Earnings call transcript Q4 2022

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Operator

Good day, ladies and gentlemen, and welcome to the NuVasive Fourth Quarter and Full Year 2022 Earnings Conference Call. I would now like to introduce your host for today's call, Ms. Juliet Cunningham, Vice President of Investor Relations at NuVasive. Please go ahead, Ms. Cunningham.

Juliet Cunningham

you. Thank everyone. afternoon, Good

results are results Financial Chief session. an Officer. quarter and review host XXXX NuVasive's today innovation we'll well Matt Matt then full highlights. overview Officer; year Harbaugh, fourth will business year full Chief Chris detailed and question-and-answer trends Chris me as Executive as financial Barry, our and of and and Joining a will outlook, provide XXXX

IR section earnings with is the The which posted been has earlier we the X-K our afternoon, this of filed release, issued Form and website on on SEC.

posted information. We supplemental have also financial

As a IR archive website is recorded, the will today. and reminder, an this call later on be available being

forward-looking to you The which on I'd respective required cause releases we and based differ comments risks statements, statements. that no current or as or started, expectations Before those and include actual news with by SEC. the information, uncertainties, cause forward-looking that materially forward-looking factors, could which remind filings any law, other their get NuVasive's which from to assumptions and expressed involve are during like to our results and could will this as we call update Except actual differ are of obligation assume in periodic date. factors statements such by materially described to speak implied results

included financial financial are are measures. these supplemental measures of of measures which non-GAAP today's to and Reconciliations this directly NuVasive's addition, accessible financial include most comparable will website. both In GAAP certain call earnings information, the on the in release

Chris like I'd now And introduce Barry. to

Christopher Barry

full results. highlights outlook Globus by our and and supported XXXX financial guidance. the well net details combine fundamentals on XXXX, growth definitive and fourth Matt today, Earlier I and review fourth with will our quarter everyone. XXXX is as strategy full XXXX provide year afternoon, performance reported of sales share to good and call, will Medical. Juliet, additional year which financial as XXXX agreement of today's you, quarter On for our Thank we

with Globus couldn't combined have in effectively. together portfolio I strong the and excellent customers supported commercial scale, clinical well-regarded X professional company be technology solutions and The industry. more brings proven commercial incredible clinically it to as exceptional about an an Medical combination capabilities of by serve our development companies teams will excited musculoskeletal our

Being able our achievable to while more unlocking of change care minute and patient's every change to in More Globus. life the future announcement our with remarks. orthopedic vision a is on now my later spine even together

full the XXX the efforts how our portfolios growth see the are market-leading over how to in I'm strategy. excited globalization growth accelerate year reflects us Our XXXX our years XXXX. have to progress further investments positioned X and advancing over company's past core And

increase a million, of compared the delivered an net quarter $XXX.X reported NuVasive a XXXX prior sales and approximately fourth period. on approximately basis currency X% to year basis on X% of constant

the negatively Foreign primarily net million by performance $XX approximately the by currency our Japanese and yen sales impacted euro. driven

lower-acuity expected, relative mix. and market procedural cases, As the both our favored case to mix

will cases year. throughout higher-acuity ramp optimistic However, we up that remain the

products. our In continued the basis corresponding a of approximately growth achieved to and international compared return on of MAGEC prior by growth, period, we double-digit PRECICE XX% business, led year constant the titanium currency

to on For basis the a on full year, of basis compared came an reported our currency $X.XXX the X.X% a XXXX increase year. constant prior net in X.X% at sales billion, and

international NSO. XX% commercial achieved showed year Completing full growth we sales greater business U.S. markets. international than Spinal solid first environment, grew performance our growth business. We well in its Pulse Support Hardware as the strong U.S. challenging in the U.S. a global platform cervical delivered of in and as In and launch, our and a U.S. Surgical from net

progress on make Despite continue ongoing we strategy. our macro growth to environmental headwinds,

the During related the delivered asset on core with partnerships, introduced through foundation product innovation pipeline. intelligent surgery XXXX, of new strategy, to built platform our introductions the and and distribution of we acquisitions agreements XXX our Pulse proliferation globalization, growth new commercial

Starting our business. core with

runway portfolios, Complex XXXX, XXX key significant in PXXX target. segments procedural that to have continue We our and CXXX,

Our innovation strong gives in leadership position a and segment to extend us our underrepresented. we've take historically the share where competitive anterior been

Today, integrated made XLIF flagship $XXX marks million of a year procedures anterior our products leader us and in XX in peer-reviewed launched, years performed, procedurally more XXX,XXX This our XX publications solutions XLIF. procedure, have with XXX than success the segment. approximately introducing

single-position XXXX to addition, In procedure, the surgery. this years of lateral X our year approach marks also

Spine of post-op approximately patients versus from complications. X time Last published hours. stay reduction X.X the in month, less another to the benefits a surgery XX% be needed a Operative length to flipped decreases hours significantly that There's in Journal demonstrated dosage, shortened fluoroscopic hospital and of study lateral single-position mid-procedure.

