SIBN - Earnings call transcript Q4 2018

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Operator

Good afternoon, and welcome to the SI-BONE's Fourth Quarter and Full Year 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. We'll be soliciting the question-and-answer session towards the end of today's call.

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Carrie Mendivil from Gilmartin Group for a few introductory comments.

Carrie Mendivil

you. Thank

and are Chief and SI-BONE of Financial results the today and of released the Dunn, December for Francis; ended available Laura Officer. quarter company's press Jeff release me A on CEO President SI-BONE; financial XX, is Joining XXXX. year the copy website. full Earlier today,

Litigation involve the -- financial future Private to various surgeons, revenue and Act estimation of our examination expectations, hiring, federal future that are we these statements, statements Any I'd uncertainties should like contained statements predictions without statements. will anticipated pursuant or events those this of this decisions cause materially current Securities events, which relate are could these to and reliance during and statements Reform that that forward-looking limitation include Safe of operating begin, to or active performance forward-looking are forward-looking XXXX. management call trends Harbor results which of actual in from or Before for call implied undue for the All on within securities statements. place These statements results Accordingly, differ guidance upon reimbursement expectations our our not to by expectations including forward-looking the based of meaning make you assumptions. made statements. remind include or you risks and law, that provision material that

quarterly as accurate Form filed any with the I'll information, update and please refer to on or section or SI-BONE For is securities most call of otherwise. events turn XXXX. time-sensitive And over Factors by or to risk exchange March live future conference uncertainties business, new report obligation whether or XX-Q intention to -- of and Jeff. our that, information call the a and on list except statements as and disclaims broadcast revise the today only of commission description required recent X, associated with of contains Risk with This law because the forward-looking forward-looking any our the

Jeffrey Dunn

Good our XXXX Thanks, us. you review and joining and I'm full fourth to to thank pleased welcome quarter earnings SI-BONE's for call year Carrie. to results. afternoon you

consistent Our to XXXX investments reimbursement We XXXX. in was the was in $XX.X progress $XX.X the up marked million in XXXX. to by of in XX% and up year wins clinical the ongoing sales, front Revenue XX% with fourth ended data. compared compared the for million, quarter robust quarter

progress to guidance this issuing of the in and $XX growth revenue over year. XX% a range to continue to are and well-positioned XX% XXXX prior are the million We $XX.X million reflecting

or force, their reps sales direct our meaningful U.S. with sales we spine organizations set in reimbursement finished U.S. increased factors. ahead, in key with supported evidence. incremental driven adjacent be Starting force technical market Looking coverage, skill experience. These fourth training, seg quarter few the commercial opportunities, organization. surgeon are in highly by clinical Sales by with sales reps interventional our expansion, XX -- pain will traction the a mature

during who of sales coverage most case are new clinical direct our unpenetrated CSSs. addition capture large sales year by the territories in reps -- we XXXX growing of the XXXX, -- had in during addition Our on territories opportunities through XX CSSs, territories. plan quarter, to direct were coverage. to To In deeply rep XX and new to the on the direct the payer added reps of specialists, XX CSSs further from more the sales through or of or -- add to effect, that penetrating existing are to we're and focused supported sales XX are support CSSs, end of decisions. At second we fourth half assist exclusive

number bring close aggressively We to to year CSSs, growing X. in CSSs, sales reps support our X to support our reps our increased This our to of also the and mature scale smaller of we regions to will To sales efforts, regional U.S. of to these organization. sales U.S. effectively direct plan -- XX quarter rapidly will ratio increase additional XX expansion directors territories. first specialists to to the XX throughout the promoting talent be sales The adding by the number the new of to X direct management top from of X critical critically sales during U.S. XXXX. from top

and run both the We rate is expect United have rep coverage productivity million. our average of reps U.S. direct that an expand from these efforts field combination, where mature $X enable to over States, mature our us it In increase will, in sales today.

