SIBN - Earnings call transcript Q2 2020

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Operator

Good afternoon and welcome to SI-BONE’s Second Quarter Earnings Conference Call. At this time, all participants are in listen-only mode.

We will be facilitating a 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 Matt Bacso from The Gilmartin Group for few introductory comments.

Matt Bacso

in participating for you today’s call. Thank

results from Executive Officer me Chief A Officer. released copy SI-BONE XX, press ended Financial on are Chief and Operating the financial SI-BONE today, is President of Dunn, Earlier the and XXXX. and quarter June Jeff Officer Joining for release Laura available the Chief Francis, website. Company’s

products, you hiring differ on place the including and training anticipated the not assumptions. operating implant reliance results using are meaning pandemic statements that forward-looking Other I these implied you current whether actual the of and forward-looking which on desire trial recur pursuant include from statements that These are Litigation be and relate surgeon based active our the enrollment the and future could based COVID-XX clinical and new Any These the trends making without includes are and statements will statements future. risks in expectation in have materially for statements. statements. XXXX. pandemic expectations undue on ability statements. remind and statements Laws, which would call these our the forward-looking system, include or and management statements events of Private that of that future performance to during forward-looking and to this forward-looking Federal the expectations reimbursement decisions like involves uncertainties begin, limitation call predictions are we impact COVID-XX those to to risks uncertainties. Before our physicians Accordingly, Harbor will procedures of this Securities COVID-XX and duration the Securities of the or significant within by or iFuse These examination estimates provisions surgeons, inherently contained should the upon involve expectations Act financial will to made risks undergo adoption, material Reform patients events, Safe of current or various cause of results

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

Jeff Dunn

thank afternoon as safe ones communities affected you to Thanks, healthy and the be by your I continue you and for hope and are loved joining Matt. Good us. Coronavirus. our

the halting the materially started quarter revenues United Europe. $XX.X and off for April the Before quarter, a and for to members want we to of whom COVID-XX thank much with are XX% was of second extraordinary the as of with care United into million and get elective the these of in of non-COVID take the of I XXXX. by procedures second difficult both times. healthcare revenue States in moment details respectively States all the of being quarter The XX% and Revenue pandemic, to patients COVID million the making community efforts the expected compared $XX down quarter to impacted throughout

XXXX. unprecedented national these Specifically, state period taken April of revenues by due to governments, the prior-year’s to measures declined compared and XX% in

medical of centers surgeon over late of April to XXXX May revenues period introductions from to force hospitals number rescheduled United and as education, best attribute the believe compared periods cases XXXX the we resilient in and in rescheduled increased X% which of the prior-year’s this revenues, May large However, and a compared months, March XXXX. and across June included the for elective procedures. would COVID total We combined in we significant of impact product cases cases excluding materially estimate which as performance revenues June, be in including quarter from investments reimbursement. improved and sales have but resume those believe saw performance our increased XX% metric rescheduled estimate new we nice in the to believe June, also the In we made benefited and expansion, recovery When combined we training May declined States XX% and to a procedures. to Europe

our While earnings related of following elective first further face in for high states the this volume to Texas potential the risks we’re expectations initial aware we California, and in our like call, quarter exceeded Florida. shutdowns recovery keenly procedures

both as Given growth June's this not months procedures. from uncertainty, benefited fourth we indicator and the third May do an as likely and performance view materially quarter our rescheduled in of

of business will remainder to operate under XXXX, the set many the the diligently are a we of we uncertainty goals to to full-year. out the macro of level for accomplish For heightened working continue but achieve

opportunities, surgeons, support strategy. we’re the to include environment commercial is new the the use of help of commercial driving The iFuse training challenges While the our navigating to initiatives iFuse. drive quite continuing priorities iFuse to our for current three inactive to strengthen continuing reactivating providers, long-term focus procedure feel well, implementing we grow we’re growth our us volumes and we’re ongoing of expand KOL

customers. continue the and on in both make our for As mentioned sales force call, previous to SI-BONE’s Education Virtual progress we ramping-up surgeon our

a very Education Virtual this been of series well pandemic. course the over Our received program has

additional adult XXX the XX an Polly SI led healthcare August. David novel of attended the most to-date webinar and recent for by by and was We titled programs University end have The of have Dr. approximately professionals fusion four of deformity planned joint applications completed programs Minnesota. through spinal

elective despite quarter. users surgeon the XXX procedures number quarter, active deployment our of of in in and the platform adoption, was rapid second accelerating Given in reduction dramatic this virtual the the

portion centers our academic many medical initiative. the seeing of results continued this the of and we’re We

spearhead As to only you also use but the cases, Adult may goal strategy multiple joint initiative theorize Bedrock Deformity Deformity not lead this to and was fusion Adult doing that surgeons sacroiliac cases. would recall, our to effort Bedrock

