Financial Data and Key Metrics Changes - Bioventus reported Q4 2024 revenue of $154 million, a 14% increase year-over-year, with adjusted EBITDA of over $28 million, reflecting a 28% increase compared to the prior year [31][36] - The company achieved adjusted gross margin of 74%, expanding 230 basis points compared to last year [35] - Adjusted net income more than doubled to $13 million, with adjusted earnings per share at $0.15 for the quarter, almost doubling compared to the prior year [36] Business Line Data and Key Metrics Changes - Surgical Solutions revenue accelerated by 18%, with Ultrasonics revenue advancing by more than 20% for the second consecutive quarter [31][32] - Pain Treatments revenue increased by 17%, driven by DUROLANE's strong brand recognition and clinical differentiation [32] - Restorative Therapies sales were flat compared to the prior year, with growth in Exogen offset by a decline in advanced rehabilitation due to divestiture [34] Market Data and Key Metrics Changes - The International segment grew 11% compared to the prior year, benefiting from delayed shipments in the Ultrasonics business [35] - The overall market for Bioventus's products is growing at low to mid-single digits, while the company expects to achieve above-market growth [21] Company Strategy and Development Direction - Bioventus aims to drive above-market revenue growth through diverse growth drivers and enhance profitability while accelerating cash flow [9][20] - The company completed a comprehensive review of its markets and established a framework for sustained and profitable growth, focusing on organic and inorganic opportunities [11] - Key areas of focus include strategic marketing, commercial effectiveness, and medical education to raise awareness about the benefits of ultrasonic surgery [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on positive momentum in 2025, with expectations for continued revenue growth and improved profitability [9][20] - The company plans to maintain high gross margins while focusing on supply chain improvements and aims for 100 basis points of incremental adjusted EBITDA margin improvement in 2025 [27] - Management highlighted the importance of maintaining focus on core business areas and executing growth strategies effectively [39] Other Important Information - The company paid down nearly $50 million in debt in Q4 2024, reducing its net leverage ratio to slightly above 3 turns [19] - For 2025, Bioventus expects net sales in the range of $560 million to $570 million, with adjusted EBITDA between $112 million and $116 million [40][41] Q&A Session Summary Question: Guidance assumptions by segment in 2025 - Management confirmed expectations of mid- to high single digits in pain treatments, low double digits in surgical, and low single digits in restorative therapies [48] Question: Impact of market shifts on HA and DUROLANE performance - Management indicated confidence in HA business growth driven by volume, with stable pricing expected [52] Question: Capital allocation priorities and debt reduction - Management emphasized the importance of reducing debt for financial flexibility while remaining focused on executing business goals [56][58] Question: Trends in bone graft substitutes and growth confidence - Management expressed optimism about the bone graft substitutes business, expecting it to return to double-digit growth in the second half of 2025 [62] Question: Growth expectations for Exogen - Management highlighted the turnaround in Exogen, expecting growth in the low to mid-single digits for 2025 [68] Question: International expansion plans - Management plans targeted geographic expansion internationally, emphasizing the need for high ROI investments [80] Question: Timeline for expanding Ultrasonic technology into general and neurosurgery - Management indicated that while the focus remains on spine surgery, there are plans to penetrate general and neurosurgery segments in the coming years [84]