Earnings call transcript Q1 2023

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Operator

Good day, ladies and gentlemen, and welcome to the NuVasive First Quarter 2023 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 are Financial Chief Officer. today Matt Officer; Harbaugh, Chief Chris me Executive Barry, and With as Chris first results well quarter provide XXXX highlights. will an business and overview trends of NuVasive's innovation as detailed Matt we'll then question-and-answer financial will a review results full outlook, host year and session. and XXXX our

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

information. We have supplemental financial also posted

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

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

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

I'd now And to introduce like Barry. Chris

Chris Barry

X.X% for Share our afternoon, the as the NuVasive the compared After Medical. of today's in I'll period. first XXXX XXXX first proposed prior quarter positions next million, a On quarter. X.X% quarter and And quarter. on currency well pending sales delivered call, Juliet. reported how discuss good performance details our with basis merger reported to financial share constant the a an or Matt combination you, Earlier of everyone. financial increase $XXX.X our on growth for basis, my net we today, Thank will on steps additional continued Globus review remarks, results. the year

procedure reflects innovative increased performance portfolio. surge company's in Our for and volumes our demand continued

In strong constant thoracolumbar than X% from sixth resulting remain headwinds growth to of hardware profile more currency Pacific a XX% funnel compared in had approximately X.X% performance and cervical opportunities, our a US intelligent year our was This focused particular, period. growth achieved quarter, and We solid US straight market and strategy, over time. Asia by basis double in core spine the and in in Japan. three on driven for growth International growth led surgery, pricing In our growth, growth quarter. business, financial we while reimbursement improving by the prior by Europe growth fundamentals business on core the digit offset including our

Starting growth, CXXX, have target to opportunities with key with our XXXX, we that in continue portfolios. and core Complex. significant PXXX we procedural XXX segments

to take celebrate competitive in where innovation our years position have been extend our continue anterior, procedure, In we XLIF procedure. us leadership and underrepresented. historically in XX five strong a anterior in segments Our gives our we XXXX share years flagship to of

superior As reviewed than procedures. XLIF fusion lateral predictable peer more XX leader spinal XXX and with traditional products to and than than the publications continues in launched, outcomes demonstrate more more

opportunistic and realize to cervical, proceed experience to applying we including as posterior and also know-how XLIF, segments we're complex. additional Just it taking and our

system subsegment, launch enhancement additional we consistently since receiving performed, in fourth deliver In of Simplify but Cervical growth. portfolio saw Cervical, has entire well only growth to continues Not within in posterior occipital our the the year-over-year is the impressive fusion of its quarter driving the positive XXXX. Reline growth Cervical been double has digit cervical The Disc above launch CXXX market the portfolio. CXXX feedback

beta a prioritized with locally, commercial strategy, solutions positive launch is prime US Japan in Camber with the unique markets. and are targeted the introduced we regional identifying receiving This markets compete need in differentiated scale additional feedback they globalization the of to and how Camber Following providing solutions our System, Laminoplasty to to launch. the recently in a example those

procedural continue in We to adopted definitive see hospitals pull that have through Pulse.

teams our While operational Pulse procedures. patients. next platform The to customers improved provide release positive summer. XXX% navigation, further system level and Pulse feedback experience. of of for better surgery support enhanced OR clinical will initial software instrument our financial has use streamline for received services, our sight committed from OR surgeons can this rollout improve and outcomes spine a team compatibility, and the to The in and We're intelligent remote more new to line begin innovating their surgeons commercial support and giving sites, and

several well In for countries milestones key in our clearance with in US the growth. are bone pediatric NuVasive These recent is support reviewed include positioned than precise achievements in the launched Europe. the Specialized XXX for long NSO. transport term studies, commercially of the Orthopedic the received system system was business, business more And and precise peer

Medical, both NuVasive Turning Globus to are shareholders our pleased plan and Medical that merger proposed combination musculoskeletal company. we create with global approved innovative Globus an to a

shareholders, patient in employees, support a prioritizing commitment supported market greatly by compelling advance and than overwhelming term the long and presence merger combination will the than our deliver new As more care demonstrated the our by and countries around on pinning XX accelerates of company globe organization by the opportunities. the near more With strategy. of both X,XXX