Our year fusion XXXX trainings XX included the SI push XXXX, of over into these teaching SI-BONE time Bedrock academic at at XXX academic XX joint hospitals first fellows approximately training and of by during and which over programs institutions. were residents centers

quarter. training XXXX program example, For iFuse Clinic, Mayo a Mayo Bedrock second major surgeons and October at the the numerous last cases in performed following

Clinic, used hospitals. being In addition is in academic teaching now the Bedrock Mayo to over XX

build a significant continued made progress to During reimbursement and into throughout XXXX the also on quarter, XXXX. we

May, from a lives. approximately XX Aetna, in million positive Specifically, late obtained we covered coverage new policy adding

from covers approximately CareSource in Medicaid people Additionally, the we positive received policy primarily X.X Midwest and Southeast. on a which million coverage

also the of Lastly, to Care We half a states a to with Affiliates, choice Surgery surgery using further orthopedic agreement in a with with the iFuse streamlines exclusively. addition more and ASCs Surgical believe we added agreement in accounting large spine this and procedures centers efforts agreement as neurosurgical million market. in pricing sell the than network Partners XXXX initiative preferred to with center a our November by signed Affiliates, ambulatory ASCs and Care have to segment annually. known individual our approximately offers XXX SCA timely SCA, of strategic enhances agreement obtain has Surgical XX new capabilities. purchasing for SCA The

improvements patients multi-level for On not spine four trial be Dr. is by data encouraged the fusion procedure iFuse of Diegoenrolled multicenter the we’re pelvic also multicenter, have XD XX. Health findings SI available announce San clinical controlled one-year from Bedrock were first prospective happy the joint of said, subjects To-date, We're versus recently prospective market undergoing chronic randomized and physical fixationusing prior subjects we our showed enrolled the year. end SILVIA Study the Scripps pain. studies. of May is and XX publication be SILVIA until of that scans side SALLY iFuse The on patient a patient anecdotal technique clinical on single results XX, enrolled XXXX. will a published arm SALLY by for adoption a rate from Centerin months. to the high June trial CT function of expect to showed study and in Bedrock undergone in the iFuse surgery. (inaudible) surgery equivalent feedback compared in the test, and on XX surgery, improved surgeons. the and six at cessation pain, over standard life fusion outcome study. quality to function opioid That radiographic of in the Moreover,

be X. XXXX, conference although virtual be panel, Lastly, the again a a surgeon will hosting once will we NASS morning October of virtual in

in I employees during with constant weeks to community, provide will to in We customers, the say period. remain follow. would and conclude, like additional we our representatives, To this suppliers details contact

and and long-term provide results. opportunity duration are and our to financially over the our Francis, and to difficult on current to Operating Financial is to With of organizationally positioned turn mid predict, that, Chief Laura pandemic. is weather substantial challenges I and our well believe business this now will financial the depth more call Although our I Officer Chief Officer detail

Laura Francis

Thanks, Jeff.

overhead as XX reopening the We that the to April, all sub-optimal clinical impacted due of to declined of the the prior-year $XXX,XXX accounted scale. XXXX. of in COVID-XX. period, sales higher as and volumes margin We the significantly continue compared in costs the members which the of margin prior-year decreased force of strength margin when run overhead total in quarter in U.S. of also essential International May. to of the month in quarter inventory period XXXX quarter was direct over corresponding compared XX% due XX% Jeff Gross by to XX% XX% discussed, U.S. to at for reps impact in to revenue second of elective a was the during first quarter prior-year quarter by followed increased by of sales second with pandemic. hospitals revenue XX% compared was costs The impacted the specialists to and of we during the $XX primarily and the procedures full million were directly to due cost compared of charged quarter million, Gross operations XX First centers XXXX operations of surgery case by support cost the certain labor will to revenue decrease the quarter and capacity $XX.X their believe total follows. the in declined XX% retaining recovery corresponding period, second sales XXXX. our ended reduction be gross gradual U.S. in for

