SI-BONE (NYSE:SIBN) Q4 2018 Earnings Conference Call - Final Transcript

Mar 07, 2019 • 04:30 pm ET

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SI-BONE (NYSE:SIBN) Q4 2018 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. (Operator Instructions) And our first question comes from the line of David Lewis with Morgan Stanley. Your line is now open.

Analyst
David Lewis

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

Executive
Laura A. Francis

Great. Thanks, David. I think, as we built the model, what we did was we looked at where we're at currently. And so, especially, from a reimbursement perspective, we only took into consideration the reimbursement that we currently have, when we were developing those growth numbers. And then we also put some thought into the additions that we're going to make from a sales perspective, both the territory managers, the senior reps as well as the more junior clinical support specialists, and what impact they are going to have on the business. And then we also looked at the number of surgeons as well and the work that we are doing on the training side. So we put those numbers together with those three factors that we considered -- reimbursement, the growth in our sales team, and the targeted growth in the number of active surgeons, and developed our guidance accordingly. And feel -- we feel good about that revenue guidance.

Analyst
David Lewis

Okay. Very helpful, very specific, Laura. Jeff, a couple of things for you here. So obviously, guidance reflects acceleration. As you think about 2019, where is this acceleration coming from? How much of it is dependent on new accounts, greater existing account penetration or increased payer traction? And then related to that, you were very helpful in giving us the rep hiring guidance for the year, where are you year-to-date already against that quasi-40 number of additional equivalents?

Executive
Jeffrey W. Dunn

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

As to what's going to drive the business, as we mentioned, we're increasing our expectation around number of active surgeons by about 100 or so. We certainly feel very confident that we can do that, and we are on track to even on -- early on in the year, to doing that kind of thing. On the reimbursement front, we mentioned five new payers, including one that switched from nonexclusive to exclusive.