Federal regarding request from As it US filing. approval, we the relates antitrust a to Commission our HSR received recently Trade SEC the

to expected third result, from the merger of has XXXX. mid-XXXX the shifted of As quarter the close a

steadfast. benefit slightly, unchanged. And have commitment to the that merger changed our remains is timing deal the our While stakeholders may will belief this our

furthers expands financial capabilities our commercial creates commitment value a profile the As technologies, around operational [Tech limited in our orthopedic a innovative a for combination meaningful with complementary of strong creation spine and shareholders. our reach innovation, to comprehensive and key opportunity and Difficulty] expands and surgeons reminder, world this overlap to patients create portfolio our

and provide the service to confident superior of our our in to remain to company We patient future surgeon hospital the advance combined partners care. vision opportunity and

to Now, the call I'll over Matt. turn

Matt Harbaugh

Thank XXXX cover full and you, our on provided XX. good I'm sales latest is the highlights our net year to first thinking our quarter around color provide And guidance guidance Chris. going afternoon. from on range, unchanged which February

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

press in quarter, both a comparisons to and GAAP period. be worldwide first During my X.X% noted, X.X% delivering strong GAAP for are measures. see currency prior release start discussing non-GAAP year $XXX.X remarks, as Please reconciliations. increase year to reported, our Unless I all net increase had a We the million a otherwise non-GAAP the a constant sales on and of the to basis. will

Foreign sales by million currency performance quarter. net our negatively the $X.X during impacted

Brazil reported reimbursement Japan. net way. and which to and International relatively Latin sales Growth Europe, was perspective, New America modestly growth primarily period a with headwinds as in net in the were by the offset in sales led increase partially a by was on spine core solid Zealand, prior and for and of first flat an the million, on Asia by pricing From international driven X.X% in was Pacific. Pacific grew Australia growth leading Colombia Asia which basis. year an currency quarter regional was basis, $XX.X constant

net Turning sales. to US

final were quarter by me hardware net highlights provide product XXXX increase. of the million, X.X% representing US sales line. Let for first $XXX.X key a

net sixth business were nicely, US grew Simplify slightly the X.X%. cervical Clinical $XX.X mix. Disc. sales Our of by the Cervical higher greater declined net NuVasive net Services sales to XX% driven than achieves CXXX Support due Surgical led volumes. growth the for an quarter, consecutive of million, by case increase Biologics primarily portfolio, year-over-year sales case specifically The

first first net $XXX.X XXX to compared million, quarter related digit the excess in year a was decrease levels was profit and non-GAAP percentage with results, an inventory as of XX.X%, percent gross prior for to the compared Non-GAAP a in $XXX.X sales period. driven quarter of in of by operating pressure was to remained million range. increase the primarily year-over-year XXXX obsolete gross margin prior Pricing basis historical the period. reserves. single in low year decline points The XX% Moving consistent

to First range in by surgical year expenses compared sales to increased was driven variable growth period. investments million, last increase The quarter mainly X.X% the and made in instrument $XXX.X net million with XXXX, non-GAAP year significant prior associated operating long $XXX.X to from our higher expenses sets on targets. costs depreciation deliver

XX.X% change Non-GAAP first in gains the in losses a decrease the XX by operating year first period. other income due in was and to to The year impact to expense Non-GAAP $X.X earlier. foreign discussed $X.X was XXXX the the primarily margin margin year expense, quarter prior unrealized was of compared unrealized during period. compared in points driven year-over-year the first million year-over-year for the as was basis compared in decrease income prior decrease the gross million XX.X%, quarter currency foreign period. The to of currency of quarter, the favorable prior of primarily of

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

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

foreign diluted net the share $X $X.XX $XX.X were For million, the Included unrealized million, income merger GAAP year currency fluctuations, to per we incremental share losses loss of reported Our results period. of or of loss of exchange GAAP net XXXX, from related compared diluted or net $X.XX, in earnings quarter prior first of in GAAP and expenses. per

