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 June 30, 2023.
Recent Highlights
- Record worldwide revenue of $33.3
million for the second quarter 2023, representing approximately 30%
growth over the corresponding period in 2022
- Record U.S. revenue of $31.2
million for the second quarter 2023, representing approximately 31%
growth over the corresponding period in 2022
- Gross margin of 81% for the second
quarter 2023
- Approximately 935 U.S. active
surgeons in the second quarter 2023, representing 30% growth over
the corresponding period in 2022
- Launch of closed-head Granite
implant, addressing an additional segment of the deformity surgeon
market
- $169 million in cash and
equivalents at the end of the quarter, including $84 million in net
proceeds from follow-on offering in May 2023
“I am pleased with the over 30% U.S. revenue
growth in the second quarter of 2023, led by increasing demand for
our solutions. Having consistently delivered several consecutive
quarters of record revenue and operating leverage, we are excited
about the significant opportunity ahead of us as we capitalize on
underlying business momentum and progress towards profitability,”
said Laura Francis, Chief Executive Officer of SI-BONE, Inc. “As we
look beyond 2023, we are focused on judiciously investing in
long-term growth drivers, including portfolio expansion programs as
well as physician engagement initiatives to extend our market
leadership and build a sustainable and high-growth revenue
platform.”
Second Quarter 2023
Financial Results
Worldwide revenue was $33.3 million in the
second quarter 2023, a 30% increase from $25.6 million in the
corresponding period in 2022. U.S. revenue for the second
quarter 2023 was $31.2 million, a 31% increase from $23.8 million
in the corresponding period in 2022. International revenue for the
second quarter 2023 was $2.1 million, a 15% increase from $1.8
million in the corresponding period in 2022.
Gross margin was 81% for the second quarter
2023, as compared to 86% in the corresponding period in 2022. Gross
margin in the second quarter 2023 was impacted by procedure and
product mix given the higher total costs of iFuse-TORQ and iFuse
Bedrock Granite. Gross margin also includes the impact of higher
depreciation from instrument trays to support the growth of the
business and depreciation associated with our second facility in
Santa Clara.
Operating expenses decreased 3% to $38.9 million
in the second quarter 2023, as compared to $40.0 million in the
corresponding period in 2022. The change in operating expenses
was primarily driven by timing of certain commercial activities,
partially offset by higher commissions and stock-based
compensation.
Operating loss improved by 33% to $12.0 million
in the second quarter 2023, as compared to an operating loss of
$17.9 million in the corresponding period in 2022.
Net loss improved by 39%, to $11.2 million, or
$0.30 per diluted share for the second quarter 2023, as compared to
a net loss of $18.5 million, or $0.54 per diluted share in the
corresponding period in 2022. Net loss per diluted share for the
second quarter 2023 also includes the impact of increase in shares
outstanding as a result of a follow-on common stock offering in May
2023.
Adjusted EBITDA loss improved by approximately
59% to negative $4.7 million, in the second quarter 2023, as
compared to an adjusted EBITDA loss of negative $11.5 million, in
the corresponding period in 2022.
Cash and marketable securities were $169.4
million and borrowings were $36.0 million as of June 30, 2023. The
cash and marketable securities include $84 million in net proceeds
from the May 2023 follow-on offering.
2023 Updated Financial
Guidance
Based on the strength of performance in the
second quarter of 2023, SI-BONE is increasing its 2023 worldwide
revenue guidance to be in the range of $132 million to $134 million
from the previous guidance of $128 million to $131 million. The
updated guidance translates to a growth of approximately 24% to 26%
compared to fiscal year 2022, versus the previous growth of
approximately 20% to 23%.
