SI-BONE, Inc. (NASDAQ:SIBN) Q4 2022 Earnings Call Transcript

Also, we do believe that we have a near-term opportunity to capture our opportunity with granite in adult deformity with spino-pelvic fixation infusion. And then the trauma market is really more of that longer term opportunity because this is an identified unmet clinical need, but it is an area where these patients typically are not surgically treated. So in a lot of ways, it reminds us of our core market in primary SI joint fusion. And as we’ve always done, we’re focused on using clinical data, education and reimbursement support in order to develop that particular market. So more on new products coming in the future, I would say that the message that we really have today is we have an extraordinary opportunity in our core and adjacent markets, and we’re focused on market development in those areas.

Kyle Rose: Great. Thank you for taking the questions.

Laura Francis: Thanks, Kyle.

Operator: Thank you. Our next question comes from the line of David Rescott with Truist. Your line is open.

David Rescott: Hey, guys. Congrats on the quarter and thanks for taking the questions. Maybe just starting off better then on the fourth quarter. It seems like the quarter came in essentially ahead of where the guidance essentially was prior to lower end in Q3. So just wondering maybe what went right in the second part of the quarter to essentially beat the guidance you set out there and then how we should be thinking about the way you’re thinking about the guidance for 2023?

Laura Francis: Yes. Thanks, David for the question and your questions are spot on. We are really pleased with what we saw in the fourth quarter, 27% growth year-over-year that was 21% sequential growth and to just see the continued acceleration throughout the year, it shows the normalization of the operating environment. It shows the reacceleration of our primary SI joint fusion business and then it shows the adoption curve with our Granite product in pelvic fixation. So pleased with everything that we saw there. In terms of getting into a little more detail for you, October results were solid. But what we saw is this very nice acceleration in November and December. So taking us back into that original range of what we had anticipated for the year of $106 million to $108 million in sales.

And what we’ve seen actually is that has continued into the first quarter as well. So just continued indicators that the business is continuing to accelerate. And so our expectations for the first quarter from a revenue perspective is growth of approximately 30% in the first quarter based upon the continued acceleration of the business. And I probably would say that the last point I would focus on here is the active surgeon numbers were ecstatic about those numbers at this point, 33% increase year-over-year, up to 920 surgeons, who did at least one case in the fourth quarter of 2022. That’s 15% sequential growth in that metric. And for us, it’s a great forward-looking indicator for that future demand.

Anshul Maheshwari: And then, David, on your question around the guidance for the year, I sort of break it down into a few different tranches from a guidance perspective. Laura just highlighted our expectations for where 1Q would be at the 30% year-over-year growth. We’ve got a couple of months behind us now. And as you know, our visibility is pretty strong, and we look out in the next 30 days or so. So we feel good about how the business is set up in the near-term. And then as we think about — and even on the 30% growth, right by COVID, but when you think about it, even sequentially, you’re looking at high single-digit Q4 to Q1 decline, which if you look at the last four years, it’s been low-double-digits. So again, you’re seeing a nice acceleration in the business coming into Q1.