ZimVie (ZIMV) Stifel Jaws & Paws Conference 2025 summary

Market opportunity and adoption

• Dental implant market remains underpenetrated, with only 25% of eligible U.S. patients receiving implants, presenting significant growth potential through increased adoption and education initiatives.

• Training, medical education, and workflow optimization are key strategies to drive adoption and improve clinical outcomes, especially among specialists and DSOs.

• Digital dentistry and AI-powered solutions streamline procedures, reduce opportunity costs, and enhance patient experience, supporting broader market penetration.

• Full arch procedures represent a lucrative, underpenetrated segment, with share rising from 5% to 8.5-9% of business and further growth targeted through technology and bundling.

• Immediate Molar Implant launch in March 2024 opened a $150M U.S. market segment, with rapid sales and expectations to capture at least 15% share over time.

Innovation, product portfolio, and digital strategy

• 43% of sales come from products launched in the last three years, reflecting a strong innovation pipeline and robust vitality index.

• Key products include TSX and T3 PRO Implants, RealGUIDE surgical software, Implant Concierge, Puros Allografts, and Encode Emergence, with recent launches driving incremental growth.

• RealGUIDE software and Implant Concierge offer open, cloud-based digital solutions, achieving 39% and 14% growth respectively in 2024, and over 90% renewal rates.

• Expansion into generic biomaterials and restorative products enables competitive bidding and cross-selling opportunities.

• Digital ecosystem integration and AI-driven planning enhance procedure efficiency, patient-specific outcomes, and provider loyalty.

Financial performance and operational improvements

• Q1 results showed a top-line decline due to headwinds, but significant margin improvements: 360 bps in COGS, 41% EBITDA growth, and 238% EPS growth.

• Operational efficiencies include production relocation, cost reduction, insourcing manufacturing, and automation initiatives, with further margin expansion targeted.

• Full-year outlook projects flat to 3% revenue growth, 17% adjusted EBITDA growth, and 31-55% adjusted EPS growth.

• Company is positioned to benefit disproportionately from market recovery, with a focus on cost control and operational predictability.

• Automation, lights-out manufacturing, and further insourcing are expected to drive future margin gains.