SI-BONE, Inc. (Nasdaq:SIBN), a medical device company dedicated to
solving musculoskeletal disorders of the sacropelvic anatomy, today
reported financial results for the quarter ended March 31, 2023.
Recent Highlights
- Record worldwide revenue of $32.7
million for the first quarter 2023, representing approximately 46%
increase over the corresponding period in 2022
- Record U.S. revenue of $30.5
million for the first quarter 2023, representing approximately 50%
increase over the corresponding period in 2022
- Gross margin of 82% for the first
quarter 2023
- Over 950 U.S. active surgeons in
the first quarter 2023, representing approximately 40% growth over
the corresponding period in 2022
- Extended first-generation iFuse
patent protection to December 2025, with iFuse-3D patent coverage
to September 2035
- Celebrating our 15-year commitment
to pioneering solutions for sacropelvic conditions through the
industry's most innovative portfolio, with over 80,000 procedures
completed by over 3,000 surgeons worldwide
“I am thrilled with our stellar start to 2023,
as record procedure demand in the quarter allowed us to deliver
approximately 50% U.S. revenue growth and achieve significant
operating leverage,” said Laura Francis, Chief Executive Officer of
SI-BONE. “The continued trend of accelerating revenue growth over
the last several quarters is a testament to the perseverance and
grit of our dedicated team members and the strong reception for our
expanded portfolio of solutions. With yet another quarter of record
increase in our active surgeon base combined with the favorable
reimbursement framework, we are at an inflection in the business.
These trends solidify my conviction in our ability to deliver
strong and sustainable growth and drive operating leverage as we
progress through the year."
First Quarter 2023
Financial Results
Worldwide revenue was $32.7 million in the first
quarter 2023, a 46% increase from $22.4 million in the
corresponding period in 2022. U.S. revenue for the first
quarter 2023 was $30.5 million, a 50% increase from $20.4 million
in the corresponding period in 2022. International revenue for the
first quarter 2023 was $2.3 million, a 9% increase from $2.1
million in the corresponding period in 2022.
Gross margin was 82% for the first quarter 2023,
as compared to 87% in the corresponding period in 2022. Gross
margin in the first quarter 2023 was impacted by procedure and
product mix given the higher total costs of the newly launched
implants. Gross margin also includes the impact of higher
depreciation from instrument trays to support the growth of the
business, depreciation associated with our second facility in Santa
Clara, and higher freight costs.
Operating expenses increased 5% to $38.1 million
in the first quarter 2023, as compared to $36.3 million in the
corresponding period in 2022. The increase was primarily
driven by increase in sales commission and stock-based compensation
from higher headcount, and increase in travel costs.
Operating loss improved by 33% to $11.3 million
in the first quarter 2023, as compared to an operating loss of
$16.9 million in the corresponding period in 2022.
Net loss was $11.1 million, or $0.32 per diluted
share for the first quarter 2023, as compared to a net loss of
$17.4 million, or $0.52 per diluted share in the corresponding
period in 2022.
Adjusted EBITDA loss was negative $3.9 million,
in the first quarter 2023, as compared to an adjusted EBITDA loss
of negative $10.7 million, in the corresponding period in 2022.
Cash and marketable securities were $86.0
million and borrowings were $35.9 million as of March 31, 2023.
2023 Updated Financial
Guidance
Based on the first quarter of 2023 results,
SI-BONE is updating its 2023 worldwide revenue guidance to be in
the range of $128 million to $131 million, implying growth of
approximately 20% to 23%. SI-BONE is maintaining its guidance for
fiscal year 2023 gross margin of approximately 80% and improving
adjusted EBITDA loss.
Webcast Information
SI-BONE will host a conference call to discuss
the first quarter 2023 financial results after market close on
Monday, May 1, 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/ev5vig6x. 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, Inc.
SI-BONE (NASDAQ: SIBN) is a global leader in
technology for surgical treatment of musculoskeletal disorders of
the sacropelvic anatomy. Since pioneering minimally invasive SI
joint surgery in 2009, SI-BONE has supported over 3,000 surgeons in
performing a total of over 80,000 sacropelvic procedures. A unique
body of clinical evidence supports the use of SI-BONE’s
technologies, including two randomized controlled trials and over
120 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.