This to Modulus remain innovation blades We hospitals will evaluations, and expandable XLIF, begin continued an as introduction Modulus MOD-EX patients. clinical, of ALIF and delivering committed financial year, surgeons, next-generation implant ALIF our support the in improve the choice. interest that and interbody operational outcomes technology, for will clinical will of

continues the plan TLIF system and of and invasive Within solutions surgical customers providing the with clinical comprehensive, tremendous we providing posterior PXXX launch our for surgeon billion tube to evaluations is U.S. the less position. the recent in the pathology-driven posterior opportunity commercial market, tackle our MOD-EX from decompression application. access portfolio, the $X.X segment, NuVasive PO both

billion cervical Turning $X.X segment. the to

XX% CXXX greater to deliver continues Our growth. than portfolio

more $XXX take to highly surgeon a market committed of to portfolio for our share our additional high the cTDR Cervical the Simplify in advanced year. continues team with have to CXXX The and for We interest. of portfolio. maintain Simplify that million the half ability Disc instrumentation is the exceeded furthering the this Disc to differentiated plans capture The launch of rest enhancements expectations, second pull-through creating and

solutions. And Modulus to plans Cervical, receive additional utilize launch our cervical feedback indications and XXXX. AtratPutty, the enhancement most for Reliance in expanded to interbody positive occipital cost-effective surgeons recent Modulus ACDF implant an our addition, Our across with Cervical thoracolumbar system allowing QX biologic received continues to

to enabling is Central growth our core technology. strategy

itself Pulse that demonstrating be spine technology. pull-through adopted deliver differentiates have other the in clinical While definitive is can enabling that of in today Pulse in XXX% procedures. hospitals technologies utility, it limited used

surgeon Our the are platform. of experiencing customers the benefits

cases. our continued by X,XXX-plus have reaching momentum global We commercial

Our line R&D experience. completing and and streamline teams are navigation, overall new improved operations OR and upcoming global launching and compatibility, software the support the sight instrument system-level will Pulse services The further the surgeon remote next add for summer. this for enhance staff release release of

As vision to long-term accelerate by countries innovative company deliver organization be helps will presence global more I our an musculoskeletal Medical than With the surgery. XX well supported combination Globus X,XXX with intelligent employees, in conclude on near- create and of over and my remarks, to our strategy. planned new positioned our

spine needed throughout portfolio combined of and clinical Our the care continuum deliver orthopedic to is help outcomes. better

world and combination surgeons commitment overlap around financial a and reminder, technologies, operational strong spine continues for a shareholders. and expands limited of the expands with complementary compelling opportunity profile key value-creation our As a in creates to capabilities creates meaningful orthopedic well as innovation, our sales potential markets, net as patients our reach to the commercial comprehensive portfolio innovative upside and

combining Globus minute in and transform I more. well-regarded life care to in most strategy. Medical, change to musculoskeletal so our every a companies X industry surgery, our change to vision remain patient's But of do with confident further We're the we together the our lives. purpose accelerate advance stand-alone much can and

turn call I'll Now Matt. to the over

Matthew Harbaugh

XXXX full Thank to well year you, and results going good as year as our and and Chris, I'm full fourth quarter afternoon. guidance. net drivers our provide financial XXXX sales

detailed in financial have information. today's provided supplemental Our results release and been press

discussing be full release reference year provide will comparisons Please I'll all first to noted, XXXX GAAP for to I our see both and remarks, prior our measures. non-GAAP results. non-GAAP Unless our my period. the are During results and year quarter GAAP reconciliations. then fourth otherwise press

spine sales adoption as and We driven and the in a of net delivered fourth increase X.X% $XXX.X Pulse. net X.X% were core constant above-market new million, introductions, a growth, increase basis. XXXX a globalization for reported growth on further sales product currency Worldwide quarter by

quarter. million impact during exchange the approximately fourth fluctuations Foreign unfavorable had currency an $XX of

Worldwide XXXX billion, reported the X.X% as X.X% a increase full a on were year net and an constant basis. sales for $X.XXX increase currency

exchange XXXX, quarter a on International decrease were increase net currency of of fourth for For currency was which and fluctuations as X.X% XX.X% approximately million, a the the impact $XX.X $XX basis. unfavorable sales an million. year of an had full constant foreign reported

growth For showed key full growth on positive XXXX, driven year were currency in increase million, currency XX.X% by a a X.X% the international spine $XXX.X and momentum net during as NSO Constant core basis. and products. a XXXX markets international constant sales increase reported

turning our sales. U.S. Now net to

of for XXXX by line. product U.S. some Hardware fourth X.X% increase. a are million, highlights net the $XXX.X representing were quarter Here key sales Spinal

