Summary of SI-BONE FY Conference Call (December 02, 2025) Company Overview - **Company**: SI-BONE (NasdaqGM:SIBN) - **Industry**: Medical Technology, specifically focused on orthopedic devices and surgical solutions Key Points and Arguments Financial Performance - **Q3 Revenue Growth**: Achieved a total revenue growth of **21%** year-over-year, indicating strong business performance [12] - **Physician Engagement**: Notable **27%** increase in the number of physicians performing procedures, with **330 more surgeons** participating, totaling over **1,500 surgeons** in Q3 2025 [12] - **Profitability**: The company has reported four consecutive quarters of adjusted EBITDA profitability and has reached net cash break-even in recent quarters [12] Product and Market Strategy - **Innovative Products**: The company has established a reputation for innovation, with over **180 peer-reviewed publications** supporting the safety and efficacy of its products [14] - **Sales Strategy**: Utilizes a hybrid sales approach with **88 territory managers** and over **300 third-party agents** to expand market reach [13] - **Diversification**: The company has diversified its product offerings beyond SI Joint Fusion to include pelvic fixation and other breakthrough devices, mitigating risks associated with patent expirations [21][22] Patent and Competitive Landscape - **Patent Expiration Concerns**: Management expressed confidence regarding patent expirations, noting that the majority of sales come from products with patents extending through **2034-2035** [21] - **Competitive Positioning**: The company is focused on developing a robust pipeline of innovative products to maintain competitive advantages [22] Future Growth Opportunities - **Procedure Expansion**: Currently, **25%** of SI joint surgeons are performing multiple procedure types; there is potential to increase this to **50%** [30] - **New Product Launches**: A new product targeting a significant unmet clinical need in spine surgery is expected to launch in the second half of **2026**, which could further enhance growth [31] - **Market Penetration**: The company aims to increase its penetration in the SI Joint Fusion market from **10%** to potentially **15-20%** over time [60] Reimbursement and Regulatory Environment - **Reimbursement Increases**: Recent changes in reimbursement policies are expected to provide tailwinds, including a **30%** higher reimbursement for pelvic ring fracture cases and a **17%** increase for SI Joint Fusion procedures starting January 1, 2026 [52][53] - **Outpatient Opportunities**: The shift of many inpatient procedures to outpatient settings presents additional growth opportunities, particularly for the Granite product [54] Gross Margin and Operational Efficiency - **Gross Margin Performance**: The company reported gross margins exceeding **78%**, driven by better-than-expected average selling prices (ASP) and supply chain efficiencies [80] - **Future Margin Expectations**: Management anticipates maintaining gross margins around **78%** over the next few years, with potential for improvement as new products scale [81] Investment and R&D Focus - **Long-term Growth Strategy**: The company plans to continue investing in R&D to support its pipeline of new products, particularly in the area of compromised bone solutions [91] - **Operating Leverage**: Expected operating leverage of **1.5 times** revenue growth over operating expenses, indicating a focus on maintaining healthy adjusted EBITDA margins [90] Additional Important Insights - **Market Size**: The Granite product targets a **billion-dollar** market, with significant potential for growth as the company expands its offerings [37] - **Sales Force Integration**: New products are expected to be easily integrated into the existing sales force, potentially enhancing overall market attention and sales [47] This summary encapsulates the key insights from the SI-BONE FY Conference Call, highlighting the company's strong performance, innovative strategies, and future growth potential in the medical technology sector.

The statements in this presentation regarding expectations of future events or results, including SI-BONE's expectations of continued revenue and procedure growth and financial outlook, are "forward-looking" statements. These forward-looking statements are based on SI-BONE's current expectations and inherently involve significant risks and uncertainties. These risks include SI-BONE's ability to introduce and commercialize new products and indications, SI-BONE's ability to maintain favorable reimbursement fo ...

Company Participation - SI-BONE, Inc. will participate in the 2025 Goldman Sachs 46 Global Healthcare Conference in Miami Beach, FL, hosting a fireside chat on June 10, 2025, at 8:20 a.m. Pacific Time [1] Company Overview - SI-BONE is a global leader in developing technologies for surgical treatment of sacropelvic disorders, having pioneered minimally invasive SI joint surgery in 2009 with the iFuse Implant System [3] - The company has supported over 4,500 physicians in performing more than 120,000 procedures, backed by over 160 peer-reviewed publications, including two randomized controlled trials [3] - SI-BONE has expanded its offerings to adjacent markets, including adult deformity, spinopelvic and sacropelvic fixation, and pelvic trauma [3]

Financial Data and Key Metrics Changes - Worldwide revenue for the quarter reached $47.3 million, representing approximately 25% growth compared to the prior year [6][27] - U.S. revenue was $44.8 million, reflecting approximately 27% growth, driven by a 27.3% increase in procedure volume [7][28] - Gross profit was $37.7 million, an increase of $7.8 million or 26.2%, with a gross margin rate of 79.7%, improving by nearly 80 basis points [28] - Net loss narrowed to $6.5 million or $0.15 per diluted share, compared to a net loss of $10.9 million or $0.27 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - The company experienced broad-based demand for existing technologies and rapid adoption of new solutions launched last year [7][9] - The number of four implant Granite cases grew approximately 69% compared to the prior year period [14] - The introduction of iFuse Torque and iFuse Intra has expanded the market and accelerated procedure volume growth [11][12] Market Data and Key Metrics Changes - The total addressable market has increased to over $3.5 billion, with 25% cumulative procedure volume growth over the last three years [10][11] - The company is targeting nearly 100,000 degenerative procedures annually with the Granite product, which became eligible for transitional pass-through payment starting January 1, 2025 [14] - The pelvic trauma market, with nearly 60,000 potential target procedures annually, represents a $300 million market opportunity [18] Company Strategy and Development Direction - The company focuses on innovation, engagement, commercial execution, and operational excellence as key priorities [10] - A hybrid commercial model combining territory managers and clinical specialists with third-party agents is being utilized to enhance market reach [25] - The company plans to launch new products over the next twelve to eighteen months, including a new SI joint fusion solution and a breakthrough device targeting spine surgery [19][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for solutions and the ability to maintain strong revenue growth despite macroeconomic uncertainties [32][56] - The company updated its full-year revenue guidance to a range of $193.5 million to $197.5 million, implying year-over-year growth of approximately 16% to 18% [33][34] - Management highlighted the importance of favorable reimbursement trends and the potential for continued growth in procedure volumes [15][56] Other Important Information - The company exited the quarter with $144.4 million in cash and marketable securities, with a total cash usage of $5.6 million, a 31.7% improvement over the prior year [30] - The company does not anticipate any material impact on gross margins or supply chain from proposed tariffs, as most manufacturing is domestic [31] Q&A Session Summary Question: Contribution from new products and channels to growth - Management noted broad-based growth across all modalities, with strong demand for new products launched in 2024 contributing to accelerating growth [39] Question: Drivers of strong gross margin and future expectations - Management attributed gross margin improvement to better-than-expected average selling prices and supply chain efficiencies, while remaining cautious about potential pressures [42][46] Question: Long-term growth potential and guidance - Management expressed confidence in sustained growth potential beyond 2025, driven by technology leadership and expanding physician engagement [55] Question: Sequential growth expectations and guidance update - Management indicated that while they expect to maintain strong growth, they are being prudent in their guidance due to macroeconomic conditions [64] Question: Operating expenses and growth expectations - Management highlighted that increased operating expenses are linked to R&D investments and sales commissions, but they expect to maintain healthy operating leverage [70]