Earning Date, Transcript Summary & Report

Earnings Per Share Beat: Bioventus Inc. reported an EPS of $0.15, exceeding expectations of $0.08, indicating strong financial performance.

Strong Revenue Growth: The company achieved a revenue growth of 14% in Q4 2024, with double-digit organic revenue growth in all four quarters of the year.

EBITDA Growth and Profitability: Adjusted EBITDA for the full year increased by 23% to $109 million, showcasing improved profitability.

Gross Margin Expansion: The adjusted gross margin expanded by 150 basis points, reflecting operational efficiency and cost management.

Debt Reduction and Liquidity Improvement: The divestiture of the Advanced Rehabilitation business contributed to a reduction in debt by nearly $50 million, improving the company's liquidity position.

Surgical Solutions Revenue Surge: The Surgical Solutions segment saw an 18% revenue increase, driven by strong performance in Ultrasonics, which achieved over 20% growth for two consecutive quarters.

Pain Treatments Revenue Growth: The Pain Treatments segment reported a 17% revenue increase, with DUROLANE's strong brand recognition contributing to market share growth.

Net Leverage Improvement: The company ended the year with a net leverage ratio slightly above 3 turns, a reduction of more than a full turn since the start of the year, indicating improved financial health.

Projected Organic Growth: Bioventus expects to achieve above-market organic growth of approximately 6% to 8% in 2025, with projected net sales between $560 million to $570 million.

Q1 2025 Revenue Projections: Revenue growth expectations for Q1 2025 are projected to be below the 6% to 8% range due to a strong finish in Q4 2024 and a difficult comparison to the prior year.

Divestiture Impact on Revenue: The divestiture of the advanced rehabilitation business will impact revenue and adjusted EBITDA, as it generated approximately $45.4 million in revenue and $5 million in adjusted EBITDA in 2024.

Future Value Creation: Despite a strong overall performance in 2024, the company acknowledges that there is still more work to be done to capitalize on its potential and create greater value for stakeholders.

Operating Expenses Outlook: Operating expenses are expected to increase slightly throughout 2025 as the company accelerates investments and revenue increases, which may impact profitability in the short term.

Restorative Therapies Challenges: The company faced challenges in the Restorative Therapies segment, where sales were flat compared to the prior year due to a decline in advanced rehabilitation, which was divested.

Lower Adjusted EBITDA Forecast: The first quarter of 2025 is expected to have lower adjusted EBITDA compared to the prior year due to the timing of growth investments and a return to normalized spending levels.