GMED - Earnings call transcript Q1 2018

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Operator

Hello, and welcome to the Globus Medical First Quarter 2018 Earnings Call. My name is Monique and I'll be your events specialist today. All lines have been placed on mute to prevent any background noise. And please note that today's earning call is being recorded. This earnings call may also be accessed going to Globus Medical's Investor Relations website under the Events section and clicking on the Live Webcast button. pleasure President today's Investor of my Brian over Relations. now Vice Kearns, Business is to program turn to It Development and Mr. Kearns, begin. you may

Brian Kearns

with Monique. today. you, And you for Thank thank being everyone us

at Globus Medical Vice Relations webcast, Paul, accessible available Senior CFO; www.globusmedical.com. Executive Joining today's This and Medical of call will Dave the is Dan President and Demski, President; Williams, Investor via review through section be Globus Anthony Chairman. the Scavilla, CEO; David website made from being

let be begin, that of statements. we you Before me review some the remind this during are statements considered made or may forward-looking

Our materially Form factors for XXXX those forward-looking any from certain actual today. that Securities the our fiscal quarter our XX-Q projected filings in with subsequent identify made the Exchange statements could differ Commission to and cause and results

Our of XX-Q, SEC our as do not available forward-looking information to developments. website. new a or or We on statements filings, update events any the undertake result are including future

will press Dave together website. for the Our call non-GAAP Demski, the Medical financial measures accepted pertinent comparable GAAP. release to comparable read be I'll Globus and GAAP Relations to with the the financial these believe also of measures the accordance GAAP that, directly the These that accompanying most on our Reconciliations the now We measures performance. accounting on provide be replacements over principles should discussion most additional directly financial measures. schedules are section generally business With in calculated available include considered to CEO. turn Investor measures information with today and non-GAAP not should or are financial our not certain

David M. Demski

the exceptional of of of up International our Technologies the million XX.X% all an and business. Globus was above-market day year. everyone. XX.X% The first for XXXX, first for were Emerging was per one up Worldwide XX% in quarter over $XXX team fewer Brian, selling revenue increase were growth delivered QX performance another you XXXX. Adjusting increase We QX EPS in an quarter. quarter X%, last the rates the afternoon, Non-GAAP revenues $X.XX achieved quarter $XX.X the revenues over million, for parts good XXXX. contributed Thank share, in in and of Spine U.S.

to We and by in U.S. continued business, in biologics, momentum CREO, growth build technology. our led MIS, expandable CREO

high-quality XD QX expect We back spacer. in we our half a TLIF have and enhancements strong in XXXX devices expandable several of and several systems to the including platform, reps a the quarter pipeline exited of printed lineup next-generation of competitive to our launch with interbody hired We CREO prospects. large

revenue recall they period in well year. You for for an the half reps this rolling increase first of We off those their typically was old will half which midyear. redeploy see hiring of second strong an will extremely into their reps XXXX be by Many Globus. of that non-competes as territories the from bodes

who the We also Globus practices. starting from pull-through incorporating to implant into implants after to their have surgeons ExcelsiusGPS are converted system see

accelerate. ExcelsiusGPS As impact from should installed these base of the conversions the grows,

their assign part we to have ago. territories beginning to also who their training as are development We of reps completed years two initiated program

folks the two We next one over productive years. reps cautiously become that will optimistic are straight-commission these to

off. sets lead to spinal consecutive double-digit implant The as and pay the to business quarter, Japan began growth. For continues increased International manpower the second our business achieved in organic investments

team, team as Technology implant and our personnel several ExcelsiusGPS by as key Italy We improvement support other expectations for our has system markets, remains exceeded interest clinical The Australia, a outstanding. capital Emerging Spain. in revenue We saw our sales our robust. our in significant internal execution Germany, and also been such sales

of potential to Computer-assisted lose to this have In early navigation, way we augmented exciting, true is done. success surgery sight had heavily order I want robotics long-term the is two will don't surgery, intelligence spine accelerate reality, artificial technology. areas. we transform the this transformation, of robotics, in in investing While the are