However, we towards expect rep support $X.X over could million sales, million. of and a in grow the in time, ramp with to territory to specialists, mature clinical a support $X

on focused new In and sales affairs our supporting expansion, addition training, to medical our is surgeons. U.S. educating team force

surgeons SI anatomy, on and program joint treatment trained Our dysfunction. of the education diagnosis

Additionally, our in and from who X,XXX pain patients SI spine United States, spine the practitioners which assistants surgeons and programs physician back often to dysfunction. first joint the nurse see suffering and surgeons neurosurgeons. providers includes educate are orthopedic are There

procedure which we a as of has By months. During who is the fourth this quarter, had performed XXX XXXX, educational surgeons number X XXX the increase a we defined to about in efforts. through last these to end active surgeons, expect the active surgeon

approach. years, on implant on existing have our an at XX,XXX the iliac few place the with the screw. adjacent iFuse posterior last multilevel of the implant bottom X SXAI surgeon construct used SI about our to expand with in quarter, to year provides to which down adult in technique of sacrum. the markets In deformity accordance the of half technique. sacrum The is from executed The adult and side the of the of our allows iFuse commitment adult treat fusions screws an for indications to screws spinal It use about each in crossing fixation additional into device deformity joint alongside Bedrock performed also use. are we procedures. clearance surgeries There the extend FDA iFuse the each During SXAI deformities, been

that institutions the are to world. step an an dysfunction, technique loosening have fusions the the surgical creates the undergoing of and The forward construct. of recently breakage is We of the our at a sometimes academic fusing at design cleared the exciting sacroiliac characteristics screws joint the since notion ignores this joint are who spine to important screws long issues, many be around for the deformity SI used patients adult believe However, base for leading procedure. and of foundation long create FDA and performed

Special with NYU, now in We're institutions Our University engaged these Minnesota, Institute the Duke, team Barrow as is of seeing now such Hospital York. many for Rush, and of New Surgery Scripps, pain interest SI the leaders a significant joint opinion as key important evolve of these is SI and joint leading in institutions. at the rapidly. will by foundationally recognition academic believe generator We Neurological

Turning SI publication who studies in which U.S. to continuing and of the JBJS, vast different X hospitals clinical dysfunction, with prior effectiveness using and chronic triangular controlled in were it demonstrated The joint the Implant assessed publication that respond to RCT. superior fusion these were X the Level treatment. notable joint use orthopedics, chronic Surgery, with to signals from announced fusion impact JBJS particularly sustained iMIA rapid from clinical our on of with SI improvements sacroiliac continents, with spine. or X RCT, quality of X-year not joint from yet of joint longer the almost is consistent across safety the across the which conservative belief treatment in SI of was I X pain, are consistent System, triangular as study published across iMIA, evidence. known of X-year wider European Bone for joint peer-reviewed The fusing dysfunction. this the journal, Joint we build the we are studies, results iFuse In Journal XX of just is the identical. INSITE Yesterday, patients conducted study validates studies. further body iFuse function X XXth of and published our patient iMIA and randomized different is life the results publication. in interest a all high compared countries. conservative year trial, our patients effectiveness implants no SI titanium -- conducted the management on This results iFuse iFuse centers to It's and implants with combination, a

Excellus sacroiliac the followed exclusive policies evaluation January Pacific in XX, healthcare Premera System. the plans continued publishing published wins. the procedure November a procedure largest in clinical Our Recently, healthcare market Western from is joint improving exclusively and positive MIS offering body Highmark of published Joint X. area, the on the iFuse continuing iFuse. This garner performed policy payer when products BlueCross progress policy by covering the also for X for iFuse. the patient the a took of Northwest, And Arizona X commercial Implant exclusive mid-Atlantic to plan largest February We're December providing in positive On the X. for insurer the On coverage X, iFuse to organizations which BlueShield of reimbursement effect, covered coverage drive million region, was coverage few clinical policies and Implant began exclusively payers York. surgical BlueShield's Cross, an days robust on growing providing our support CareFirst, Pittsburgh the with demonstrate covering wins positive new evidence iFuse to New access switched leadership SI triangular by lives, XX, policy System. ago, of Blue health March has fusion just lives. in exclusive BlueCross in encouraged These expanding

XXX across notable the additions, coverage mention, fusion. XX payer the private million joint iFuse that Approximately for U.S. the cover we iFuse. most implant MIS important payers million in now to covered of payers over XX in It's lives States. these these XX of lives for XX With now United covered have systems SI have the exclusive

also is of head results We're In Europe, Jeff U.S. new market In year. Zigler sales Spine years efforts hired in help payers. issues focused the undertaking LDR reimbursement orthopedic, positions early with second Zimmer early with St. were a of market Jeff international also Jude and for on Abbott. President neurosurgical as improve We Biomet, Jeff's our and us experience and will team over Vice and continue new and pleased to differentiate she we January, He access opportunities. sales cardiovascular global held during in to XX the technology German the in access international we welcomed and key in reimbursement Germany experiencing experience spine, there. of to has of the revenue our companies. Medical SI-BONE half January. brings I'm

revenue Officer. the Laura by capture established we positive our Public from the call will in opportunity in addition, now In a to Health December France I branch will Then, Francis, the made Chief that, to With Financial over XXXX decision return the that closing we'll with comments. French exclusive help turn coverage System.

