SI-Bone (SIBN) Reports Q2
SI-Bone (SIBN) reported yesterday afternoon that revenue rose by 30% to $33.3 million (beating by almost $2 million) and EPS came in at -$0.30, a penny better than expected. Management raised full-year guidance by $3.5 million to $133 million (at the midpoint), about $1 million more than the Q2 beat.
This was the third consecutive beat and raise quarter. That said, management didn’t do the best job of explaining their seemingly extreme conservatism for the second half of the year given that guidance implies second half growth of only 15%, whereas first half growth was 38%. There was discussion of summer months being slower, both for surgeons and patients. And we saw some of that in Q2 with 935 active surgeons in Q2 versus 950 in Q1. However, apparently by the end of July active surgeon count was back above 950, so it seems there is just some variability here month to month.
The company is doing more with its cash. Operating expenses were 3% lower in Q2 2023 versus Q2 2022, a fairly impressive accomplishment given revenue was up 30%. The company now has almost $170 million in cash after the May secondary offering (raised $84 million), so no liquidity concerns.
While the stock sold off into earnings, and is down again today, this business appears to be doing very well. As a reminder, SI-Bone specializes in minimally invasive surgical implants for sacroiliac joint dysfunction, which presents as lower back pain. It is growing its portfolio of implants, tools and procedures so that surgeons can turn to SI-Bone for more of their cases.
We jumped into SIBN in May with a half-sized position and will stick with a buy half rating for now. Looking for an opportunity to buy the other half (we may be getting close). BUY HALF