SI-BONE is a registered trademark 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,
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 pace of the re-normalization of
the healthcare operating environment including the ability and
desire of patients and physicians to undergo and perform 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 SI-BONE'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 IqbalSr. Director, FP&A and Investor
Relationsinvestors@SI-BONE.com
SI-BONE, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except share and per share amounts)
(Unaudited)
|
Three Months EndedMarch 31, |
|
|
2023 |
|
|
|
2022 |
|
Revenue |
$ |
32,708 |
|
|
$ |
22,439 |
|
Cost of goods sold |
|
5,924 |
|
|
|
2,983 |
|
Gross profit |
|
26,784 |
|
|
|
19,456 |
|
Operating expenses: |
|
|
|
Sales and marketing |
|
27,313 |
|
|
|
25,605 |
|
Research and development |
|
3,291 |
|
|
|
3,580 |
|
General and administrative |
|
7,473 |
|
|
|
7,139 |
|
Total operating expenses |
|
38,077 |
|
|
|
36,324 |
|
Loss from operations |
|
(11,293 |
) |
|
|
(16,868 |
) |
Interest and other income
(expense), net: |
|
|
|
Interest income |
|
932 |
|
|
|
73 |
|
Interest expense |
|
(838 |
) |
|
|
(561 |
) |
Other income (expense), net |
|
74 |
|
|
|
(54 |
) |
Net loss |
$ |
(11,125 |
) |
|
$ |
(17,410 |
) |
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.32 |
) |
|
$ |
(0.52 |
) |
Weighted-average number of common
shares used to compute basic and diluted net loss per share |
|
34,916,106 |
|
|
|
33,792,326 |
|
SI-BONE, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS(in
thousands)(unaudited)
|
March 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
22,969 |
|
|
$ |
20,717 |
|
Short-term investments |
|
62,997 |
|
|
|
76,573 |
|
Accounts receivable, net |
|
22,600 |
|
|
|
20,674 |
|
Inventory |
|
17,790 |
|
|
|
17,282 |
|
Prepaid expenses and other current assets |
|
2,045 |
|
|
|
2,365 |
|
Total current assets |
|
128,401 |
|
|
|
137,611 |
|
Property and equipment, net |
|
16,629 |
|
|
|
15,564 |
|
Operating lease right-of-use
assets |
|
3,672 |
|
|
|
4,002 |
|
Other non-current assets |
|
374 |
|
|
|
375 |
|
TOTAL ASSETS |
$ |
149,076 |
|
|
$ |
157,552 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
5,331 |
|
|
$ |
6,279 |
|
Accrued liabilities and other |
|
9,896 |
|
|
|
13,511 |
|
Operating lease liabilities, current portion |
|
1,401 |
|
|
|
1,388 |
|
Total current liabilities |
|
16,628 |
|
|
|
21,178 |
|
Long-term borrowings |
|
35,938 |
|
|
|
35,171 |
|
Operating lease liabilities, net
of current portion |
|
2,525 |
|
|
|
2,871 |
|
Other long-term liabilities |
|
26 |
|
|
|
30 |
|
TOTAL LIABILITIES |
|
55,117 |
|
|
|
59,250 |
|
|
|
|
|
Stockholders' Equity: |
|
|
|
Common stock and additional paid-in capital |
|
461,889 |
|
|
|
455,175 |
|
Accumulated other comprehensive income |
|
300 |
|
|
|
232 |
|
Accumulated deficit |
|
(368,230 |
) |
|
|
(357,105 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
93,959 |
|
|
|
98,302 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
149,076 |
|
|
$ |
157,552 |
|
SI-BONE, INC.
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED
EBITDA(In thousands)
(unaudited)
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
|
$ |
(11,125 |
) |
|
$ |
(17,410 |
) |
Interest income |
|
|
(932 |
) |
|
|
(73 |
) |
Interest expense |
|
|
838 |
|
|
|
561 |
|
Depreciation and amortization |
|
|
1,086 |
|
|
|
713 |
|
Stock-based compensation |
|
|
6,194 |
|
|
|
5,507 |
|
Adjusted EBITDA |
|
$ |
(3,939 |
) |
|
$ |
(10,702 |
) |
|
|
|
|
|
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