Cervical than the sales greater portfolio led CXXX Disc. achieved XX% the and portfolio Our cervical again once Simplify growth, by net

X.X% the Spinal year sales Hardware increase. U.S. a net full For XXXX, $XXX.X were million,

sales quarter biologics net offset flat Support net Surgical for Pulse fourth roughly declines in were $XX.X business was compared in the sales. by the Growth year prior U.S. services period. to million, of the and XXXX

sales $XXX.X million, full the Surgical a Support increase. were U.S. For year XXXX, net X.X%

the Fourth million period. Moving operating million gross prior results. to quarter $XXX.X year compared non-GAAP to $XXX.X was in profit

primarily XXXX, the net was gross period. fourth XX.X%, unfavorable by driven in The foreign million of non-GAAP in prior XXXX impacts to gross a prior sales decline $XXX million in as of the the a decrease and of compared XXX For full $X year a for was year-over-year basis Non-GAAP costs. the inventory-related was $XXX.X percentage compared profit points to increase year. margin quarter XX.X% year million currency

XXXX foreign year-over-year a in and decrease year a percentage period. unfavorable year basis prior Non-GAAP was mix. currency driven margin primarily decline to as net gross XX%, compared sales the The of impacts was by the procedural for full XXX of XX.X% points

Fourth quarter million. $XXX.X XXXX at non-GAAP flat were year-over-year operating expenses

The sales mainly For by freight. travel associated an expenses XXXX, in were non-GAAP depreciation costs inflationary $XXX.X higher was surgical from year and expenses sets in variable X.X% the million, $XXX.X growth, impacts, and million. with net increase increase compared investments instrument particularly operating full to of driven

prior XX.X%, basis year-over-year the Fourth primarily earlier. driven in change operating decrease a by margin compared was quarter period. of XXX as in The non-GAAP discussed points XX.X% gross decrease to XXXX was margin, the year

year XX.X%, prior year, to the primarily of to the gross basis compared XX.X% margins. non-GAAP XXXX, was full For in operating points a XX margin lower due decrease

to compared million expense the fourth the decrease foreign $X.X losses. other Non-GAAP prior period. in and million expense expense currency by income year lower $X.X driven was of primarily was quarter unrealized of The for

of currency unrealized as full other losses a of million decrease by and primarily result of million $XX.X driven was prior March the interest year higher levels XXXX. and compared in to expense notes XXXX, lower income in of The expense non-GAAP XXXX convertible foreign retiring income interest year. in was the For $XX.X XXXX, lower expense expense the

was XXXX million compared of Non-GAAP to tax million $X.X quarter expense for year prior the $X.X period. the fourth in

Our XX% effective compared rate tax prior XX% fourth XXXX year quarter was period. to in the

the compared year the non-GAAP rate in was effective For full to XX% prior year. XXXX, tax XX%

GAAP increase of the This XXXX million. quarter Simplify For associated dollar of loss GAAP results fluctuations per of the net strength acquisition million were period. prior $XX earnings of quarter the we per foreign income in reported impacts favorable our or currency U.S. loss net for our million the of to diluted of compared of to with or Included $X.XX fourth $XX.X was Australian fourth exchange the dollar primarily diluted XXXX, compared a the of in Medical. year to share of share $X.XX related $XX.X approximately

earnings income quarter diluted of in On share of to share a $XX.X earnings period. $XX.X year of per or million per $X.XX diluted we non-GAAP net million the or basis, $X.XX of income prior compared fourth net reported

$XX.X full $X.XX $X.XX was income compared prior year. GAAP the XXXX, net or million the net year loss of million earnings For share or share of diluted diluted loss per of to per $XX.X in GAAP

foreign prior of year. Included year for XXXX our acquisition. basis, $XX.X per compared diluted $X.XX fluctuations $XXX.X million reported the income year $XX.X to related of of approximately On of per non-GAAP full full earnings net unfavorable of our to $X.XX or in million net in earnings income share impacts share of million we diluted the or non-GAAP a results Simplify were Medical GAAP exchange currency

