SI-BONE, Inc. Q1 FY2025 earnings call

Innovation - Diversifying platform with new products like INTRA, Granite 9.5, TNT; upcoming launch in Q1 2026; third breakthrough device in development. ### Engagement - Over 1,400 US physicians performed procedures, 27% increase in physician base; 43% increase in physicians performing multiple procedure types; revenue from trained residents/fellows up 64% YTD. ### Commercial execution - Hybrid model combining territory managers, clinical sports specialists, and third-party agents; 85 US territories; trailing 12-month territory productivity ~$2 million.

Worldwide revenue for the quarter reached $47.3 million, representing approximately 25% growth. U.S. revenue was $44.8 million, reflecting approximately 27% growth. In SI joint dysfunction, products like iFuse TORQ and INTRA are driving growth. Pelvic fixation's iFuse Bedrock Granite is seeing rapid adoption. Pelvic trauma's TORQ TNT launched in Q4 2024. Revenue attributable from previously trained residents and fellows grew by 64% year-to-date. Revenue contribution by segment: Worldwide revenue $47.3M (25% growth), U.S. revenue $44.8M (27% growth).

Updated full-year 2025 revenue guidance: $193.5M to $197.5M (16%-18% growth). Full-year gross margin expected to be 78% (previously 77%-78%). Expecting positive adjusted EBITDA for 2025; aiming for free cash flow in 2026.

Potential impact of tariffs, but currently no material impact expected. Macroeconomic uncertainty, but procedures less likely to be deferred due to patient need.

Q: How should we think about the contribution from new products and the strong growth in the active surgeon base?

A: We're seeing broad-based growth with strong adoption of new products launched in 2024. There's double-digit procedure volume growth across all modalities, and record engagement levels across different call points.

Q: Can you explain the gross margin and its future outlook?

A: The 80 basis points improvement was due to better ASP from procedure mix and supply chain efficiency. There's low single-digit ASP degradation, surgical capacity depreciation, and software costs impacting gross margin, but potential for better performance later.

Q: What's the outlook on sequential growth and OpEx guidance?

A: Seasonality is considered in guidance. OpEx growth of ~10% is due to R&D investments, sales/marketing growth, and G&A increase.

Q: When can we expect updates on Granite reimbursement reassignment?

A: CMS has a proposal, adoption continues, but CMS needs additional time to analyze data on the reassignment request.

Q: How is TNT performing and what's the outlook for NTAP?

A: TNT is seeing strong traction, and NTAP effective Oct 2025 is expected to boost adoption of TNT.

Q: Talk about salesforce growth and productivity.

A: Targeting 100 territories, hybrid model aids productivity. Territory productivity is at $2M, with potential to grow beyond that.

Q: What's the outlook on physician density and future targets?

A: Early stages of driving physician density, with significant runway due to expanded portfolio and upcoming new products.