Xtant Medical (XTNT) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported record fourth-quarter revenue of $31.5 million, a 12$28.1 million in Q4 2023, and full-year revenue of $117.3 million, representing a 28$91.3 million in 2023 [16][24] - Gross margin for Q4 2024 was 50.8%, down from 61% in Q4 2023, primarily due to inventory write-offs and reduced production throughput [17][18] - Adjusted EBITDA for Q4 2024 was $438,000, compared to an adjusted EBITDA loss of$695,000 in Q4 2023 [22] Business Line Data and Key Metrics Changes - The biologics business grew by 21% year-over-year, while hardware sales declined by 10% [7][17] - The decline in hardware sales was attributed to a strong previous year and ongoing EU supply chain issues [8] - The company plans to launch four new biologics products in 2025, including a growth factor product and upgraded DBM-based products [9][10] Market Data and Key Metrics Changes - The company anticipates mid-double-digit revenue growth in the biologics segment for 2025, while hardware revenue is expected to decline modestly [14] - The international business faced challenges due to supply chain issues in the EU, impacting sales [8] Company Strategy and Development Direction - The company is focusing on achieving self-sustainability and prioritizing profitability over revenue growth [13] - Cost-cutting measures have led to a reduction in operating expenses by approximately $5 million, including a headcount reduction of over 13$6.2 million in cash and cash equivalents as of December 31, 2024, with net accounts receivable of $20.7 million and inventory of$38.6 million [29] - The company does not anticipate needing to raise additional capital in 2025 due to projected revenue growth and cost savings [15] Q&A Session Summary Question: Insights on Biologics growth and DBM launch - Management indicated that the growth in the biologics segment was primarily driven by white label products, with expectations for a more balanced contribution from Xtant branded products in 2025 [33][35] Question: 2025 guidance assumptions - Management discussed expectations for seasonality in sales and indicated that operating expenses would see improvements, particularly in general and administrative costs [53][54] Question: Potential for outperformance in 2025 - Management noted that any delays in the local coverage determination (LCD) could positively impact revenue, particularly in the wound care segment [58][60] Question: Cost savings impact on P&L - Management confirmed that cost savings measures were already being reflected in Q4 2024 results and would continue to impact the first quarter of 2025 [70][71]