On November 12, 2024, SI-BONE Inc (SIBN, Financial) released its 8-K filing detailing the financial results for the third quarter of 2024. SI-BONE Inc, a medical device company, specializes in developing and commercializing minimally invasive surgical implant systems, including products like iFuse-3D, iFuse-TORQ, and iFuse Bedrock Granite, which address sacroiliac joint dysfunction and other related conditions.
Performance Overview
SI-BONE Inc reported worldwide revenue of $40.3 million for Q3 2024, marking a 19% increase from the previous year. However, this figure fell slightly short of the analyst estimate of $40.50 million. The company's U.S. revenue grew by 18% to $38.3 million, while international revenue increased to $2.1 million from $1.7 million in the prior year. Despite the revenue growth, the company reported a net loss of $6.6 million, an improvement of 34% compared to the same period last year.
Financial Achievements and Industry Importance
SI-BONE Inc's gross margin remained robust at approximately 79%, consistent with the previous year. The company also reported a significant improvement in its adjusted EBITDA loss, which narrowed by 94% to $0.2 million. These financial achievements are crucial for a medical device company like SI-BONE Inc, as they indicate efficient cost management and potential for future profitability, which is vital in the competitive medical devices and instruments industry.
Key Financial Metrics
The company's operating expenses increased by 4% to $39.5 million, driven by higher commercial activity and research and development investments. Despite this, the operating loss improved by 32% to $7.6 million. SI-BONE Inc ended the quarter with $150.8 million in cash and equivalents, reflecting a net cash usage of $0.7 million. The company's balance sheet shows total assets of $226.998 million and total liabilities of $62.024 million, indicating a strong financial position.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $40.3 million | $34.0 million |
| Net Loss | $6.6 million | $10.0 million |
| Gross Margin | ~79% | ~79% |
| Adjusted EBITDA Loss | $0.2 million | $3.9 million |
Operational Highlights and Future Outlook
SI-BONE Inc achieved several operational milestones, including the commercialization of the iFuse TORQ TNT device and the completion of patient enrollment for the STACI study. The company also refinanced a $36 million term loan, reducing borrowing costs and extending maturity to 2029. These developments are expected to support the company's growth strategy and enhance its market position.
“The team did a tremendous job delivering record worldwide revenue and getting close to Adjusted EBITDA breakeven in the third quarter. In addition to the sequential revenue growth, the record 1,200 active physicians in the quarter demonstrates that our strategy to build anatomy-specific platforms to address unmet needs is gaining momentum,” said Laura Francis, Chief Executive Officer.
Analysis and Conclusion
SI-BONE Inc's Q3 2024 results demonstrate strong revenue growth and significant improvements in profitability metrics, despite missing revenue estimates. The company's strategic initiatives and operational achievements position it well for future growth. With expectations to achieve positive adjusted EBITDA in Q4 2024, SI-BONE Inc is on a promising path towards financial stability and enhanced shareholder value.
Explore the complete 8-K earnings release (here) from SI-BONE Inc for further details.