Laura Francis

Jeff. Thanks,

XX% $XX.X compares XXXX, The driven quarter quarter fourth in For of the improved the for million the million. payer $X.X coverage. the margin period fourth was $XX.X of XX% fourth to year. growth the in million corresponding period. that $XX.X was of higher XXXX. of fourth proceeds was and by with Gross fourth International prior invest prior-year the for representing the take revenue coverage. was for Operating over million, revenue operations IPO primarily to to to corresponding case quarter was improved the U.S. as to quarter driven was XX% compared quarter same increase consistent XXXX, increased period. $XX.X expenses volumes for reimbursement million for by from prior-year to $XX.X of primarily The domestic fourth advantage increase more the opportunity the quarter million, revenue and XXXX of field increased XX% that the U.S.

period. the we G&A for corresponding shares net was to The million period. our to entire diluted outstanding into loss the from of new loss common prior-year for was incurred stock $X.X The related loss XXXX loss addition, period. compared in The share XX, warrants inclusion of $X.XX IPO In ended $X.X the XX, or share of as public a per loss diluted non-GAAP shares net XXXX, or months a calculation in XXXX. of And compute costs. higher million The used per $X.X as quarter non-GAAP million expenses preferred corresponding the per that outstanding $X.XX the operating loss was compared approximately were prior-year conversion of company of quarter net in fourth the stock and net $X.X December at to shares share share loss million XX.X X the assumes for and were December diluted and basic XXXX. $X.XX million fourth non-GAAP per

Operating cost million, increased cash, to The in million in compared XXXX for year. million to field XXXX. international sales to in growth loss $XX.X payer $XX.X growth We $XXX.X or was over case driven XX, XXXX per diluted to described, International increase as XXXX The The XX% the XXXX. Turning our of was margin higher of management activities representing of with the and as XX% XXXX to increased take to as XX% revenue diluted a equivalents for loss XXXX. share during year advantage second loss $XX.X in our primarily XX% higher The $XX.X $XX for $X.XX XXXX million XXXX and million for of coverage. XXXX year expenses first prior XX% was reimbursement per primarily to The compared previously increase in lower was of $XX compared investment XXXX. December over XXXX. European improved margin half for XXXX. non-GAAP $X.XX for the The share, ended a or gross second operations short-term of cash million, $XX.X that investments. the in million the compares by markets improved to the to Revenue increased in was loss rate in year. for operating U.S. The as million, due the softness $XX.X was year. million prior of during $X.XX net net was primarily result loss share XXXX, results. for by growth year million was for Gross revenue XXXX. half the X% per half ended compared was in to from full was U.S. volumes representing million coverage. $XX the driven $X.X

Turning to our outlook for XXXX.

in We range year $XX.X to XX% full XXXX. growth be expect to representing revenue of to over million $XX of the XX% million,

We and back the international now turn similar the closing over expect to Jeff rates grow comments. the U.S. during call year. for at I'll businesses to

Jeffrey Dunn

for we in pleased you, clinical performance as our in on and sacral providing differentiated I'm Thank reimbursement fourth as leader devices our this Laura. further by quarter market fronts, surgical pelvic and throughout headway validating made the position XXXX, the space.

are the presenting up the thank the training is to This commercial XXXX, in growth for our this ramping Las U.S. we to week want for will Dr. from SI-BONE adult our Orthopaedic and near inviting efforts analysts term, and open in educational their and of Looking I of day the we We progress. employees our you and our more deformity investors enthusiasm positioned ahead questions. the continuing investor be SI-BONE. event we opportunity market both look for in ahead. Annual what overseas, the will look well and and on forward sum, at the Meeting. hard Chief now the recently Operator? Spine next focused on efforts to to of In the up that, are an and team and learn expanding Bedrock Technique. Canaccord Academy Musculoskeletal With team growing forward on updating Vegas it following our work. opportunity will We're Department the at for about Conference on cleared Orthopedic In on in Minnesota's for Surgery reimbursement to of we iFuse Polly, event to of XX, hosting event perspective David Surgeons American Surgery Professor offer March University front.

