SI-BONE, Inc. (NASDAQ:SIBN) Q2 2023 Earnings Call Transcript

Craig Bijou: Got it. Thank you. And just a quick follow up, Laura, I think you said the new approval for TORQ better positions you to go after some of those competitive cases that the SI joint fusion that may prefer the screw versus the triangular implant iFuse, so maybe if you just expand a little bit on that and talk about how you are doing, picking up those competitive cases? Thanks.

Laura Francis : Sure. And TORQ as you know is primarily launched to focus on the trauma opportunity that we have with sacral insufficiency fracture. So that continues to be a long term opportunity for the business that we’re really excited about another adjacent market, our best estimate is around $350 million of potential there as well. But the more immediate opportunity with TORQ certainly has been in the primary minimally invasive SI joint fusion market. And so we’ve seen a very significant uptick of competitive surgeons that are converting over to iFuse technology using the TORQ implant. And some of those surgeons have provided feedback where they’re actually interested in the lateral approach, but they’re also interested in the posterior lateral approach.

And what we want to do is we want to be the company that provides sacral, pelvic solutions, regardless of what the surgeon is interested in. And so while we remain strong advocates of the lateral approach, it’s the gold standard, there’s a lot of data out there showing the efficacy of the product using the lateral approach. We also want to give those competitive surgeons the solution that they’re looking for, and the confidence to use it so that trajectory is now on label.

Operator: Next question will come from the line of Young Li of Jeffries.

Young Li: All right, great. Thanks for taking our questions. And congrats on a strong quarter here, was wondering if you can maybe share some more color on the inter quarter growth, sounded like the momentum carried into July as well. But what are some of the expectations for the summer season? Sort of seasonality impacts, and can you provide some color on this high level Q3, Q4 cadence?

Anshul Maheshwari : Yes, hey, this is Anshul. One, I think this question, so obviously, coming out of the second quarter, or the first half of the year, we feel pretty good about the business. And some of that is thoughtfully reflected in our increased guidance of 24% to 26%. When you think about quarterly trending sequentially in the third quarter. Historically, you see, as an industry, if sequential depth in the third quarter from the second quarter can be somewhere on the low single digit range. And in our guidance, that’s what our assumption is that sequential decline for Q2 and Q3, mainly driven by this summer seasonality and actually having one less selling day in the quarter compared to the prior quarter, while continuing to acknowledge that we’ve got strong momentum is a new product rollout. And we’re going to work hard to minimize the impact of that, but that’s not incorporated in the guidance that we’ve set.

Young Li: All right, great. Very helpful. I guess the follow up question on just in terms of getting a new surgeon on boarded for core SI joint fusion procedures, is that timeline or process getting shorter, either due to the portfolio effect or just pre success in the KOL, and the clinical community?

Laura Francis : Yes, thanks for the question, Young. So in this dovetail a little bit with your previous question on inter quarter growth in July, we did mention in our prepared remarks that we have actually exceeded the high watermark of 950 surgeons in Q1 already at the end of July. So we did see some strong new surgeon growth heading into the month of July which is very encouraging, given the summer months. I do also believe that you are right that we have seen in a decrease in the amount of time it takes for us to bring on new surgeons and part of it is just that the procedure is more well known at this point in time. And part of it is the different modalities that we can use in order to reach the new surgeon. So it can be a regional course, with canal lab training, it can be a local training course in the OR, or it can be with our simulators, which we still are heavily using.