SI-BONE (SIBN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $40 million, up 20% year-over-year, with U.S. revenue at $37.8 million, up 21%, driven by strong demand and new product launches.

• Net loss improved by 20% to $8.9 million ($0.22 per share), and adjusted EBITDA loss improved by 43% to $2.7 million.

• Active U.S. physician base grew 23% to over 1,150, with record new physician trainings and 14 consecutive quarters of double-digit growth.

• Transitioned to a high-growth medical device platform, expanding into pelvic fixation and trauma markets, doubling target procedure volume to 500,000 annually.

• Ended quarter with $151.5 million in cash and equivalents; borrowings at $36.1 million.

Financial highlights

• Gross margin for Q2 2024 was 79%, down from 81% in Q2 2023, impacted by product mix but aided by supply chain efficiencies.

• Operating expenses grew 7% to $41.7 million, mainly due to higher commissions, commercial activity, R&D, and stock-based compensation.

• Interest income grew 27% year-over-year to $2.02 million; interest expense increased 4% to $0.88 million.

• Cash and marketable securities totaled $151.5 million at quarter-end, with cash usage focused on inventory and capacity investments.

• Accumulated deficit reached $420.3 million as of June 30, 2024.

Outlook and guidance

• 2024 worldwide revenue guidance raised to $165–$167 million, implying 19–20% year-over-year growth.

• Expects revenue growth to accelerate in H2 2024, driven by physician and procedure volume growth and new product launches.

• Anticipates Adjusted EBITDA breakeven in Q4 2024 and aims for sustained annual Adjusted EBITDA profitability beyond 2024.

• Management expects existing cash and marketable securities to fund operations and capital expenditures for at least the next 12 months.

• Ongoing investments in R&D, sales force, and new product launches are anticipated to continue.