$XX.X of share basis, share prior prior of On income to earnings million, of of currency period. per which the earnings in $XX.X year $X.XX, the gains by or was QX of million, change non-GAAP per net unrealized $X.XX a The diluted income period, reported quarter diluted contributed in to diluted in or earnings compared $X.XX non-GAAP driven year-over-year foreign share we first year XXXX. net largely per

cash million of Turning $XXX.X balance XXXX. cash equivalents now sheet, to and XX, of March had the we as

first the first first quarter, we to negative of the cash related sales negative million, prior $XX.X million our made to period. compared $XX.X was $XX.X payment acquisition the flow milestone net million year Simplify of during Medical. the Free quarter in During

is reminder, quarter free and quarter historically the first year, flow lowest negative. the As of the typically cash a

for acquisition collections a the within sales year prior $X.X have a period from million the Simplify operations. that million due the our consideration free which would contingent cash stronger net payments, States. in portion $XX cash negative of Additionally, United principally is the been improvement includes over representing payment, quarter, milestone Medical presented to the portion, flow Absent for

are mature to million that undrawn on notes commitment. and our facility XXXX. As $XXX plan We convertible combination hand of satisfy currently $XXX June to a XXXX on cash X, credit million use

of year, we for XXXX guidance full the sales following to in expect full both currency net sales provided late we February. growth merger to our continue to a to full year and X% XXXX Medical, we reported the between announcement our year Globus standalone pending Turning X% when with reported At on year. compared worldwide the time, results prior this net of constant basis

progress planning consistent to our we today, is on to here excited integration quarter exchange of combined with of in half the sit our impact and full Medical, to expect based the rates the expected in we which Globus a maintaining merger remain XX, business advancing April year with currency This is foreign impact neutral first We As XXXX, basis, ensure full close successful net XXXX. on year focused plan with year. company. on a of relatively sales third expectation and foreign is We're guidance. currency to of the continuity, greater be as toward exchange

we open to Operator, now questions. call the for are ready

Operator

Instructions] [Operator

question come will Miksic with Barclays. from Matt first the And

Matthew Miksic

good note out strong putting a going such on here, again, taking for comes looks quarter you're for high together. our if And thanks thanks evening. thanks everything And of kind up Hey, a questions. like

So because results, attrition I even be most guess maybe announcement. of heading that on think folks, there some I amount that the were expecting of subject, distraction, would into some

one So if which the on up quarter, anyway. get your ended have And up, seen to to far. kinds such effects impacted the I strong we'd those results you've there I could. they quite then being love if may follow for more of have And were what thoughts so how

Chris Barry

think about, the proud very to the talking we're a been, thanks Yes, going what handled really job, and But doing level change staying distraction. you're really have question. results, how team's through say we distraction biting I of things that can the on based would for been some organization that has anytime have Matt, focused a you I Yes, nice the control. on the of we've

what goes, line as We previous with net it's overall fairly normal. competitive we've been And the we're in As far from front. were attrition positive perspective, attrition in actually been quarters. on an hiring

is communicating organization questions, combined possible. to as the pre- being, a think be there's I I of time value I considered, Clearly, we're a think focused, integration think the lot the in things Obviously, as transparent in all So humanly we're taking they going see we're being density. phase.

in So out cases, in as deliver going strategies the situations, and the it's many execute I to for usual, continue plan we're many business that we're combination background to us, about. for plan, this and excited articulated, in our that go

Matt Harbaugh

your bit. interpreted P&L question also you're about a in I the little Matt. Yes. asking

I say what would there that we've line in in an quarter. the announcement. savings historically, what in from So in material seen is outlier been years first of It as be with wasn't attrition, result would would a there have the previous

point strength the your income the no EPS, know, So of savings earlier. I and I'd line, up there. top and the had driver to primary was a say that in BEAT we