Operator

line comes with from Lewis the Stanley. [Operator Thank David of the And Instructions] Morgan first question you.

is now line open. Your

David Lewis

questions Maybe will Laura. a afternoon. with Good I me. few start from

of I pretty Laura, Jeff. in follow-ups year. range? of, to formulated us tight of is So range? just What level it optically, your of this kind couple to guidance gets bottom and for confidence the range start the Kind a how and And top is have what that

Laura Francis

Thanks, David. Great.

we're what as we was we did looked the think, built model, at at I we currently. where

consideration that a junior put especially, both additions sales what that thought as we senior and we currently we're and the have only the as the doing reimbursement we were specialists, the growth And a on we work reps then as impact then managers, so, have, of And numbers. well some we also are number support into that reimbursement are those the developing clinical surgeons going the took we looked well to training going more make perspective, also to business. And side. the the they on at perspective, from from when territory into the

factors put active guidance reimbursement, feel of in the and we the that And X good targeted those numbers we and -- sales number -- So growth the team, guidance. those developed considered our in we together our accordingly. feel with that about growth surgeons, revenue

David Lewis

very helpful, things Okay, here. of very a couple Jeff, specific, for Laura. you

So obviously, guidance reflects acceleration.

XXXX, about then quasi-XX penetration greater additional think dependent this And where payer of that or against How you giving new much rep very from? equivalents? hiring related for on acceleration you in account year-to-date the are where us number were helpful year, the you is increased already As it existing accounts, of that, coming is to guidance traction?

Jeffrey Dunn

on that come us unsolicited, goals. here the on people coming to us the schedule. right enabling are to quality work us, that people meet Yes. quantity on confident that you hiring. sales plan we our numbers I on tell I And give with not the all exceed the to mean, hiring. can we are is and we're of of bring feel going quarterly and are coming to that absolutely David, to will hiring The to people that right very want

high as bringing people on the And of importantly, side. on. we're quality the side so the And I on have hiring confidence very

business, of we about number around to the to we're we that surgeons the As do feel thing. on year, track expectation kind can as on certainly doing our mentioned, so. We active -- that in even confident to on and to increasing we what's or XXX going of drive are that, by very early

to from payers, front, mentioned X new reimbursement switched the non-exclusive exclusive. we X On that including

We are highly confident that more there are coming.

mind policies seen have in other say, exclusive. today we have And mention come on. that just that moving just I'm We will the all see nonexclusive your very which payer how and along, Zigler, from to ones we show, drafts the progress and did I also I, payers including payers, And of with and frequently that the information engaged personally, to investors' have But of additional is let's will Jeff stayed on come ones we not are last big that sure minds. interactions all with other are experimental having year. them.

I instance, of I one For they everything of year meeting don't that had things. necessarily those a do wait and with as to think kinds a them, has

working engaged we're know you I the on the all So timing. are But with them. I can't timing, of we don't tell them.

David Lewis

Jeff. helpful, Very

last jump question. one Just And I'll the back Jeff. me. queue, for just in Very good, last one

KOLs? You new new driving meeting. large awareness to growth fusion of of I'm in how therapeutic we'll in drop just in of this of queue. I'll just important back about is mentioned this about much. the adoption more the drive so about trying is area? Academy or therapeutic knowledge construct, how hear curious, this SI much broader much Thanks with area, Or

Jeffrey Dunn

here, fingers centers pay list show just academics sacroiliac But that by the center Well, happen, space. prior some Tuesday we in the could those looking and academic thinking centers surgeon a next say AAOS. having One paying significant that's joint, trickle-down of attention and the and and X bosses to if effect that hip asked deformities. adult and at attention revenue snap sacroiliac But -- over with I David, adult associated see have revenue are that show biomechanical a secondarily, every deformities that major those -- to would this, from this we deformity -- then engaging by disorder with we clinical greater believe adult there just joint, to the is better the surgeons in, been a where validated academic there I I there's standpoint, an will could paper will our in would me choose, based engaged the force the we reading in opportunity important week. of next adjacent single general their present that interactions be when is happen. pay time the States sacroiliac that this. And the first think will and orthopedic attention journal, attention that published this will if joint, segment very with I choose choose data are because believe you issue we has percentages United really a joint, the at to and we in the paying you surgeons our sacroiliac and engaged of conference on and will the every to do for to things my -- I about recognition will you'll they just be JBJS

de novo pay all joint of to we some if significant are that come But fellows country because and I surgeons the So to pay get fellows and way could think adding in the and the together, sacroiliac all importantly, the think across will we residents revenue. SI those come all a to will drive that be awareness. these attention XXXX pieces peripheral joint, that surgeries residents the very will we and surgeons folks the academic -- that, we growth in most attention supporting of will centers, where to training it's