Turning to had cash XX, million the balance and XXXX. December cash sheet. equivalents $XXX.X as of We of

million flow free million In to the the and revolving $XX.X leverage prior an addition, our $XX.X cash compared million we facility, undrawn total net X.X. generated $XXX continue year to is credit fourth during period. in We quarter in debt have

free in launches. the new cash we For $XX.X year growth product XXXX, in In full prior million the million and to year. $XX.X to generated XXXX, surgical increased sets support we compared our flow instrument sales net in investment

guidance. sales year And NuVasive's turning XXXX now full to net

assess quarterly we risks continue currency environment, fluctuations, volatility to believe and supply and operating the in foreign As including be we constraints. inflationary macroeconomic impact there XXXX, will

of we predict to the benefit and believe and we we investments positive made we're those we've extent timing our the business. from seeing continue can't While in will impacts, the momentum

procedural sales pipeline. new continued adoption product and continued net a growth expect introductions, strong further globalization We recovery, from and

those to we of be for between rates Given near their the of X% XXXX, net If factors, compared growth February XX, to expect hold a X%. year levels the XXXX to sales net expect reported worldwide basis full constant growth year. as currency on prior also we to sales X% X%

quarterly from a rate on basis. full year sales growth exchange minimal fluctuations We rate impact implications some to expect growth but net

time. at to Due close are merger we to not Medical, midyear, which this our guidance providing we pending with margin expect operating EPS or Globus

while improving margin and growth. We on XXXX profitable driving operating continue to achieving in business our focus

the to the ask please open to for like call I'd operator Now questions.

Operator

[Operator Instructions].

Matt Barclays. with question Our from first comes Miksic

Christopher Barry

you there? are Matt,

Matthew Miksic

Can okay? me you hear

Christopher Barry

now. can I

Matthew Miksic

Great.

Sorry for that.

all to the I if had appreciate pipeline. transaction the the I reaction ask of follow-up And color with internal company. of one little just the announced could, one the sort I So on about the some on Globus of pipeline. then wanted and question,

has mesh get maybe, these might sense views so of has the Matt, not -- different, there of of is cultures -- well. one a just Chris that So to companies the out and been

culture different. think follow-up. one and sense between the I of something are news I I'd of seen the to organizations. have we've view the to get reacting on And a sort quick teams the your how And love match

Christopher Barry

than the differences. Thanks time a found the this and I've couple similarities Yes. spend chance I'll say question, Matt. to with last weeks, both had that teams I for Listen, over a of lot found I more

general, are sides excited. in think, I both

I rationale think clear. the strategic is

of a rigor patient's strong say, If approach to a and very a They organizations improve our past operational for you disorders. every of We change It's minute. discipline. innovation. musculoskeletal both say quality patients have decisive like patient-focused. They DNA. really step have life financial with We we and are back, in life the clear to both

prowess capability. I and training think a we surgeon a best-in-class marketing have engagement and

think You together, I a multiple dimensions. I organization And mesh think everybody create across that. world-class things those sees you

gotten been and Now clearly, melted the change behind uniquely but people have to want is I've I impressed it. the at say challenging, the but ease, away -- have how don't differences really

say -- ways that I'm we've clearly, contradictory have Now a But got to go. we don't I like cultures. to

with capabilities together. We we that drive complementary have cultures complementary can

So that's of where kind we are today.

the weeks X this. and we're NuVasive team. the impressed encouraged. I'm I've come But together behind has Again, early in. but been very I've gotten team with days, Globus impressed how been It's

Matthew Harbaugh

Matt? question, Second

Matthew Miksic

Yes. that's helpful. super Yes,

opportunity. maybe results? getting after be maybe to like the had reflected When up a it in segment pipeline used that like few TLIF come some you've the start and posterior an that So the times we around the portfolio I to move needle MIS or be see about the this that ramping of one question into just is now is talked have can on

Christopher Barry

where excited XXXX, question. phenomenal and we've seen this we about Yes. Thanks had efforts before: our talked us focus like you've PXXX the results. for We're

in XXX, You've doubled with an seen Simplify we quarters portfolio. acquisition growth that and of where that more now greater the posted than portfolio, cervical with within XX% X-plus recently down added

starting We're billion just a now off $X.X line. segment. the It's getting

with We've me. NuVasive give recently -- like think, year areas system, We advantage We'll clinical starting share, system I an decompression. tubular PO. to, retractor I single-digit trials TLIF launched growth low have MOD-EX excuse and do single-digit a in mean low our this us

see you'll PXXX. our focus meaningful contribution from year in So this

But PXXX growth what I with the would we this that we're XXXX be and Now to saw. segment I to in starting off substantial runway now with clearly, be on we're say, the consider drivers. line, CXXX still counting

Operator

from Our next question RBC comes Shagun with Singh Markets. Capital

Shagun Chadha

rates questions, deal have and exit guidance. on on X I the X two QX just and

On do the that just deal. context the just investors? key the on, them? you messaging of maybe stock what little And was to the is should bit Why this your I the wondering deal talk a investors deal, price is in hearing you're could think from right vote about reaction what current you if

second number in versus in growth. high- about I my just for to and then I And X% Why think the that talk can the given you QX that? the called recovery X% was wondering spine, you confidence right rate? that lower-acuity exit the be just if is you about talk question, to out Can seems cases different.

