SI-BONE(US:SIBN)2023-11-07 02:22Financial Data and Key Metrics Changes - In Q3 2023, the company generated worldwide revenue of $34 million, a 29% increase compared to Q3 2022, with U.S. revenue reaching $32.3 million, reflecting a 31% growth year-over-year [11][38] - The adjusted EBITDA loss improved by 44% to $3.9 million from $6.9 million in the prior year, indicating a positive trend towards profitability [44] - The net loss for the quarter was $10 million, or $0.25 per diluted share, compared to a net loss of $14.2 million, or $0.41 per diluted share in the previous year, representing a 29% reduction in net loss [43] Business Line Data and Key Metrics Changes - The number of active U.S. surgeons exceeded 1,000 for the first time, with nearly 3,900 procedures performed in Q3 2023, marking a 30% growth in active surgeons compared to Q3 2022 [12][18] - U.S. procedure volume grew by approximately 34%, continuing a trend of over 30% growth for four consecutive quarters [38] - The average revenue per U.S. territory reached over $1.5 million, representing a 38% productivity gain over the previous year [17] Market Data and Key Metrics Changes - International revenue was $1.7 million, remaining nearly flat, with strong performance noted in France and improvements in the U.K. [39] - The company is focusing on revitalizing growth in Germany and the rest of Europe through expanded surgeon engagement [40] Company Strategy and Development Direction - The company aims to capitalize on a market opportunity of nearly 500,000 annual procedures, positioning itself for sustained revenue growth [13] - Investments in R&D and clinical research are prioritized to support long-term growth and progress towards breakeven [42] - The company is expanding its product portfolio and surgeon base, with a hybrid sales strategy that combines direct sales teams and third-party agents [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business, citing record revenue and strong demand for their solutions despite industry seasonality [10] - The updated 2023 revenue growth guidance is set at 28% to 29%, reflecting strong performance and momentum [13][47] - Management noted that the trajectory of cash utilization has improved significantly, with cash used in operating activities down 53% year-to-date compared to the previous year [45] Other Important Information - The company has achieved a significant milestone with the introduction of new products like iFuse-TORQ and iFuse Bedrock Granite, which are expected to drive future growth [22][27] - The company has extended its patents on key products, enhancing its competitive position in the market [113] Q&A Session Summary Question: Can you quantify the impact of GLP-1 therapy on demand? - Management indicated that while there is potential for increased surgery-ready patients due to GLP-1 therapy, they do not foresee a significant downside risk to demand for their products [50][58] Question: What is the outlook for Q4 and 2024? - Management expressed optimism for Q4, citing strong demand trends and a record number of active surgeons, while guidance for 2024 will be provided in the next earnings announcement [62][64] Question: How is utilization holding up with the increase in active surgeons? - Management noted that utilization remains consistent, with an increase in active surgeons contributing to a stable number of procedures per surgeon [100] Question: What is the trend for gross margin and operating expenses? - Management stated that gross margin is expected to be around 80% for the year, with operating expenses growing mid-single digits, reflecting ongoing investments in growth [47][89]