SI-BONE, Inc. Reports Fourth Quarter and Full Year 2022 Financial Results and Issues 2023 Guidance
SI-BONE, Inc. (Nasdaq:SIBN) reported a strong financial performance for Q4 and full year 2022, with worldwide revenue reaching $32.0 million in Q4 and $106.4 million for the full year, reflecting increases of 27% and 18%, respectively. U.S. revenue was $30.0 million in Q4 and $98.8 million for 2022, driven mainly by increased domestic case volumes. Despite a net loss of $11.2 million in Q4 and $61.3 million for the full year, the company's adjusted EBITDA loss improved by 54%. Looking ahead, SI-BONE expects 2023 revenue to be between $124 million and $127 million, with a projected gross margin of 80%.
- Worldwide revenue increased 27% in Q4 2022 and 18% for full year 2022.
- U.S. revenue grew 28% in Q4 2022 and 19% for full year 2022.
- Gross margin remained strong at 84% in Q4 2022 and 85% for full year 2022.
- Active surgeon base grew to over 920, a 33% increase year-over-year.
- Successful refinancing of existing debt with a new $51 million credit facility.
- Positive 2023 revenue guidance of $124 million to $127 million indicates continued growth.
- Net loss increased to $61.3 million for 2022 from $56.6 million in 2021.
- Operating expenses rose 14% in 2022, impacting overall profitability.
- Gross margin declined from 88% in 2021 to 85% in 2022 due to multiple factors.
- Challenges in international revenue growth due to unfavorable foreign exchange rates.
SANTA CLARA, Calif., Feb. 27, 2023 (GLOBE NEWSWIRE) -- SI-BONE, Inc. (Nasdaq:SIBN), a medical device company dedicated to solving musculoskeletal disorders of the sacropelvic anatomy, today reported financial results for the fourth quarter and full year ended December 31, 2022.
Recent Financial Highlights
- Worldwide revenue of
$32.0 million for the fourth quarter 2022 and$106.4 million for the full year 2022, representing an increase of27% and18% , respectively, over the corresponding prior year periods - U.S. revenue of
$30.0 million for the fourth quarter 2022 and$98.8 million for the full year 2022, representing an increase of28% and19% , respectively, over the corresponding prior year periods - Gross Margin of
84% in the fourth quarter 2022 and85% for the full year 2022 - Refinanced existing
$35 million term loan with a new$51 million credit facility, including a$36 million term loan and a$15 undrawn revolving credit facility
Recent Operational Highlights
- Over 920 active surgeons in the fourth quarter 2022, approximately
33% increase over the prior year period - Surpassed 80,000 procedures performed by over 3,000 surgeons worldwide
- Received FDA clearance for promotion of general rod compatibility for iFuse Bedrock Granite® for adult deformity procedures
- Effective January 1, 2023 Medicare facility fee increased by approximately
26% and33% for MIS SI joint fusion procedures performed in ASCs and hospital outpatient departments, respectively
“Our performance in the fourth quarter, including strong revenue growth, a record active surgeon base, and significant operating leverage is an outcome of the successful execution of our strategic priorities over the last several quarters,” said Laura Francis, Chief Executive Officer of SI-BONE. “Based on the growing surgeon interest in our differentiated solutions, including the recently launched iFuse Bedrock Granite, and favorable health economics I am optimistic that we may be entering a period of strong and sustained procedure growth in the U.S. I am confident that our expanded portfolio, seasoned salesforce and scalable infrastructure position us well to capitalize on this underlying momentum in the business, deliver strong growth and gain additional operating leverage in 2023.”