Operator

comes you. from with of question Thank America. And line the of our Travis Bank Steed next

open. now is line Your

Travis Steed

at wins the Hi, for point. Laura. the Thanks have taking through of Jeff think us incremental I impact questions. wanted this you and to payer help

still in payer but payers large You've the got still sidelines. coverage already, some significant

the different outlook in some question of large decisions how payer So to way ask have you would one the had if been maybe the would January? seen be probably

Laura Francis

Humana aren't so that So Cigna I the some specifically? and yet, think and you're referring covering some payers of -- to

Travis Steed

Yes.

is an much And to how does the growth? there? take As opportunity on it procedure incremental impact those see come how through, long

Jeffrey Dunn

lives, that we XX said, she at Aetna Anthem Laura the numbers good have million without That I then growth have about million. like -- maybe you a it's you XX have million Humana. think feel shared XX have XX Arkansas I and Alabama, lives, at it's And few others. So you those of and XX Cigna or said. million you lives very million -- at And that Blues something like

so And maybe covering, XX XX are that XX are that million those between you not million, have there. million, people

-- think I growth. I to modeling they're here to January, population a when the But they couple that any hard are of post that going it's did points of Obviously, not if way I instance, kinds for guess, them had predict and to. a maybe in Aetna were and we one exactly update that they? those standpoint, even about -- come. point add though know would point So think it's that the to of from there, it going publicly percentage posted they is of a you if what add And things, a here

working just they're on think that. I So still

predict So know extent post. whether when go March happens, I helpful trying million, go we but it's do. and XX sure to they're to and, or don't to million May, to going But they're exclusive. lives, positive, And they that if to they they're stopped obviously, post I'm if going some April what that's in exactly XX have or going

I think JBJS that with and I evidence I and Babinski Cigna, We recently. McDonoughs Dr. had as the X-year But others helps, coming Bob these interactions is have, with at up said, think of helps. there lots the

published up clinical prospective and we the have know, wasn't X-year it years, that X you this year. data, As we milestone The is prospective. will X-year another come but

help that does So you?

Travis Steed

Laura. Go Yes, That's helpful. ahead,

Laura Francis

is that these in these -- upon thing a the would are territory-by-territory, only I decisions think are of to lives that depends I other it's the where U.S. it lot and add covered located

of so locations. patients part a support have we there and be placing until to those if of Anthem we managers our in country, clinical preponderance our are a a are in specialists the less apt preponderance of territory coverage And particular

So will territories, impact do sales on, the of come and most we then add those additional really resources, in the is decisions where up And our those those model we territories. on ramp to the we coverage one place have coverage. as people surgeon training where

Travis Steed

That organizational structural why reps, trying of to on reps makes XXXX there? is to right type and capacity is more more kind limit new constraints can not sales some the Or or think your any through the specialists, there reps? for sense. And of new XX to so hiring XX even the number direct XX faster? to and XX you accelerate opportunity Just

Laura Francis

Yes.

I on those we that appropriate to what's numbers. sure is think management pretty we making specific all gave important the sales really guidance this. But structure have handle of

And our what of our that Sales, have Troy Chief Tony to something by you done so Kyphon here from Commercial similar Officer, Recupero we has Wahlenmaier. of we're as supported a doing very came He's know rapidly scaling sales VP force.

cover add year our expanded already regional to one east, this from the of organization area quarter vice second to to We've the X the presidents, cover one in will west. XX. We sales

that to the and management to And you that in we're handle putting have order so is front that the in out management need here idea structure place. with the in of growth

Travis Steed

there jump much revenue any queue. That much impact? between one in me, if then one is then And outlook assume back I'll to a get your from procedure? more procedure this guess, force when there's for sales is than risk is at force? opportunity topic, core on synergy for And focusing your of last that in procedures on how X different the makes there point and your lot your that distracted going I sense. deformity? so, Does a X how sales And

