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SI-BONE, Inc. Reports Financial Results for the Second Quarter 2022

·8-min read
SI-BONE, Inc.
SI-BONE, Inc.

SANTA CLARA, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- SI-BONE, Inc. (Nasdaq:SIBN), a medical device company dedicated to solving musculoskeletal disorders of the sacropelvic anatomy, today reported financial results for the quarter ended June 30, 2022.

Recent Highlights

  • Record worldwide revenue of $25.6 million for the second quarter 2022, representing approximately 15% increase over the corresponding period in 2021

  • Record U.S. revenue of $23.8 million for the second quarter 2022, representing approximately 18% increase over the corresponding period in 2021

  • Gross margin of 86% for the second quarter 2022

  • Received FDA clearance for an expanded indication for iFuse-TORQ® which includes fixation of pelvic fragility and sacral insufficiency fractures

  • Received FDA clearance for iFuse Bedrock GraniteTM, a breakthrough device targeting adult spinal deformity with potential for up to $9,800 in Medicare new technology add-on payment (NTAP)

  • Completed patient enrollment for SILVIA, a two-year prospective international multi-center randomized controlled trial of two different methods for pelvic fixation in adult patients

  • Proposed CMS rule for 2023 for primary MIS SI joint fusion indicating a 28% and 35% increase in ASC and hospital outpatient facility fees, respectively

  • Surpassed 70,000 procedures performed by over 2,800 surgeons worldwide

“I am pleased with the accelerating growth in the U.S. which allowed us to deliver record revenue in the quarter with iFuse-3D and iFuse-TORQ as the two best products on the market for MIS SI joint fusion,” said Laura Francis, Chief Executive Officer of SI-BONE. “The recent launch of iFuse Bedrock Granite and the expanded trauma indication for iFuse-TORQ will complement our core market growth as we support our surgeons in improving patient outcomes across modalities. With the best-in-class portfolio of sacropelvic solutions, an industry-leading commercial infrastructure and a strong cash position, we have the organizational resources to capitalize on the healthy demand dynamics and deliver accelerating top line growth.”

Second Quarter 2022 Financial Results

Worldwide revenue was $25.6 million in the second quarter 2022, a 15% increase from $22.2 million in the corresponding period in 2021. U.S. revenue for the second quarter 2022 was $23.8 million, a 18% increase from $20.2 million in the corresponding period in 2021. International revenue for the second quarter 2022 was $1.8 million, a 8% decrease from $2.0 million in the corresponding period in 2021 predominantly driven by unfavorable foreign exchange.

Gross margin was 86% for the second quarter 2022, as compared to 89% in the corresponding period in 2021. Gross margin in the second quarter 2022 was impacted by lower average selling prices due to procedure and site of service mix, as well as an increase in cost of operations to support the growth of the business including costs related to new product launches.

Operating expenses increased 22% to $40.0 million in the second quarter 2022, as compared to $32.8 million in the corresponding period in 2021. The increase was driven by higher headcount, increase in sales commission and stock-based compensation, increase in travel and freight costs, and research and development investment.

Operating loss was $17.9 million in the second quarter 2022, as compared to an operating loss of $13.0 million in the corresponding period in 2021.

Net loss was $18.5 million, or $0.54 per diluted share for the second quarter 2022, as compared to a net loss of $14.0 million, or $0.42 per diluted share in the corresponding period in 2021.

Cash and marketable securities were $114.4 million and long-term borrowings were $35.1 million as of June 30, 2022.

2022 Financial Guidance

The Company continues to expect total 2022 revenue of approximately $106 million to $108 million, representing growth of 18% to 20% compared to full year 2021.

Webcast and Conference Call Information

SI-BONE will host a conference call to discuss the second quarter 2022 financial results after market close on Monday, August 8, 2022 at 4:30 P.M. Eastern Time. The conference call can be accessed live over the phone (888) 346-8835 for domestic callers or (412) 902-6646 for international callers. The webcast can be accessed at https://investor.si-bone.com.

About SI-BONE, Inc.