Christopher Barry

Thanks, commercial as at Listen, sort focus minimum our to been reaction. the innovative as if -- distribution Shagun. sides a that capabilities, the know R&D looked Listen, overlap, obviously, the else, spine broad value efforts R&D both has we global space. market will, watching within upside truly price shareholder creation. look and compelling tremendous look bench, at the rationale synergies that you stock is deals and this leverage this I, education organizations potential in revenue complementary clear of strategic on with and orthopedics, and on and fixated with stock and of our I we everybody that organization predicated in portfolio world-class surgeon price deal I manufacturing

I would more plan. accelerates was deal. confident strategy our nothing I than our say And in very But this stand-alone

down create term. to several people the So to to road short do, as be over combination shareholder years compelling came most this, value the the we last always But over we back this opportunities is clear, time. and most several to at other looked unlocks value thought looked this it create best And at term. we because the way we always we we reacting terms value to was of I and shareholders just the there's for long with, the think in come we a got went in lot

this. days. I come we're We've deal. to in of lot that. I'm time, early work terms of And got this said, over I'm think confident people a about will to excited I like do. talk the lot getting this out I've doing a be behind got deal. of to how which excited them I'm our next get several to investors, about and telling over weeks, I'll

Matthew Harbaugh

we good I Shagun, internationally going to Pulse. Simplify. Yes. to feel We're your say good prospects regard in still continuing in to feel to to about to question, We're success low- mid-double-digit continue would X%. we're the see our great with about growth. going X% to grow

start quarter. thinking be XXXs that look to the about at year, first the we're that last really year. compared you if for will upper you're calendarization, As strong thinking And to a

Operator

Josh from comes question next Our with Jennings Cowen.

Eric Anderson

This I and about I pipeline thoughts Pulse specifically. be to And hoping helpful. on you're NuVasive was Josh. just a was any is just then pursuing the placement your to if moment, that would application at metrics on also to provide ask on the Eric pools. for curious hear Pulse robust able

Christopher Barry

term, Thanks question, global We've and for done a over that Pulse. the Listen, We've with Eric. -- short will expansion we've got broad the got what year. commercial of excited software In X,XXX so this believe, we've done in summer the coming create, Pulse we've about we cases. far. upgrades been with technology pipeline greater

robotics always part it the of still It's Pulse. been map, future road always the and is. talked about pursuing for in We've a

opportunity the we ahead the with So see general. tech obviously, our robotics, -- with in enabling Globus accelerates opportunity

major talked the our was -- about. back growth, recall, you our you we've X drivers I X say, should really up, strategies, core if that strategies If XXX growth major which

together, think a in Second innovate combination patients' anything have of you it is than spine if that accelerates And we and And was come X all software companies intelligent about surgery. as to the lives more the change the capability, standalone. about done could this surgery. truly

We to that intelligent world-class world-class for a our technology their a with ability accelerator that, potentially -- an they robotic creates have drive surgery. system. think So

excited. we're So

double-digit in Pulse year, a seen for general, over units just pull-through. For placed we've

that up for last a create lot ahead year the how really a over optimism of we've set lot done Pulse. us things and we move with of So the

always goal place, we to the the far before, create these that out for model As I with to is business the more units. my And might open pull-through more that opportunity said sold I when kind prove than we're a of flexibility. sold a as but said do of of that little we've said majority still We placement metrics, the the of units. the -- have majority we've getting the are like the I've year, up replaced units placements. that to some we're seeing capability

people of year-end so and our programs still early technology. have I'd to generally But with again, most say the flexible it's speaking, acquire go. units. several at of we've opportunity days But We're remaining far, sold to still a different lot for

Operator

Jefferies. with next Our question Taylor comes from Matt

Unidentified Analyst

neuromonitoring. can OUS, This more Globus have for else NSO, is are major business, you if little was guess some bit nature wondering complementary can that maybe Anything of slightly you less the in which overlap, Matt. more then highlight more I'm highlight? you ones a in the NuVasive if cervical, rest of would I thinking And with talk businesses overlap. maybe the about might for

Christopher Barry

different portfolio looked There's of a this market. the is We've at of highly out level is spine complementary. Clearly, ways. I'll a fragmented just a lot overlap, lot say there. competitors again, but of that there's some

still have we competition. even we overlap, So have a lot where of

have they Obviously, fantastic like areas They've with strength-enabling well more cervical we've done really a lateral. think, like nice with a enabling a We've our job, in done job recently technology. I tech. portfolio. done areas So

an synergy global a years between down the ahead little we've back, X in a create and with opportunity got We I think our to further globalization We're there likely footprint. doubled few organizations.

