What happened

Shares of medical equipment company Si-Bone (SIBN 0.30%) were up more than 20% Tuesday morning before falling to a rise of just over 9% Tuesday afternoon after the healthcare company released first-quarter earnings. The stock is up more than 17% so far this year.

So what

Si-Bone makes and sells the iFuse Implant System to fuse the sacroiliac joint in the lower back and treat SI joint dysfunction. The company reported first-quarter earnings on Tuesday morning, and there were a lot of positives.

Si-Bone said it had revenue of $32.7 million in the quarter, up 46% year over year, including $30.5 million in U.S. revenue, up 50% from the same period last year. The company also narrowed its net losses year over year by 33% to $11.3 million. It also said it had $86 million in cash.

The company also increased its annual guidance for revenue, now saying it expects to bring in from $128 million to $131 million in revenue this year, representing an increase of 20% to 23%. 

The reason for the stock's rise and then slight fall may have had to do with the fact the Nasdaq fell more than 1% in the afternoon.

Now what

As impressive as the numbers were, the most encouraging thing to consider for the long term is the company continues to expand its surgeon base. Si-Bone said it had 950 active surgeons performing iFuse operations at the end of the quarter, representing 40% growth over the same period last year. It's also the ninth straight quarter the company has seen a double-digit rise in its active surgeon base.

Si-Bone said it foresees the potential for 470,000 annual procedures in the U.S. using its systems, leading to a $3 billion-a-year revenue opportunity.