SI-BONE (SIBN) 2025 Conference Transcript

Summary of SI-BONE (SIBN) Conference Call - May 13, 2025 Company Overview - Company: SI-BONE (SIBN) - Industry: Medical Devices, specifically focused on spinal and orthopedic solutions Key Financial Highlights - Q1 Revenue Growth: 25% overall, with 27% growth in the US [3][6] - Volume Growth: 27% increase in volume, broad-based across all modalities [3][5] - Active Physicians: Added 300 active physicians in Q1, reaching a record of over 1,400 [4][5] - Gross Margin: Close to 80%, with an 80 basis point improvement [5][22] - Adjusted EBITDA: Positive for the second consecutive quarter [6][30] - Cash Burn: Declined by approximately 32% [6] Market and Product Insights - Total Addressable Market (TAM): - SI joint dysfunction: $2.5 billion - Pelvic fixation: $1 billion - Trauma market: $300 million [9][10] - Core Business: SI joint dysfunction remains the largest segment, with new product launches contributing to growth [10][11] - New Product Launches: - Torque (2021) and Intra (2024) have been significant growth drivers [10][11] - Upcoming product targeting SI joint dysfunction expected in Q1 2026 [11][54] Guidance and Future Outlook - Guidance Approach: Conservative, with a thoughtful approach to setting expectations for the remainder of 2025 [14][16] - Long-term Growth Drivers: - Technology leadership and physician engagement for new products [15][16] - Reimbursement tailwinds from NTAP and TPT [15][16] - Q2 and Q3 Expectations: Anticipated variability due to seasonal factors and macroeconomic conditions [20][21] Operational Efficiency - Operating Leverage: Revenue growth has consistently outpaced operating expense growth, with a target of 1.75x revenue to OpEx growth [30][32] - R&D Investments: Continued focus on R&D for new products, with elevated spending expected [31][34] Physician Engagement Metrics - Active Physician Growth: Four years of double-digit growth, doubling the active physician base over the last two years [39][40] - Procedure Volume: 30% increase in same-store sales for procedures performed by existing physicians [42] Interventional Strategy - Interventional Market Engagement: Focus on interventional spine physicians, with successful product launches leading to increased adoption [46][48] - New Product for Interventionalists: Expected to simplify workflows and attract new interventionalists [49][51] Pipeline Products - Upcoming Products: - SI joint dysfunction product expected in Q1 2026 [54][56] - Third BDD product in development, targeting pressing issues in the spine industry [54][55] Conclusion - Overall Performance: Strong Q1 results provide a solid foundation for continued growth, with a focus on expanding physician engagement and product offerings in the medical device market [6][15]