Shoulder Innovations (SI) investor relations material

Business overview and product portfolio

• Focused exclusively on the shoulder surgical care market, particularly shoulder arthroplasty, covering about 85% of a $2–3 billion global market growing at 10% annually.

• Operations are US-based, selling through an independent sales organization, with a robust product line developed over ten years.

• Product ecosystem includes AI-enabled preoperative planning software, with 98% engagement, and a capital-efficient two-tray instrumentation system.

• Innovations address historical challenges in shoulder arthroplasty, such as glenoid component loosening, with published clinical improvements.

• Techniques and product design enable efficient procedures in both anatomic and reverse shoulder replacements.

Financial performance and growth

• Achieved 33% revenue growth in Q2, driven by increased adoption among both new and existing surgeons.

• Total customer base grew by about 50% year-over-year, providing strong momentum for the second half.

• Public guidance projects continued strong growth rates in Q3 and Q4, consistent with the first half and prior year.

• ASPs remained strong in Q2, benefiting from targeted centers and favorable mix dynamics.

• IPO proceeds ($75M) are prioritized for scaling the commercial organization and continued innovation.

Commercial and operational strategy

• Utilizes an independent distribution model with a significant W-2 overlay, enabling rapid, capital-efficient scaling and high service levels.

• Variable selling expenses scale with revenue, reducing overhead and supporting flexible growth.

• Lower capital requirements and simplified instrumentation allow for easier account expansion and product customization.

• Brand recognition and public company status have accelerated surgeon engagement and recruitment.

• Geographic focus includes high-volume states like California, Texas, Florida, and Arizona.