Nevro : Third Quarter 2022 Earnings Presentation

3Q 2022 Earnings Presentation

N O V E M B E R 2 , 2 0 2 2

Forward-Looking Statements

In addition to historical information, this presentation contains forward-looking statements reflecting the company's current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including: our full year 2022 financial guidance; our belief that we will continue to see a gradual overall trend of SCS market recovery, which

we expect to continue in 4Q '22 and into 2023; our belief that the building blocks are in place for

attractive growth and leverage going forward and the challenges to the market are gradually but steadily improving and will continue to do so through this year and 2023; our expectation that PDN will experience broader penetration and be a more significant revenue contributor in 4Q '22 and 2023; our expectations around an increase in payor coverage for PDN in 2022 and beyond; and our belief that we are positioned to outperform. These forward-looking statements are based upon information that is

currently available to us or our current expectations, speak only as of the date hereof, and are subject to

numerous risks and uncertainties, including our ability to successfully commercialize our products; our ability to manufacture our products to meet demand; the level and availability of third-party payor reimbursement for our products; our ability to effectively manage our anticipated growth and the costs and expenses of operating our business; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing the intellectual property

rights and proprietary technology of third parties; competition in our industry; additional capital and

credit availability; our ability to attract and retain qualified personnel; and product liability claims. These factors, together with those that are described in greater detail in our Annual Report on Form 10-K filed on February 23, 2022, as well as any reports that we may file with the Securities and Exchange Commission in the future, may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. We expressly

disclaim any obligation, except as required by law, or undertaking to update or revise any such forward-

looking statements. Nevro's operating results for the third quarter ended September 30, 2022 are not necessarily indicative of our operating results for any future periods.

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Non-GAAP Financial Measures

Management uses certain non-GAAP financial measures, most specifically Adjusted EBITDA, as a supplement to GAAP financial measures to further evaluate the company's operating performance period over period, analyze the underlying business trends, assess performance relative to competitors and establish operational objectives.

Management believes it is important to provide investors with the same non-GAAP metrics it uses to evaluate the performance and underlying trends of the company's business operations to facilitate comparisons to its historical operating results and evaluate the effectiveness of its operating strategies. Disclosure of these non-GAAP financial measures also facilitates comparisons of the company's underlying operating performance with other companies in the industry that also supplement their GAAP results with non-GAAP financial measures.

EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating non-GAAP Adjusted EBITDA, the company further adjusts for the following items:

• Stock-based compensation expense - The company excludes non-cash costs related to the company's stock-based plans, which include stock options, restricted stock units and performance- based restricted stock units as these expenses do not require cash settlement from the company.

• Litigation-related expenses and charges (credits) - The company excludes legal and professional fees as wells as charges and credits associated with certain legal matters, which management considers not related to the underlying operating performance of the business.

Full-year guidance excludes the impact of foreign currency fluctuations.
The non-GAAP financial measure should not be considered in isolation from, or as a replacement for, the
most directly comparable GAAP financial measures, as it is not prepared in accordance with U.S. GAAP.
Amounts may not add due to rounding.	3

3Q 2022 Results Summary

$ in millions,	3Q'22	Y-Y Change
except %
Worldwide Revenue¹	$100.5	+8%
		as reported
		+10%
		constant currency
U.S. Revenue	$86.1	+10%
International Revenue	$14.3	-5%
		as reported
		+8%
		constant currency
Gross Margin	69.0%	-0.3%
Operating Expenses²	$92.2	+1%
Non-GAAP	$(3.8)	+37%
Adjusted EBITDA³

• PDN represented 13% of worldwide permanent implant procedures, which resulted in ~$13.4 million in revenue in 3Q 2022.
  2 Excludes $105.0 million of certain litigation credits in 3Q'22 and $20.0 million of certain litigation charges in 2Q'21.
  3 Non-GAAP adjusted EBITDA excludes litigation-related expenses and certain litigation charges and credits, interest, taxes and non-cash items such as stock-based compensation, depreciation and amortization. It does not exclude PDN expenses.

• Continue to experience lingering impact of customer facility and staffing issues, these began to improve during 3Q'22
• PDN progress with referring clinicians, payers and clinical societies has exceeded our expectations this year
• Continued to see a gradual overall trend of SCS market recovery, which we expect to continue in 4Q'22 and into
  2023

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3Q 2022 Key Takeaways

• Revenue at high end of guidance range; adj. EBITDA results above high end of guidance range
• US trial procedures +16% vs. prior year, while U.S. PDN trial procedures grew to 18% of total U.S. trials in 3Q and grew sequentially +22% vs. prior quarter
• Painful Diabetic Neuropathy (PDN) represented ~$13.4 million in revenue
• FDA approval of HFX iQTM spinal cord stimulation system
• FDA approval for Costa Rica manufacturing operations
• Multiple positive payer coverage updates for PDN treatment from Aetna and several additional Blue Cross Blue Shield health plans, bringing total covered lives for PDN to ~54% of addressable U.S. PDN patients
• American Association of Clinical Endocrinology (AACE) Clinical Practice Guideline updated to include 10 kHz Therapy to treat PDN
• Building blocks are in place for attractive growth and leverage going forward - believe challenges to market are gradually but steadily improving and will continue

to do so throughout this year and 2023

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