in of expenses quarter second operating COVID-XX. the expenses the decreased XXXX an Lastly, gross decrease second quarter pre-emptive to margins in to steps increase of XXXX. reduce were driven in to million primarily impacted discretionary compared X% write-offs in million taken in response by was spending the $XX.X inventory XXXX, by Operating second quarter to the $XX.X in

process the related due from addition headcount reversed litigation $XXX,XXX based by resolution TCPA These expense settlement. In higher we action hiring. final following mainly associated class the with decreases to of employee were accrued stock partly offset higher sales and costs compensation claims

retained business. with As our first continued ensure mentioned initiatives major and products return on to we our all forward employees the a robust new and quarter, of

research preemptive hiring executive use there delaying curtail included spending, outside on restrictions, saving marketing took steps the reducing extent expenditures, reducing implementing clinical pandemic. was impact more also contractors, and the of we However, reducing the expenses, reducing of clarity discretionary The certain non-essential the and until spending cost capital from eliminating projects. duration salaries, to measures

Given On the a operating third implemented for bi-weekly our we dynamic the current a revenue, we’re process quarter. loss cash. evaluating basis, situation, forecasting fluid and have

line to cash. growth approach return to a continue and ensure protecting take a will bottom while our revenue We thoughtful to

the quarter of Our the million for of to quarter XXXX. second was operating compared million, loss second $X.X $XX.X XXXX in

and compared chain we for loss our or That and dynamics Our securities and flow surrounding current million, the for shape. without are our magnitude capital million said, the to of per in flow three fund debt financial cost the share end marketable $X.XX the $XXX.X expenditure unable level impacts on sheet duration million per XX, on have as not marketable minimal principal existing cash cash capital. further of will loan business. requirements. this a we quarter to time. pandemic, with XXXX or $XX second quarter be diluted we of diluted to terms we estimate that hand, $X.XX uncertainty enable To we'll environment net favorable were operating or the upon $XX.X our share our the term balance Cash specific of guidance our second payments, operating and and at the that including expenses inventory, And current XXXX. in $X.X was well us strengthen our May plan, and successfully securities refinanced our a believe to and Due Based years sufficient supply quarter. five-year with lower product COVID-XX providing heightened reason, of covenants good million remain remains at in

a operationally, for turn and unprecedented the As to navigate financially closing we’re company, comments. will well this over period. now I Jeff to strategically prepared call back through

Jeff Dunn

Thank Laura. you,

thank Before next closing, I and this the plans in period believe three is for company. five the strength opportunity. have team sacropelvic as proud huge their to even focused years this capture and and space and out help our want through initiatives at our out of will that to these laid opportunity I to that stronger come will to team also laser for we times. current we a us I'm of efforts believe a that difficult SI-BONE be part leadership our incredibly

future I’m well immediate that remain our SI-BONE the business is is strong. positioned unclear, confident of navigate underlying challenging The While times. fundamentals these to

continue we fully pandemic, our this remain for we to and safe our thank to patients, us. communities. Stay you our support and to customers joining battle As part do committed

now will up We questions. open Operator? it to

Operator

[Operator Morgan open. is with comes first Stanley, line Instructions] David question your Lewis Our from

David Lewis

for the taking Good afternoon, thanks question.

who So, and mean to, on even were see normal strong XX% Laura, me. few They're a you were above was to they June tumor relative But rescheduling refer theme. your this for recovery kind of of generally dynamic Jeff iterations XX% normal. I peers others very and a in all also

you to? you that let's kind So as curious do I’m attribute relative say of business the just think about companies, dynamic to spine what

Jeff Dunn

the all think combination from forward the a reimbursement into times. cases in canceled a think know, it's think so were of the business know cases I it's and amount I out. just a feel to adoption, on QX, going mean, surgeons things the lot those working that think I David, payment. about fundamentals our that the are cylinders, were of Hi firing sales have But training the you and we being business, to I be strong all as things. I I you to think reimbursement as in continue it's we And to during lot strength great And interested certainly we down XX% of pushed in think of future. just just, pieces, April, product of COVID I in got even all carry the just

David Lewis

hi In the Laura, fourth, sorry.

