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LIVN Nasdaq· LivaNova PLC
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LIVN Nasdaq· LivaNova PLC
Earnings report Q3 2023

LIVN Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

LIVN's net revenue for the latest quarter was $286.1 million, representing a significant increase from the previous year's quarter revenue of $252.6 million. For the nine months ended September 30, 2023, the company's net revenue reached $843.4 million, compared to $746.9 million in the same period last year.

Strengths

LIVN demonstrated strong revenue growth in the latest quarter, driven by robust performance across its reportable segments. The Cardiopulmonary segment, which focuses on the development and sale of cardiopulmonary products, contributed significantly to the company's revenue growth. This segment includes heart-lung machines, oxygenators, autotransfusion systems, perfusion tubing systems, cannulae, and related accessories. The increase in revenue can be attributed to the growing demand for these products, indicating LIVN's ability to meet market needs effectively.

Challenges

Despite the overall positive performance, LIVN faced challenges in the form of operating expenses. Selling, general, and administrative expenses increased to $134.8 million in the latest quarter, compared to $114.6 million in the same period last year. Research and development expenses also rose to $46.5 million, up from $35.7 million in the previous year's quarter. These increased expenses impacted the company's operating income, which remained relatively low at $4.5 million.

Noteworthy

LIVN recorded impairment of goodwill in the previous year's quarter, amounting to $129.4 million. However, no impairment of goodwill was reported in the latest quarter. Additionally, the company recorded net gains from freestanding derivatives, contributing to its overall income.

Summary

LIVN delivered a strong performance in the latest quarter, with significant revenue growth driven by the Cardiopulmonary segment. The company's ability to meet market demand for its cardiopulmonary products has positively impacted its financial results. However, LIVN faced challenges in the form of increased operating expenses, which affected its operating income. Nonetheless, the absence of impairment of goodwill in the latest quarter is a positive sign for the company. Overall, LIVN's revenue growth showcases its strength in the market and its ability to capitalize on opportunities in the healthcare industry.

Source documents

Form 10-Q  filed on Nov 01, 2023
28 pages scanned

Reference data

Company financials Q3 revenue 310M
Analyst estimates Q3 EPS beat by 36.33%
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