Fourth Quarter 2022 Financial Results
Worldwide revenue was
Gross margin was
Operating expenses increased
Net loss was
Adjusted EBITDA loss improved in the fourth quarter 2022 by
2022 Financial Results
Revenue was
Gross margin was
Operating expenses increased
Net loss was
Adjusted EBITDA loss was
Cash and marketable securities were
2023 Financial Guidance
SI-BONE continues to experience demand momentum but remains cognizant of the early phase of re-acceleration of the U.S. business and the pace of international recovery. Considering these factors, SI-BONE expects 2023 worldwide revenue of approximately
Webcast and Conference Call Information
SI-BONE will host a conference call to discuss the fourth quarter 2022 financial results after market close on Monday, February 27, 2023 at 4:30 P.M. Eastern Time. The conference call can be accessed live over webcast at https://edge.media-server.com/mmc/p/px3jaycu. Live audio of the webcast will be available on the “Investors” section of the company’s website at: www.si-bone.com. The webcast will be archived and available for replay for at least 90 days after the event.
About SI-BONE
SI-BONE (NASDAQ: SIBN) is a global leader in technology for surgical treatment of musculoskeletal disorders of the sacropelvic anatomy. Since 2009, when SI-BONE introduced the iFuse Implant System for minimally invasive surgery of the SI joint, over 3,000 surgeons have performed a combined total of more than 80,000 SI joint fusion procedures. A unique body of evidence, supporting the iFuse Implant System, including two randomized controlled trials and over 120 peer reviewed publications, has enabled multiple government and private insurance payors to establish near-universal coverage of minimally invasive SI joint fusion, including many payors that cover the procedure exclusively when performed with the iFuse Implant System. Supported by this proprietary reimbursement advantage, SI-BONE has actively leveraged its market leadership position in recent years to further clinical research, and evolve and commercialize novel surgical treatment solutions for SI-Joint pain, sacropelvic and pelvic fixation, and pelvic trauma.
For additional information on the company or the products including risks and benefits, please visit www.si-bone.com.
SI-BONE, iFuse Implant System and iFuse-TORQ are registered trademarks of SI-BONE, Inc. ©2023 SI-BONE, Inc. All Rights Reserved.
Forward-Looking Statements
The statements in this press release regarding expectations of future events or results, including SI-BONE’s expectations of continued revenue and procedure growth and financial outlook, contained in this press release are "forward-looking" statements. These forward-looking statements are based on SI-BONE's current expectations and inherently involve significant risks and uncertainties. These risks include SI-BONE's ability to introduce and commercialize new products and indications, SI-BONE's ability to maintain favorable reimbursement for procedures using its products, the impact of any future economic weakness on the ability and desire of patients to undergo elective procedures including those using SI-BONE's devices, the impact of future fluctuations in currency exchange rates on SI-BONE's revenues, SI-BONE's ability to manage risks to its supply chain, future capital requirements driven by new surgical systems requiring instrument tray investment, and the future impact the COVID-19 pandemic will have on the ability and desire of patients and physicians to undergo procedures using SI-BONE's devices. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these and other risks and uncertainties, many of which are described in the company's most recent filings on Form 10-K and Form 10-Q, and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov), especially under the caption "Risk Factors". SI-BONE does not undertake any obligation to update forward-looking statements and expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein, except as required by law.
Use of Non-GAAP Financial Measures
SI-BONE uses Adjusted EBITDA, a non-GAAP financial measures that excludes from net loss the effects of interest income, interest expense, depreciation and amortization and stock-based compensation. SI-BONE believes the presentation of Adjusted EBITDA is useful to management because it allows management to more consistently analyze period-to-period financial performance and provides meaningful supplemental information with respect to core operational activities used to evaluate management's performance. SI-BONE also believes the presentation of Adjusted EBITDA is useful to investors and other interested persons as it enables these persons to use this additional information to assess the company’s performance in using this additional metric that management uses to assess the company’s performance.
Adjusted EBITDA should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because Adjusted EBITDA excludes the effect of items that increase or decrease the Company's reported results of operations, management strongly encourages investors to review, when they become available, the Company's consolidated financial statements and publicly filed reports in their entirety. The Company's definition of Adjusted EBITDA may differ from similarly titled measures used by others.