SI-BONE (NASDAQ: SIBN) is a global leader in technology for surgical treatment of musculoskeletal disorders of the sacropelvic anatomy. Since 2009, when SI-BONE introduced the iFuse Implant System for minimally invasive surgery of the SI joint, more than 2,800 surgeons have performed a combined total of more than 70,000 SI joint fusion procedures. A unique body of evidence, supporting the iFuse Implant System, including two randomized controlled trials and over 100 peer reviewed publications, has enabled multiple government and private insurance payors to establish near-universal coverage of the SI joint fusion procedure exclusively when performed with the iFuse Implant System. Supported by this proprietary reimbursement advantage, SI-BONE has actively leveraged its market leadership position in recent years to further clinical research, and evolve and commercialize novel surgical treatment solutions for SI-Joint pain, sacropelvic and pelvic fixation, and pelvic trauma. For more information or to join our team, please visit us at www.si-bone.com.

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

SI-BONE and iFuse Implant System are registered trademarks of SI-BONE, Inc. ©2022 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 of continued growth and financial outlook, 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, SI-BONE's ability to manage risks to its supply chain and the future impact the COVID-19 pandemic will have on the ability and desire of patients and physicians to undergo procedures using the iFuse Implant System. 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 at the SEC's Internet site (www.sec.gov), especially under the caption "Risk Factors". SI-BONE does not undertake any obligation to update forward-looking statements and expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein, except as required by law.

Investor Contact
Matt Bacso, CFA
investors@SI-BONE.com

SI-BONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)

 

Three Months Ended
June 30,

 

Six months ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

$

25,585

 

 

$

22,194

 

 

$

48,024

 

 

$

42,636

 

Cost of goods sold

 

3,465

 

 

 

2,375

 

 

 

6,448

 

 

 

4,575

 

Gross profit

 

22,120

 

 

 

19,819

 

 

 

41,576

 

 

 

38,061

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

28,843

 

 

 

23,084

 

 

 

54,448

 

 

 

44,006

 

Research and development

 

3,478

 

 

 

3,149

 

 

 

7,058

 

 

 

6,104

 

General and administrative

 

7,680

 

 

 

6,551

 

 

 

14,819

 

 

 

12,491

 

Total operating expenses

 

40,001

 

 

 

32,784

 

 

 

76,325

 

 

 

62,601

 

Loss from operations

 

(17,881

)

 

 

(12,965

)

 

 

(34,749

)

 

 

(24,540

)

Interest and other income (expense), net:

 

 

 

 

 

 

 

Interest income

 

136

 

 

 

46

 

 

 

209

 

 

 

107

 

Interest expense

 

(622

)

 

 

(1,075

)

 

 

(1,183

)

 

 

(2,139

)

Other income (expense), net

 

(146

)

 

 

13

 

 

 

(200

)

 

 

349

 

Net loss

$

(18,513

)

 

$

(13,981

)

 

$

(35,923

)

 

$

(26,223

)

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(0.54

)

 

$

(0.42

)

 

$

(1.06

)

 

$

(0.80

)

Weighted-average number of common shares used to compute basic and diluted net loss per share

 

34,052,692

 

 

 

32,978,914

 

 

 

33,923,229

 

 

 

32,836,040

 


SI-BONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

 

June 30, 2022

 

December 31, 2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

24,319

 

 

$

63,419

 

Short-term investments

 

90,095

 

 

 

83,560

 

Accounts receivable, net

 

15,118

 

 

 

14,246

 

Inventory

 

16,484

 

 

 

11,498

 

Prepaid expenses and other current assets

 

2,325

 

 

 

3,143

 

Total current assets

 

148,341

 

 

 

175,866

 

Property and equipment, net

 

12,810

 

 

 

8,992

 

Operating lease right-of-use assets

 

4,611

 

 

 

5,248

 

Other non-current assets

 

385

 

 

 

400

 

TOTAL ASSETS

$

166,147

 

 

$

190,506

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

5,141

 

 

$

3,198

 

Accrued liabilities and other

 

10,189

 

 

 

12,353

 

Operating lease liabilities, current portion

 

1,342

 

 

 

1,339

 

Total current liabilities

 

16,672

 

 

 

16,890

 

Long-term borrowings

 

35,075

 

 

 

34,973

 

Operating lease liabilities, net of current portion

 

3,529

 

 

 

4,166

 

Other long-term liabilities

 

38

 

 

 

57

 

TOTAL LIABILITIES

 

55,314

 

 

 

56,086

 

 

 

 

 

Stockholders' Equity:

 

 

 

Common stock and additional paid-in capital

 

435,593

 

 

 

429,917

 

Accumulated other comprehensive income

 

32

 

 

 

352

 

Accumulated deficit

 

(331,772

)

 

 

(295,849

)

TOTAL STOCKHOLDERS’ EQUITY

 

110,833

 

 

 

134,420

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

166,147

 

 

$

190,506