Matthew Miksic

the relative very you leads that a geographically, the strengths, in geographies And talk little estimates about to and our dynamics or that's on? bit our any some way in, strength your Most overseas to worth of I ebbs US. guess, weaknesses, flows of obviously Maybe came lingering could just in was estimates. no, Yes, commenting the are it if strong. the

Chris Barry

question. asking. I'm good you're glad Yes,

see may growth had obviously we LATAM to in related is growth strong we in good our in business. have in challenges. reimbursement Europe, out that The come thing global continue Japan, We one and had we've saw, strength not

the so their that time, over Japan. we'll a about So growing our it's business reimbursement look we're us volume quarters. of screw engine in And Japan, growth reimbursement the digits, continue at business factor our couple excited growth sort or of have the the that challenges over the for to they see. pricing It's think into international results quarters still and to that analyze some of couple durable if we you our double to that's apply. we governmental actually course in us, normalized in strategy And pedicle not specific last next hitting you

will of the out over the We analyze course year.

that's of So We'll on because that'll bit the quarters. to market, Japan little get of our drag is save strength for there next second as still underlying us. the largest just couple through a business, have of international but

Operator

with The will Chopra Wells next question come Fargo. from Vik

Vikramjeet Chopra

Hey, thanks And good start taking the to to congrats afternoon. a And questions. for strong the year.

I for an from on So specifically, the had the what that just FTC guess, you looking can provide And can the to request you and FTC me, share what received, up? for a then second Thank update? you is follow you.

Chris Barry

we'll overly It's comply putting several work. weeks. be second Thanks complete ensure Both SEC nothing about specific and and And it's I for broad say that that we're the are the there's request companies question, Vik. It's to We collaborating hopeful did able It's, next the receive information for very Obviously, request. fully we overly FTC surprising, HSR closely be we will without we will SEC request. it. complete not unexpected. to that with a will were work their request. a committed. that additional there's not this the a necessarily just not, we broad, But together

surprising, obviously work So out overly of to ordinary, nothing nothing specific. overly the done really but here. some be nothing

So rally comply, make and trying to we to and we need do we're so. sure

Vikramjeet Chopra

Great. And then my just follow on up.

start are that Thank QX we you there How that start strength. related had to think thinking to you. the strong was procedure Obviously, the QX to a mention part after of volumes. sort year. such I strong about

Chris Barry

is didn't the we, mean, we valley of we normally see. that coming feels like good out finally December see saw, Yes, little, didn't of in about last see spike year, course we in and the And the I talked this January. see I've normally a we that it's news high it before,

we in So strength had January.

couple. COVID and just several pre year. the the we're have they'll thing I to generally quarter. the over we've pre volume? to to far, as in the question look market, in last that a know transpires next say seen the the so trend next increase see of are the I better over Are year, the looking seeing wait don't seeing here say clearly. I'll to any least speaking, seasonality And turns see at stabilize. continue So that quarters. we in the And volumes? the would We'll I the have And last feel return I if what guess for kind that spine, any the because to what think returned this just volumes, we'll we over the with we seasonality, like is I will weeks have how and is, I But volumes. strengthened a of COVID than out course see think numbers reflects volumes increasing bigger are that at of few We'll

Operator

next come Allen The from with will question Morgan. Gong JP

Allen Gong

Hi, thanks the for question.

hard also control? sounds as We've my been follow backlog quick first this recovery. on really comments any think I'll Glad as up little a have up to up quantify been expansion exposed a you're a capital environment, other good of seen definitely about in And recovery see to some just is a is was the you areas some throw signs you're of very that. that to but lot terms definitely seeing staffing like maybe coming backlog still is that your are this, well. posting seeing of what a well. seeing less of on at strong bit there's in that Pulse When under on that. that's peers, in demand. bit you Just there here But all. follow we then Any something really, really orthopedics, little quarters, I pickup know discussion now

for demand demand, Pulse. capital on hearing you're Thank anything about Just you.

