Si-Bone ((SIBN)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for SI-BONE painted a picture of robust business momentum, underscored by strong revenue growth and successful product launches. The company reported positive adjusted EBITDA, reflecting its solid financial health. However, the call also acknowledged some challenges, including an ongoing DOJ investigation and assumptions of ASP decline, which could pose potential concerns moving forward.
Record-Breaking Revenue and Growth
SI-BONE reported a record $49 million in worldwide revenue for the fourth quarter of 2024, marking a growth of over 26%. This impressive performance was primarily driven by a 28% increase in U.S. revenue, fueled by strong demand from nearly 1,400 active physicians. This growth trajectory highlights the company’s successful market penetration and expanding physician network.
Product Launch Success
The launches of Granite 9.5 and TNT products exceeded expectations, with Granite 9.5 gaining significant momentum and TNT experiencing rapid adoption. These products are anticipated to be major growth drivers in 2025, showcasing SI-BONE’s commitment to innovation and market leadership.
Positive Adjusted EBITDA
SI-BONE achieved a positive adjusted EBITDA of $1.9 million in Q4 2024, a notable turnaround from the previous year’s loss of $4.8 million. This improvement underscores the company’s effective cost management and operational efficiency.
Strong Physician Engagement
The company reported a record number of physicians trained in 2024, with nearly 2,000 U.S. physicians performing at least one procedure. The number of active physicians grew by 23%, with a 40% increase in those performing multiple procedure types, reflecting SI-BONE’s successful engagement and training initiatives.
Breakthrough Device Designations
SI-BONE received breakthrough device designation from the FDA for a new novel implant system, marking its third BDD product. This achievement positions the company as a leader in medical innovation and enhances its competitive edge in the market.
Ongoing DOJ Investigation
The company is currently under investigation by the DOJ concerning field-based education events and physician remuneration. While there are no material updates available, this remains a potential risk factor for SI-BONE.
ASP Decline Assumptions
SI-BONE’s guidance for 2025 includes assumptions of a low to mid-single digit ASP decline due to procedure mix, which could impact revenue expectations. The company is preparing to address these challenges through strategic initiatives.
Gross Margin Projection
For 2025, SI-BONE projects a slight decrease in gross margin to 77% to 78%, compared to 79% in 2024. This is attributed to factors such as product mix and increased depreciation, which the company plans to manage through operational strategies.
Forward-Looking Guidance
Looking ahead, SI-BONE expects to generate worldwide revenue of $193.5 to $195.5 million in 2025, implying a year-over-year growth of approximately 16% to 17%. The company aims to achieve positive free cash flow and plans to selectively increase its direct sales force while leveraging a hybrid model with third-party agents. Key growth priorities include targeted commercial initiatives, enhancing procedure density, and preparing for new product launches.
In conclusion, SI-BONE’s earnings call reflects a positive sentiment with strong revenue growth and successful product launches. Despite challenges such as the DOJ investigation and ASP decline assumptions, the company remains focused on innovation and strategic growth initiatives. Investors and stakeholders can look forward to SI-BONE’s continued momentum and market leadership in the coming year.