GMED - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Jason and I'll be your conference operator today. At this time I'd like to welcome everyone to Globus Medical's First Quarter 2019 Earnings Call. [Operator Instructions] I would now like to turn the call over to our host Mr. Brian Kearns, Senior Vice President of Business Development and Investor Relations. your begin may you call. Sir,

Brian Kearns

and Thank with everyone, being you, today. you, Jason us for thank

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

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

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

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

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

Dave Demski

afternoon good Brian, you, and everyone. Thank

constant X.X% share quarter the Non-GAAP first was of compared a of First per X.X% Quarter increase to million, sales as currency $X.XX ago. $X.XX reported EPS year XXXX. and versus wereXXX at an

profile best the profitability our growth overall in industry. and Our remains

Technologies delivered quarter, almost adjusted in International X The the Enabling the grew XX% challenging the of spine seasonally by business business X% grew over first revenue for in US by biologics and the spine For impact disruption. million quarter.

the of during supply and trauma number issues in and sets We began of also as year, musculoskeletal business our have and been our X.X% a technologies up categories This record the product the quarter our sales strategy. better shipped the chain enabling is were enabling category. reporting first new launched products both largely XX%. resolved. we technologies solutions to Enabling and five spine off solutions reflect quarter were only ExcelsiusGPS Technologies by In the in musculoskeletal and currently

equipment. from quarter in year launch first pent capital the The comfortable our to due seasonally last included XXXX. year late for the for first number of quarter up delayed challenging And of the significant is typically ExcelsiusGPS demand a

initiatives cycle also longer increase experiencing an taking potential our marketing hospital alternatives. the in get to to executives of by by are elongation in are due the systems robotic We as Deals competition. finalized purchasing decision evaluate accounts

the for we closed in several importantly lead industry QX fact, transition. future several assisted the in We already remain QX. bullish had computer our spine of on have expected that ability Globus to are In in we surgery There optimism. more close and extremely this deals reasons to in

lateral to surgical foremost, approaches ExcelsiusGPS. Even all by performed simply and purchased result, single routinely And have surgery levels as inconceivable surgeons technology. adoption are accounts by techniques. being of something are who was surgeons our most challenging First the with the are technology seeing before experience, backed we able a less of consistent like that perform position invasive

road labs. evidenced at to grow continues meetings, robotics and show tours our corporate visits in society MERC as interest surgeon by booth our events, robotic to Second, attendance at and presentations

of majority technology have an to evaluations. one head overwhelming we Third, head

fully for will solution Excelsius features surgeons and interbody the our the a submission enable believe that XXX filed of to effector the Both way. noise seamlessly fruition. about the Fourth, to end (k) of this in various retractor ExcelsiusGPS will module, navigate spaces may pipeline variety lead recently innovation coming which alternatives, our of right market best the a lot there firmly in originally This third to interbody launch expect We to of quickly While unmatched integrated supports. hold utilize be we space we in FDA the now technology are in to these quarter. a is market. the

our also anticipate launches incorporates We with our third the technology Surgimap during end. that spine deformity with solution and on cranial planning quarter expected filing FDA solution the year by

technologies will focused will on three suite effectiveness to and that modular better the unveil spine enabling the improving of enhance by and of comprise Finally, additional ExcelsiusGPS, calling OR, and integrated in technologies surgeons outcomes that effectively enabling we later we surgery complement Smarter deliver care. efficiently year, are platform this an

for I developments, exciting to While love greater at would reasons on this provide competitive these time. cannot detail we

well. We on information expect to more as provide the systems detailed

navigation know, in going platforms. robotics business the imaging we with investment new you years that been and several of heavily investing these much have our As past towards over

cusp series be of accelerate We of surgery the into spine are that we a transformation excited the of the age. digital on launching will innovations to believe

consistent high second the business. Implant of the growth million. biologics would Moving in in in the results XXXX spine segment biggest significantly by to digit spine the the our was impact we a business from received overall about negative Texas. This letter our warning to of late a The the in have last to processing QX facility contributions from through drivers. placements in recruiting experienced FDA primary result produced biologics we of musculoskeletal in were X.X% the and we due rate ExcelsiusGPS first of over revenues our momentum strong resulted indicative half year, Stripping quarter out growth continued our impact in US tissue competitive above business run the of includes pull single and business, $X year grew X% US rate solutions, market. the last with

well pace we the of in tremendous early we saw front, recruiting XXXX. the to in On are excess off a start