driving Simply is focused system. not systems selling we to providing patient relentlessly regularly. must we of are of are utilization world-class for the in To order end, robots To installed. comfortable care ExcelsiusGPS lot have must on a the our that value surgeons in add feel continuum, And clinical happen, be we with used support. First, the goal. that

perform curriculum continuously training to are technically and We surgeons complex are moving to and demanding more enable through we a them (XX:XX:XX). procedures

the If considers other beyond the the we Second, robotics aspects deliver improve our for placement synergistic particularly screws. technology are runway these initiatives to the pedicle enormous, one on our of areas, innovation. development impact and business of we implant working procedure when of is several on two

business an also trauma continues progress though stage. Our earlier to at

we We have are we Technologies, to are expect EBITDA making launching and Emerging summer. and currently our of EPS. out and building investments be heavy in in maintained In the later the sets salespeople hiring spite of process industry-leading systems this

Our efficient rest XXXX our profitability exciting in happy and and the year. turn of a I to the is Dan. our and start structure we're forward In to look worldwide. lean very with call productive over sum, will testament an now organizational to

Daniel T. Scavilla

fully million, adjusted pleased XX.X% uptake less versus gains currency and with was were earnings free net delivering Dave. continued million robot growth by above-market strong ExcelsiusGPS Thanks, or hospitals $XX.X of non-GAAP XX.X% quarter EBITDA in the $XXX.X sales the net afternoon, GAAP one resulting day XX.X% the income $XX.X in and of constant $X.XX good share was of non-GAAP the as And the business, flow. growing QX reported in everyone. million, year. million throughout and country. were and diluted strong prior with from selling in cash U.S. QX per Japan income in We financials $XX.X

million U.S. sales, day XX.X% for XXXX on basis. QX adjusted quarter sales a $XXX.X the Focusing on and were (XX:XX:XX)

momentum improved increases other sales penetration for also key distributor structural due Our QX X.X% in improvements in we in and a were markets higher performance, achieved continued Spine strong in rep our were had ExcelsiusGPS sales or $XX.X headwind business growth the International resulted quarter to as sales XX.X% Japan, U.S. with recruiting have XXXX. competitive to from million, continued the growing made reported comp. International to drive currency. coupled prior and momentum International constant core a through in business. Gains year in market in

full we As that some transition earnings the sales during time, markets. and call, first through last limited the and supply XXXX mentioned in QX activities was in Alphatec that of inventory acquisition, the worked quarter

was orders As Alphatec. a distributor from were shifted result, QX some inventory enough XXXX received once into

force, XX.X% $XX.X earnings robotics income investments of was million GAAP the approximately Emerging negative strong or the per increased quarter exercises gross offset the the to Spine XX.X%, XXXX. investments in QX primary building with Expanding the sales and XXXX. cases due trauma and to and the compared compared of in out approximately gains were and in full-year increased in EBITDA Adjusted We X.X% higher million net in in was sales, from profit U.S. to and rate in projected stock first quarter for million Japanese The compared QX project approximately the sales, negatively QX $XX.X in gross for $XX.X savings the tax QX XX%, manufacturing. to and to reflecting Full for option is instruments. SG&A net in $X.XX. QX in-house related QX reflecting compensation first quarter the increased XXXX. robotic force coupled for $XX.X and Research year resulting or XXXX, or XX%. rest is to change XX% was first year robotics primarily to P&L, gain per by commercial the compared Turning trauma. rate The expenses instruments development QX quarter. biologic to full the X.X% of effect investments Technologies tax was $X.XX the of $X.XX. Emerging depreciable to for reform sales GAAP non-GAAP XX.X% the diluted U.S. impacted teams deductions in an and expenses tax to Technologies $XX.X the be due increased earnings GAAP effective increased pricing was were lives share million profit mix, in QX increased and implemented share XX.X% cost approximately XX.X% pressure, for XXXX cases compared by from XXXX, EPS were or and XX.X% QX income and growing are driven drivers $X.XX investment. $XX.X partially XXXX, million by Spine. for income XXXX XXXX were Non-GAAP for QX diluted million

million for and is provided activities marketable EBITDA in Our to the of securities. operating free margin million. by earnings company cash, company to ended increasing by projected cash is with cash million full-year full-year was per flow quarter sales We in QX $X.XX. diluted million $XX.X $X.XX was mid-XXs. the debt-free. by non-GAAP be $XXX $X cash and to $XX.X approximately equivalents million $XXX.X remains Net XXXX share XXXX and The The increasing guidance

for now will the We open call questions.

