# Sirona Medical Financial Model

Sirona is building a unified cloud SaaS platform replacing fragmented on-prem Radiology IT (PACS, RIS, viewer, reporter, worklist) for US radiology practices.

- Canonical: https://finamodel.com/startups/sirona-medical
- Excel download: https://finamodel.com/startup-models/sirona-medical.xlsx
- Category: Health-tech
- Model type: SaaS ARR / Valuation
- Funding round: Series B
- Funding: $40M
- Founded: 2021
- Geography: US-first (private radiology practices); international expansion flagged as TAM expansion [DECK, slide 17].
- Customer: B2B2C

## About the company

Sirona Medical is building cloud SaaS to replace fragmented radiology IT such as PACS, RIS, viewers, reporting, and worklists. Its unified workflow targets radiology practices seeking to move away from disconnected on-premise systems and improve how clinicians access and manage imaging work.

It targets US radiology practices, where enterprise deployments can expand through radiologists, sites, studies, and additional workflow modules. Commercial performance depends on long implementation cycles, successful integrations, clinician adoption, cloud reliability, and retention in a mission-critical operational system.

The model forecasts practice customers, radiologist seats or studies, ACV, implementation, expansion, churn, and cloud-support cost. It includes integration services, enterprise sales, customer success, product engineering, gross margin, operating cash flow, cash burn, and runway.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Three-tier subscription platform marketed as "Unify. Simplify. Amplify.":
  - **Unify (Bronze):** Core workflow solution - Viewer, Reporter, Universal Worklist, DICOM Router, HL7 Router. Deployed as overlay on existing on-prem infrastructure; displaces existing RadIT spend. Live in clinical production at time of deck. Target: net savings vs. current fragmented spend.
  - **Simplify (Silver):** Intelligence Amplification (IA) features, premium workflow tools, Communications Hub. Priced at parity with existing spend. Rollout: "next 12 months" from deck date.
  - **Amplify / RadOS (Gold):** Multimedia reports, patient/referring-physician portals, practice management tools, PACS archive, 3rd-party AI integrations, billing & payroll add-ons. Priced to value; rollout 2022–2023.
- Value proposition: replace >80% of healthcare data infrastructure (radiology) with a single cloud platform; improve radiologist productivity and reduce burnout; enable differentiated work products.

## Market

- US radiology spend: $110B domestic; 600M annual US exams.
- Radiology sits upstream of 70% of all clinical episodes.
- 50% of US radiology is private practice.
- **SOM:** $1.5B - US Radiology IT Market (existing RadIT spend: Simplify + Archive).
- **SAM:** $5.0B - US "RadOS" Market (Amplify package + add-ons).
- **TAM:** $50B+ - Global RadIT including billing and international expansion; global market 4–5x US market.
- Sirona's current penetration: "Unifying 2% of US Radiologists".

## Revenue model

- **Model:** Per-exam SaaS subscription fee across ~600M domestic annual exams.
- **Tiers:**
  - Unify (Bronze): base platform - priced for net savings vs. incumbent spend.
  - Simplify (Silver): workflow/IA premium - priced at parity with existing spend (2022 rollout per deck).
  - Amplify (Gold): RadOS practice-differentiation tier - priced to value (2023 rollout per deck).
- **Add-on revenue:** API layer enabling 3rd-party AI, billing & payroll, prior auth & compliance, portal add-ons.
- **Channel:** Direct to private radiology practices (initial market); teleradiology networks likely next.

## Traction & metrics

- Raised $23M to date as of deck date; in stealth mode.
- Founded 2018 out of Stanford AIMI / BMIR; Series A investors include 8VC, GFC, Xf, Arthur Patterson (Accel founder), Kenan Turnacioglu (Paige AI), Kenneth Heithoff (CDI founder).
- Product live in clinical production - Unify tier.
- Currently unifying "2% of US Radiologists" - no absolute customer count or revenue figure given.
- No ARR, MRR, or revenue figures disclosed (deck explicitly states "in stealth").