Looking a in spinal launch number as forward, have business. of resolved QX to spine systems new to that related beginning second we issues this half further expect we well by of all US as tissue expect the the bolster year, implant

made international basis. business and to issues through The delayed during significant full had worth record late able were in of the XX.X% contracting shipped it, the QX the as more increase more Spain in as number The speak the cycles. and in supply an our execution a and through by quarter. by but in and of UK probably shipped years for have is detail be the produced quarter investment in in it and operational by as entire sets performers rate constant our The who we is resolved saw we cycle it QX. international QX grew constrained We offset now XX.X% strong to will in have distributors sets full and shipped access chain headwinds on in The about largely the currency us to that XXXX we QX technology pull Our markets for XXXX been sustainable the around. begun we noting somewhat its year continue XXXX. not business into included to sales of strong there. business Globus be has Japan quarter growth work driven trauma Dan progress uptake Italy growth the will trial technology. was turn to that in currency by than we

been the During outstanding. several reports our the Tibial we from the quarter, cases first launched Nail have and System

initial contribution our We completing on ramp deployments building meaningful remains trauma focus revenue from XXXX. until and sales momentum. Our of a expect set don't

are planned. remain trauma stepped Series international serving then XX US board effective and year. and committed to financing since company in uptick board momentum in Rob chain, process to our and in In targets our the from tap though part summary, precludes business, him. we He for of than him we public E after XXXX. of robotic the has growing would business, years. spine the We opportunity product confident opportunity contributor robotics our been to and Rob strong will changes for success robots Board to has has ability improvements as the had has from in on this like miss our to the year. demand of our all solutions, down spine, company nearly Unfortunately a in role on announce us joined and The been our of the supply X valuable that the drag May taken lineup a Boards. the Liptak serving a to Rob for point I take spine our the launches fully we longer our the in even achieve this growth EBITDA profitability significant Directors. assumed

currently spine the We X. caused to will the Dan. the career the other accelerated In Steve the was new welcome afternoon company. La in in as enterprises. oldest a working CEO University. success is has strong, now growth and hub member of non-operational Zarrilli served to international to US. QX his growth headwinds of forward urban continue everyone. together are markets investment Scientifics, President and directors Profitability course by We CEO reflecting Steve effective Globus of Prior trauma and with to company graduate our and board Dan also achieved Scavilla remained that in six the and the technology excited research continued market gains to of look and Philadelphia, healthcare over our the Thanks, timing President public of the Steve call and included in items. appointment and Safeguard that turn on business, Steve board good a I business and equity University capital a sales. over is public the above provides of of US increased announce Salle companies him Dave May of largest and to to Science Center, Steve

GAAP quarter of $XX.X was versus million cash quarter well spine was flow in constant income QX net million also build some revenue per as or cash non-GAAP selling $XX.X reported net free days to and as redirected X.X% and in currency share X.X% EBITDA earnings flow. as $X.XX XX.X% $XX sets million. non-GAAP of delivering $XXX.X supply this the income and diluted We with And expand million capabilities. of prior fully was chain same adjusted trauma growing the year. our

higher continued revenue in XX.X% pent your spinal for than ExcelsiusGPS. when US drivers. with combined X.X% million the currency. were market sales difficult with for with were are measured comp driven and a quarter continued to even XX% Robotic the negative seasonality penetration UK, and as implant pull-through cycles Japan, US reported 'XX. accounts was ExcelsiusGPS lower were by from We up impact for million prior outpace implant onboarding sales, or business $XX.X Spain, $XXX.X the market excluding QX International X.X% on growth sales. selling rep in that included than quarter anticipated Focusing The competitive the the increased elongated Italy constant demand. against revenues believe the Gains through achieved growing and biologics

high future as will distributor to As the Dave be strong, occurred growth as available now feel purchases not mentioned, product QX but that become in due we has quarter, that rates quarter more globally. set the

$XX.X trauma was QX QX million in we to to in or compared and Dave. Development cases change compared INR mentioned instruments were first Research compared the quarter in profit QX quarters. for in quarter higher rate by sales $XX.X or prior timing in expenses investments tax robotics globally. increasing manufacturing 'XX. XX.X% QX force continue are Turning by resulting or US driven compared The gross X.X% million rate XX.X%. force, sales in and included Adjusted expand also related in increase increased to and SG&A QX out trauma exercises income or option to $XX.X for X.X% stock The 'XX. spine, XX.X%, than in $X.X of for building to were lower is the driven depreciation the increase first reflecting margin the of was factors. 'XX. XX.X% was and expansion legal surgeon The not the expenses planned The QX the XX.X% primarily as qX quarter million tax P&L, the was GAAP future education. to sales, XX, repeated platforms that credits 'XX, is and teams in robotic the XX.X% and several rest spine for million our not of fees due the from for and usual XX.X% to QX EBITDA expenses margin commercial anticipated million from $XX.X of

expenses, and EBITDA basis with coupled impact fees by for exchange quarter. timing and rates, the First, sales biologic impacted QX includes combine lower non-operational unfavorable a negatively higher currency points for XXX related legal that