Operator

your of to the have any line might William comes questions question we take time, this today. would us you like first At for with And Blair. Kaila from Krum

Kaila P. Krum

Hey, our taking Thanks for guys. questions.

Globus guys talk And the are commentary of just on the many the implant once stickiness efforts implant? have then you place? guys system anecdotal revenue thus training surgeons the specifically has you any you can far? to converted through putting first, mean, robotics into I So, surgeon trained around How the

David M. Demski

We we've Hey, thanks, number surgeons share don't really trained. Kaila. of the

regularly We on seeing And I'm systems workflow the of better location, screws, technology terms It have at so the much that can Globus utilize but trained it. Globus use that's is that anybody works the of K-wires, with screws share with what then you. not with you every multiple doesn't in other aware in we're each if I situation. stickiness, utilizing surgeons

Kaila P. Krum

But be I driving increasingly to on part Great. clearly, least at Tech you as will particularly Okay, application launch helpful. area. robotics that robotic important is trauma, And contribution this think the Emerging story then trauma the the mean, in point. I at that's an

you trauma can that about you're opportunity sort the how thinking and just versus spine? and of with through compare/contrast potential So, perhaps talk timing launch of robotics

David M. Demski

a because We the really it's and on Sure. really trauma idea of great impact robotics unproven of have ground. don't

part procedures, terms our focused better our the of XXXX it's in hiring but that's So technology the a we're in terms trauma really We in or side, some on out implant service. robotics strategy, and but could some building is have of story trauma from to likely impact it's implants navigation of last year, other think really and procedure that the where types better half key and impact, on potentially those portfolio. our salespeople providing really our focusing this it's perspective. or enhance of And opportunity of or not making that's efforts the

Kaila P. Krum

Okay, Thank perfect. you.

David M. Demski

Sure.

Operator

comes question next your And with Demchick Stanley. Morgan from Jonathan

Jonathan Demchick

taking the for Thanks Hello. question.

line. by top and what the Just start wanted on off mean, I the kind both, line top expecting mean, really the to you've the I bottom top and raises really the was on the – guess, bottom I line, of guess raise of than I more what guidance on (XX:XX:XX) beat consensus were. least

is So, some away like have quarters, delta. upside on over driving there happened there you I would going planned that that mean, placements line, the next this seems look there you could you not of guess more helpful. of it But that's kind initially? robotic be would of some be mean, the the anything driving top couple in Are lumpiness quarter that in in we details I the than any obviously, future? is might happen forward as in investing I which thought

Daniel T. Scavilla

Hey, John. Thanks asking. for

So, I it much your think with pretty questions. you answered

and Tech. areas. saying you sequentially to all actually a heavier recruiting the we but So, enhance investments pleased with And But the at it's talked the we're investments record when it with predicated great beat, about line, something we're recruiting, ramp it, in and upcoming and the the have go would with happy is we're quarters. that just the again, it's with throughout the start on Emerging going tax of doing reform bottom that really, We're up look quarter. first in is

bottom of right expect event to and more that and a increase that's that down continue, want I the not timing amount would now. it consider line. we're to I so, why dropping right see full And

Jonathan Demchick

whether and Understood. numbers, to pretty And disclosures going these the on two. pretty should XX, the into into, on placed mean, then wanted the it's just forward accounts, first I follow-up Tech guess, whether looking helpful. you easy through how already share. quarters be know are I you. that's robotics your also XX total commentary had revenues, Thank type placements. of accounts are competitive into, really could the was think you to I on these evenly trending any Emerging don't over relatively disclose and these around any the a you back be that bit but the it's commentary number systems-ish a two hospitals that moving really that That probably good

