Bioventus Inc. Q4 FY2024 earnings call

• Strategy: Completed a comprehensive market review, aligned the organization around a growth framework, optimized the global portfolio with the divestiture of the advanced rehabilitation business, and established a strategic roadmap for organic and inorganic opportunities.
• People: Strengthened the team, enhanced culture, and saw increased employee engagement based on recent surveys.
• Execution: Delivered strong financial performance in 2024 with double-digit organic revenue growth in all quarters, 150 basis points of adjusted gross margin expansion, improved profitability, positive cash flow, and optimized commercial/operational strategies.

Surgical Solutions: Fourth quarter revenue accelerated by 18%, with Ultrasonics achieving over 20% growth in the quarter and Bone Graft Substitutes on track to return to double-digit growth in the second half of 2025. Pain Treatments: Revenue increased 17% year-over-year, driven by DUROLANE's strong brand and execution, though first quarter 2025 growth is affected by distributor inventory adjustments. Restorative Therapies: Sales were flat year-over-year, with growth in Exogen offset by the decline in advanced rehabilitation (divested in Q4). International: Grew 11% year-over-year due to delayed ultrasonics shipments earlier in the year.

• 2025 net sales expected in the range of $560 million to $570 million, reflecting 6%-8% organic growth (adjusting for divestiture of advanced rehabilitation).
• Adjusted EBITDA projected between $112 million and $116 million, representing 8%-12% growth (adjusting for advanced rehabilitation impact).
• Adjusted earnings per share expected $0.64 to $0.68, a 31%-39% increase.
• First quarter 2025 organic revenue growth expected below the 6%-8% range due to strong Q4 performance and fewer selling days; adjusted EBITDA lower in first half 2025, higher in second half.

• Forward-looking statements involve inherent risks and uncertainties as detailed in SEC filings.
• Supply chain challenges impacted the Bone Graft Substitutes business, though progress made to overcome these.
• Market shifts and competition could affect pricing and growth prospects.

Q: Walk through the 2025 guidance assumptions by segment.

A: Rob states they expect above-market growth, with pain treatments seeing above-market growth, restorative therapies at low single digits, and surgical solutions at double-digit growth.

Q: How are bone graft substitute business trends trending and what's assumed in guidance?

A: Rob mentions overcoming supply challenges, increased productivity from existing distributors, and ramping new customers, with surgical business expected to have good double-digit growth.

Q: Talk about Exogen business turning point.

A: Rob says Exogen stabilized, strategic investments made, and expects low to mid-single digit growth in 2025.

Q: Break down pain treatments product performance.

A: Mark talks about DUROLANE's strong performance, GELSYN being more price-sensitive, and SUPARTZ as a steadfast product.

Q: OUS expansion timeline.

A: Rob says international expansion is targeted, with a new leader to leverage opportunities, and focus on high ROI investments.

Q: Timeline for ultrasonic expansion into general and neurosurgery.

A: Rob states focus remains on spine initially, with ramping up in neuro and general surgery in outer years like 2026 and beyond.