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

Craig Bijou: Good afternoon, guys. Thanks for taking the questions and congrats on the strong quarter. So I wanted to start with the active surgeon increase, and I appreciate Laurie, your comments on the acceleration of the core procedure. So I wanted to see what — if any, information you’d be willing to share on the mix of surgeons of those active surgeons doing SI joint fusions and those doing adult deformity procedures. Is it evenly split? And then kind of in the same line of questioning, how much of — or how much of the increase in active surgeons from SI joint fusions were new to you guys versus previously trained, but inactive surgeons?

Laura Francis: Yes. Craig, I think you are highlighting a really important metric that we have here, given how rapidly we’re seeing an increase in the active surgeon base. If you look at all of 2021, I believe that we had 1,000 surgeons in total that did procedures for us in 2021, whereas in the fourth quarter alone, we had 920 surgeons doing procedures. So it really is pretty extraordinary progress that we’ve seen just in a 12-month period. So a 33% increase year-over-year and then even a 15% increase, if you look sequentially quarter-over-quarter. And quite frankly, it’s the highest that I’ve seen since we’ve been a public company. So it’s really exciting from my perspective. We usually don’t give out a lot of information about the different parts of our business in terms of the product differentiation, because we really do see this as one segment of our business, we’re a sacropelvic solutions company and all of these different areas, be it the primary market or adult deformity or trauma really fall into the same category.

With that said, we recognize that there is a need to at least provide some information. And just — we want to be clear that the core market is reaccelerating. It’s not just the new markets. It’s not just the adjacent markets that are driving the growth of our business. And if you look at the surgeon adds, it’s interesting that you made that comment, it is nearly even if you look at those just doing minimally invasive SI joint fusion versus those that are in our adjacent markets of adult deformity and trauma, if you look at the adds, it’s around 50-50 between the core market versus the new products. And so we’re seeing it come from all different ends. And what we’re also pleased with is that we’re seeing this growing overlap where surgeons are performing procedures across these different areas of SI joint fusion, adult deformity and trauma.

So in summary, it’s really a testament to how focused we’ve been on execution and education outreach over the last few years. And we really think that we have a terrific portfolio of products. We are the leader in the safer pelvic space. We have this favorable reimbursement tailwind in 2023 in our core market. And we think that surgeon engagement and density is going to accelerate this year.

Craig Bijou: Got it. That’s helpful. Thank you, Laura, you’ve mentioned it a couple of times you’ve had a couple of reimbursement positives over the last six months, call it. So one, I wanted to see — get a little bit of color from you on the NTAP for Granite and how much of that is — are hospitals realizing or getting the payment that they expected that you guys had kind of outlined, how much of that is driving that growth in Q4 and then how to think about it in €˜23? And then also on the actual SI joint fusion procedure, I know it’s early, but any anecdotal feedback on the reimbursement win there?