SI-BONE, Inc. Reports Record Fourth Quarter and Full Year 2023 Financial Results and Issues 2024 Guidance
- Strong revenue growth of ~22% in Q4 and ~31% for FY 2023.
- Gross margins of ~74% in Q4 and ~79% for FY 2023.
- Improvement in net loss by ~2% in Q4 and ~29% for FY 2023.
- Adjusted EBITDA loss declined by ~16% in Q4 and ~48% for FY 2023.
- Cash and equivalents at ~$166 million as of December 31, 2023.
- 2024 revenue expected to grow by 17% to 19%, with a gross margin of ~78% and operating expenses growth of ~9%.
- None.
Insights
The reported financial results from SI-BONE, Inc. indicate a robust performance in terms of revenue growth, both on a quarterly and annual basis. The 22% increase in quarterly revenue and 31% increase in annual revenue are significant and suggest a strong market demand for the company's products. The company's focus on musculoskeletal disorders of the sacropelvic anatomy has evidently resonated with the healthcare market, as seen by the substantial growth in active physicians and procedures performed.
However, the gross margin contraction from 84% to 74% in Q4 and from 85% to 79% annually raises concerns about cost management and pricing pressures. The stated reasons, including excess inventory reserve and higher depreciation costs, should be scrutinized by investors for indications of operational efficiency and cost control. Furthermore, operating expenses have increased, albeit at a slower rate than revenue growth, suggesting some degree of operating leverage.
Looking ahead, the company's guidance for 2024 projects a continuation of revenue growth, albeit at a slower pace of 17% to 19%. The expected improvement in Adjusted EBITDA loss is a positive sign of potential operational efficiency gains. Investors should consider the implications of the revenue guidance in conjunction with the projected gross margin and operating expense growth to evaluate the company's ability to achieve its Adjusted EBITDA breakeven goal.
The medical device sector is highly competitive and SI-BONE's performance indicates a successful penetration in the sacropelvic treatment market. The introduction of new products like the iFuse Bedrock Granite implant and the iFuse TORQ, along with the first SI joint allograft procedure, reflect the company's commitment to innovation and expansion of its product portfolio. These developments could potentially open up new market segments and drive future growth.
The company's growth in active physicians and procedures is a testament to the effectiveness of its commercial strategy and the clinical acceptance of its products. The early SILVIA results, which show the feasibility and safety of pelvic fixation and fusion with iFuse-3D, could further solidify the company's reputation and lead to increased adoption rates among surgeons.
However, the international revenue growth appears to be lagging behind the U.S. market, suggesting that there may be untapped potential or market-specific challenges that need to be addressed. Investors should monitor the company's international expansion strategies and the potential for increased market share abroad.
SI-BONE's financial results reflect key trends in the medical device industry, particularly the growing focus on specialized implants for musculoskeletal conditions. The 510(k) clearance for the iFuse Bedrock Granite implant signifies regulatory success and the company's ability to navigate the FDA approval process, which is crucial in the medical device market.
The reported increase in procedure volume and the number of active physicians using SI-BONE's products suggest strong clinical adoption and a favorable view of the company's technology among healthcare professionals. This could indicate a competitive edge in the sacropelvic treatment niche, which is important for maintaining long-term growth.
The Adjusted EBITDA loss improvement is a positive indicator of the company's progress toward profitability. However, the excess inventory reserve's impact on gross margin is a concern that warrants attention. It could be indicative of inventory management issues or a mismatch between production and demand. Investors should assess the company's inventory turnover rates and the potential impact on cash flow and operational efficiency.
SANTA CLARA, Calif., Feb. 26, 2024 (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, 2023.
Fourth Quarter 2023 Highlights (all comparisons are to the prior year period)
- Worldwide revenue of
$38.9 million , representing an increase of ~22% - U.S. revenue of
$36.7 million , representing an increase of ~22% - Gross Margin of ~
74% , reflecting a ~4 percentage point reduction from excess inventory reserve - Over 1,130 active physicians, representing an increase of ~
22% - Cash and equivalents of ~
$166 million , representing net cash usage of ~$0.8 million
Fiscal Year 2023 Highlights (all comparisons are to the prior year period)
- Worldwide revenue of
$138.9 million , representing an increase of ~31% - U.S. revenue of
$130.6 million , representing an increase of ~32% - Gross Margin of ~
79% , reflecting a ~1 percentage point reduction from excess inventory reserve - Over 1,600 physicians performed more than 15,000 procedures in the U.S.
Recent Operational Highlights
- Received 510(k) clearance for smaller diameter iFuse Bedrock Granite implant, with S1 and pediatric deformity indication
- Published early SILVIA results which demonstrate the feasibility and safety of pelvic fixation and fusion with iFuse-3D and highlighted the prevalence of SI joint pain in
16% of the patients undergoing deformity surgery - Built on the success of iFuse TORQ with interventional spine physicians and completed the first SI joint allograft procedure, reimbursed under CPT 27278, using iFuse INTRA
“2023 was a year of records for us, as our annual worldwide revenue growth exceeded
Fourth Quarter 2023 Financial Results
Worldwide revenue was
Gross margin was ~
Operating expenses increased ~
Net loss improved by ~
Adjusted EBITDA loss, including the
2023 Financial Results
Worldwide revenue was
Gross margin was ~
Operating expenses increased ~
Net loss improved by ~
Adjusted EBITDA loss, which includes the impact of excess inventory reserve, improved by ~
Cash and marketable securities were ~
2024 Financial Guidance
SI-BONE expects 2024 worldwide revenue of
Webcast and Conference Call Information
SI-BONE will host a conference call to discuss the fourth quarter 2023 financial results after market close on Monday, February 26, 2024 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 pioneering minimally invasive surgery of the SI joint in 2009, SI-BONE has supported over 3,600 physicians in performing a total of more than 95,000 sacropelvic procedures. A unique body of clinical evidence supports the use of SI-BONE’s technologies, including two randomized controlled trials and over 125 peer reviewed publications. SI-BONE has leveraged its leadership in minimally invasive SI joint fusion to commercialize novel solutions for adjacent markets, including adult deformity, spinopelvic fixation and pelvic trauma.
