Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SI-BONE Inc (SIBN, Financial) reported record worldwide revenue of $40.3 million for Q3 2024, reflecting a 19% growth.
- The company achieved significant progress towards profitability, with an adjusted EBITDA loss of only $200,000, a 94% improvement.
- SI-BONE Inc (SIBN) received 510-K clearance for iFuse TORQ TNT, expanding its presence in the trauma market.
- The company reported a 21% increase in revenue per territory, reaching $1.8 million, indicating strong sales infrastructure performance.
- SI-BONE Inc (SIBN) ended the quarter with over 1,200 active physicians, an increase of nearly 150, demonstrating strong physician engagement.
Negative Points
- The company experienced temporary disruptions in case scheduling and cancellations due to hurricanes, impacting revenue potential.
- There was a higher summer seasonality impact due to surgeon vacations, affecting the quarter's revenue.
- SI-BONE Inc (SIBN) faced challenges with IV solution supply issues, causing limited case deferrals at certain sites.
- The company anticipates that some deferred cases due to hurricanes and IV shortages may move to 2025, affecting current year guidance.
- Despite strong revenue growth, SI-BONE Inc (SIBN) still reported a net loss of $6.6 million for the quarter.
Q & A Highlights
Q: Can you quantify the impact of hurricanes and IV shortages on the quarter and guidance?
A: Laura Francis, CEO: We achieved record revenue and were close to adjusted EBITDA break-even. However, temporary disruptions from hurricanes and higher summer seasonality affected revenue potential. Anshul Maheshwari, CFO: The guidance reflects transient factors like IV shortages, with some deferred cases possibly moving to 2025 due to hospital capacity limitations.
Q: How should we think about SI-BONE's ability to maintain momentum into 2025, especially regarding profitability?
A: Anshul Maheshwari, CFO: Elevated physician interest, favorable reimbursement frameworks, and the expanded Granite platform are key growth drivers. We expect operating leverage to continue, with potential full-year adjusted EBITDA positivity in 2025.
Q: Can you comment on the health of the SI Joint Fusion market and any changes in competitive dynamics?
A: Laura Francis, CEO: SI-BONE remains the market leader with strong demand from surgeons and interventionalists. We offer comprehensive solutions like iFuse 3D, TORQ, and INTRA, supported by our experienced sales force and educational approach.
Q: What is the impact of the transitional pass-through (TPT) status for Granite on growth?
A: Laura Francis, CEO: The TPT status, effective January 2025, allows hospitals to fully pass through Granite technology costs, enhancing its reimbursement profile. This supports the migration of Granite cases to outpatient settings, expanding its market potential.
Q: How is the early use of the pelvic fracture device TNT progressing, and what feedback have you received?
A: Laura Francis, CEO: The early feedback on TNT is strong, fitting well within surgeon workflows. We are attracting interest from regional distributors and evaluating NTAP for TNT, which could be effective in October 2025, positioning TNT as a growth driver in the $300 million market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
