• Revenue: $154 million in Q4, a 14% increase year-over-year.
• Organic Revenue Growth: 14% for 2024, with Q4 growth nearly 14%.
• Surgical Solutions Revenue: Accelerated by 18% in Q4.
• Pain Treatments Revenue: Increased 17% in Q4.
• Adjusted EBITDA: $109 million for 2024, a 23% increase; $28 million in Q4, up $6 million year-over-year.
• Adjusted EBITDA Margin: Expanded by 160 basis points for the year.
• Adjusted Gross Margin: 74% in Q4, expanded by 230 basis points year-over-year.
• Adjusted Net Income: $13 million in Q4, more than doubled year-over-year.
• Adjusted Earnings Per Share: $0.15 in Q4, almost doubled year-over-year.
• Debt Repayment: Nearly $50 million paid down in Q4.
• Net Leverage Ratio: Reduced to slightly above 3 turns at the end of 2024.
• Cash on Hand: $42 million at the end of Q4.
• Operating Cash Flow: $19 million in Q4, an 86% increase year-over-year.
• 2025 Financial Guidance: Net sales expected between $560 million to $570 million; Adjusted EBITDA between $112 million and $116 million; Adjusted EPS between $0.64 to $0.68.

• Warning! GuruFocus has detected 8 Warning Signs with BVS.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bioventus Inc (NASDAQ:BVS) reported a strong financial performance in 2024, with double-digit organic revenue growth in all four quarters.
• The company achieved a 14% revenue growth in the fourth quarter, driven by strong performance in surgical solutions and pain treatments.
• Bioventus Inc (NASDAQ:BVS) successfully divested its advanced rehabilitation business, optimizing its global portfolio.
• The company paid down nearly $50 million in debt in the fourth quarter, improving its liquidity position.
• Bioventus Inc (NASDAQ:BVS) expanded its adjusted EBITDA margin by 160 basis points, demonstrating improved profitability.

Negative Points

• The company faces challenges in maintaining growth in its restorative therapies segment, with sales being flat compared to the prior year.
• Bioventus Inc (NASDAQ:BVS) anticipates a headwind in the first quarter of 2025 due to higher year-end orders by certain distributors in the previous quarter.
• The company expects its adjusted EBITDA to be lower in the first half of 2025 compared to the prior year due to the timing of growth investments.
• Bioventus Inc (NASDAQ:BVS) acknowledges that its international expansion will require more time and effort than initially anticipated.
• The company faces competitive pressures in the pain treatments market, particularly in pricing strategies.

Q & A Highlights

Q: Can you walk through the guidance assumptions by segment for 2025? A: Mark Singleton, CFO, explained that for 2025, Bioventus expects above-market growth with a midpoint guidance of 7%. Pain treatments are expected to grow above market, restorative therapies in low-single digits, and surgical solutions, including ultrasonics and bone graft substitutes, are projected to achieve double-digit growth.

Q: How should we think about HA and DUROLANE performance in 2025 given market shifts? A: Rob Claypoole, CEO, stated that Bioventus expects HA growth to be driven by volume, with price remaining stable. The company is confident in its position due to clinical differentiation, a dedicated commercial team, and strong private payer contracts.

Q: When should investors expect a shift in capital allocation priorities given the leverage reduction? A: Rob Claypoole, CEO, mentioned that reducing debt has provided strategic and financial flexibility. The company will be selective with portfolio expansion opportunities, ensuring they fit within their strategy.

Q: How are you addressing the supply challenges in the bone graft substitute business? A: Rob Claypoole, CEO, noted that supply challenges have been overcome, and the company is onboarding new customers while increasing productivity with existing distributors. Double-digit growth is expected in the surgical business.

Q: What are the expectations for the exogen business now that it has stabilized? A: Rob Claypoole, CEO, expressed excitement about exogen's turnaround, achieving 7% growth last year. The focus is on maintaining growth in the low to mid-single digits, with efforts to reach the upper end of that range.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.