SI-BONE, Inc. reports record financial results for the third quarter of 2023 and raises annual guidance

Annual guidance has been increased to $136 million – $137 million, implying annual growth of 28%-29%

SANTA CLARA, California, November 6, 2023 (GLOBE NEWSWIRE) – SI-BONE, Inc. (Nasdaq:SIBN), a medical device company committed to solving musculoskeletal disorders of the sacropelvic anatomy, today reported financial results for the quarter ended September 30, 2023.

Recent Financial Highlights

• Record global revenue of $34.0 million for the third quarter of 2023, representing approximately 29% growth over the corresponding period in 2022
• Record US revenue of $32.3 million for the third quarter of 2023, representing approximately 31% growth over the corresponding period in 2022
• Gross margin of approximately 79% for the third quarter of 2023
• More than 1,040 active surgeons in the US in the third quarter of 2023, representing approximately 30% growth over the corresponding period in 2022
• $166.8 million in cash and equivalents at the end of the third quarter; cash used of $2.7 million in the quarter

Recent operational highlights

• Patent received for triangular brooch instrument, a crucial technology to place triangular implants in the SI joint and provide protection until 2034
• International Journal of Spine Surgery published a meta-analysis of 57 studies involving more than 2,800 patients, reaffirming that the SI-BONE technique produces the highest improvement in pain and disability scores
• More than 90,000 procedures performed by more than 3,500 surgeons worldwide

“I am proud of the team’s performance as we defied industry seasonality and delivered another exceptional quarter with a 34% increase in US procedure volume, achieving the first time in the company’s history surpassed 1,000 active surgeons in the US in a quarter. In addition, we continued our progress toward profitability as record revenue in the quarter translated into significant operating leverage and lower cash consumption,” said Laura Francis, Chief Executive Officer. “As we close 2023 with strong momentum, our planned product portfolio expansions, combined with demand inflection in our large addressable market of nearly half a million annual procedures, give me confidence that we are in the early stages of growing demand to our solutions. In addition, we have the operational framework and strong balance sheet to deliver strong and sustainable revenue growth over the long term.”

Third Financial results quarter 2023

Global revenue for the third quarter of 2023 was $34.0 million, up 29% from $26.4 million in the corresponding period in 2022. U.S. revenue for the third quarter of 2023 was $32.3 million, a increase of 31% from $24.6 million in the corresponding period in 2022. International revenue growth for the third quarter of 2023 was $1.7 million, compared to $1.8 million in the corresponding period in 2022.

Gross margin was 79% for the third quarter of 2023, compared to 84% in the corresponding period in 2022. The gross margin in the third quarter of 2023 was influenced by procedure and product mix, given the higher total costs of iFuse-TORQ and iFuse Bedrock Granite . Gross margin also includes the impact of increased depreciation on instrument trays to support business growth and depreciation related to our second facility in Santa Clara.

Operating expenses increased 6% to $38.1 million in the third quarter of 2023, compared to $35.8 million in the corresponding period in 2022. The change in operating expenses was primarily driven by increases in commissions related to revenue growth, research investments and development and commercial expenses. activities to support the turnover and active growth of surgeons.

Operating loss improved 18% to $11.2 million in the third quarter of 2023, compared to an operating loss of $13.6 million in the corresponding period in 2022.

Net loss improved 29% to $10.0 million, or $0.25 per diluted share for the third quarter of 2023, compared to a net loss of $14.2 million, or $0.41 per diluted share in the corresponding period in 2022. Net loss per diluted share for the third quarter of 2023 includes the impact of the increase in the number of shares outstanding resulting from a follow-on issuance of common shares in May 2023.

Adjusted EBITDA loss improved approximately 44% to negative $3.9 million in the third quarter of 2023, compared to an adjusted EBITDA loss of negative $6.9 million in the corresponding period in 2022.

Cash and marketable securities at September 30, 2023 were $166.8 million and borrowings were $36.0 million.