Laura Francis

I that a was just say may be things going to impact. couple of an other had there that

helpful ambulatory and So the we and finally the Telehealth probably outpatient incorporated XX% that and estimate our from We focus then procedures. that that their surgical fact they we into that has too. that would are the and so we our around majority there procedures a then about how benefited feed been think to practices, surgeons talked continue of centers pipeline

Jeff Dunn

companies we -- David training. the the companies, And some from let's took alone surgeons so time. we lots heard have opposite say, time, we during they the said, let's this tack, engage go we and crazy lately surgeons, Yes exact heard of do other

you Let's can help do do to but you there do. up and a on best them can't get as diagnose these you Telehealth so clearly, how is patients up that physical you you you lot speed can can patients exams, cue how

across So proactive we approach took a the pretty board.

David Lewis

very helpful. Okay,

here business. in for in second quarter. quarter, in the demand clearly, adjusted momentum like quarter, and So kind it that of first there's fourth here the underlying the there's underlying We sounds saw COVID

June, how of July about trends guess give of how we growth Jeff, any like on think business the was XX% I So saw XX% sort you trended probably were to but how you obviously XX%? can kind should not in relative us in looking July forward, help that pre-COVID to

Jeff Dunn

specific those in David, in over of QX. down to getting sequential in XX% than we other see improvement certainly number Yes, numbers QX July, that expect

going is, issues exactly macro think see And some expect will QX. certainly what Obviously, see concern I to are tell same dramatically. up improvement. I of jumps early I normally in QX, that that think QX we sequential guess going unsure and of into us look there's all it's like. But that to to we push-up my

improvement in are cautious we bigger really around we're expect going that little QX in we more to see So, and QX, a jump-up?

David Lewis

last the back I'll just Jeff. in jump so question queue, Okay,

those You patients meaning patients, talked and April sense but from about in much. exhausted look? that June so so this patient from funnel period, in patients sense reschedule a July you novo mix have de the forward, demand and now have between do that and or of largely Thanks now here going the right does that is May new rescheduled how new that you what decent

Jeff Dunn

welcome. you're Yes,

I think down about would most XX%. us, behind are of we have I stated think So the as number cases QX been the rescheduled

cases, and mostly think question If of work is And I funnel I direct the so help I look at the all this fundamentals, you work education full. I in the all and anyways, think surgeon the we've cases. we've think this Telehealth will think exhausted basic exhausted of it, answer rescheduled but our it's the keeping most business us a

Operator

with America. Bob question comes from next of Our Hopkins Bank

Your open. line is

Unidentified Analyst

might sure Kyle missed just to (inaudible) David's for Hi want answer and I have question, this I but make Bob. this. understand the to this is I on

expect quick follow-up of bit drop understand a to to I July new kind again, in want So, have I as cases wanted or that growing June, one in sure well. make these that we expect July, of see get you'll significant that had is I understand -- just backlog July should starting in closer just just to little and you looks like and we well, the May what but demand pretty a massive as to should

Laura Francis

And Lewis. of David what it's provide you reiterating to Well, maybe said can a little really I response. bit

were focused and Kyle really all that cases April. we and canceled our and the were what some COVID is of on do and And making of radar a the they to into half that in June have we're assumption an backlog March second of we they information done, canceled know in necessarily May, which were mix about on come were lot and when were those were that did cases due and So rescheduled July. June but cases possibly don't that in that May that from we

Jeff that we if and best you information of And and June. believe give so, the what took been would out cases we is a May down month year-ago, XX% is can the May be to I think that to cases the to gave, we new have that information June, rescheduled the compared for around

And revenues some with on at coming were and the sequential in we're June. of the so gives QX information out said, That and hopefully based we versus what improvement where on QX. through May QX, expect seeing we that you least in strength would July,

