Phil (on behalf of Matthew O'Brien)'s questions to SI-BONE Inc (SIBN) leadership • Q4 2024
Question
Phil, on behalf of Matthew O'Brien, questioned the projected 2025 gross margin of 77-78%, a decrease from 2024, and asked about the long-term potential for this metric. He also inquired about the acceleration in projected operating expense growth to 9%.
Answer
CFO Anshul Maheshwari explained the 2025 gross margin guidance incorporates the anticipated ASP impact from product mix, higher depreciation from new surgical capacity, and software amortization, with a medium-term target of 76-77%. Regarding OpEx, he stated the 9% growth reflects continued investments in R&D for new products (like the new BDD device), selective sales force expansion, and clinical trials, while still maintaining healthy operating leverage.