2023 Updated financial guidelines

Based on the strength of the company’s year-to-date performance and momentum exiting the third quarter of 2023, SI-BONE increases its 2023 global revenue guidance to a range of $136 million to $137 million compared to prior expectations from the company. $132 million to $134 million. The updated guidance translates to growth of approximately 28% to 29% compared to fiscal 2022, versus previous revenue growth of approximately 24% to 26%.

Webcast information

SI-BONE will host a conference call to discuss its third quarter 2023 financial results after the market closes on Monday, November 6, 2023 at 4:30 PM Eastern Time. The conference call can be accessed live via webcast at https://edge.media-server.com/mmc/p/jw54nzhx. Live audio of the webcast will be available on the “Investors” section of the company’s website: www.si-bone.com. The webcast will be archived and available for replay for at least 90 days after the event.

About SI-BONE, Inc.

SI-BONE (NASDAQ: SIBN) is a global leader in technology for the surgical treatment of musculoskeletal disorders of the sacropelvic anatomy. Since pioneering minimally invasive SI joint surgery in 2009, SI-BONE has supported more than 3,500 surgeons performing a total of more than 90,000 sacropelvic procedures. A unique body of clinical evidence supports the use of SI-BONE’s technologies, including two randomized controlled trials and more than 120 peer-reviewed publications. SI-BONE has leveraged its leadership in minimally invasive SI joint fusion to commercialize new solutions for adjacent markets including adult deformity, spinopelvic fixation and pelvic trauma.

For additional information about the company or its products, including risks and benefits, please visit www.si-bone.com.

iFuse Bedrock Granite, iFuse-TORQ and SI-BONE are registered trademarks of SI-BONE, Inc. ©2023 SI-BONE, Inc. All rights reserved.

Forward-Looking Statements

The statements in this press release regarding expectations of future events or results, including SI-BONE’s expectations regarding continued revenue and procedural growth and financial prospects, contained in this press release are “forward-looking” statements. These forward-looking statements are based on SI-BONE’s current expectations and inherently involve significant risks and uncertainties. These risks include SI-BONE’s ability to introduce and commercialize new products and indications, SI-BONE’s ability to maintain favorable reimbursement for procedures using its products, the impact of any future economic weakness on patients’ ability and desire to undergo elective procedures, including those affecting the use of SI-BONE’s devices, SI-BONE’s ability to manage risks to its supply chain, future capital requirements resulting from new surgical systems requiring investment in instrument trays, and the pace of re-normalization of the healthcare work environment, including the ability and desire of patients and physicians to undergo and perform procedures using SI-‘s devices BONE. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these and other risks and uncertainties, many of which are described in the Company’s most recent filings on Form 10-K and Form 10- Q, and the company’s other filings with the Securities and Exchange Commission (SEC), available on the SEC’s Internet site (www.sec.gov), particularly under the heading “Risk Factors.” SI-BONE undertakes no obligation to update any forward-looking statements and expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein, except as required by law.

Use of Non-GAAP Financial Measures

SI-BONE uses adjusted EBITDA, a non-GAAP financial measure that excludes the effects of interest income, interest expense, depreciation and amortization and stock-based compensation from net loss. SI-BONE believes that the presentation of Adjusted EBITDA is useful to management because it allows management to more consistently analyze financial performance from period to period and provides meaningful additional information regarding the core operating activities used to drive performance of management to evaluate. SI-BONE also believes that the presentation of Adjusted EBITDA is useful to investors and other interested persons because it allows these persons to use this additional information to assess the company’s performance by using this additional measure that management uses to assess company performance.

Adjusted EBITDA should be considered a supplement to, and not a substitute for, financial information prepared in accordance with GAAP. Because Adjusted EBITDA excludes the effect of items that increase or decrease SI-BONE’s reported results of operations, management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety when they become available. The Company’s definition of adjusted EBITDA may differ from similar measures used by others.

Contact person for investors

Saqib Iqbal
Sr. Director, FP&A and Investor Relations
investors@SI-BONE.com

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