For additional information on the company or the products including risks and benefits, please visit www.si-bone.com.
iFuse Bedrock Granite, iFuse-TORQ and SI-BONE are registered trademarks of SI-BONE, Inc. ©2024 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, SI-BONE's ability to manage risks to its supply chain, and future capital requirements driven by new surgical systems requiring investment in instrument trays and implant inventory. 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, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 38,859 | $ | 31,953 | $ | 138,886 | $ | 106,409 | ||||||||
| Cost of goods sold | 10,183 | 5,089 | 29,466 | 15,705 | ||||||||||||
| Gross profit | 28,676 | 26,864 | 109,420 | 90,704 | ||||||||||||
| Gross margin | 74 | % | 84 | % | 79 | % | 85 | % | ||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 28,937 | 27,609 | 110,254 | 107,726 | ||||||||||||
| Research and development | 4,162 | 3,480 | 15,028 | 13,627 | ||||||||||||
| General and administrative | 8,083 | 7,069 | 31,069 | 28,960 | ||||||||||||
| Total operating expenses | 41,182 | 38,158 | 156,351 | 150,313 | ||||||||||||
| Loss from operations | (12,506 | ) | (11,294 | ) | (46,931 | ) | (59,609 | ) | ||||||||
| Interest and other income (expense), net: | ||||||||||||||||
| Interest income | 2,228 | 749 | 6,916 | 1,304 | ||||||||||||
| Interest expense | (890 | ) | (881 | ) | (3,462 | ) | (2,819 | ) | ||||||||
| Other income (expense), net | 185 | 251 | 141 | (132 | ) | |||||||||||
| Net loss | $ | (10,983 | ) | $ | (11,175 | ) | $ | (43,336 | ) | $ | (61,256 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.27 | ) | $ | (0.32 | ) | $ | (1.13 | ) | $ | (1.79 | ) | ||||
| Weighted-average number of common shares used to compute basic and diluted net loss per share | 40,579,409 | 34,594,536 | 38,427,419 | 34,201,824 | ||||||||||||
| SI-BONE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 33,271 | $ | 20,717 | ||||
| Short-term investments | 132,748 | 76,573 | ||||||
| Accounts receivable, net | 21,953 | 20,674 | ||||||
| Inventory | 20,249 | 17,282 | ||||||
| Prepaid expenses and other current assets | 3,173 | 2,365 | ||||||
| Total current assets | 211,394 | 137,611 | ||||||
| Property and equipment, net | 16,000 | 15,564 | ||||||
| Operating lease right-of-use assets | 2,706 | 4,002 | ||||||
| Other non-current assets | 325 | 375 | ||||||
| TOTAL ASSETS | $ | 230,425 | $ | 157,552 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,588 | $ | 6,279 | ||||
| Accrued liabilities and other | 17,452 | 13,511 | ||||||
| Operating lease liabilities, current portion | 1,416 | 1,388 | ||||||
| Total current liabilities | 23,456 | 21,178 | ||||||
| Long-term borrowings | 36,065 | 35,171 | ||||||
| Operating lease liabilities, net of current portion | 1,511 | 2,871 | ||||||
| Other long-term liabilities | 18 | 30 | ||||||
| TOTAL LIABILITIES | 61,050 | 59,250 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock and additional paid-in capital | 569,481 | 455,175 | ||||||
| Accumulated other comprehensive income | 335 | 232 | ||||||
| Accumulated deficit | (400,441 | ) | (357,105 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 169,375 | 98,302 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 230,425 | $ | 157,552 | ||||
| SI-BONE, INC. RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA (In thousands) (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net loss | $ | (10,983 | ) | $ | (11,175 | ) | $ | (43,336 | ) | $ | (61,256 | ) | ||||
| Interest income | (2,228 | ) | (749 | ) | (6,916 | ) | (1,304 | ) | ||||||||
| Interest expense | 890 | 881 | 3,462 | 2,819 | ||||||||||||
| Depreciation and amortization | 1,573 | 1,002 | 5,428 | 3,452 | ||||||||||||
| Stock-based compensation | 5,937 | 5,881 | 24,057 | 23,061 | ||||||||||||
| Adjusted EBITDA | $ | (4,811 | ) | $ | (4,160 | ) | $ | (17,305 | ) | $ | (33,227 | ) | ||||
FAQ
What was SI-BONE's (SIBN) worldwide revenue for Q4 2023?
How much did SI-BONE's (SIBN) U.S. revenue increase by in Q4 2023?
What was SI-BONE's (SIBN) gross margin in Q4 2023?
What was the net loss for SI-BONE (SIBN) in Q4 2023?
What was SI-BONE's (SIBN) worldwide revenue for FY 2023?
How much did SI-BONE's (SIBN) net loss improve by in FY 2023?
What is SI-BONE's (SIBN) 2024 revenue guidance?
When will SI-BONE (SIBN) host a conference call to discuss Q4 2023 financial results?