David M. Demski

we're not tell comment nothing level cadence year. surgeons of you else, going on demand very and So, through Jonathan, increasing. the the the remains it's really I to if strong, interest the will

So surgeons been placements, a and half-and-half versus in level interest we're seeing still the out very for and in part question, sign capital. who mix, that's roughly of to those we're challenging have about That's the implants utilized that's there when the a We in good deals. have the get to of you're the second part the as future. seeing both. your as Globus the in close And past haven't, then mix terms who talking well

Jonathan Demchick

you very much. Thank

David M. Demski

Sure.

Operator

Needham next question Company. from your & with Matson And Mike comes

Mike Matson

least taking do big where you've cross the into – were the or the hospital curious Globus surgeons the against robots, shop compare questions. that are at Globus those customers not not Hi, then and Mazor many previously? thanks those I'm comparison guess, cases customers Excelsius of many how for in going of kind I sold how my a And just did robot? of

David M. Demski

we're had to you we're tell of been the a related mix then level both the in from utilized couldn't as your I asked, in with one compared sold if who in what door actually customers Mike. well – who past. seeing real favorably case was had Jonathan both sure, we've a of Mazor. as comparisons Globus in implants think haven't opener past It's those talks out have we understanding. it's We've the each several of my utilized the interest in from not it Globus closing in come Yeah, also to that in those not of sell inhibitor deals. been who at just seen several to question an the have past. able surgeons in and they terms systems know to I second And and hospital where I been extensively terms accounts

Mike Matson

Okay. forward? think we we kind investments going of that rate EPS, the the Thanks. about for the you said least do it Emerging this $X.XX And expect then how should I about cost rest think of year? is Technologies just of at run

Daniel T. Scavilla

had that through out year million the when I expect, the talked think year. QX, to that's early a on Again, around this we through early We good investment year. in about with. I model model our throughout of again, sequentially to but we up release. did would programs, $XX that started increasing went I as and would start hire the go ramp and see we

Mike Matson

it Okay. the outside are plans there? And are launching then outside I for the U.S. Excelsius you selling what and mean, the just it U.S.

David M. Demski

the of Yeah. We're outside marketing it U.S.

not yet have We have we but placed interest system. a

Mike Matson

a Thanks Okay. lot.

David M. Demski

Sure.

Operator

Newitter And with your comes next question Richard from Leerink Partners.

Richard Newitter

to for touch around just robot. Thanks wanted I the questions. the on on indications new comments Hi. taking your

you us Can and to can we timing expect screws? some what areas think beyond anticipated. a give are I had pedicle that as mentioned you sense

David M. Demski

looking of aspects procedure. all We're at Rich. the Sure,

about rod think fusion the putting in, procedure, of you those of case. decompression, aspects the So, all discectomy,

half going New the next then indications year. come work into There's to to is and a be of lot done. year this FDA of approval second and

So there's that of if will. stages you several evolution,

Richard Newitter

fair? Okay. by is it's new that indication in have least is – possible that the fall, at But NASS, we might one

David M. Demski

sir. Yes possible. That's

Richard Newitter

sorry, then, And calls. Okay. between I was jumping

you're time you robotic what might head account kind robot kind a for you are, I your of this percentage you head going going through the alluded with rate? think are someone what's of going process, system if are and – earlier. of the an have and to win sales competitive the When into to

David M. Demski

of every the details in deal. not I'm

And a We always a though. – but buyers – have are think we their we looking point prudent at this win are options. all there I at are scorecard have high rate here, really don't

Sorry.