Webcast Information
SI-BONE will host a conference call to discuss
the second quarter 2023 financial results after market close on
Monday, August 7, 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/wguskxxw. 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 85,000 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 EndedJune 30, |
|
Six months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Revenue |
$ |
33,305 |
|
|
$ |
25,585 |
|
|
$ |
66,013 |
|
|
$ |
48,024 |
|
| Cost of goods sold |
|
6,318 |
|
|
|
3,465 |
|
|
|
12,242 |
|
|
|
6,448 |
|
|
Gross profit |
|
26,987 |
|
|
|
22,120 |
|
|
|
53,771 |
|
|
|
41,576 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
27,492 |
|
|
|
28,843 |
|
|
|
54,805 |
|
|
|
54,448 |
|
|
Research and development |
|
3,656 |
|
|
|
3,478 |
|
|
|
6,947 |
|
|
|
7,058 |
|
|
General and administrative |
|
7,802 |
|
|
|
7,680 |
|
|
|
15,275 |
|
|
|
14,819 |
|
| Total operating expenses |
|
38,950 |
|
|
|
40,001 |
|
|
|
77,027 |
|
|
|
76,325 |
|
| Loss from operations |
|
(11,963 |
) |
|
|
(17,881 |
) |
|
|
(23,256 |
) |
|
|
(34,749 |
) |
| Interest and other income
(expense), net: |
|
|
|
|
|
|
|
|
Interest income |
|
1,582 |
|
|
|
136 |
|
|
|
2,515 |
|
|
|
209 |
|
|
Interest expense |
|
(850 |
) |
|
|
(622 |
) |
|
|
(1,689 |
) |
|
|
(1,183 |
) |
|
Other income (expense), net |
|
25 |
|
|
|
(146 |
) |
|
|
99 |
|
|
|
(200 |
) |
| Net loss |
$ |
(11,206 |
) |
|
$ |
(18,513 |
) |
|
$ |
(22,331 |
) |
|
$ |
(35,923 |
) |
| |
|
|
|
|
|
|
|
| Net loss per share, basic and
diluted |
$ |
(0.30 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.61 |
) |
|
$ |
(1.06 |
) |
| Weighted-average number of common
shares used to compute basic and diluted net loss per share |
|
37,864,185 |
|
|
|
34,052,692 |
|
|
|
36,399,309 |
|
|
|
33,923,229 |
|
|
SI-BONE, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS(in
thousands)(unaudited) |
| |
June 30, 2023 |
|
December 31, 2022 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
110,815 |
|
|
$ |
20,717 |
|
|
Short-term investments |
|
58,615 |
|
|
|
76,573 |
|
|
Accounts receivable, net |
|
20,422 |
|
|
|
20,674 |
|
|
Inventory |
|
20,547 |
|
|
|
17,282 |
|
|
Prepaid expenses and other current assets |
|
2,135 |
|
|
|
2,365 |
|
| Total current assets |
|
212,534 |
|
|
|
137,611 |
|
| Property and equipment, net |
|
17,579 |
|
|
|
15,564 |
|
| Operating lease right-of-use
assets |
|
3,372 |
|
|
|
4,002 |
|
| Other non-current assets |
|
340 |
|
|
|
375 |
|
|
TOTAL ASSETS |
$ |
233,825 |
|
|
$ |
157,552 |
|
| |
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
6,157 |
|
|
$ |
6,279 |
|
|
Accrued liabilities and other |
|
10,642 |
|
|
|
13,511 |
|
|
Operating lease liabilities, current portion |
|
1,403 |
|
|
|
1,388 |
|
| Total current liabilities |
|
18,202 |
|
|
|
21,178 |
|
| Long-term borrowings |
|
35,980 |
|
|
|
35,171 |
|
| Operating lease liabilities, net
of current portion |
|
2,212 |
|
|
|
2,871 |
|
| Other long-term liabilities |
|
24 |
|
|
|
30 |
|
|
TOTAL LIABILITIES |
|
56,418 |
|
|
|
59,250 |
|
| |
|
|
|
| Stockholders' Equity: |
|
|
|
|
Common stock and additional paid-in capital |
|
556,545 |
|
|
|
455,175 |
|
|
Accumulated other comprehensive income |
|
298 |
|
|
|
232 |
|
|
Accumulated deficit |
|
(379,436 |
) |
|
|
(357,105 |
) |
|
TOTAL STOCKHOLDERS’ EQUITY |
|
177,407 |
|
|
|
98,302 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
233,825 |
|
|
$ |
157,552 |
|
|
SI-BONE, INC. RECONCILIATION OF NET LOSS
TO NON-GAAP ADJUSTED EBITDA(In thousands)
(unaudited) |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net loss |
|
$ |
(11,206 |
) |
|
$ |
(18,513 |
) |
|
$ |
(22,331 |
) |
|
$ |
(35,923 |
) |
|
Interest income |
|
|
(1,582 |
) |
|
|
(136 |
) |
|
|
(2,515 |
) |
|
|
(209 |
) |
|
Interest expense |
|
|
850 |
|
|
|
622 |
|
|
|
1,689 |
|
|
|
1,183 |
|
|
Depreciation and amortization |
|
|
1,236 |
|
|
|
792 |
|
|
|
2,322 |
|
|
|
1,505 |
|
|
Stock-based compensation |
|
|
5,998 |
|
|
|
5,751 |
|
|
|
12,192 |
|
|
|
11,258 |
|
| Adjusted EBITDA |
|
$ |
(4,704 |
) |
|
$ |
(11,484 |
) |
|
$ |
(8,643 |
) |
|
$ |
(22,186 |
) |
| |
|
|
|
|
|
|
|
|
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