{
  "docId": "019dd923-622c-750b-8b9a-2a2468219173",
  "docSlug": "ce565b841c40",
  "documentTitle": "Nevro Corp. (NVRO)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Kir Kahlon",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
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  "pageNumber": 12,
  "pageCount": 239,
  "prevPage": 11,
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  "slideType": "executive_summary",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 120,
  "notes": "The slide uses a strong, accusatory tone, labeling the company a 'textbook Ponzi'.",
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      "kind": "callout",
      "text": "Having incinerated ~$360MM of cash since 2012, the debt requires new debt or equity to be repaid - in our opinion, a textbook Ponzi.",
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      "text": "Net Income: $360MM",
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      "kind": "paragraph",
      "text": "1. Introduction to Nevro\nNevro’s filings peg the global SCS market at $2.5B – making its $5.8B market cap an absurd 2.3X the size of its entire market. Three large device players - Medtronic, Abbott’s St. Jude division, and Boston Scientific, with a combined ~$400B of market cap – have long dominated the SCS space. Despite only ~15% share and flat to down sales over the last 2-3 years, Nevro is valued at several times the combined stimulator sales of MDT, ABT, and BSX – even though it’s a perpetually money-losing enterprise. Shockingly poor margins, especially for a medical device company, have collapsed even further since 2018 as its growth crashed, evidence of a fatally-flawed business model that survives only by continually raising new equity and debt. As of 9/30, the company had $328MM of long term debt. Having incinerated ~$360MM of cash since 2012, the debt requires new debt or equity to be repaid – in our opinion, a textbook Ponzi.",
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      "kind": "source-note",
      "text": "Source: Capital IQ",
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      "kind": "table",
      "text": "Income statement, Cash flows, and Margins table from 2012 to 2020E.",
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      "kind": "title",
      "text": "Scorpion Capital | Nevro (NYSE: NVRO)",
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      "arcSlug": "overcoming-monster",
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      "evidence": "The deck presents a series of criticisms and contradictions against Nevro",
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      "evidence": "The deck presents a series of contradictions and criticisms against Nevro",
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      "structure": "Setup the Question -> Build Suspense -> The Big Reveal",
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