Slide 1: First Quarter 2024 Earnings Update
-ivaNova First Quarter 2024 Earnings Update May 1, 2024
Slide 2: Safe Harbor
Safe Harbor Certain statements in this material, other than statements of historical or current fact, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements i
Slide 3: Intellectual Property, Trademarks and Trade Names
Intellectual Property, Trademarks and Trade Names This report may contain references to LivaNova's proprietary intellectual property, including among others: • Trademarks for LivaNova's Neuromodulation systems, the VNS Therapy™ System, the VITARIA™ System and LivaNova's proprietary pulse generator p
Slide 4: Contents
Contents 1Q24 Financial Results 2024 Guidance and Assumptions Closing Thoughts Appendix 4
Slide 5: Financial Results
Financial Results Financial Results 5
Slide 6: 1Q24 Financial Summary
1Q24 Financial Summary 1Q23 1Q24 Net Revenue ($M) Adjusted Diluted EPS et Sales ($ in MM) Adjusted Diluted EPS $294.9 • Net revenue increased 12.4 percent on a constant-currency basis $263.4 $0.73 • Excluding the impact of the ACS segment wind down, revenue increased 13.5 percent on a constant-curre
Slide 7: 1Q24 Net Revenue
1Q24 Net Revenue Neuromodulation Vagus Nerve Stimulation Therapy (VNS Therapy) Cardiopulmonary (CP) • Drug-Resistant Epilepsy (DRE) • Heart-lung machines (HLM) • Difficult-to-Treat Depression (DTD) • Oxygenators 46% $294.9M • Autotransfusion systems (ATS) (1) 12.4% increase Hypoglossal Nerve Stimula
Slide 8: Segment Net Revenue Comparisons by Region
Segment Net Revenue Comparisons by Region Three Months Ended March 31, Constant-Currency ($M) 2024 2023 % Change % Change(1) Cardiopulmonary United States $50.6 $39.6 27.7% 27.7% Europe(2) 40.9 36.4 12.5% 10.3% Rest of World 64.4 59.8 7.8% 11.0% Total 155.9 135.7 14.8% 15.7% Neuromodulation United S
Slide 9: 1Q24 Cardiopulmonary Revenue
1Q24 Cardiopulmonary Revenue(1) Drivers/Impacts Net Revenue ($M) 15.7% $155.9 Revenue increased 15.7% with double-digit growth across all $135.7 regions. $64.4 $59.8 Strong global demand for consumables including oxygenator revenue growth in the low-teens. $40.9 $36.4 HLM revenue grew more than 20%
Slide 10: 1Q24 Neuromodulation Revenue
1Q24 Neuromodulation Revenue(1) Drivers/Impacts Net Revenue ($M) 11.0% $133.9 $120.7 $14.5 Revenue increased 11.0% with double-digit growth in the U.S. and Rest of World regions. $13.0 $13.4 $13.3 Total Epilepsy revenue grew 11.3% with U.S. Epilepsy revenue growth of 12.5% driven by new and replacem
Slide 11: 1Q24 Adjusted Segment Income and Margin
1Q24 Adjusted Segment Income and Margin(1) $73.6M % to Revenue 1Q23 1Q24 Cardiopulmonary 11.4% 16.1% $48.9M Neuromodulation 27.6% 36.2% $48.5 Total Segment Margin 19.1% 25.4% Total Operating Margin(2) 10.2% 18.0% $33.4 1Q24 adjusted operating margin positively impacted by HF program and ACS segment
Slide 12: Adjusted Free Cash Flow
Adjusted Free Cash Flow Targeting $95 - 115M of adjusted free cash flow (FCF) for full-year 2024 Three Months Ended March 31, Adjusted Free Cash Flow Reconciliation ($M) 2024 2023 Net cash provided by (used in) operating activities $10.0 $20.8 Less: Purchases of plant, property and equipment (6.4) (
Slide 13: 1Q 2024 Summary
1Q 2024 Summary • 12.4%(1) revenue growth, including double-digit growth in both Cardiopulmonary and Epilepsy Financial • Adjusted operating margin favorably impacted by higher volume and realized price as well as the HF and ACS wind down • Adjusted free cash flow unfavorably impacted by higher work
Slide 14: 2024 Guidance
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Slide 15: 2024 Guidance
2024 Guidance Raising full-year guidance for revenue, adjusted diluted EPS and maintaining range for adjusted FCF Consolidated Guidance Consolidated Guidance As of February 21, 2024 As of May 1, 2024 Net revenue growth(1) 4 - 5% 6 - 7% Net revenue growth, excluding ACS(2) 6 - 7% 8 - 9% Foreign excha
Slide 16: Assumptions for 2024
Assumptions for 2024 • Cardiopulmonary revenue now expected to grow 8-9% (versus 6-7% prior) REVENUE(1) (excluding ACS segment 8 - 9% • Epilepsy revenue growth of 6-7% (maintained) wind down) • ACS wind down completion expected by the end of 2024 • Adjusted operating income margin increase of > 300b
Slide 17: 2023 Adjusted Diluted EPS Bridge to 2024 Guidance
2023 Adjusted Diluted EPS* Bridge to 2024 Guidance $0.65 $3.10 At midpoint of At midpoint of $2.80 $0.60 - $0.70 $3.05 - $3.15 range range $0.45 ($0.45) ($0.35) 2023 Actual Tax Rate Cost Inflation & Infrastructure Heart Failure & ACS Exits Operational Growth & Leverage 2024 Guidance Investments * Ad
Slide 18: Appendix
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Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations The following tables reconcile the most comparable U.S. Generally Accepted Accounting Principles (GAAP) measures to the non-GAAP financial and operating measures presented in LivaNova’s first-quarter 2024 news release and during the conference call held in conjunctio
Slide 20: 1Q24 Adjusted EPS
1Q24 Adjusted EPS(1) $0.14 $0.73 $0.19 $0.24 $(0.05) $0.74 $0.08 $0.17 $(0.78) GAAP Financial Restructuring Depreciation and Financing Certain Legal and Stock-based Certain Tax Certain Interest Adjusted Financial Measures Expenses Amortization Transactions Regulatory Costs Compensation Costs Adjustm
Slide 21: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions, except per share amounts) Specified Items Depreciation and Stock-based Restructuring Amortization Financing Contingent Certain Legal & Compensation Certain Tax Ce
Slide 22: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions, except per share amounts) Specified Items Merger and Depreciation and Stock-based Integration Restructuring Amortization Financing Contingent Certain Legal & Comp
Slide 23: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions) (U.S. dollars in millions) Three Months Ended Twelve Months Ended Adjusted free cash flow reconc
Slide 24: GAAP to Non-GAAP Reconciliation - Unaudited
GAAP to Non-GAAP Reconciliation - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (U.S. dollars in millions) Specified Items Stock-based Segment income Contingent Certain Legal & Compensation Three Months Ended GAAP Consideration Regulatory Costs Costs Adjusted March 31,