## Competition / moat

- Competitive framing: incumbents are on-prem, fragmented, built piecemeal; cannot be modernized incrementally.
- Sirona's moat narrative - four pillars of competitive advantage (named but not detailed in extracted text); proprietary data from unified platform enables IA features; patents pending on IA features.
- Named competitors: not explicitly listed; implied incumbents are legacy PACS/RIS/viewer vendors (e.g., Intelerad, CDI / R2 Technology referenced via advisors).
- Overlay deployment strategy avoids "rip and replace" - lowers switching cost barrier.

## Team & funding ask / use of funds

- **Team:** Cameron Andrews (Founder & CEO), Dr. Alan Kaye MD (CMO), Dr. Mark Longo PhD (CTO), Dr. David Paik PhD (CSO), Fred Ong (CFO), Vincenzo Ampollo (Head of Engineering), Tom Pacenta (VP Sales), Dr. Ruggero Tacchi PhD (Head of AI Engineering), Michael Chang (Head of Marketing), Jeremy Koscielny (Head of Implementation).
- **Advisors:** Jonathan Bush (athenahealth founder), Ron Paulus (ex-CEO Mission Health), Robert Baumgartner (ex-CEO CDI), John Pavlidis (ex-CEO R2 Technology), Jeffrey Queisser (Co-Founder/EVP Eng Box), Curtis Langlotz MD (Stanford AI in Medicine), Chris Wood (ex-CTO Intelerad), Luke Oakden-Rayner (Royal Adelaide Medical Imaging Research).
- **Ask:** $40M Series B.
- **Use of funds:** "Unify Radiology onto a Single Defensible Platform" - no itemized breakdown in deck.
- **Total raised to date:** $23M; $40M ask brings total to ~$63M post-close.

## Recommended financial model

- **Archetype + why:** B2B SaaS per-exam volume model with tiered ARPU expansion. Revenue = exams under management × per-exam fee, blended across tiers as customers upgrade Bronze → Silver → Gold. This matches the stated pricing mechanic ("per-exam fee on ~600M domestic annual exams") and tiered upsell motion. Secondary add-on revenue stream from API layer.

- **Forecast horizon & granularity:** 5 years (Year 1–5), monthly for Year 1–2 (cash management matters at pre-revenue/early-revenue stage), annual thereafter. Break out by tier.

- **Key drivers & assumptions:**
  - Total addressable exams (US): 600M/year
  - Initial target market: private practice (~50% of US radiology = ~300M exams)
  - Current penetration: 2% of US radiologists; convert to exam-share
  - Unify (Bronze) per-exam fee:
  - Simplify (Silver) per-exam fee premium:
  - Amplify (Gold) per-exam fee premium:
  - Tier mix / upgrade curve:
  - Practice acquisition (new logos/month):
  - Average exams per practice:
  - Gross margin:
  - S&M as % of revenue:
  - R&D as % of revenue:
  - Net burn / runway:
  - Churn:

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - Bear: slower practice acquisition (long sales cycles, regulatory friction); Bronze-only pricing; higher churn than expected post-stealth launch.
  - Base: per-deck trajectory - Unify deployed, Silver/Gold rolling out Y2–Y3; 2% → 10–15% private practice penetration by Y5.
  - Bull: rapid Silver/Gold upgrade; API add-on revenue materializes early; teleradiology network wins (large volume contracts).

- **Required sheets / outputs:**
  1. Assumptions (all drivers toggleable)
  2. Revenue build: exams under mgmt × per-exam fee by tier; add-on revenue
  3. P&L (GAAP): Revenue, COGS, Gross Profit, S&M, R&D, G&A, EBITDA, Net Income
  4. Headcount plan (given 10-person exec team + hiring with $40M)
  5. Cash flow & runway (13-week near-term + annual)
  6. Market penetration waterfall (exams TAM → SAM → SOM → captured)
  7. Sensitivity table: per-exam ARPU × exam volume / penetration rate → ARR
  8. Dashboard: ARR, exams under management, blended ARPU, gross margin, cash runway

## Frequently asked questions

### Is the Sirona Medical financial model free?

Yes. The Sirona Medical model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.