OrthoPediatrics (KIDS) FY Conference Transcript

Summary of OrthoPediatrics Conference Call Company Overview - Company: OrthoPediatrics - Industry: Medical Devices, specifically Pediatric Orthopedics - Focus: Developing orthopedic solutions exclusively for the pediatric population - Impact: Helped over 1,200,000 children with orthopedic devices since founding [4] Core Business Insights - Unique Position: OrthoPediatrics is the only company focused exclusively on pediatric orthopedics, addressing unique clinical conditions in children [4][5] - Market Size: The global pediatric orthopedic market is estimated at $6.2 billion, with the U.S. addressable market at approximately $2.6 billion [8] - Growth Rate: The company has experienced nearly 20% year-over-year growth for nearly two decades [7] - Customer Base: Serves 100% of the top children's hospitals in the U.S. and Canada, with an estimated 95% of children's hospitals in developed countries as customers [6] Strategic Pillars 1. Focus on High-Volume Children's Hospitals: Targeting major hospitals rather than community physicians [9] 2. Comprehensive Product Offering: Aspiring to provide all necessary products to pediatric orthopedic surgeons [10] 3. Investment in R&D: Significant investments in research and development to expand product offerings [11] 4. Clinical Education: Commitment to training the next generation of pediatric orthopedic surgeons [20] 5. Market Expansion: Plans to expand into new markets and territories [33] Financial Performance - Revenue Growth: Projected revenue for 2025 is between $237 million and $242 million, with a record revenue of over $61 million in the latest quarter [36][42] - Adjusted EBITDA: Expected to be between $15 million and $17 million for 2025, up from $8.5 million in 2024 [36] - Cash Flow: Projected to be cash flow breakeven in Q4 2023 and for the full year of 2026 [37] Product Development and Innovations - Product Portfolio: Over 80 unique pediatric systems, with a focus on clinically significant and disruptive technologies [6][13] - Scoliosis Solutions: Investments in early onset scoliosis treatments and new technologies like the Vertaglyde system, which is expected to drive growth [25][28] - Specialty Bracing: Expansion into specialty bracing, representing a $500 million opportunity [18] Market Dynamics - Competitive Landscape: The market is described as benign with limited competition, allowing OrthoPediatrics to focus on its unique offerings [8] - Partnerships and Acquisitions: Actively acquiring smaller companies with innovative technologies that benefit pediatric orthopedics [15][16] Key Challenges and Opportunities - Challenges: Historical reliance on repurposed adult implants and limited product development for pediatric use [5] - Opportunities: Expanding into new markets and developing new products to meet the needs of pediatric orthopedic surgeons [33] Conclusion - OrthoPediatrics is positioned as a leader in pediatric orthopedics with a strong growth trajectory, a commitment to innovation, and a focus on clinical education and market expansion. The company is well-recognized in the industry and is actively working to address unmet needs in pediatric orthopedic care [14][21].