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Beta Bionics, Inc. (BBNX)
:BBNX
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Beta Bionics, Inc.
(NASDAQ:BBNX)
Rating:61Neutral
Price Target:
$20.50
▲(38.05%Upside)
Positive Factors
Financial Performance
The company delivered a resoundingly positive beat-and-raise 1Q25, with revenue of $17.6mn falling 10% above both analyst and Street estimates driven by better-than-expected new patient starts.
Market Share Growth
BBNX is expected to increase its US market share to 5%-6% by 2028 within a growing $3 billion US pump market.
Product Launch
BBNX’s iLet infusion pump launched mid-2023 and is expected to support a 37% revenue compound annual growth rate, with gradually narrowing profit loss.
Negative Factors
Competition
Risks include the inability to gain market share against larger players and potential delays to patch timing.
Stock Valuation
Price target decreased to $26 primarily due to more challenging recent market conditions.
Beta Bionics, Inc. (BBNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)504.31K
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees352
SectorHealthcare
Sector Strength48
IndustryMedical - Equipment & Services
Share Statistics
EPS (TTM)-0.93
Shares Outstanding43,356,280
10 Day Avg. Volume439,754
30 Day Avg. Volume504,309
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.14
Price to Sales (P/S)0.00
P/FCF Ratio-3.82
Enterprise Value/Market CapN/A
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit3.48
Enterprise Value/Ebitda-1.12
Forecast
1Y Price Target
$26.43Price Target Upside77.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Beta Bionics, Inc. Business Overview & Revenue Model
Company DescriptionBeta Bionics, Inc. (BBNX) is a medical technology company focused on the development and commercialization of innovative bionic pancreas systems. These systems are designed to automate insulin and glucagon delivery for individuals with diabetes, aiming to improve glycemic control and overall quality of life. Operating within the healthcare and biotechnology sectors, Beta Bionics leverages cutting-edge technology to address the critical needs of diabetes management.
How the Company Makes MoneyBeta Bionics generates revenue primarily through the sale of its bionic pancreas systems and related accessories. The company's key revenue streams include direct sales to healthcare providers and patients, as well as potential partnerships with diabetes care centers and hospitals. Additionally, Beta Bionics may engage in strategic collaborations with pharmaceutical companies to enhance the distribution and adoption of its products. The company could also benefit from insurance reimbursements for its devices, which can significantly contribute to its earnings. Other factors influencing revenue include ongoing research and development efforts, regulatory approvals, and market expansion strategies.
Beta Bionics, Inc. Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 30.84%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call for Beta Bionics in Q1 2025 reflects a strong performance with significant revenue growth and increased new patient starts, particularly through the pharmacy channel. While there were some challenges, such as a decline in gross margin and increased operating expenses, the company's updated annual guidance and strong cash position indicate a positive outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Beta Bionics delivered $17.6 million in net sales for Q1 2025, which represents a 36% year-over-year growth.
Increase in New Patient Starts
The company reported 3,853 new patient starts in Q1 2025, up 48% year-over-year.
Significant Pharmacy Channel Adoption
Low 20s percentage of new patient starts were reimbursed through the pharmacy channel in Q1 2025, surpassing previous guidance and up from mid-single-digit percent in Q1 2024.
Updated 2025 Annual Guidance
Increased projections for 2025: Net sales of $82 million to $87 million, new patient starts through pharmacy channel at 22% to 25%, and gross margin of 50% to 53%.
Strong Cash Position
As of March 31, 2025, Beta Bionics had $295.5 million in cash, cash equivalents, and short- and long-term investments.
Negative Updates
Decline in Gross Margin
Q1 2025 gross margin was 50.9%, down from 55.7% in Q1 2024, primarily due to increased pharmacy channel adoption.
Increased Operating Expenses
Operating expenses rose by 66% to $27.6 million in Q1 2025, driven by expansion of the field sales team and costs associated with operating as a public company.
