On Tuesday, Cantor Fitzgerald reaffirmed its positive outlook on SI-BONE Inc. (NASDAQ: SIBN) shares, maintaining an Overweight rating and a $25.00 price target. The firm's stance came after SI-BONE reported its fourth-quarter earnings for 2023 and provided its revenue guidance for 2024.
The medical device company announced a year-over-year revenue increase of 22% in the fourth quarter, reaching $38.9 million. This figure surpassed both Cantor Fitzgerald's projection of $36.9 million and the FactSet consensus estimate of $36.5 million.
The revenue growth was primarily attributed to the U.S. market, where SI-BONE saw a 22% increase, amounting to $36.7 million. This boost was supported by the activity of 1,130 surgeons, representing a 22% rise from the previous year.
Moreover, the company's sales representatives achieved a remarkable 39% year-over-year increase in productivity, with $1.6 million in revenue per representative on a trailing twelve-month basis.
Looking forward, SI-BONE has set its revenue guidance for 2024 in the range of $162.0 to $165.0 million, indicating an anticipated growth of 17% to 19%. Cantor Fitzgerald views this forecast as conservative, suggesting potential for even stronger performance.
The firm expects SI-BONE to continue its robust revenue growth through 2024, driven by the company's core business and expansion into adjacent markets, including trauma care, which is currently in the development stage.
SI-BONE has identified the U.S. pelvic trauma market as a potential $350 million annual revenue opportunity. In an effort to capitalize on this and other growth areas, the company plans to increase its number of territory managers from 82 to 100 within the next year, further contributing to its expected growth.
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