Q1 2024 Bioventus Inc Earnings Call Transcript
Key Points
- Bioventus Inc (BVS) reported a strong start to the year with 15% organic revenue growth in Q1, driven by strategic focus and disciplined execution.
- The company experienced double-digit growth in its HA business, propelled by significant volume growth in DUROLANE, which now accounts for over two-thirds of total HA revenue.
- Bioventus Inc (BVS) saw accelerated double-digit growth across both ultrasonics and bone graft substitutes in the surgical solutions segment during the first quarter.
- The company successfully reduced its net leverage ratio to below four times at the end of Q1, significantly ahead of the prior expectation of achieving this target by the end of 2024.
- Bioventus Inc (BVS) increased its adjusted EBITDA margin by over 300 basis points, driven by Q1 revenue acceleration and a healthy gross margin in the mid 70s.
- International segment growth was below expectations in Q1 due to the timing of some shipments, although the company remains optimistic about its long-term potential.
- Despite overall growth, the restorative therapies segment saw a sales decline of 16%, primarily due to the impact of the Wound business divestiture.
- There were some recent shortages in the supply chain for Surgical Solutions, potentially impacting projected growth, although no meaningful impact is currently anticipated.
- Operating cash flow represented an outflow of $6 million in Q1 due to expected outflows related to employee annual bonus payments, annual insurance costs, and timing of contractual inventory purchases.
- The company is still working on improving employee retention and expense control, indicating ongoing challenges in managing operational costs effectively.
Good day, and welcome to the Bioventus first-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to hand the call over to Dave Crawford, Vice President of Investor Relations. Please go ahead.
Thank you, Andrea, and good morning, everyone, and thanks for joining us. It is my pleasure to welcome you to the Bioventus 2024 first-quarter earnings conference call. With me this morning are Rob Claypoole, President and CEO; and Mark Singleton, Senior Vice President and CFO. Rob will begin his remarks with an update on our 2024 priorities in our business. Mark will provide detail of our first-quarter results and discuss our updated 2024 financial guidance. We will finish the call with Q&A. Our presentation for today's call is available on the investors section of our website, bioventus.com.
But before we begin, I would like to remind everyone that our remarks today contain forward-looking statements that are based on the
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