there's lot speaking, they generally So complementary can be of to way the other. nature a

competitors, engaged of path the history, way was although a parallel innovated evolved X and but just sort It down of have over areas. on at course we our actively the the in lot one looked we've compelling companies of this, areas been a different when the sat and of

portfolio. of nature speaking, the So about generally the very feel we complementary good

about one accounts how In clear all of Of talked are an in the has -- ask And where me, overlapped have other, other people the business, one. significantly of have don't A meaning company overlap. this a is to this be majority has any not. we and on you accounts, company commercially? the the commercial business the a both instances, incredible than revenue, lot runway. accounts in almost of really does statement, want We the but international lot overlap, I more majority companies one U.S.

portfolio, So Simplify in if ability ability portfolio, confident orthopedic what the that accounts, context expendables Globus in Excelsius patients, value XXX and NuVasive ask, selling think to hopefully, shareholders. trauma the the we portfolio some sell to PRECICE backdrop our us existing commercial all the that just of the and in backdrop creates should the the the in you bring, XXXX integrate NSO and our and of to our including Medical in our successfully that you and I selling for Globus' complementary with about very are opportunity to nature teams of said, confident the and surgeons and and our GMED accounts, how to and as

Unidentified Analyst

Great. bit the detailed the curve? on you getting do recovery we some to still more. in impacts can maybe there's for a backlogs staffing hear right. appreciate U.S. from there. about If It or one market, Where All but are XXXX. I a headwinds easing little you Maybe wanted the color macro more stable. like sounds potential talk bit little the think maybe

Christopher Barry

Yes. very of different lot volatile 'XX year I it's a very, mean, think from a is -- perspectives. I

and smack a currency fluctuations. in January in you started the the and then Ukraine, staffing You sort shortages XXXX, challenge into war and ran with and of -- then February instability you ran COVID of with COVID into down in

got year, reacting I probably over although the say to comfortable stability, the we of guess, would think just more we I course the found, I challenges.

they're form. I industry, currency volatility. there's think still look sort think I is, as clearly to I there's had shortages As the chance in still think But an of and 'XX, There's currently news some I some we've think, volatility good way, staffing still a challenges. I at shape or still react.

we at now proactive can predict. and be least a So more little

that of is or we -- what And up 'XX. in currency have a like normal. I think year unrest think or there's last But stable the pre-COVID a I knows set with we're continue And worse the happens. normal. that to into to years, who hopefully, to move Now gets after few normal who more stability, further back sort knows

But Hard several have than the I will think we've than more better along that be had to capabilities expect years. 'XX over I the predict now continuum can't imagine it are And wouldn't where prediction that today. we last stable we I would looking be. forward 'XX.

is, will couple. year be that in So a stable last what we've than predictable more much underlying all and 'XX that the statement I'm seen optimistic

Operator

Our question next Blackman from Matt Stifel. with comes

Unidentified Analyst

This is Emily on for Matt.

on I for Just especially NuVasive, more to innings expectations bit who a we're for are the the Simplify couple hoping exceeded it and has on where that. kind a in color progress, maybe for early your Simplify. pull-through, product new rollout users was if still of

on recent there's launches any changes dynamics, growth opposed the And share you there if disc then with if maybe sensor the been touch Sentinel. from if get more that's you could and the coming from competitive expansion taking as to market

Christopher Barry

the Emily, we're for really I board. -- question. ahead progress And seen with fully completed activities, of or exceeding Carrollton. to of waiting our response you, have. integrate agencies' expectations the of beating Simplify. our about we've very would deal We've the made it's model. We're on excited the on most across Thank integration We're West We've we for that into the say pace some

XX% And The thing in the other was exciting what back when that's about market Investor that relook at about we is our exciting had we as our measured we're market the of the cTDR than the recognize greater the space, in market since growth also we which grown technology the we think we is October. did has opportunity time. to leading watching last this Day is product, the

the fast and today. expanding in space probably have -- leading the spine a in So market we technology the

things, excited. we're those all So

roughly than got We've surgeons. XXX-plus of upwards trained XXX We've active let's greater today. about, say,

a We but continues increase. the closed with associated to reimbursement reimbursement awareness continues And preservation. not closing. ACDF. cTDR it's yet, procedure closing. We think motion results There's want patient runway. of lot in think, the We Simplify for, patients market surgeon grow. So we've opportunities to data It's we is think still this to positive that's gap show -- things the awareness think got like versus

And of so a give got all we've things those opportunities. that lot confidence us

competitive versus think as the of MX, Mobi-C, Obviously, share. we far know market we're we advantage expansion, We're As also share doing incumbents, market of well. we're taking market taking dynamics the expansion.

I is a that how to I'm in confident confident is say I'm So and per say, just marketing but don't in our have suffice runway. much share, to how expansion much se number CXXX fact it's I for X percent pulling grown confident the broader the can that forward, going last quarters. the continue the that trend. we feel XX-plus runway through We've And portfolio.