Richard Newitter

mix kind Okay. market by maybe in the last fourth has and of year Thanks. how trends Spine Can volumes, of just price and deviated seeing that one the back you U.S. of of talk has more. And you're some of last go quarter like maybe not the in underlying just through half that feel kind from you trend the Thanks. of year? or kind just and

Daniel T. Scavilla

It's Dan. Rich. Hey, Thanks.

we would guys the phone here. use on tell still from of that your the I you most So, data

X% And I would everybody, X% a always that as at so, if between growing in I is overall market tell share, believe QX but and Spine we're think I takers. that the us, we for and don't know noticeably you different share would U.S. I remind X%. that's

And so, got that forward. feel doing, runway we do of lot and capture and we go we've regardless look market what to to like more of a the drive is

Richard Newitter

pricing, in past? But the Okay. different no than

Daniel T. Scavilla

for mid-single QX. as we I would not digits Actually, exit for still and us. it's tell No, you us

Richard Newitter

what differences days Okay. by of rest are be quarter? years Thank the the for you. contemplating should And the selling we

Daniel T. Scavilla

you're For quarters, the of the rest what asking is that for, Rich?

Richard Newitter

what's had selling you Yeah, fewer the days, quarter, just this XQ XQ and one XQ? and just

Daniel T. Scavilla

You'll QX in be plus extra one day one have QX, will in and selling be you you'll you equal year. be in plus QX, one this

Richard Newitter

you. Thank

Operator

And Larry Fargo. your from next Biegelsen comes Wells with question

Larry Biegelsen

for Thanks afternoon. taking Good question. the

ended deal significant priorities Can your did development any guys quarter And up. amount have a of with what I the follow remind of business you So, cash. us around size? metrics are, you

Daniel T. Scavilla

Okay.

I just we is the with kind is already priority tell first you acquisitions would of order to cash Larry, have. So, feed thing the

products, and we So continuing rest to as get the into GMED well capabilities expand acquisition. our through bone continue that, business in the fill doing grow branch as to out biologic have Japan and but also Alphatec Excelsius primarily that so them to of Europe out, convert of flush the over the bank

at. of while then way. cash reform Technology U.S. to we burn in and accelerate are Emerging tax that investments take mentioned to have And disclose advantage are and considering the So and that we to or continue primary of XXXX, about won't kind go intent we're size. deal sizes that exited the our and all certainly revenues, our those tuck-in execution. We've always at will give looking had But IP at, we're is then mentioned, both something we can at year time as some always acquisitions of active this some as ones us Dave right

robotic sure get and we up have penetrate. business make We our to

to Japan have to we and us focus for going These this trauma have are We to year. at. get be the primary convert

Larry Biegelsen

have question stimulation spinal That's then me let ask for helpful. that. guys And follow-up, my patents cord you now, on the filed

highlighted really around an your education at guys physician on in you helpful. that area have to Anything thinking the that? that it point? question. meetings. You be could would for taking Is some What's on shed hope be you Thanks

David M. Demski

in a Larry. interest haven't do an position what today. in That's area we so had this disclosed really are doing and at some not but Thanks, have we point we're to

Larry Biegelsen

Understood. Thanks, Dave.

Operator

And with Piper comes next Matthew from O'Brien your Jaffray. question

William G. Inglis

guys. just margin is I Hi, Thanks Will the experienced guess, about This going first that think that you in quarter the driving off, talk on Matt. questions. about that should forward? you we taking the how what and and can for for gross leverage was

Daniel T. Scavilla

two put depreciable we that our Sure. It's a into effect lives change for instruments and That's cases do has lift. that on of the We in and really slight predicated things. have in XXXX. QX

Branch those said, things from from drivers of and continue, to we've two in-house as so have stronger the the that We benefits some always gain are acquisition, there. are and manufacturing

for five the years' trends quarter per historically you over is what and the by been going us. last has quarter, mean highest forward QX if I Just GP you think check

XX% exit roughly the think we we conversion mix, and with GP pricing trauma. the pressure in normal should think And Spine the years. just Japan business, net a building several for see the and would again, trend experienced cases right around I like past up year the right the and, I instrumentation we've

William G. Inglis

you then for a the be the a approach April, in as Thanks as that fitting far double interbody going is competitive anterior-to-psoas that that. that do or the in where Great. landscape? And you launched ELSA-ATP, to single, triple, see

David M. Demski

much of technology. Will, probably the I single lot put would accomplished and It to potentially think Yeah. a the be innovation in enables At it that we without lot procedure brings safer a point, double this ancillary to of to category.

about excited have while behavior, a if people's that, change difficult and always to a but So, does take it's you do even better that technology.

