- Q2 Revenue Advanced by 10.3%, Organic Growth* by 13.9%
- Q2 Gross Margin Expanded 350 bps and Adjusted Gross Margin* 180 bps
- Cash from Operations of $15.2 million Increased 40.5%
- Raising Full-Year 2024 Financial Guidance Reflecting Enhanced Revenue Growth and Strong Execution of Strategic Priorities
DURHAM, N.C., Aug. 06, 2024 (GLOBE NEWSWIRE) — Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active healing, today reported financial results for the three and six months ended June 29, 2024.
“The Bioventus team delivered strong financial results in the second quarter, including double-digit organic growth for the third consecutive quarter and a significant increase in profitability,” said Rob Claypoole, Bioventus President and Chief Executive Officer. “We are pleased to raise our financial guidance for full-year 2024 as we remain focused on successfully executing on our strategic priorities to create shareholder value.”
Second Quarter 2024 Financial Results:
For the second quarter, worldwide revenue of $151.2 million increased 10.3% compared to the prior-year period. On an organic* basis, revenue advanced 13.9%, driven by double-digit growth in Pain Treatments and Surgical Solutions.
Net Loss from continuing operations was $32.1 million, compared to a net loss from continuing operations of $4.7 million in the prior-year period. Second quarter results include a non-cash intangible asset impairment charge of $31.9 million related to the potential divestiture of our Advanced Rehabilitation Business and costs for the settlement of shareholder litigation.
Adjusted EBITDA* from continuing operations of $34.5 million advanced 22.4% compared to the prior year Adjusted EBITDA* of $28.2 million, due to strong revenue growth and gross margin expansion.
Loss per share of Class A common stock from continuing operations was $0.37 in the second quarter, compared to a loss of $0.06 in the prior-year period. Non-GAAP earnings per share of Class A common stock from continuing operations* was $0.19 in the second quarter, compared to $0.14 in the prior-year period.
Revenue By Business
The following table represents net sales by geographic region, and by business, for the three months ended June 29, 2024 and July 1, 2023:
| Three Months Ended | Change as Reported | Constant Currency* Change | |||||||||||||
| (in thousands, except for percentage) | June 29, 2024 | July 1, 2023 | $ | % | % | ||||||||||
| U.S. | |||||||||||||||
| Pain Treatments | $ | 65,194 | $ | 55,617 | $ | 9,577 | 17.2 | % | 17.2 | % | |||||
| Restorative Therapies(a) | 27,435 | 30,012 | (2,577) | (8.6%) | (8.6%) | ||||||||||
| Surgical Solutions(a) | 41,780 | 35,218 | 6,562 | 18.6 | % | 18.6 | % | ||||||||
| Total U.S. net sales | 134,409 | 120,847 | 13,562 | 11.2 | % | 11.2 | % | ||||||||
| International | |||||||||||||||
| Pain Treatments | 7,066 | 6,024 | 1,042 | 17.3 | % | 18.5 | % | ||||||||
| Restorative Therapies(a) | 4,185 | 4,690 | (505) | (10.8%) | (9.4%) | ||||||||||
| Surgical Solutions(a) | 5,557 | 5,508 | 49 | 0.9 | % | 1.3 | % | ||||||||
| Total International net sales | 16,808 | 16,222 | 586 | 3.6 | % | 4.6 | % | ||||||||
| Total net sales | $ | 151,217 | $ | 137,069 | $ | 14,148 | 10.3 | % | 10.4 | % | |||||
(a) Sales from the SonicOne product were reclassified from Restorative Therapies to Surgical Solutions on a prospective and retrospective basis during the first quarter of 2024 as its abilities to remove devitalized or necrotic tissue and fiber deposits more closely aligns with Surgical Solutions’ soft tissue management. SonicOne revenue reclassified for the three months ended July 1, 2023 totaled $1,832 and $84 for the U.S. and International reporting segments, respectively.
Recent Business Highlights
Bioventus continues to advance its strategic priorities with key achievements, including the following:
- Delivering strong double-digit revenue growth in Pain Treatments and Surgical Solutions, which contributed to a 22.4% increase in Adjusted EBITDA*
- Enhancing the Company’s liquidity position through an increase in Adjusted EBITDA* and $8 million debt reduction.
