Slide 1: LivaNova Third-Quarter 2024 Earnings Update
LivaNova Third-Quarter 2024 Earnings Update October 30, 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
Slide 3: Intellectual Property, Trademarks and Trade Names
Intellectual Property, Trademarks and Trade Names This material may contain references to LivaNova's proprietary intellectual property, including among others: • Trademarks for LivaNova’s Neuromodulation systems, the VNS Therapy™ System and LivaNova’s proprietary pulse generator products: Model 102
Slide 4: Contents
Contents 3Q24 Financial Results 2024 Guidance and Assumptions Appendix 4
Slide 5: Financial Results
Financial Results Financial Results 5
Slide 6: 3Q24 Financial Summary
3Q24 Financial Summary 3Q23 3Q24 Net Revenue ($M) Adjusted Diluted EPS et Sales ($ in MM) Adjusted Diluted EPS $318.1 $286.1 • Net revenue increased 11.2 percent on a constant-currency basis $0.90 $0.73 • Excluding the impact of the ACS segment wind down, revenue increased 12.3 percent on a constant
Slide 7: 3Q24 Net Revenue
3Q24 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 45% $318.1M 55% • Autotransfusion systems (ATS) (1) 11.2% increase Hypoglossal Nerve Sti
Slide 8: Segment Net Revenue Comparisons by Region
Segment Net Revenue Comparisons by Region Three Months Ended September 30, Constant-Currency ($M) 2024 2023 % Change % Change(1) Cardiopulmonary United States $62.5 $52.3 19.6% 19.6% Europe(2) 40.9 35.5 15.2% 13.4% Rest of World 68.8 61.2 12.5% 13.0% 172.2 149.0 15.6% 15.4% Neuromodulation United St
Slide 9: 3Q24 Cardiopulmonary Revenue
3Q24 Cardiopulmonary Revenue(1) Drivers/Impacts Net Revenue ($M) 15.4% $172.2 Revenue increased 15.4% with double-digit growth across all $149.0 regions. $68.8 $61.2 Strong global demand for consumables led to double-digit growth, including oxygenator revenue growth of approximately $40.9 15%. $35.5
Slide 10: 3Q24 Neuromodulation Revenue
3Q24 Neuromodulation Revenue(1) Drivers/Impacts Net Revenue ($M) 8.8% $139.9 $128.9 $15.0 Revenue increased 8.8% with strength in the U.S. and Rest of $13.7 $11.9 World regions. $12.7 Total Epilepsy revenue grew 8.9% with U.S. Epilepsy revenue growth of 10.4% driven by new and replacement implants.
Slide 11: 3Q24 Adjusted Segment Income and Margin
3Q24 Adjusted Segment Income and Margin(1) % to Revenue $85.2M 3Q23 3Q24 Cardiopulmonary 15.0% 19.4% $70.6M Neuromodulation 37.4% 37.1% $51.9 Total Adjusted Segment 25.4% 27.3% Margin $48.3 Total Adjusted Operating 15.7% 20.0% Margin(2) 3Q24 adjusted operating margin favorably impacted by higher rev
Slide 12: Adjusted Free Cash Flow
Adjusted Free Cash Flow Now targeting $110 - 130M of adjusted free cash flow (FCF) for full-year 2024 Adjusted Free Cash Flow Reconciliation ($M) 1Q 2024 2Q 2024 3Q 2024 2024 YTD Net cash provided by operating activities $10.0 $43.4 $51.0 $104.3 Less: Purchases of plant, property, and equipment (6.4
Slide 13: 3Q 2024 Summary
3Q 2024 Summary • 11.2%(1) revenue growth, including double-digit growth in Cardiopulmonary and high-single-digit growth in Neuromodulation Financial • Adjusted operating margin favorably impacted by higher revenue, operating leverage, and wind down of HF and ACS • Adjusted free cash flow favorably
Slide 14: 2024 Guidance
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Slide 15: 2024 Guidance
2024 Guidance Raising full-year guidance for revenue, adjusted diluted EPS, and adjusted FCF Consolidated Guidance Consolidated Guidance Consolidated Guidance Consolidated Guidance As of February 21, 2024 As of May 1, 2024 As of July 31, 2024 As of October 30, 2024 Net revenue growth(1) 4 - 5% 6 - 7
Slide 16: Assumptions for 2024
Assumptions for 2024 • Cardiopulmonary revenue now expected to grow 13 - 14% (versus 12 - 13% prior) REVENUE(1) Excluding ACS segment 10 - 11% • Epilepsy revenue growth now expected to grow 7 - 8% (versus 6 - 7% prior) wind down • ACS wind down completion expected by the end of 2024 • Adjusted opera
Slide 17: 2023 Adjusted Diluted EPS Bridge to 2024 Guidance
(1) 2023 Adjusted Diluted EPS Bridge to 2024 Guidance $0.90 $3.35 At midpoint of At midpoint of $0.85 - $0.95 $3.30 - $3.40 $2.80 range range $0.50 ($0.45) ($0.40) 2023 Actual Tax Rate Cost Inflation & Infrastructure Heart Failure & ACS Wind Downs Operational Growth & Leverage 2024 Guidance Investme
Slide 18: Appendix
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Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations To supplement financial measures presented in accordance with generally accepted accounting principles in the United States (U.S. GAAP or GAAP), management has disclosed certain additional measures not presented in accordance with GAAP known as “non-GAAP financial me
Slide 20: 3Q24 Adjusted EPS
3Q24 Adjusted EPS(1) $0.15 $0.90 $0.16 $0.08 $(0.05) $0.03 $0.25 $0.60 $(0.31) 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 Adjusted Three Months Ended GAAP Financial Restructuring Amortization Financing Contingent
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 Depreciation and Stock-based Adjusted Three Months Ended GAAP Financial Restructuring Amortization Financing Contingent
Slide 23: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - UNAUDITED (US dollars in millions, except per share amounts) Specified Items Depreciation and Stock-based Adjusted Nine Months Ended GAAP Financial Restructuring Amortization Financing Contingent Cer
Slide 24: GAAP to Non-GAAP Reconciliations - Unaudited
GAAP to Non-GAAP Reconciliations - Unaudited (US dollars in millions, except per share amounts) Specified Items Merger and Depreciation and Stock-based Adjusted Nine Months Ended GAAP Financial Integration Restructuring Amortization Financing Contingent Certain Legal & Compensation Certain Tax Certa
Slide 25: 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 26: 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 Segment income Stock-based Three Months Ended GAAP Contingent Certain Legal & Compensation Adjusted Financial September 30, 2024 Financial Results