Xtant Medical (US:XTNT)2022-05-08 15:38Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $13 million, a 3% increase from $12.5 million in Q1 2021, driven by new product introductions and higher private label and OEM sales [17] - Gross margin decreased to 58.3% in Q1 2022 from 65% in Q1 2021, attributed to higher production costs and inventory reserve expenses [17] - Operating expenses rose to $9.4 million in Q1 2022 from $8.1 million in the same period last year, with operating expenses as a percentage of total revenue increasing to 72.5% from 64.6% [18] - Net loss for Q1 2022 was $2.2 million or $0.03 per share, compared to a loss of $29,000 or $0.00 per share in Q1 2021 [19] - Adjusted EBITDA for Q1 2022 was a loss of $0.9 million, compared to adjusted EBITDA of $0.8 million in Q1 2021 [19] Business Line Data and Key Metrics Changes - Biologics revenue grew by 13% in Q1 2022, contributing significantly to overall revenue growth [9][21] - Revenue from non-spine markets now represents about 21% of biologics product revenue, up from 18% a year ago, indicating successful penetration into adjacent markets [13] Market Data and Key Metrics Changes - The first quarter of 2022 experienced fluctuations in elective surgical procedures due to the Omicron variant, but a recovery trend was noted in February and March [10] - The company is focusing on expanding its distribution network, having added 60 new distributors in Q1 2022 [12] Company Strategy and Development Direction - The company is pursuing four key growth initiatives: new product introductions, distribution network expansion, adjacent market penetration, and strategic acquisitions [10] - A robust product pipeline is in place, with plans for additional product rollouts in the intermediate and long term [11] - The company aims to increase existing distributor revenue by 10% annually and expand its distribution network, particularly in underserved areas [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of elective surgical procedures as COVID-related constraints diminish, which is expected to accelerate organic growth [15][21] - The company remains focused on addressing operational challenges while maximizing sales coverage through a strong distribution footprint [21] Other Important Information - Scott Neils was appointed as CFO on a non-interim basis effective June 1, 2022, after serving as interim CFO since January [16] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management highlighted a promising trend with 13% growth in biologics revenue and a strong pipeline of new products, indicating confidence in future revenue growth [21]