Chris Barry

Allen. for Yes, the thanks questions,

quarters, had that to side are a recovery think say or I fact mean, conversation just your last, just can some some There's on challenged, demand. answer say but ability there market that believe is level even the still pent-up with healthcare several or the over is commenting of the of this out rebound treatment say last challenged. generally participated whatever he I much still a was and the better, our theoretically, opinionated maybe demand. an for let's question there the I've just years. patients The the has on should for have to I I volume the hospitals last it's still forgone probably of on gotten challenged. members they've one So couple reason pent-up over they're speaking, board

they think push through to beyond I probably challenged many cases. procedures, a trying to above and still are profitable is ability their normal accelerate in throughput

and through quarters, volume period a if So I market, stable be alleviate think there think in demand the of level don't of I underlying also to don't some look a see time, from diminish some bolus or demand next from over you that are given for I strength pent-up I that pent-up of there. potentially out strength come be a think, that say the perspective of seeing that demand. may you'll I some anything, in to I volume several -- and would pent-up

and strong good with is, When obviously, customers buy as still your pause business, It's your said going you question. us. our have Globus a of capital on hit the lot a As it just had types going -- as announcement far those of pipeline. button there's we double have Pulse lot check are news the we that's an to coming we may that had together. announcements, interesting But you a of to time, a we had in

proposition is the think I value resonating.

comment is deceleration heard general. we on read businesses, work in with big as deceleration sure I of level. but have enough long a the the specifics Pulse, with some likely hospital term working make to for reasons, don't continue or point it. But capital to fits I've those competent for still business have I finger of to they're to the through level it's spending our capital hard that we'll today. capital our We're how things good, pipeline can't in will in strong. For in demand at and really from market to a is the customers strategy you that and through merger, capital still me think Pulse

Matt Harbaugh

thing first But now. Yes, paid? fair despite coming Allen, that add are Chris the against we prepared just it, get to up. in the would I broad strong, highlighted just question, will, you flow to quarter on collections was the remarks, business these your of about convert asked the cash were. see said you a the DSOs, our $XXX get because hospitals I around, with totally right how got happy in the I our strong you if only And we've cash Are agree getting worried is million in which really struggling and some bit I time, the what like really strong, coming collections fact really brush was that, the through to cash so right is are things

Operator

The question next Jennings will with TD Cowen. come from Joshua

Joshua Jennings

the Hi, Wanted good the over months, regulatory last and just that too in but this there's asking there scrutiny segment, of there. some be concerns we've the NuVasive, afternoon. would been talked XX% with Matt, about questions. couple merger, on having share lateral that some the just for like Chris, Thanks

of to that share think and there lateral spine position. whether cages, share interbody, don't You've just wanted many lumbar because used its, Globus, a position lateral close I screws, but fusion, with lumbar were there's described lateral get plates, fusion, instruments debates interbody just sense of procedures pedicle in their outside risk your

Chris Barry

evidence fusion that of and subsection surrounding the all we've you of share, think XX when includes thoracolumbar, you procedure. a XLIF. subsection proud to posterior. we market. together, procedure years spinal in adding and I've or is start share five anterior talked drive about a small But which I smaller our as that lateral just focus procedure. things up celebrated which XXXX. when of Yes, broader we're remarks we have years thoracolumbar And really which about, that in of we'll of these back I mean, and relatively talked my a a continue a clearly, about the excellence pioneered we've so prepared And clinical of

pioneered still So as I that's but think it's XLIF, a and contextual, we've surgeons do well. lateral, procedure good

feel So very market. confident the way. quite lot competitive lacks That of any reasons, show not competitive and this for we is will that a It's frankly that a not those data standardization. in

drive but in lead big those market we with lateral a And opposition we'll showcasing So successful it's feel in different for and of lot approaches, a to like the lot we'll to continue reasons of different FTC. be a products. our

Joshua Jennings

And thanks the and on just potential, said balance cash to generation do guys. welcome, and company flow No, strength taking questions, combined then you then everything's thanks that. is wanted opportunistic to be this close M&A sheet get for merger on the and and done, your views all kind of front, potential the closed, once NuVasive

