Sanara MedTech's 2024 Q4 Earnings Call: Unpacking Contradictions in THP Launch, ChemoMouthpiece Rollout, and Investment Strategies

These are the key contradictions discussed in Sanara MedTech's latest 2024Q4 earnings call, specifically including: Tissue Health Plus launch timeline and partner engagement, ChemoMouthpiece rollout strategy, Tissue Health Plus partnerships and timelines, and investment strategy for THP:



Revenue Growth and Segment Performance:
- Sanara MedTech generated net revenue of $86.7 million for the full-year 2024, representing 33% year-over-year growth.
- The growth was largely driven by strong sales of self-tissue products, which increased 39% year-over-year to $76.1 million, along with contributions from bone fusion products, up 6% year-over-year to $10.5 million.

Sanara Surgical Segment Profitability:
- Sanara Surgical segment generated segment adjusted EBITDA of $9.1 million in 2024, an increase of $3.9 million or 73% year-over-year.
- This improvement was attributed to significant profitability improvements within the segment, supported by strong commercial execution and increased sales coverage.

Fourth Quarter Revenue Performance:
- The company reported net revenue of $26.3 million for Q4 2024, reflecting a 49% year-over-year increase.
- The growth was fueled by sales of soft tissue repair products, which increased 56% year-over-year to $23.5 million.

Commercial Execution and Market Expansion:
- Sanara MedTech expanded its distributor network to over 350 partners by year-end, up from more than 250 at the end of 2023.
- The company added new accounts for its team to sell into, with products sold in over 1,300 facilities, up from more than 1,000 at the end of 2023.

Tissue Health Plus Segment Development:
- Sanara MedTech continues to invest in its Tissue Health Plus segment, with planned commercialization preparations including the development of a clinical model for holistic wound care and a technology platform for scaling delivery.
- The company aims to launch its first pilot program with a wound care provider group during the second quarter of 2025.