Jeffrey Dunn

there adult to of revenue that amount question. think, We're X think, were in -- parts a there's not Well large I I assuming deformity.

roll but you show -- on out the next effort. As we'll I in academic is more last than XXXX. slowly week. a think But just have let's but first we are into we're say focused. the not It engaged I going adult a largely initiative, this at call, an that we We're But and we're educational the that out to adult keep going mentioned not dozen to we're will to during spots to saying relatively limited. not beyond go to much keep deformity XXX very boat going that that, pretty on year. the I'm deformity centers expand going

of orthopedic force. it's I surgeons, neurosurgeons, distraction don't the it's in that the to As still it's surgeons. sales spine the think still so still sense

And where makes sales the we and doing say -- deformity is -- regular academic Chris and should may joint but sometimes happens, went a a Duke, now be UVA incentivized rep was, then UVA, to center surgeries. surgery so now think, brings instance, an Shaffrey if the was and who highly there's anything, cases example get or him when Duke activity, SI at of who on-board, activity at in on I these that chief left to use adult and I'll call Shaffrey UVA there no originally, Chris to and there's I went and of and for just

something down they is standpoint. with is much in from and line an rep So do trickle effect the very what sales that that educational

So we feel like well. it fits together really

Travis Steed

questions. Hey great. taking for Thanks the

Jeffrey Dunn

You're welcome. you. Thank

Operator

JMP And Dave Turkaly comes Securities. the Thank with of next line question you. our from

Your line now open. is

David Turkaly

I'm blueprint do there of wondering, get seems the And Yes. of you but the And do you can mentioned follow? you. that exclusive it's the a heels sort like you a Was that, is event, on think same? first? it that to sort The of conversion can Thank eviCore mentioned, guidelines. you others a you rare

Jeffrey Dunn

specialty million and And benefit Milliman is went and after get advisor Well, you David, a who advisors, UnitedHealthcare payers. is example months these XXX -- another happened. that advise we when eviCore do. Care Guidelines example, manages few An is the lives. an

eviCore Here have you and the out now last fall, see Highmark guidelines. eviCore you coming following

Express you So eviCore. do know, bought as Scripts guys Scripts owns bought I Cigna and as Express example, an -- -- think

So the clinical Specialty at connection own eviCore there is AIM by Anthem, is organization, Cigna, and they owned Health, them. this i.e. between which And Anthem. advisory is

started same sense January So a a is of connection, what thing as for X is there I we Absolutely. cover short continuation possibility company about direction? work nice the insurance talked expect last believe a robust the procedure. evidence understanding phenomenal have the delivering influence seen done think And acceleration, the have right looking they're parade as that think, year. to and strategy. makes and they and clinical we within And their this in we we is system the company nothing with a a I very nice the a And to for that there's job to

David Turkaly

up obviously, the for surgeons you quarter. step in big And Thank in a active that.

due You of the of those of neuro. And either training then guys you And to you ortho spine mentioned gravitating many versus you'll efforts? how between in XXXX seeing Thanks. your there up base just that procedure? your XXXX is those split you there, think have I'm one more being out sort step wondering, neuro X ortho about have are and that SI obviously, those one of talked things, versus is are groups, towards do XXX and in of XXXX?

Jeffrey Dunn

Yes.

the neuro. or has around should really and the think I think that, a XX% that don't don't move going changed XX%-ish I So much. changed to mix say, mix I not David, has lot. that's ortho It's

of number giving not we're guidance training. folks we're efforts, training the the on to As

that train it surgeons. are We are number surgeons you in on the surgeons to But of I will training. active in and the is we tell plan giving guidance important had we're planned on QX, step up an with the of right number we

on hiring, our the wheel hands like firmly the feel training we we surgeon well have training sales hiring. So as besides that

our We are literally dead on plan.

David Turkaly

Thanks a lot.

