Xtant Medical (US:XTNT)2025-03-07 00:12Financial Data and Key Metrics Changes - The company reported record fourth-quarter revenue of $31.5 million, a 12% increase from $28.1 million in Q4 2023, and full-year revenue of $117.3 million, representing a 28% increase from $91.3 million in 2023 [16][24] - Adjusted EBITDA for Q4 2024 was $438,000, compared to an adjusted EBITDA loss of $695,000 in Q4 2023 [22] - The net loss for Q4 2024 was $3.2 million or $0.02 per share, an improvement from a net loss of $4.3 million or $0.03 per share in the same period of 2023 [21] Business Line Data and Key Metrics Changes - The biologics business grew by 21% year-over-year, while hardware sales declined by 10% [7][17] - The decline in hardware sales was attributed to a strong previous year and ongoing EU supply chain issues [8] - The company anticipates mid-double-digit revenue growth in biologics for 2025, while hardware revenue is expected to decline modestly [14] Market Data and Key Metrics Changes - The company faced challenges in its international business due to supply chain issues in the EU, impacting sales [8] - The biologics segment's growth was driven by new product offerings, particularly the OsteoVide Plus stem cell product and the Ambion product line [7] Company Strategy and Development Direction - The company is focusing on achieving self-sustainability and prioritizing profitability over revenue growth [13] - Plans include leveraging cost-cutting measures and operational efficiencies from the integration of Surgiline [4][5] - The company aims to rationalize its hardware lines and improve cash management [6][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year due to the integration of Surgiline and emphasized a leaner, more efficient operation moving forward [3] - The company expects to generate significant cash flow in 2025 and does not anticipate needing to raise additional capital [15][29] - Management expressed optimism about the growth potential of new product launches and the overall market demand [60] Other Important Information - The company has reduced operating expenses by approximately $5 million since August 2024, primarily through headcount reductions [4] - The gross margin for Q4 2024 was 50.8%, down from 61% in Q4 2023, impacted by inventory write-offs and reduced production throughput [17][18] Q&A Session Summary Question: Growth in Biologics - The growth in the biologics segment was primarily driven by white label products, with expectations for a more balanced contribution from Xtant branded products in 2025 [33][35] Question: 2025 Guidance - Management discussed expectations for revenue pacing in 2025, indicating a consistent seasonal pattern similar to 2024, with potential for outperformance if certain licensing determinations are favorable [50][58] Question: Cost Savings Impact - Cost savings from operational efficiencies are expected to be visible in the P&L starting in Q1 2025, with significant reductions already implemented [70][71]