William G. Inglis

pull-through Right. if follow-up, willing us share I'm Excelsius, ballpark get then this case be to to installed? a quick would not, with that potential of don't is know be number just basis weekly on as or you'd the that been I a volumes the that a been trying at you've but And tracking with a the competitive incremental with that systems accounts, product with or like monthly have

David M. Demski

track something prepared do it's we we're them Yeah, share. to that weekly, not but

William G. Inglis

questions. taking That's fair. for Thanks my

David M. Demski

Sure.

Operator

next & your Oppenheimer question Lichtman comes from Company. And with Steven

Steven Lichtman

sales Thank of you. you in your how Hi, when out sort what relative of along are initial are inning expect that be just guys. Dave, far building reps force, board? do on in that trauma to fully initial to you you and tranche

David M. Demski

through completed I we're say be Yeah, would halfway the in fourth quarter the build and about expect to this year.

Steven Lichtman

on relative (XX:XX:XX) and great. build still as additional on Okay, pretty throughout also relative just relative of the thinking as or also incrementally be of qualitatively, more that sales on a it you equally much just year, the force to the then indications some R&D investment side should mentioned then with And additional SG&A the we heads earlier? follow-up, to to robotics trauma

Daniel T. Scavilla

it now, Right Steve. question, great is really both. Yeah,

go the continue in expand as SG&A as expect robotics, commercial see well. I to R&D you into heavier continue as some as couple we you evenly it's reflect through the increased I next get split as I but would I trauma. think but as SG&A line, I of spend would say would would well quarters, But not to go

Steven Lichtman

Thanks, it. guys. Got Okay.

Operator

from Ryan question your with next Zimmerman BTIG. And comes

Ryan Zimmerman

Great. Thanks taking questions. for the

about talk utilization the itself. utilization, you Just this. you robot on another robotics driving focus in question to sorry But on increasing did for and

the an in some could right on is that surgeons is spine mix being of for utilization foresee surgeon system? exclusively if surgeons what case characterize amongst that level – terms doing Excelsius dedicated maybe the what robotic a Do in be a call or should right that would what volumes there robot. And kind I so, just of them in you means your of you

David M. Demski

Ryan. Thanks,

think will, accuracy I need to MIS able very is and but to main efficient so in average the if surgeons manner amount surgeons, that accomplish of safely time to enable you the a in opportunity to all reduce they their or that do them procedures they're and exposure.

upside that that's I that I it's they their given robotic think So, of real possible technology. the would a big think and perform utilizing majority that, cases

Ryan Zimmerman

Okay. and us OUS distribution your And Great. thinking just it in is markets the sounds more Thanks question you. specific getting Remind maybe side, good the about is and understand in how into That's year? have like other help countries of Japan, we helpful. on for it OUS some you that. very us be deeper Just then traction the question. Thank other it strategy, you're distributors markets, that are a taking doing some well. should going through new

David M. Demski

Ryan. into about going Sure, primarily. that It's in markets we're deeper

We have this but at exposure point. in all the for major I markets think China

successful the markets those of out pattern really to following of innovative which has most led in then to the same gamut customers. be So getting that with and those providing technology matter U.S. it's the full service a us of and a leading is

Ryan Zimmerman

questions. for Thanks taking the

David M. Demski

Sure.

Operator

your And with question from comes Hopkins BoA. next Bob

Robert Hopkins

Can thanks. you okay? hear Well, me

David M. Demski

Yes.