Chris Barry

listen, areas I'm excited about. of key Yes, that the it's one

recall, do Day on I Investor about somewhat about about I about talking intelligent you our growth, October, market talked constrained we If was at surgery, what opportunities, we talked could core in individually. market And opportunities. talked we

hey, balance be those really or mean, you so And to But restrictions the And why generation remind with debt And you entity. allows reach really lot I constraints. I of this, and their at of you the a in couple plus exciting you're important cash ability for a a free, through this, new about cash Globus talk I'll we job that's think ability are free which global done profit sheet, of first entity, that billion in a at the companies it's talking started to a two the company to is when margins, has put of you lead two collectively. spine delivering. years flexibility. within musculoskeletal becomes generating removes once looking going continue the together, then great get and to generating lot the these dollar flow And

why reasons, those come lot dynamics. it together think obviously, potentially change of companies for sense makes a and competitive the these two I So

is byproduct we play treat can continue I more, more a participate in the where do patients to of lead opportunity the today think merger. spine, and to but So will

Operator

The Chadha with next question will come Shagun RBC. from

Shagun Chadha

thank planning be put implies down taking the could a modeling it to Prior here. on on was should I to higher QX given think spine point in integration post to there the of today's it's on kind like a step that place as reasonable that guidance you've Is a guidance, Or you we Great, of less It EPS. believe tends should one you about the high question. given $X.XX call, hoping could a the off backlog sales and and finer a backlog? for QX, how results? be? have And in a we balance was realized. I about that sounds year. consensus Or One do the be for maintained volumes of pain million a is in that $XXX just drop backlog burden.

just So could and there? you help us with takes the puts

Matt Harbaugh

and with top them quarter. line I look, on team thank in we is, What first The the a all basis, consensus, the the close are say the results look And to I analysts distraction, for as impressive. a question. want as the was their I and pleased as the would are to I really would pretty out do shout on But for Thanks as at efforts year full Shagun. about noise earlier. say far Yes, the some Chris close is, top to think line. pretty I strength with talked

hot. what we first a doing second probably tad quarter. we better is the in definitely the think quarter plan did than just But I on

Shagun Chadha

on? to big as now. integration taking down process I touch focus the wondering Thank I steps right a dyssynergies FTC the just the are follow planning there's up, potential to on minimize it. road? the there just And if moment But anything was got being I know any Just you a question. for taken at

Chris Barry

say success -- from management of working integration both can staffed we've we you what or gun anything office jumping without, fully that both we're would that do nature obviously on reasonably a got that through, working I maximize completely we eye and our of companies together. companies are the to an independently. are gate. still operating how the got on out Clearly, bring we've together closely the companies But

a we sure, focus. be lot ensure we make and clearly of as people that will, the hit will about. we're to the HSR extent are But to working do with those do to the close work come we to a ground process, running So talking be can hard that really this which create the new company decisions, to our ultimately we we have

Operator

next Saxon a with The ahead. come go needle David please will question from

David Saxon

the on Hi, thanks to start Chris. Hi, Matt. surgical Congrats support. questions. my And for taking Maybe in quarter.

out MCS called growth. You

profile that kind and just term of So a can you longer story? of the remind and margin fitting the into you it business size us how envision

Matt Harbaugh

Yes, good some that should tailwinds the because million didn't pleased impact have did we results year range And with think side so are minus. modest say there. business some for did team quarter first we this MCS, I plus did and I'd see $XXX benefit. is, the We would have say you year. of the we all-in-all, a have we last But some performed or COVID what well.

Chris Barry

look that And And performer strong last But it as far been entirety time, new, companies of of it's to let we'll the as we the two over As longer have term, strategy the bring the we across at listen, a a enterprise. as our together in. part us year the for look where it's to company over couple next really for been look of forward well. now, for quarters. the fits the

David Saxon

you then Pulse. it. adopted got Chris, it's hospitals And Okay, think, through I pull that forgot in or noted maybe the Matt, in have script, I

to any of it family much. speaking, that way broadly? Is that? more stage? going? of the in rolled launch first, two, out and still then just So quantify so I you kind kind Or if number how's that friends And guess Thanks generally

