OrthoPediatrics(KIDS)2025-03-05 01:15Financial Data and Key Metrics Changes - The company reported total revenue of 42.9 million, a 52% increase year-over-year, accounting for 79% of total revenue [54] - International revenue was 3.0 million, more than double the 3.7 million, a 70% reduction compared to the year-to-date average for the first three quarters of 2024 [64] Business Line Data and Key Metrics Changes - Trauma and deformity global revenue reached 15.6 million, increasing by 62% year-over-year [57] - The OPSB business is expected to grow north of 20% in 2025, driven by high demand and successful integration of Boston OMP [111] Market Data and Key Metrics Changes - International sales generated 500 million pediatric orthopedic market [11][10] - Focus on capital-efficient growth through the OPSB business, which has a higher contribution margin than the implant business [11] - The company is expanding its clinic business and anticipates significant growth opportunities in new territories [27][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong demand for products and successful scaling of operations [14][18] - The anticipated EU MDR approval is expected to be a significant catalyst for growth in 2025 and beyond [42][43] - Management highlighted the importance of surgeon training and education in maintaining leadership in the pediatric orthopedic market [45] Other Important Information - The company made strategic decisions, including a $3.7 million restructuring charge due to the closure of the OP Israel office [49] - Gross profit margin for Q4 2024 was 68%, down from 71% in Q4 2023, primarily due to reclassification of expenses [59][60] Q&A Session Summary Question: Guidance on segment contributions and international business impact - Management indicated that while they do not guide by segment, they expect positive impacts from EU MDR in 2025 and beyond, with scoliosis growth likely outpacing trauma and deformity [75][82] Question: Opportunities in OPSB and clinic expansion - Management confirmed strong demand for OPSB and clinic expansion, with expectations of significant growth in 2025 [88][92] Question: Gross margin outlook and potential for improvement - Management acknowledged potential for gross margin improvement through consolidation and pricing strategies, but maintained conservative guidance [98][102] Question: Update on enabling technology and new product launches - Management reported progress on the Playbook enabling technology and confirmed that the new fusion implant system is on track for launch in the second half of the year [130]