Unidentified Analyst

Got started impact physician on a real you as from think understand Or to to just it, forward going follow-up, wanted wanted think coverage next if fee, the and mean that's fee that way the it's as COVID. few helpful. wanted to that to to do about coverage the have things been improved would about with expect from kind But we tell I been in there commercial company benefit And just quarters? the manifest ask things real we seeing what that obviously, understanding, help expect well in to side be quick to I you with to growth? difficult move and think a very increased for going have increase, the one us you just when the start I have physician that of you

Jeff Dunn

to of about Well, in about, through Kyle, takes as patients care. past, the we six have go all months conservative think it talked I have

latest to So come Cigna for earlier. board is the instance, after Aetna plan on

going window. And good six care so conservative it have documentation take six been they that is inside in does months that months already that of unless the they've place through

the think cases. we're to see starting I So

and sticking later about that publish will that's are that in accelerate in timing. still But is that before and August think big there out The will meeting that told we’re all the heard I September. in we've year. Anthem, one they

in time. happens done And gets so in if that everything world, this potentially that help XXXX. COVID not will on But certainly

Unidentified Analyst

much. so Got it. Thanks

Jeff Dunn

You're welcome.

Operator

from Our Kyle comes of Canaccord. next Rose question

line is Your open.

Kyle Rose

on Great, very and here. strong quarter a thank you much congrats

question forward. have Care on with And Affiliates. Maybe means a what can touch what for can talked impact the opportunity, So for about bit I wanted that that forward the pricing? also, then lot least and the you mean COVID ASC from But to understand agreement here. preferred a for just little what maybe move away maybe at Surgical driving one us going help that on the you then business just

Jeff Dunn

part Laura the I'll first little bit. a about talk and let pricing then I'll take

easy about possible the much things or as days, so not think as business. know, it's we is I medical Kyle easiest as these all device because making as frictionless

cases calls you you to of in in have down how and two it applies and I'm can't doctor whether are I get the Texas, reimbursement put or you Houston that it's this that rep here are take are work or knock can a kind and area up the think the to and to payment, do So same want one. on, well, says, thing in I one to to or this Houston, radiographic our four this prepped issues that say, place have the thinking these ASCs trained if ASCs can I in and and techs sales got that around reimbursement a frictionless there one

on about frictionless creating have us happen. corporate really a And it's these to level, opportunity cases so

talked that country ASC we for so the the are and two the on top to surgeon. biggest basis but make the the it corporate about the Tenet, then to down with And to groups. And try five ASC with ASCs. a easy it's that have thinking, them agreement these we in And an is extends the other quest group in

hassle. paid to it's So they a amount, they just go work reasonable if patient, they can have and get and a help not and a patient the

say, Not easy to making I as to a is and just that, about I little a that. referral straightforward. or But pretty part as so up the do these that think aware And agreements talked region bit whatever these business surgeons in that these they now and you that to of ASCs come happy area ASC, and strategy the have five particular are prefers ask. if is into or your jammed hospital city to or get the Dallas do in to if for it it's it can't open patient

So, want don't you a help pricing ASC know bit basis on Kyle. Laura, I to if little talk to about an

Laura Francis

We the have last quarters, few Kyle. talking this been about

So of preferred assumed call that increase Jeff we to in obtain the have ASC. FDA over of the pricing even number on individual iFuse we agreement would continue by to to also using see centers the mentioned went choice that that an cases the exclusively. offers with

our So two a dollar market less than XX% been is think definitely that increases plus we and volume opportunity penetrated. billion drive has to goal been this it's

here. the And to untapped is that's expand our we're for market to into looking own so actually quickly but do what really products expand both as exclusively also as possible

at So we also continues continuing a position But growth. while ASPs would we industry that gross leading where have accelerate will clip that to a to expect move margins to continue downward. in revenue our us put

Kyle Rose

of types have Bedrock, to really in cases see Are case just seeing of back mix? the impact seen is trying medical to touch if you we great your mix, on And just also great, numbers making the that to utilize overall want the on Okay, Bedrock centers the about overall here? then case academic any start penetration just some helpful. you in of implants change you're talked very