Company Guidance
During the Beta Bionics Q1 2025 earnings call, the company provided updated annual guidance metrics, projecting net sales for the full year to be between $82 million and $87 million, up from the previous guidance of $80 million to $85 million. The company anticipates 22% to 25% of new patient starts to be reimbursed through the pharmacy channel, an increase from the previous target of over 20%. The gross margin for 2025 is now expected to be between 50% and 53%, revised from the prior guidance of at least 50%. In Q1 2025, Beta Bionics reported net sales of $17.6 million, representing a 36% year-over-year growth, with 3,853 new patients adopting the iLet, a 48% increase from the previous year. Approximately 71% of these new patient starts were from individuals previously using multiple daily injections. The company's gross margin for Q1 was 50.9%, down from 55.7% in Q1 2024, primarily due to the increased pharmacy channel adoption, which is expected to drive medium- to long-term gross margin expansion.Beta Bionics, Inc. Financial Statement Overview
Summary
Beta Bionics, Inc. demonstrates impressive revenue growth but struggles with profitability and cash flow management. The balance sheet remains stable with low leverage, but ongoing losses and negative cash flows could pose risks if not addressed.Income Statement
Beta Bionics, Inc. shows strong revenue growth with a significant increase from previous years. However, the company is currently unprofitable, with negative EBIT, EBITDA, and net profit margins, indicating challenges in achieving operational efficiency and cost control.40
Negative
Balance Sheet
The company's balance sheet reflects moderate leverage with a low debt-to-equity ratio and a healthy equity ratio, showcasing financial stability. However, the negative net income impacts the return on equity, which remains a concern for investors seeking profitability.55
Neutral
Cash Flow
Beta Bionics, Inc. faces challenges with negative free cash flow, indicative of high operational costs. Although there is a positive financing cash flow, indicating external funding, the operating cash flow to net income and free cash flow ratios are unfavorable, highlighting cash management issues.48
Neutral
| Breakdown | |||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 54.78M | 65.12M | 11.99M | 179.00K | Gross Profit |
| 29.57M | 35.89M | 6.31M | 179.00K | EBIT |
| -42.66M | -45.25M | -35.85M | -65.84M | EBITDA |
| -41.51M | -44.10M | -34.62M | -63.40M | Net Income Common Stockholders |
| -56.50M | -54.76M | -44.10M | -64.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 231.47M | 103.58M | 96.75M | 27.68M | Total Assets |
| 338.02M | 149.65M | 110.04M | 35.53M | Total Debt |
| 6.97M | 7.25M | 4.22M | 4.13M | Net Debt |
| -35.48M | -23.18M | -22.34M | -23.54M | Total Liabilities |
| 24.27M | 73.63M | 51.43M | 22.53M | Stockholders Equity |
| 313.75M | 76.01M | 58.61M | 13.00M |
| Cash Flow | Free Cash Flow | ||
| -35.15M | -51.67M | -32.85M | -60.98M | Operating Cash Flow |
| -34.25M | -48.27M | -32.45M | -60.21M | Investing Cash Flow |
| -208.78M | -3.48M | -69.69M | -769.00K | Financing Cash Flow |
| 268.01M | 55.62M | 101.03M | 56.78M |
Beta Bionics, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $109.95B | 23.75 | 9.49% | 3.27% | 3.62% | 31.18% | |
69 Neutral | $2.10B | 1,063.80 | 1.13% | ― | 14.80% | 530.21% | |
66 Neutral | $43.40B | 49.33 | 16.73% | ― | -9.84% | -35.77% | |
63 Neutral | $8.83B | 116.65 | -23.93% | ― | -0.12% | -713.82% | |
61 Neutral | ― | ― | ― | ― | |||
53 Neutral | $5.24B | 3.32 | -44.36% | 6.63% | 16.78% | -0.12% | |
44 Neutral | $8.62M | ― | -80.71% | ― | -2.06% | 49.73% |
* Healthcare Sector Average
Performance Comparison
BBNX
Beta Bionics, Inc.
17.89
-5.92
-24.86%
VCEL
Vericel
42.02
-4.17
-9.03%
EW
Edwards Lifesciences
73.83
-16.34
-18.12%
MASI
Masimo
165.18
36.45
28.32%
MDT
Medtronic
86.34
7.95
10.14%
EKSO
EKSO BIONICS
2.88
-12.12
-80.80%
Beta Bionics, Inc. Corporate Events
Executive/Board Changes
Beta Bionics Appoints Gerard Michel as Director
Neutral
Mar 27, 2025
On March 26, 2025, Beta Bionics, Inc. announced the appointment of Gerard Michel as a Class III director, with his term expiring at the 2028 annual meeting of stockholders. Mr. Michel, who has extensive experience in the biotechnology and pharmaceutical industries, will receive an annual cash retainer and restricted stock units as part of his compensation, with vesting conditions tied to his continuous service and potential company control changes.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.