Operator

Chopra Fargo. with Our from Wells next question Vik comes

Vikramjeet Chopra

me. for Two

Chris, complex for both OpEx? one And what follow-up a on can in on finer see put of cases year? they about you better. about the that as And confidence that? the talked Matt. ramp on will just Could point gives XXXX maybe you my throughout you Chris. Matt, talk higher-acuity for is seasonality you it perhaps First revenues the you getting and

Christopher Barry

said the obviously should Vik. our I quarter, to in this We've a muted Thanks, we I of of relation in I cases. mix. discernible annualize cases cervical. I velocity believe, number more, seen saw to like in last going any growth difference haven't areas I seen say, was What complex we're said the

disruption in per had revenue overall down case our a because XXXX. So we mix was

the still Although, we having business grew said X.X%. that,

annualized than talked the volume So specifically, what to I is I proud growth when the because of how but much high-acuity our that I Good and dynamic -- growth, revenue greater look of a before, we've velocity don't mix. at we've is when do news look is change this the yet, I was I growth cases see know this that -- with I I our volume see in of mix. seen

the should where equal a benefit frame, from a we were a time to revenue So XXXX we in -- volume at deficit. much get generally

would constrained, I some So back the hospital picking up, the if that's and But will great. sense. cases, hopefully, on indicate generally, makes it that seen anything it's haven't And down are increasing in of then and staffing and picks market that benefit not throughput that increase. up velocity. if the stabilizes floors high-acuity go concerns the that the if should

Matthew Harbaugh

upper thinking said then the X%, the And we're it the balance, I in pretty $X Thanks Matt. is the much and to first this impact of or half for question. quarter. nets expecting plus muted in We're minus good it X% XXXs second Vik, year. negative million. the be From back to feel about will Yes. and quarter, really perspective, a currency for on the a as first We earlier.

Christopher Barry

just though, some I'll weeks that's more last where thing, in strongest December, of in say. one see of will of the the Vik, end the some I that the softness quarter, latter QX of very we fairly interesting year, usually of add out did XXXX, Coming muted. our --

dropoff a of Now correspondingly, seen I've in January. less

represent a but doesn't the coming January little be smoothness more year. a quarter, indicate of it into may in would there Now seasonality the this

sense. seasonality 'XX but progresses you whether smoother January, usually watch. saw something a is the seeing have we'll valley, We have also and makes a that to if December a But have to peak peak, a that valley. lots Now to -- we're throughout of less year be we'll of a and

Operator

Needham & with question comes David from Saxon Company. Our next

Joseph Conway

have Globus? the wanted This is main they around don't to with your with guess, those for X accounts overlap you accounts, about in you do Globus, Joseph Maybe the if questions any looking just aren't just I could Globus. calling maybe at where talk overlap David. competitors

Christopher Barry

X companies of there's to the mean I that up market. XX% make XX

And are, of it's it of those. one Globus, on be not any us So could it's or if where one them. depending you

is market So a Medtronic leader.

throw want others a there. you it, at if but out there's them So probably you'd hit many to dart first,

Joseph Conway

touch then, makes that, the guess, overlap to on looks Okay. the like. could And what Yes, it you that I if similar Is sense. internationally, U.S.?

Christopher Barry

XX% to to here. us, top versus But of had low they amassed But constant currency our of revenue maybe of X.X% double-digit roughly representation speaking, from got markets Globus say my of we've U.S. -- want off there. do can't U.S., generally I the about XX% the XX%. head, speak for OUS, type XXXX. for But I We've to substantially and in that's growing comes outside revenue in work

I -- a Japan say, market. bottom in an strength, example. share we probably very a where safe player of lower that to most in have market player, amount #X us significant So and is we we'll both overlapped. share early low We're think get in of to share of a have that positions they're in single-digit lower But as the markets. innings and the

synergy a opportunity. So that's clearly

work there we first as opportunity significant But that through go do working we're overlap. planning. be optimistic of and there. pre-integration We'll at the that glance, through is to a lot We got a minimal

granularity to there we've opportunity got well. gone to confident gone we will. Now And yet, we as we've the haven't but in the U.S. I an we're like said,

Operator

JPMorgan. next Our with Allen from question comes Gong

Lilia-Celine Lozada

a Lily the we than in for Street quarter what The softer bit were on was EPS is in thinking. Allen. This actually

a would the could and helpful. you the that little dig the you P&L fall the margin into saw what of just dynamics was, if quarter driver deeper main in So be

Matthew Harbaugh

Yes.

people general, is interest say we I expense And rate to good think than it than little $XX an like is in more higher I for it million use. is to a being would I the that number a modeled. XXXX, was around would think what area interest has were bit volatility for tax expense, modeling. And say,

Lilia-Celine Lozada

a you then Got Could about getting there? are it. That's in X% X% the that the really just into get of to helpful. half guidance needed bit to range? maybe talk top what confidence a digging more. the drivers And your the are to And bit