Jeffrey Dunn

welcome. You're

Operator

line Rose you. from comes the Kyle with And Thank Canaccord. question of your last

now is open. line Your

Kyle Rose

the for good you evening Thank and Great. everyone. taking questions

or So guidance year. on follow-up around I kind I the the just wanted goal -- some posts the of to of expectations for

the XX the the we kind lens the the rate adding for productivity think getting QX, conservative your the think I reps of -- of and look when trying think million at million? as million appreciate I mature about at on exiting XX get of up force, just XX in you $X.X million $X.X support when year, resources when that of of adding But add about looks guidance the you you're territories. to that I we're $X those your reps I XX-month now because that out current going it on. to to what just of to of end XXXX, sales about the from productivity. and think XX think a $X.X at will basis productivity Just annualized reps rep how Specifically, understand to those to the I'm

how increases through into me should as productivity we help XXXX So we eventually of and XXXX? frame the just kind move expect to move

Laura Francis

year is to XX about XX of rep XX productivity that top we're additional level this given that the to that continue ramp are for last ones way remain ones planning in due our primarily our the going take specialists. there, our sales. think of XX anticipating hire are we at that to trying XX is what in of then because, older have year that to people rep up increasing to to But months, million we're The we're adds an order the months the terms to this the same support clinical Kyle, to of this, been that over on new fact $X productivity. around will their the course, been But have approximately increase productivity these

be all the also clinical you're when the additional we productivity continue reps support continue of are just that rep add to by above numbers hovering to averaging see going supported specialist. into it mix. a they'll But as million have this Now already to $X reps together, a little that you're

Kyle Rose

in think million I you in that, I you changes helpful. growth think appreciate 'XX new should How that. $X.X OUS in about kind about QX specifically and there? Jeff, And, the XXXX? about the grow do as guidance some prepared France. base framed Okay, Germany the or we number? from on QX -- should How we going it in of in should remarks, $X.X forward made that's call you you of, when the about international out million as think Europe, talked to we and mean that very QX, in

Jeffrey Dunn

and OUS the We U.S. the same think percentage wise. growth about be will the

in we overall. growth or know, year It absolutely a it's last had on the overall, have getting in we XX% challenge Kyle. we Germany. dragged and in you if had believe certainly, U.S. as that that been As back in higher you QX, We XX had -- we down track XX% would hadn't had know deceleration QX and

said, growth into be that leading terrific bringing rate woman organization we as sales I the hired expect about shape. feel, So well. the there, we this we we're Germany for in back is that as who XX% XX% to to OUS And

Laura Francis

the year, to just going that Yes. clarify, the that's look revenue, And that ended Kyle, gives of international at year to an XX% to that if growth what you you idea XX% so like. we $X.X take million, and throughout

Kyle Rose

gross just was to Will year margin, I finish about Okay. mean, question last think just the terrific I a from profitability how That's we And had the very margin the -- new particularly gross here? helpful. and standpoint. should standpoint back puts-and-takes with then that about Or think drag how in I'll hop margins the the should from margin gross in. technique launching. near a into Bedrock the we term? And be XXXX,

Laura Francis

that. reps the well that they hand company the see have normally the an to operations, new want the they the -- with have product the what that there's margin that up want in are per wasn't do we that that bit pretty activities constrained. then to half ASP the have it is as trays XX% ended in scaling as the so our in territory year, -- was we from we We side that the had we of we in they couple there's expect the And product to on new be And we're because is to so our they our were honest, they resources little cost where XXXX need, ASP to So we percent hand in need, decline engaged It first invest supporting our year. that existing a properly as when impact expected of also it ones, where we hand, at a well. be. not in that management of

high our don't pricing want to of a some margins how we business of issue. because lose are, Given sort

targets the this our where the more up year. are high XXs So low XXs ended in versus we

Kyle Rose

you Thank Great. much. very

Jeffrey Dunn

You're welcome.

Operator

Thank back like Dunn, question-and-answer the I you. And call to session. CEO, that does Jeff turn any for further now would remarks. today's conclude to

Jeffrey Dunn

thank the for for on to Just to investors -- the support. your you call

call, very on the analysts we're where for the said, 'XX your 'XX. excited about 'XX, good As and we I feel you for are. to time thank And questions. your We and about

all those to some hopefully, you the And your the at portion We you much week AAOS, on for time be a Wednesday or see there evening will of East folks on and And soon. week. Thank today, Tuesday on of for we'll you, good person talk in very Coast. good next to everyone. we'll you

Operator

today's This Ladies and conference. today's gentlemen, does conclude thank participating in you for program.

disconnect. all may great day. have You Everyone, a

SI-BONE (SIBN) 11 Mar 192018 Q4 Earnings call transcript