Jeff Dunn

I prepared guess numbers Kyle what to we're Bedrock at this not break out I'd say point. is still

adult are will As with some that well that next think deformity very do centers penetration where academic you on the mentioned may places XX the space as surgeons that of that handful cases penetrated more specifically, I or pleased iFuse than now an adult a pushing it’s SI-BONE know, Bedrock like tell year I of not have like it's with it's into we're surgeon trauma more we're academic the that space. deformity both cases. just happening. the I as we We earlier Bedrock into Bedrock are on you we or Mayo, one surgery, And as more engaged centers either at

we on product tuned I the XX So we're together we come strategy all than working and coming think up the how months stay the or with less that I And I better. it. that say think some numbers, over pieces of we is have that, the will will even the want spot-on introductions think but next

Kyle Rose

one That's housekeeping And the correctly. number heard I I you then active Did just say in to just then XXX. just quick very helpful. quarter want And sure it surgeons to wanted thing, maybe when think your of to just that understand get kind was make the just how gone some plans and July? into of also June of during reactivate recovery about the the trended QX inactive surgeons have may quiet the that's we

Jeff Dunn

were very Yes, obviously strong. numbers June the I mean

of and Jeff, can I forward, any we those I in lower to teaching April, I because clearly July do. don't do as would it me And said, And expect XXX is there the consulting who numbers to those ramp sort much have called June, expect was, be point said or number so and I going had surgeons we back-up. and

climb all we've the go lots initiative. with that the we But Bedrock and in in done that it's down active went to of trained from, a and so, think new surgeons to surgeons it surprise QX And think I quarter. have not have number the it I of down XXX getting trainings the continue something that would and COVID and like was we expect

that the optimistic year pretty next improving we're guess about I So over number.

Kyle Rose

you questions. Thank taking the for

Jeff Dunn

You're Kyle. welcome,

Operator

Our David next comes from Turkaly question of JMP Securities.

Your line open. is

David Turkaly

seen just call how given if that areas I'm would of choosing to on happen, Texas, Thanks. Florida those that be curious, expecting could you become defer call the hospitals for and in California I it and any Jeff, do color further and guess not? any around you this one have that today any that or are elective to has prevalent sort think so, procedures you happened and you

Jeff Dunn

up, in going it first the We've procedures. an fluid say, closed and okay, very later David. are with hospital say is obviously those you okay, up week of they've a but it is three later, now. elective And should in dynamic they And temporary we opening situation. in they obviously, got to And opened a they stopped then starts situations together down this physicians places you in COVID capacity, it their where know, back numbers seen some get learned have Houston of more we up I close as high percentages hotspots treat seem the to Hi, better. have these temporary, I they starts hospitals or some and days rumor these then down okay, some But this have hear to and and a very e-mail all ICUs. hear, mostly

So I it some to and out I June, places bit, gotten we of can overall tell were that delayed an think surgery have to that to even. continue ebb have to where that certainly effect. flow you do going But in a didn't there we're were it or may for obviously figure where see scrambling

anyone my So, going not is probably much have but the my I is vaccine is QX next think we guess, on else's. this better guess for to a than go through until

Laura Francis

typical revenues would QX increase versus as on experience as the said QX the about how and of second we sequential we're this things QX in all Dave, a we're July, of we're in I quarter. we But coming a based as what kind we'll year. colors, in seeing the necessarily improvement don't strings as And given environment through uncertainty, out expecting with versus that But think of thinking strong sequential well QX. of and

the second look with things today, we're good what while half cautious definitely we'd call So optimism. approaching

David Turkaly

I you're your doing some see trauma for of versus I remind David, a lot you Thanks guess that us just can on you What in that. I a it's peers. I sort guess second to would it's indication, are think of question, quarter. resilient, second I that what planning the there? echo it. just education Got just the guess goals the pretty were nice are the plans? even

Jeff Dunn

space, sized fractures clearance there go initiative a gotten, viewed push we've the is we've a within the opportunity. trauma and and Well, regulatory good very gotten interesting for into to we as it company pretty

the and side product SI on the adult all joint of fusion as that some trauma will things business I the three affect you areas business so And mentioned base deformity and business. the our earlier business, see

to some So areas. all you're see going in enhancements

that we're future coalescing there's and bunch to of whole the including indications towards agency. sacropelvic and as investments that all are strategy working different the we’re work around So a we'll in the own the toward trauma making space, with

David Turkaly

you. Thank

Jeff Dunn

You’re welcome.