Investor Contact
Saqib Iqbal
Director, FP&A and Investor Relations
investors@SI-BONE.com
SI-BONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 31,953 | $ | 25,230 | $ | 106,409 | $ | 90,152 | ||||||||
| Cost of goods sold | 5,089 | 3,375 | 15,705 | 10,428 | ||||||||||||
| Gross profit | 26,864 | 21,855 | 90,704 | 79,724 | ||||||||||||
| Gross margin | 84 | % | 87 | % | 85 | % | 88 | % | ||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 27,609 | 26,353 | 107,726 | 93,884 | ||||||||||||
| Research and development | 3,480 | 3,049 | 13,627 | 12,441 | ||||||||||||
| General and administrative | 7,069 | 6,383 | 28,960 | 25,069 | ||||||||||||
| Total operating expenses | 38,158 | 35,785 | 150,313 | 131,394 | ||||||||||||
| Loss from operations | (11,294 | ) | (13,930 | ) | (59,609 | ) | (51,670 | ) | ||||||||
| Interest and other income (expense), net: | ||||||||||||||||
| Interest income | 749 | 35 | 1,304 | 186 | ||||||||||||
| Interest expense | (881 | ) | (568 | ) | (2,819 | ) | (5,365 | ) | ||||||||
| Other income (expense), net | 251 | (13 | ) | (132 | ) | 277 | ||||||||||
| Net loss | $ | (11,175 | ) | $ | (14,476 | ) | $ | (61,256 | ) | $ | (56,572 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.32 | ) | $ | (0.43 | ) | $ | (1.79 | ) | $ | (1.71 | ) | ||||
| Weighted-average number of common shares used to compute basic and diluted net loss per share | 34,594,536 | 33,561,440 | 34,201,824 | 33,145,930 | ||||||||||||
SI-BONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 20,717 | $ | 63,419 | ||||
| Short-term investments | 76,573 | 83,560 | ||||||
| Accounts receivable, net | 20,674 | 14,246 | ||||||
| Inventory | 17,282 | 11,498 | ||||||
| Prepaid expenses and other current assets | 2,365 | 3,143 | ||||||
| Total current assets | 137,611 | 175,866 | ||||||
| Property and equipment, net | 15,564 | 8,992 | ||||||
| Operating lease right-of-use assets | 4,002 | 5,248 | ||||||
| Other non-current assets | 375 | 400 | ||||||
| TOTAL ASSETS | $ | 157,552 | $ | 190,506 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,279 | $ | 3,198 | ||||
| Accrued liabilities and other | 13,511 | 12,353 | ||||||
| Operating lease liabilities, current portion | 1,388 | 1,339 | ||||||
| Total current liabilities | 21,178 | 16,890 | ||||||
| Long-term borrowings | 35,171 | 34,973 | ||||||
| Operating lease liabilities, net of current portion | 2,871 | 4,166 | ||||||
| Other long-term liabilities | 30 | 57 | ||||||
| TOTAL LIABILITIES | 59,250 | 56,086 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock and additional paid-in capital | 455,175 | 429,917 | ||||||
| Accumulated other comprehensive income | 232 | 352 | ||||||
| Accumulated deficit | (357,105 | ) | (295,849 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 98,302 | 134,420 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 157,552 | $ | 190,506 | ||||
SI-BONE, INC.
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
(In thousands)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net loss | $ | (11,175 | ) | $ | (14,476 | ) | $ | (61,256 | ) | $ | (56,572 | ) | ||||
| Interest income | (749 | ) | (35 | ) | (1,304 | ) | (186 | ) | ||||||||
| Interest expense | 881 | 568 | 2,819 | 5,365 | ||||||||||||
| Depreciation and amortization | 1,002 | 650 | 3,452 | 2,086 | ||||||||||||
| Stock-based compensation | 5,881 | 4,338 | 23,061 | 16,866 | ||||||||||||
| Adjusted EBITDA | $ | (4,160 | ) | $ | (8,955 | ) | $ | (33,227 | ) | $ | (32,440 | ) | ||||
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