Robert Hopkins

afternoon. Good great. Great,

I impact the first follow-ups. a ask in from So impact of just curious question. procedure quick that, guys growth? you I But bit a was this any have from before wanted sense, that little I couple an had flu of and wanted relative just a to quarter, did just heard see robotic off-topic your business I to companies in quarter, other a quarter could good get to some – your really or but did I you discern you I've flu from no? you obviously, see mean, that any

David M. Demski

because and did the Dave. out impact weeks week of to were flu We this that measure Hey, loss big would you quarter, had actually. for surgeons the the impact. we measure but can more at a a to relatively And you important at clearly, is next or with difficult should think, that. time But time, back that is had those we surgeries cases Bob, quickly patients. within themselves, had the come canceled Yes, two and a it's pretty the

Robert Hopkins

Yeah.

how this you out a regardless. but quarter X%, think I Spine was growth mean you you think, on You had it more? do kind comes was I it mean, What core or your the points, called back, a you quarter your good which couple of of impact much was as think

David M. Demski

at I it don't think was that level.

Robert Hopkins

Okay.

David M. Demski

was difficult heard I really I to was calls, back. said, the I the don't like significant impact if U.S. on but... measure coming remiss answering the in but was UK. my But you've in it I other a And that answer. for impact there's know

Robert Hopkins

Yeah.

David M. Demski

...the business our was impacted it. has the procedures, so trying in down UK elective shut basically get dramatically all out NHS quarter to the of in still they're first and

Robert Hopkins

that's a hospital the comment of it experiencing it congrats any for Okay. days academic neurosurgical more because demand? where type or of mostly terms terms of the the that. Yeah, orthopedic are Is the that's want spine the demand again, or Just helpful. interested on you're that Is common types obviously is to common guys? you here side, to sense And in of themes? here. get those then, more early I just are early what we in from on guys kind could other heard hospitals? some have on if of themes And robotics that's and navigation centers there's – success used But, David, physician in this medical the type – you're was community if wondering seeing

David M. Demski

as really ortho, But seen demand. computer-assisted technology academic It's It's going. probably and would benefits interest neuro We're there's navigate this is level are well the community as the the obviously board. they across seeing heightened today. board. of about the a more – I hospital say more the centers. where across among who been have surgeons of both the They're response excited has people

around long in new a interest level it's their surgeons, time, the pretty that incredible, guys we're seeing. Younger who've been practice, really

Robert Hopkins

And what And lastly, sort what talking can't more of And get tries areas on price at robotics do that robotic bring NASS your just be with – other at doing and that that view you capability much one surgery. this general a robotics then heard system point. is duplicated just just full Great. think want in to system I but we've do a the of of I'm year will? you this a your of if kind to a touch, really competitors about launching lighter lower

David M. Demski

because good they get that navigation computer And we're you the you as is Today, repeatability pedicle not where just actually of discectomy we that argue helping and to case, scratching terms rods I could be. some things place equation. that's the can think decompression, help the want one most the of what computer you involves the that I'm getting in the better earlier, lighter surface respects, But entire I sure to what do lot just you precision can alluded Yeah, answer. I – procedure another robotics until give question. it's to the the but of of aspects that challenging saw of proposing robot is the In in a do. a are in. were adds level to could screws, – using

the drive looking are make folks at. even what we So, how at more other I to I customers. this know looking don't are value that we platform can know

Robert Hopkins

you. Thank

David C. Paul

problem systems seen would deliver which least stable to you that the more to One and use robot having guides is of about in the at add think important inexpensive cutting be is will – has deliver to the and that, And extremely in The is comments initial systems, our to implants been other what the take, biggest platform Dave's to we and with to knees see systems. have the thing I'll to found I stability when stability. hips but deliver comment Bob, And a you a the it's challenge spine some that the It's lighter instrumentation. systems. when you are, that in tough be haven't a these stability. lighter

behind And you mass feel level robot. having at kind I so, robot that without still can there achieve the about are what a of as

Robert Hopkins

hear you. to Great, David. Thank you and good from

David C. Paul

Bob. Thank you,

Operator

first quarter our earnings helpful. concludes for And there We participants our this And informative Medical at hope are This all you no further thanks call. found call time. to joining. and this questions Globus

now a may You day. Have wonderful disconnect.

Globus Medical (GMED) 3 May 182018 Q1 Earnings call transcript