Operator

Our next question Securities. comes Truist from Krum Kaila of

Your line is open.

Kaila Krum

taking the hi questions all and our gave guys. for that details quarter. Thanks you Great, on guys the

sense see the So I would third you sequential into it quarter. that said, think makes improvement a we

something fair to a XX% better decline just the quarter? in is third than sense to for So that make clear, assume be would us it

Jeff Dunn

Hi, Kaila.

fair I statement. think a that's

Kaila Krum

Perfect.

Laura Francis

we're about the from well, Yes, as it thinking the but of quarter-over-quarter year-over-year, Kaila. perspective also

the we $XX some would for So given expect this that quarter, into improvement well. quarter we're million next as

Kaila Krum

it. Got

you surgeons to wanted started And is volumes and talk from I ICUs procedure you've That Okay, of recover, new able you. engagement mean into practices. Bedrock been incorporate to surgeon training take broadly to a recent time sense. level makes the have to there or their have you perspective Thank are seeing way that guys I to about great. seen quantify a what have months, in the

Just to be new what surgeons? to curious specific you're seeing

Jeff Dunn

that talked have the better. could that, Yes, specifically think Kaila. I training get seeing been not the more, talking back radiation in to of our rollout local system, free as we’re future. about, about The And we'll timing we

hospital we Chicago I And summer, just the whole but the to just couple system room and to this fly that weeks. of a a short of training talked were to train instruments say the the And hotels. trainings be bring with do on can started surgeon The We've to that conference that of to the to last will the to started really roll There's being quite think cases pretty and out. really have it in don't rolling lobby fusion to adult iFuse started package has positive. multiple and spending to improvements or order. office happen out to on stay We and makes in training few surgeons go that or reception been doctor, so system have to as system locally, I attractive able with to with the a deformity fly is those we that system quickly, your the in physicians. training you do can we're hey, that instead in the listen, whole making, those completed about both day for

we its competitive our it's the whole help with think of competitive importantly for we products, that more weapon. But compete been grow versus a do out a trying we're will are market, think but really with is people in which there it infancy, to be will the goal So quite it the long-time. because what is grow most market

Kaila Krum

just sounds Thank of feeling like are Got new pipeline guys into diagnose for and one funnel you lot a into of of it. part ability the patients you. that been are procedures rescheduled, year one of a but second there mean, sort the just this to about last patients, how then I have me, of And next? it the

Jeff Dunn

feeling we're that. pretty think good about I

sales very and marketing it's focus a and training So affairs standpoint. his much our team Recupero’s both medical a Tony and of from team

we've as our in physicians said the out great market acceleration work. we patients absolutely in the we've that to started going those getting so patient near that year ready and hundred this we'll pump X,XXX do about we as up there. we do couple the to We're or we’re a it's getting earlier So, the expand question sacroiliac thing, so a joint in and future differential diagnosis some that because the quite were in slowly detail, confident is, did not patients expanding intimated as around but It's shape. get start are believe helping I there what about talk not of, a U.S. to to and direct year, know, well understand and it's last thousand that you it's pipeline really over patients, people cases and

Kaila Krum

guys. you Thank

Jeff Dunn

Kaila. welcome, You're

Operator

comes next Needham. of David Saxon question from Our

line open. Your is

David Saxon

Jeff afternoon, taking for Laura. questions. Thanks good the Yes, and

it Aetna next quarter Anthem great month. could the be reimbursement, First, and like the sounds just to on policy see during

month you additional six on shortens just coverage of But I there being if curve wondering update the provide wondering over policies use about a to kind of an And the a that next if can see before lag Just about you've XX kind at then of you six know talked of all? benefit. how months. kind you're Telehealth thinking

Jeff Dunn

know crack, to never David, you called I one, know, they're or SI you they help opened Anthem the as it or high was maybe Anthem competitor. the think January so it cover it only fusion. going think me. in I But Yes, for was joint They December where said