Chris Barry

premium would our of growth. I Yes, on a look just top at

in installed, folks newer units So some digit Pulse some and of moving to is situations, growth, where family. mix I in cases depending would of broader exceeding a friends potentially seeing getting the the range closer pipeline certain see customers we're we're the the trend swath double going to and current you say that reflects in. past The that NuVasive. upon

feedback And before, we're effectively, proposition we We're want talked to in that to we're sell seeing resonate. product, well. but efforts, a it's about, continue considered getting on. and said as but product pace, releases all excited, as the the sure deliberate the going we're build clearly value good we're as those as be meaning only I enhance the that not going at focus to continuing And I've So for diligent our We're a we're pull product install make through, it. needed. from we track, because product It's to system. reasons, all as the seems continue on I that software Support our said customers. very service we this strategy, the something good need things along, to with

So we direction. things to all in continue forward. We'll are right going the those move update as

Operator

The next Matt Taylor with from come Jefferies. question will

Matt Taylor

such the And why congrats speak quarter. could was the more a bit wondering the of understand salesforce you you taking to kinds And in good that to Hey, this little on a in proposition maybe two communications the thank good about about the is what of them I combine question. I'd hear for to do terms you're help more you companies. if just love to specific integration can preparation. giving stakeholders

Chris Barry

from clear, lot I when to those we things Yes, can't a can integration about, we up to six of the as that plan, execute [inaudible] months happen, still a still many tomorrow whether were even or close the brings there's talked be we, but has work work, cases to there's be now, done. lot mean, to planning in we HSR close things of

order lot there's truly work two to companies. be the in So integrate to do, a of we got that

is far with two thing one our level. and That's As seems that we a of and messaging the at that positive very is we our our everyone that both the the resonate did a heard to be from thing folks, there's everyone. sides you've all overlap channel, want don't was our and customer see things homework, work keep channels, as keep done all for we lot of field the we want to and that really to commercial to of

portfolio. compelling the thing second just The is

value, two better continue value at continue to just game the creates and to portfolios. lot complementary customers allows companies that there for create treat our portfolio think are our to more channel look changing treated, and a be creates customers a It patients. ultimately, You the I of just

and geographical opportunity. little things, compelling portfolio two those So overlap

Operator

question will from Stifel. next The Blackman Matthew come with

Matthew Blackman

I question. think you Good Matt, afternoon. heard taking headwinds. on you I my for case Thank mix biologics, mentioned

you case quick shift two away that in you beyond seeing Thanks. same any shifting patterns number headwind mix, higher of there. And seeing hardware couple Are are ones in products? ASP mix maybe a the then just business? purchasing from So hospital case in in biologics general,

Chris Barry

with to a complete clearly, from down business, priced the higher seeing our lower trying what we're price but biological products. seeing we shift products Yes, it's, understanding still I mean, are of to get we're

continued to use the on was mix biologics. of some going lot some really was of pressure of we biologics reflection talked there a about the past, cases a in complex So which there. the what is The be

I sort of analyzing think out. that's

So still drag in a business to track. continue we need of that there's bit that to a

working the expect softer biologics was rest we it portfolio. the bit than So a it would on, what in to something little quarter did of compared we're I with

So we've got some work to do there.

Matt Harbaugh

Chris just really as remarks the we with hardware in US so performance pleased I earlier, the the and in the prepared are market one highlight Yes, was questions said too, really would of specifically. strong,

This remarks. over sir. go for concludes Berry, conference back any Mr. the Chief Please turn would question-and-answer Chris Officer our ahead, like closing to Executive I session. to

Chris Barry

on Chuck. QX thank all today. earnings for Thanks, And joining us you our call

to that musculoskeletal positioned We all Thank growth you with well we're combination quarter. third toward believe earlier, ahead. I look mentioned speaking closing the a for XXXX. leading merger we create will expected As progress next global an the great forward on that company years you. of success quarter plan making with working in Globus and the and in is this

Operator

Thank is conference concluded. your for The participation. now you

may You disconnect. now

Nuvasive (NUVA) 10 May 232023 Q1 Earnings call transcript