Christopher Barry

Yes.

range. Clearly, So I'll in one. this. I've talked We're the confident that hit guidance about

seen haven't XXXX. year a We normal since

headwinds the we think 'XX how you to guidance, but should -- if I subside. So forget subside to it, I the at -- the earlier the macroeconomic question, the who stability look we to a to perspective, I do get end macroeconomics say, high think I need asked from

the need fact We've pretty portfolio is, contracts continues we CXXX and currency. good. shortages We the to about. away. to portfolio the We got feel beat we XXXX see grow. The go new to need talked staffing But product

continues a We to continue Pulse. to driver. drive Simplify growth be

in Our international double-digit the to continues range. business grow

us that the range come to little minimize for bit X% we need headwinds years of So in online few and above some face. get end, market to stability I last the once just a or the and to get the of give higher

I those happen, feel range providing market that optimistic better. some things continues and So we're the if of pretty year, confident there's the that to the in upside get we're

Operator

[Operator Instructions].

question with from next Morgan comes Ranieri Stanley. Our Drew

Andrew Ranieri

the that to deal. the remarks being I about Just key And free of you back kind really of key deal XXXX flow think generation set. a companies to cash both Matt, the about talked a talked as announcement, value heard your I for in have going start, driver investment year

where growth you set Just thinking about investment any on line areas X% or about 'XX? the maybe contributing perspective on? talk push we you're to should back can gas pulling anything you're your think set in kind deployment, that an about for X% 'XX, foot down to how you're set that continuing from As specific of top investment to

Christopher Barry

that Thanks about for we we programs Yes. Day, question, Drew. had Clearly, at talked believe margin. lot would up drive Investor talked the -- a the we

we're close We've be company. months to the to Business We to continue we've done we programs. from the continuing to the to next continue And the execute continue business. us sign R&D usual. of say that. I as key operate invest as And We'll will going to weeks done our move will We're all we'll 'XX. sets. and course our continuity plan. things that for period. business over those continue several the mean We'll to provide the in through XXXX execute continue

sense things are talked in into likely of need like. context is until of do that a and but rationalization to entity, the that are I context take we these global we multiyear see don't within entity. I that combined will the The Examples what consolidations, just under I a pause October. move sort initiatives. SKU new pause things ERP the And looks make just of to on lot believe, inventory, of about, the one

continue maintain continue. and and of rethink in we drive to need we top we'll our the we'll the listen, context that line rethink. think things that combined So all business Things entity, growth, to a pause forward today

kind So that way don't that's but at know looking I'm I -- we're answering specifically, your if question it. the of

Andrew Ranieri

And question international. then just on maybe a driver-type growth

You're strong you. has just been about for a market Japan talking

you You're opportunity company combined you combined at kind kind But any versus Globus. of leading think have have there previously win there the of that to a that you didn't portfolio, everything as together, putting a is the scale? geography before better with the as you charge look

if may, And there. I With on definitive just said pretty you pull-through, a strong question, language. Pulse, second

kind context you seeing of in in that us like great. share can of cases would So a be any that the means of wallet there per you're Just more terms how much sense give procedure?

Christopher Barry

XXX we're trauma NSO we've key innovate around before, In of to like with I but opportunity, capability you rule. footprint, doing in I say I to don't to contrived coupled positioned we're if things play tech stronger -- continues access said PRECICE here, I at, be like geographies? to mean, Globus drivers like As what them. far said, done, as of It's portfolios, and that mean, this Simplify, we one the the a global think as our their other and why win. in that we're which I possessed we're think better look I deal. just and market ability enabling of portfolio, all I our I want would orthopedic every the

just say growth been Pulse, sales as account. double-digit the in would I there's far As net

our consideration, probably So take and had you most X.X% a say, that global more part. of the double-digit a digits or have customers those year for compare phenomenon the seen so, to with even it's total that that of Double for, in growth U.S. system we've growth. into let's

look or you number, average is that U.S. So substantially translate you substantially what higher. to the better than say our our even if number would you global growth if at growth

Operator

Barry, CEO, for to at Chris are ahead. questions to floor closing There back over I would further the NuVasive's like Please turn comments. no this time. go

Christopher Barry

am through earnings global an about where I'm about also call. we've come everybody today musculoskeletal very the to that how But treat I came best with this to value I'm shareholder together Globus. and excited how is Thanks NuVasive in ultimately, confident and for our participating strategy. that create -- our Hopefully, for partner excited stand-alone the Maria. creating confidence company we us better Thanks, enhance with further in innovative and surgeons, patients. forward with it path

time. all hope talk next you So for and to today thank you to attending

Operator

your participation, for Thank you have lines a great and day. this now time. your disconnect You may at

Nuvasive (NUVA) 22 Feb 232022 Q4 Earnings call transcript