- Receiving FDA clearance for the OSTEOAMP Cannula creating opportunities for growth in the Minimally Invasive Spine Procedure market
- Pursuing the divestiture of Advanced Rehabilitation, which is expected to reduce debt and enable greater focus on execution within our remaining core business
2024 Financial Guidance:
Based on strong execution and momentum through the first half of 2024, Bioventus is raising financial guidance for the full-year 2024. The Company now expects:
- Net sales of $557 million to $567 million, reflecting an increase of $19.5 million from the midpoint of previous guidance
- Adjusted EBITDA* of $104 million to $107 million, reflecting an increase of $9 million from the midpoint of previous guidance
- Non-GAAP EPS* of $0.36 to $0.42, reflecting an increase of $0.10 from the midpoint of previous guidance
The Company does not provide U.S. GAAP financial measures, other than net sales, on a forward-looking basis, because the Company is unable to predict with reasonable certainty the impact and timing of acquisition related expenses, accounting fair-value adjustments, and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with U.S. GAAP.
*See below under “Use of Non-GAAP Financial Measures” for more details.
About Bioventus
Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Restorative Therapies and Surgical Solutions. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com and follow the Company on LinkedIn and Twitter. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC.
Second Quarter 2024 Earnings Conference Call:
Management will host a conference call to discuss the Company’s financial results and provide a business update, with a question and answer session, at 8:30 a.m. Eastern Time on August 6, 2024. Those who would like to participate may dial 1-833-636-0497 (domestic and international) and refer to Bioventus Inc.
A live webcast of the call and any accompanying materials will also be provided on the investor relations section of the Company’s website at https://ir.bioventus.com/.
The webcast will be archived on the Company’s website at https://ir.bioventus.com/ and available for replay until August 5, 2025.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning our future financial results and liquidity; the impact of the potential divestiture of our Advanced Rehabilitation Business financial condition and operations; our business strategy, position and operations; and expected sales trends, opportunities, market position and growth. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause our actual results to differ materially from those contemplated in this press release include, but are not limited to the risk that: we might not meet certain of our debt covenants under our Credit and Guaranty Agreement and might be required to repay our indebtedness; risks associated with the potential divestiture of our Advanced Rehabilitation Business and expected impacts on our business; restrictions on operations and other costs associated with our indebtedness; our ability to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; we maintain cash at financial institutions, often in balance that exceed federally insured limits; we are subject to securities class action litigation and may be subject to similar or other litigation in the future, which will require significant management time and attention, result in significant legal expenses or costs not covered by our insurers, and may result in unfavorable outcomes; our ability to maintain our competitive position depends on our ability to attract, retain and motivate our senior management team and highly qualified personnel; we are highly dependent on a limited number of products; our long-term growth depends on our ability to develop, acquire and commercialize new products, line extensions or expanded indications; we may be unable to successfully commercialize newly developed or acquired products or therapies in the United States; demand for our existing portfolio of products and any new products, line extensions or expanded indications depends on the continued and future acceptance of our products by physicians, patients, third-party payers and others in the medical community; the proposed down classification of non-invasive bone growth stimulators, including our Exogen system, by the U.S. Food and Drug Administration (“FDA”) could increase future competition for bone growth stimulators and otherwise adversely affect the Company’s sales of Exogen; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products, such as our hyaluronic acid (“HA”) viscosupplements, or future products we may seek to commercialize; pricing pressure and other competitive factors; governments outside the United States might not provide coverage or reimbursement of our products; we compete and may compete in the future against other companies, some of which have longer operating histories, more established products or greater resources than we do; if our HA products are reclassified from medical devices to drugs in the United States by the FDA, it could negatively impact our ability to market these products and may require that we conduct costly additional clinical studies to support current or future indications for use of those products; our failure to properly manage our anticipated growth and strengthen our brands; risks related to product liability claims; fluctuations in demand for our products; issues relating to the supply of our products, potential supply chain disruptions, and the increased cost of parts and components used to manufacture our products due to inflation; our reliance on a limited number of third-party manufacturers to manufacture certain of our products; if our facilities are damaged or become inoperable, we will be unable to continue to research, develop and manufacture certain of our products; economic, political, regulatory and other risks related to international sales, manufacturing and operations; failure to maintain contractual relationships; security breaches, unauthorized access to or disclosure of information, cyberattacks, or other incidents or the perception that confidential information in our or our vendors’ or service providers’ possession or control is not secure; failure of key information technology and communications systems, process or sites; risks related to our debt and future capital needs; failure to comply with extensive governmental regulation relevant to us and our products; we may be subject to enforcement action if we engage in improper claims submission practices and resulting audits or denials of our claims by government agencies could reduce our net sales or profits; the FDA regulatory process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products; if clinical studies of our future product candidates do not produce results necessary to support regulatory clearance or approval in the United States or elsewhere, we will be unable to expand the indications for or commercialize these products; legislative or regulatory reforms; our business may continue to experience adverse impacts as a result of the COVID-19 pandemic or similar epidemics; risks related to intellectual property matters; and other the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in Bioventus’ other filings with the SEC which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of Bioventus’ website at https://ir.bioventus.com. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements.
