SI-BONE(SIBN) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a record $49 million in worldwide revenue for Q4 2024, representing growth exceeding 26% compared to the previous year [9][41] - U.S. revenue increased by 28% to$ 46.9 million, driven by strong demand from nearly 1,400 active physicians [10][41] - Gross profit for Q4 increased by 35% to $38.8 million, with a gross margin of 79% [43] - The net loss improved by nearly 60% to$ 4.5 million, or $0.11 per diluted share [45] - Positive adjusted EBITDA of$ 1.9 million was achieved in Q4, compared to an adjusted EBITDA loss of $4.8 million in Q4 2023 [46] Business Line Data and Key Metrics Changes - The SI joint fusion procedures saw a surge in demand, particularly with the adoption of the TORQ and INTRA products [11][24] - The Granite 9.5% product gained momentum, with a nearly 45% increase in stack granite volume compared to the prior year [26][32] - The newly launched TNT product exceeded expectations in adoption, indicating strong early demand [11][34] Market Data and Key Metrics Changes - The company ended 2024 with$ 150 million in cash and marketable securities, with total cash usage in Q4 being less than $800,000 [47] - International revenue for Q4 was$ 2.1 million, with full-year international revenue at $8.8 million [42] Company Strategy and Development Direction - The company aims to implement targeted commercial initiatives to fuel adoption of its expanded portfolio and grow its physician base [13] - Plans to increase procedure density through multimodality physician engagement and lay groundwork for commercialization of new products [14] - The company is focused on maintaining its leadership position in the market through innovation and strategic partnerships [17][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong revenue growth and profitability in 2025, driven by robust procedure demand and a growing physician base [48][51] - The company anticipates worldwide revenue of$ 193.5 million to $195.5 million in 2025, implying year-over-year growth of approximately 16% to 17% [49] - Management highlighted the importance of clinical publications in accelerating adoption and maintaining differentiated reimbursement [38] Other Important Information - The company is cooperating with the Department of Justice (DoJ) regarding an ongoing investigation, with no material updates expected prior to resolution [39][135] - The company has been awarded breakthrough device designation for a new novel implant system, positioning it as a category creator in the industry [36][100] Q&A Session Summary Question: Growth drivers for the company - Management noted strong momentum across all procedure types, with significant contributions from SI joint fusion, Granite 9.5%, and TNT products [56][58] Question: Guidance for 2025 growth - Management provided a balanced approach to guidance, incorporating assumptions about ASP decline and one less procedure day in the year [62][66] Question: Competitive landscape - Management expressed confidence in maintaining market leadership, supported by a comprehensive product portfolio and strong educational initiatives [71][72] Question: Update on Granite NTAP - Management confirmed that they have submitted an application to CMS for a higher paying code for Granite, with updates expected mid-year [111] Question: Profit ramp cadence through 2025 - Management expects to be adjusted EBITDA positive in the second half of 2025, with a focus on maintaining operating leverage [117][121]