- **Profitability milestone**: 15.7% EBITDA margin (vs. 10.5% prior year), exceeding 15%+ target one year post spine sale.
- **Cost transformation**: 350+ basis point margin improvement through manufacturing efficiency and portfolio shift.
- **Growth engines**: Immediate molar implants (+internal targets), implant concierge (+11% YoY), and surgical guides (mid-teens growth).
- **Strategic moves**: Costa Rica acquisition to capture $3M+ annual margin benefit; Japan expansion via workflow solutions.
- **Market confidence**: U.S. implant volumes up in March/April; EBITDA guidance maintained despite macro headwinds.


**【CEO Summary Section】**
- Q1 2025 total revenue: $112 million, with adjusted EBITDA of $17.6 million (15.7% margin), up 520 basis points YoY.
- 350+ basis point reduction in cost of products sold driven by manufacturing efficiency and supply chain optimization.
- Key growth drivers: immediate molar implant system (exceeding internal growth targets), implant concierge service (+11% YoY), and surgical guides (mid-teens growth).
- Strategic acquisition of Costa Rica distributor to reduce third-party costs and improve local market penetration.
- U.S. implant volumes showed sequential improvement in March and April, signaling market stabilization.

**【CFO Financial Commentary】**
- Net sales: $112 million (-5.2% YoY reported, -1.4% normalized for scanner sales decline).
- Adjusted CoGS: 33.6% of sales (down 360 basis points YoY), driven by higher-margin implant/digital mix and manufacturing cost reductions.
- R&D expenses: $5.4 million (-15% YoY), SG&A: $58.7 million (-2.7% YoY) due to headcount reductions.
- Full year 2025 guidance: $445-460 million revenue, $65-70 million EBITDA, $0.80-0.95 EPS.
- Q2 2025 outlook: $112-114 million net sales, 15% EBITDA margin.

**【Q&A Key Highlights】**
- U.S. implant growth: Sequential improvement in March/April driven by same-store sales recovery and new product adoption.
- Pricing strategy: Premium implant market less price-competitive; selective pricing based on customer segmentation.
- International performance: OUS decline (-8.5% YoY) due to FX headwinds, scanner sales de-emphasis, and one less selling day.
- Japan expansion: Launch of implant concierge service expected to accelerate adoption through workflow optimization.
- Supply chain resilience: Manufacturing flexibility between U.S. and Valencia sites enables tariff mitigation; no China reliance.
- Tariff impact: $3 million annualized EU/USA tariffs absorbed through commercial/operational strategies.



ZimVie Inc. (ZIMV) Q1 2025 Earnings Call Transcript

- **2024 Performance**: $450M revenue, 13.3% EBITDA margin, $60M adjusted EBITDA (18% YoY growth).
- **2025 Outlook**: $445-460M revenue, $65-70M EBITDA, $30-40M operating cash flow.
- **Strategic Focus**: Digital growth (10%+), biomaterials expansion, and implant market recovery.
- **Cost Efficiency**: 40bp COGS improvement, manufacturing cost arbitrage, and declining SG&A.

**【CEO Opening Remarks】**
- ZimVie achieved $450 million in full-year 2024 revenue, becoming a pure-play dental company post-spine business sale.
- Adjusted EBITDA margin improved 220 basis points to 13.3%, with $21 million Q4 operating cash flow.
- 2025 goals include positive GAAP operating income, driven by commercial team expansion, medical education programs, and product portfolio expansion.

**【CFO Financial Highlights】**
- Q4 2024: 
  - Net sales $111.5 million (-1.4% YoY), adjusted EBITDA $18.4 million (16.5% margin).
  - Full-year 2024: 
    - Net sales $449.7 million (-1.6% YoY), adjusted EBITDA $60 million (+18% YoY).
  - 2025 guidance: 
    - Revenue $445-460 million (flat to +3% constant currency).
    - Adjusted EBITDA $65-70 million (+8% to +17% YoY).
    - Operating cash flow $30-40 million (double 2024 levels).

**【CEO Strategic Updates】**
- Appointed Scott as VP of Americas Sales to enhance data-driven sales execution.
- Digital solutions excluding scanners grew 10% YoY, with Implant Concierge service up 14%.
- Manufacturing efficiencies reduced cost of goods by 40 basis points YoY.

**【Q&A Key Takeaways】**
- Q4 US implant weakness due to holiday shutdowns, but January sales returned to normal.
- 2025 growth drivers: biomaterials (+2% YoY), digital solutions (10%+ growth), and potential implant market recovery in H2.
- Tariff impact assumed negligible; manufacturing cost arbitrage between Valencia and Palm Beach Gardens to continue.
- 2025 R&D spend expected to remain stable, supporting pipeline of new product launches.

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