ZimVie Inc.

Good afternoon and welcome to ZMV's first quarter 2025 earnings conference call. Currently, all participants are in a listen-only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Webb Campbell from Gilmartin Group for today's introductory disclosures.

Thank you all for joining today's call. Earlier today, Zimvi released financial results for the first quarter ended March 31st, 2025. A copy of the press release is available on the company's website, zimvi.com, as well as on sec.gov. Before we begin, I'd like to remind you that management will make comments during this call that include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. Please refer to the company's most recent periodic report filed with the SEC and subsequent SEC filings for a detailed description of these risks and uncertainties. In addition, the discussion on this call will include certain non-GAAP financial measures. Reconciliations to these measures to the most directly comparable GAAP financial measures are included within the earnings release and or investor deck issued today found on the investor relations section of the company's website. This conference call contains time sensitive information and is accurate only as of the live broadcast today, May 8th, 2025. Zimbi disclaims any intention or obligation, except as required by law, to update or revise financial projections or forward-looking statements, whether because of new information, future events, or otherwise. With that, I will turn the call over to Vafa Jamali, President and Chief Executive Officer.

Good afternoon, and thank you all for joining us. In the first quarter of 2025, we delivered $112 million in total revenue, Highlight of our first quarter was continued progress on improving the margin profile of the business and generating over 17 million of adjusted EBITDA. Our team delivered over 350 basis points reduction in adjusted total cost of products sold. As a result, we achieved adjusted EBITDA margin of 15.7%, over 500 basis points of improvement over the first quarter of 2024. This was ahead of our previously announced goal of 15% plus EBITDA margin first year post our sale of the SPY business and represents an over 40% year-over-year increase in EBITDA, despite our top line being challenged by an overall soft market. Our performance in terms of profitability is coming in better than expected. This is a result of executing our strategy to improve and streamline our manufacturing and supply chain, reducing corporate infrastructure, and refocusing sales and R&D on our proprietary premium line of implants. In relation to tariffs, we're keeping our guidance unchanged for the year and have incorporated the impact of any potential tariff-related costs. We have plans in place to mitigate tariff costs, which we estimate today to be roughly $3 million per year, largely attributed to the EU-USA tariff rates. We have supply chain and manufacturing flexibility which will allow us to absorb these possible costs through our commercial and operational efforts. Rich will provide greater clarity shortly. We will remain focused on driving continued margin improvement and cash flow as we are committed to delivering shareholder value. I'd like to provide a brief update on our commercial strategy. On our fourth quarter call, we announced that we appointed a new Vice President of America's Sales. I'm pleased to report that he is quickly making an impact in his expanded role as we're making a number of changes to our sales process and strategy to ensure we are expanding our customer base and increasing customer share. Our overall commercial strategy is beginning to play out. We have focused our sales and R&D teams on proprietary implant sales and development versus low-margin distributed products. Although less contribution from third-party scanner sales in North America will be reflected in top line, an overall improvement in mix is favorable to Zimbi and will allow us to focus on our core area of strength and differentiation. We are very confident that our strategy plays out. We will continue to see outsized returns. I look forward to providing additional updates and sharing the results of these changes as the year progresses. I'll now give additional details on each piece of our portfolio, starting with dental implants. Implant sales declined low single digits in Q1 at a roughly stable pace to the fourth quarter of 2024 as a result of continued macro pressure. We believe our implant growth is consistent with the market's overall performance and maintain that an improvement in the macro environment will result in the adoption of our implants. At the same time, as mentioned earlier, our U.S. sales execution is showing tangible signs of success. March implant volume showed improvement, and April showed growth in implant units sold year over year. Our innovation pipeline also paints a positive picture for growth. We just launched our immediate molar implant system in the middle of March, and it is progressing very well. In fact, we've exceeded internal expectations for growth. This line will remain a growth driver for the remainder of the year. The immediate molar system expands our clinically proven TSX and T3 Pro implant systems with an immediate molar solution for new and existing customers, simplifying challenging clinical scenarios for providers and shortening treatment times for patients. Commercially speaking, advancing innovation across our implant portfolio fills profitable portfolio gaps. It allows our sales team to sell something new to existing customers, and gives us a stronger competitive position when negotiating larger deals. Next, shifting to biomaterials. Our biomaterials portfolio continues to gain recognition for its quality and breadth, showing just over 1% growth during the quarter. This performance reflects our ongoing investments in innovation and our ability to deliver high-quality and industry-leading solutions. Looking ahead, we're excited about the continued potential in this space, And we're confident that our momentum will sustain our leadership and deliver long-term value. Lastly, I'll provide an update on the continued success of our digital portfolio. Excluding oral scanner sales, which are distributed products, we saw continued uptake and growth in our digital dentistry business. Our Zimbi digital solutions, excluding scanner sales, grew high single digits in the first quarter. Our implant concierge service performed especially well, growing 11% year over year, helping clinicians save hours of time and reducing costs by improving workflows. Looking ahead, we're excited to expand the reach of implant concierge service in 2025, with an exciting launch in Japan in the second quarter. Additionally, we've driven continued strength in sales of surgical guides, with our RealGuide software sales growing in mid-teens for the first quarter. We're optimistic about continuing this positive momentum. We continue to believe that workflow improvements are critical to adoption of implant dentistry, and we're extremely pleased with the strength of our portfolio. Finally, during the quarter, we also made a strategic decision to acquire a distributor partner located in Costa Rica. Costa Rica is a premium dental implant market that caters to dental tourism. The transaction closed on April 7th. Rich will provide more color on the benefit to our financial portfolios. By bringing this distributor in-house, we can leverage the infrastructure, customer relationships, and the number one market position to expand our local footprint and reduce or eliminate third-party selling costs. The acquisition provides an immediate benefit to our margin profile. I'll now turn the line over to Rich to review our financial performance and forward outlook in greater detail.