LIVN) Q3 Earnings call transcript Oct 30, 2024

Daily EarningsThursday, Oct 31, 2024 3:58 pm ET

1min read

LIVN --

In a recent earnings call, LivaNova PLC demonstrated a robust performance for the third quarter of 2024, highlighting double-digit growth across geographies and business segments. The company's strategic focus on growth drivers and innovation has positioned it well for continued success.

Strategic Growth Drivers and Financial Performance

LivaNova's third quarter revenue increased by 11%, marking the seventh consecutive quarter of double-digit growth. The company's performance was well-balanced, with a 12% organic revenue growth year-to-date. LivaNova's cardiopulmonary and epilepsy segments contributed to this growth, with a 15% increase in both segments. The company's revenue growth was also supported by a successful Essenz launch, which added approximately 400 basis points of growth for the year.

Innovation and Market Expansion

LivaNova's focus on innovation has been a significant contributor to its growth. The company's cardiopulmonary and epilepsy pipeline development, as well as its efforts in difficult-to-treat depression and obstructive sleep apnea, are key to its future growth prospects. In particular, the pursuit of CMS coverage for difficult-to-treat depression could represent a transformative opportunity for critically ill patients.

Innovation Pipeline and Future Prospects

Ahmet Tezel, the Chief Innovation Officer, discussed the company's strategic focus on innovation. The innovation committee has targeted four key areas, including processes and governance, operational model, talent, and innovation culture. This focus on innovation is evident in LivaNova's investments in next-generation oxygenators, advanced data capture and analytics, and the next-generation VNS Therapy System. The company's efforts in difficult-to-treat depression and obstructive sleep apnea are also noteworthy, with several critical publications expected in the coming months.

Market Position and Outlook

LivaNova's strong financial performance and strategic focus on innovation position the company well for future growth. The company's expansion into the cardiopulmonary and epilepsy markets, along with its efforts in difficult-to-treat depression and obstructive sleep apnea, indicate a diversified and robust portfolio. The company's confidence in its ability to supply cardiopulmonary consumables and gain market share is a testament to its competitive edge.

Conclusion

LivaNova PLC's third quarter earnings call underscored its strong financial performance and strategic focus on growth and innovation. The company's growth drivers, including its successful Essenz launch and strategic investments in innovation, position it well for continued success. With a robust pipeline and a commitment to transformative opportunities in difficult-to-treat depression and obstructive sleep apnea, LivaNova is well-positioned to capitalize on market trends and opportunities.

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