Laura Francis

that the trauma. girdle in event was It pelvic

Jeff Dunn

I with the going, about been we've we Cigna going think optimistic Anthem, Aetna Pelvic girdle so before. trauma, with and Anthem, but cautiously were disappointed

press we'll September we later, know if few we and a in when put So release. know minutes our you'll know

other, review And one As know that to and then of besides payers instance in exception and that smaller David for where really business, of for other payers, supposed Minnesota I only other payers big and three think the couple publish they're one December. we'll Minnesota, with which Humana some like they're in next about Blue are in XX there's or the of government Medica there country one so. about in the months mostly in Cross to stand matter, to and six that's mostly is one, the Humana, up is come is

I months as about a of think patients six So conservative lag still to of getting Telehealth, there's a smaller there the it's handful the into there's care. in month six because ones lag

getting into that So is not it's just physical therapy injections. a or them getting diagnostic issue

have going to very lives pleased and see the which surgeons to almost go. But few I we covered with have, on So the XXX reimbursement feel some I million covered overall that. amount of is just side the are lives still we we're lag a that think on

look little few So and just mentioned. of with exception I the important all on we're market, the things working the expanding a I with at less things given that products the new with that is

David Saxon

that's sorry for Thanks for balance sales one place? think if the second And Okay, then in me, of you how hiring just the I so on And still about the missed we do much. this, have but helpful. I'm freeze force. the year? hiring should

Jeff Dunn

jump you Laura, there? want to in

Laura Francis

will. I Yes,

not freeze hiring we And place hiring a So resumed in salespeople. do any have we have longer.

now. going we're on are and the in dynamic said my where we're line right trying cash. section, I bottom we’re revenue and is our do pipeline and our with going on a what's what's calling fluid what things then understand forecasting As our what using how given perspective, from expenses And process, to a really

we our really we his pandemic the all throughout the Tony support areas again two over number that an as since them And the so demand, have force, begun we been months very our we of this we significant extraordinary sales where team last those in areas wanted you're heavily investments upon to we is of very force, and In XX hire we have aware there's one people process. all public. significant see and focused in of sales and group made through what built support the to and went do, field

robust return subside. said, And think is have And to that's really to that second a strength so the we through what to the pandemic there we quarter. the us help as continued as going that's to did the I business

perspective. being careful in continue gas well really the that other you spend. product in areas, put focused in from continuing on of those our while a more the foot discretionary that to development we see The the And was we on as of financials some areas area can in that

In terms through your year. what of of expect end the question the about you can

I a taking As every we're said, of this at weeks actually couple time.

but wouldn't upon guidance doing. opportunity. to want where updated based and we being again And point this it's necessarily see out about So time, give what we’re in we're we hiring careful at we're

David Saxon

you. thank Great,

Jeff Dunn

You're welcome.

Operator

question Fitzgerald. Folkes our And Cantor Brandon of from comes next

open. is line Your

Brandon Folkes

taking my for questions. Thanks

you the of different to or being surgeries you the bolus Have of Florida's? bit some hard tackling a of that June later would seen into XQ forward procedures just angle. that in in me as being COVID you. and year are that issue in was from or in Let back thought pipeline you any not hit as XQ brought come a the may Texas's the as markets forward perhaps be of pulled in your seeing yet your anticipation July? And perhaps Thank wave second

Jeff Dunn

I theory. think think an Yes, But it's don't Brandon, happened. I really it's interesting

in these is if out to hospitals into going days most some people of you fear are still working. although, there most extent the physicians, to think talk I

being they're if don't just I forward So into it. July. and anything. I know don't that I see don’t heard Laura, brought June you think

Laura Francis

people the our and of in from heard question Brandon. field, like had people the field heard more the asked the not actually Wall Street that, because had in we we've anything While perspective, this a

Brandon Folkes

Great, you thank very much.

Jeff Dunn

You're welcome.

Operator

There time. are questions closing with this no any at Please remarks. proceed further

Jeff Dunn

their healthier and Okay, and well just stay. Hope everyone's families joining. thanks continue are for everyone to healthy

join at can we Session. as I talked NASS all the hope you Surgeon us So about, Virtual

year you a think good support, for evening. last again, and Have and you I it'll I'll interesting to soon. your talk be thank like

Operator

gentlemen, and today’s you Thank participating. call. concludes for this conference Ladies

a great may disconnect. have day. Everyone now You

SI-BONE (SIBN) 3 Aug 202020 Q2 Earnings call transcript