SI-BONE, Inc. Q3 FY2024 earnings call

• Sales infrastructure: Direct sales team of 82 territory managers and third-party agents, trailing 12-month revenue per territory increased 21% to $1.8 million, aiming to exceed $2 million. Leveraging hybrid commercial models with partnerships for market penetration.
• Physician engagement: Ended the quarter with over 1,200 active physicians, a 150-physician increase year-over-year. 35% more physicians performing multiple procedures, revenue from previously trained residents/fellows up over 75%.
• Products and clinical evidence: TNT received 510(k) clearance, initiated NTAP process for TNT. TORQ remains interventional spine cornerstone. STACI study enrolled 110 patients with zero serious adverse events. Granite granted TPT payment, 9.5 exceeding expectations with 40% increase in stacked cases.

In the third quarter, SI-BONE delivered worldwide revenue of $40.3 million, reflecting 19% growth. US revenue grew by 18% to $38.3 million, and international revenue was $2.1 million, representing 21% growth. Gross profit for the quarter was $31.9 million, an increase of 18%, with a gross margin of 79%. Revenue contribution from different segments: US segment contributed the majority at $38.3 million, international at $2.1 million, and the rest from other product lines.

• 2024 worldwide revenue guidance revised to $165M-$166M (19%-20% growth), expects fourth quarter adjusted EBITDA positive. Impact from hurricanes and IV shortage on case scheduling, but momentum remains strong.
• 2025 outlook: Favorable physician interest, reimbursement frameworks (NTAP for TNT, TPT for Granite), Granite expansion, TNT demand, and planned sales force expansion to drive profitable growth.

• Ability to introduce and commercialize new products/indications.
• Maintenance of favorable reimbursement.
• Economic weakness impact on elective procedures.
• Supply chain risks.
• Healthcare operating environment normalization challenges.

Q: Craig Bijou asks about quantifying hurricane and IV impact on guidance.

A: Laura and Anshul discuss temporary case scheduling disruptions due to hurricanes and IV issues, with limited impact to a few sites but incorporated into guidance.

Q: Young Li inquires about SI joint fusion market and competitive dynamics.

A: Laura states SI-BONE is market leader in SI joint fusion, with strong demand and multiple products, Anshul adds growth in active physicians across modalities.

Q: Drew Ranieri asks about surgeon sales growth and 2025 plans.

A: Laura talks about cross-modality procedure growth, Anshul mentions ASP trends and future growth drivers like Granite and TNT.