SI-BONE (SIBN) 2025 Conference Transcript

Summary of Cybone's Conference Call Company Overview - Company: Cybone - Industry: Medical Technology (Med Tech) - Focus: Orthopedic, neuro, spine trauma, and interventional spine products Key Points and Arguments Product Portfolio and Market Expansion - Cybone has a diverse product portfolio targeting three main markets: SI joint dysfunction, pelvic fixation, and trauma-related products [2][3][4] - The total addressable market (TAM) for SI joint dysfunction is estimated at $2.5 billion, with approximately 300,000 annual procedures, and Cybone has only 10% market penetration [4] - The pelvic fixation market is estimated at $1 billion, with about 130,000 procedures annually [8] - The company launched several products, including iFuse Torque and Granite, to address specific needs in these markets [3][6][10] Growth Metrics - Since the IPO, Cybone has achieved a CAGR of 20% in revenue growth, accelerating to 23% in the last three years [11] - Recent quarterly growth rates reached 25% worldwide and 27% in the U.S. [42] - The number of active surgeons using Cybone's products reached 1,400, with a record addition of 300 new doctors year-over-year [13][14] Surgeon Engagement and Adoption - The company has seen broad-based growth across various specialties, including interventional, trauma, and orthopedic surgeons [12][14] - There was a 45% increase in the number of doctors performing multimodality procedures, indicating strong engagement with the expanded product portfolio [14] - Cybone aims to increase density by targeting surgeons who primarily perform lumbar fusion procedures to adopt Granite for SI joint dysfunction [15][16] Future Product Development - Cybone is committed to R&D, spending 10% to 12% of revenue on clinical evidence and product development [35] - The company plans to launch a third breakthrough device and additional products targeting unmet clinical needs [36][37][39] Financial Performance and Guidance - Gross margins are currently around 80%, with expectations to stabilize between 76% to 77% in the long term [50] - The company has adopted a conservative approach to guidance, reflecting macroeconomic uncertainties [43][44] - Cybone's operational leverage is strong, with revenue growth outpacing operating expense growth [52] Market Dynamics and Competitive Landscape - Cybone focuses primarily on surgeons, although there is potential for interventionalists to perform procedures [24][25] - The company has established itself as a preferred partner for interventional spine physicians by offering a comprehensive portfolio and strong clinical data [32][31] Sales Force and Territory Expansion - Cybone plans to expand its sales force to capitalize on growth opportunities, aiming for 100 territories over the next 12 to 18 months [56][57] - New hires typically take 2 to 2.5 years to reach full productivity, but this can be accelerated with the right support [58] Additional Important Insights - Cybone's strategy emphasizes identifying unmet clinical needs and developing unique solutions, which has led to high gross margins and a strong financial profile [34] - The company is focused on maintaining a strong relationship with interventionalists while also expanding its reach among surgeons [28][29] This summary encapsulates the key points discussed during the conference call, highlighting Cybone's strategic focus, growth metrics, product development, and market positioning.