ZimVie’s Q1 2025 Earnings Call: Navigating Contradictions in Supply Chains, Market Recovery, and Pricing Strategies

Supply chain optimization and tariff impact, implant market recovery and specialists' role, regional performance and recovery trends, pricing and tariff impact strategies, and market recovery timeline are the key contradictions discussed in ZimVie's latest 2025Q1 earnings call.



Profitability and Margin Improvement:
- ZimVie reported an adjusted EBITDA of $17.6 million, translating to a 15.7% adjusted EBITDA margin, which is a 41% year-over-year increase.
- The improvement was due to executing a strategy to improve and streamline manufacturing and supply chain, reducing corporate infrastructure, and refocusing sales and R&D on proprietary premium implants.

Geographic Performance and Market Conditions:
- In the U.S., net sales for the first quarter were $65.8 million, with a 2.8% decline compared to the prior year.
- The decline was attributed to lower implant sales, oral scanners, and one less selling day. Outside the U.S., net sales decreased 8.5% on a reported basis, driven by lower implant sales and headwinds from a transition manufacturing agreement and selling day impact.

Product Innovation and Market Strategy:
- The immediate molar implant system launched in March exceeded internal expectations, contributing to overall implant unit growth.
- The innovation was aimed at expanding clinical solutions and simplifying challenging clinical scenarios for providers, which is expected to continue driving growth for the remainder of the year.

Digital Solutions Growth:
- Excluding oral scanner sales, ZimVie's digital dentistry business grew in the high single digits in the first quarter.
- This growth was driven by the performance of the ZimVie digital solutions, particularly the implant concierge service, which grew 11% year-over-year.