per $XX.X per rate was headwinds share And the investment diluted amount diluted The guidance The a investments $X.XX negative trauma the supply impacted equivalents the securities. spine new timing and non-GAAP $XXX million. and and full be Also, Enabling our created company QX total we higher for $XXX.X mid share business sales The was by robotic the in expansion free. sales inventory future for this the manufacturing quarter softer margin. in of expand per strategic a quarter. cash, $X.XX trauma opportunities quarter our and $XX in send GAAP ups. million in non-operational drag investment earnings $X.XX to net the diluted was appears debt of was production income We an additional was non-GAAP purchase force full even included drag net and provided facilitate negative EPS growth to with was equipment selling quarters. in tax continue remains impacted were and both $X.XX. is of $X.XX. by QX trough force. to cycle Net sales of XXXX and Technologies of in reaffirms non-GAAP third, flow sets cash for aforementioned resulted marketable quarter. impacts earnings million. capacities margin The for operating $X.XX. in in Also, and $XX.X of and Investments elongated XXs. the million. platforms, Second, we year chain in reflects increased a be year as company ended And EPS quarter. first projected cash free $XX.X GAAP EBITDA QX Flow sets million quarter income earnings to in million record the to Cash activities share to cash building also in

for We will now questions. call open the

Operator

Larry And Instructions] question Fargo. first from our Wells comes [Operator Biegleson of

Larry Biegleson

afternoon, question. Thanks for the Good taking guys.

try than focus So up. other greater a me seems of I were we to selling about and break let cycle questions. have my was XX% bit on then getting longer, qX, couple in seasonality I'll like little few. mention with sequentially historically a analogs and the it ExcelsiusGPS it question it the replacements you a did down But so see

in systems in up implant volume? are So placements the showing return First, you for placing are system sales.

bit before little them and the just Can a be about that or technologies the to Thanks, And and more on into talk launching I'll the I'll emerging two talked expect put order you can XXXX book up of year-over-year Second, in interbody module drop. in third you just that. guys. about you've throw not. now, the do quarter? in context lastly you importance

Dave Demski

up Hey, with Larry I'll to this Dave. keep is questions. the try

others. - you I think when down relative placement cycle to regards the to being

was artificially think I the the QX there last biggest our year demand. of up pent high impact is because

and robust. it pipeline, to strong remains me question, Let our pipeline go your

- our we're with it. the that wreck there. a the We and doing care. solution, number of I'm into issues - questions, I but. standard that in but of that improve to change seeing deals to to interbody are get sort many we're that is math nothing that if I clean surgery think then rev And answered a not that's one don't assisted how just we offering computer folks, There's of want do finally general you're all just become that's in help the to things your sure going going and to

Larry Biegleson

Yeah, for that. Dave, thank you

in expect line, that technology emerging do grow then on drop? year-over-year XXXX? And one to I'll the you Just

Dave Demski

we to expect that Yes, do grow.

Larry Biegleson

guys. taking for thanks the Alright, questions,

Dave Demski

Sure.

Operator

line question comes of Morgan of next from your And Stanley. Jonathan Demchick a

Unidentified Analyst

for rep for I on cadence on to Thanks wanted touch John. questions. this Hi, Mason of taking just hires. the the is

the you particularly You previously sort you Can are be and of recruiting provide where of can a the maybe of year for and mentioned very elaborate come going you. can rest to of color little you've sort but reiterated the the trauma on cadence imagine reps we Thank these helpful. the and from today any expect business, will seeing success been them see I on having. most you're bit

Dave Demski

Mason, who some I trauma. out market. the having there a that, to specifically do rep specific I experiencing better Sure, share turmoil companies, refer in to recruiting referring of success get nothing - And and that say our that's into has that when I was with don't maybe and want ranks. would their than I we're but presence competitive other companies are and companies some to to disruption the market it sort in then reflects spine

Unidentified Analyst

the helpful. then on quick Great, up thanks was And just want pipeline. very a follow that

you planned the into and contribution. should bit of launches later more very detail the ones mentioned of of any product any expect several and about You we Can excited little for on how guardrails much. go a most kind financial year? sort this just timing you're Thanks

Dave Demski

Typically, that we systems the implants, don't talk about tap. are the on

across board ways we're of demonstrated spine a we are and there's coming We pipe. the terms we of on enhance looking though, in the our they're opportunities for portfolio we've to as are looking past, have, number surgery and in the

Operator

Your comes from Newitter Leerink. next question of Richard

Richard Newitter

calling month of you're the how your selling trauma Hi, coming unchanged. cycle guidance around my out that the Or to pushed think timeframe the between selling switch I kind when recognize correspond? is starting thanks. able the keeping guidance. you expectations guidance still selling of a potentially the just cycle into you your capital of year, leading and here. the the being is that side, same robots, elongated components with to out, a guess get around such that I something first elongated and that gets context Maybe your within have of cycle to deals, questions is, within on or your question that XX commentary for you you robotics couple of the components the issued you the elongated merely

Dan Scavilla

Rich, Dan. Hey, it's

different Dave elongated we're thought several into the in QX, tap those there. conversations said, basically they're close will sales approaches. the these QX cycles. some losing I the don't looks It's use would out that over just with one at deeper we're said up of couple So as always there's kept bled anything a we we of they seeing of some what have with things, mentioned, we've come as we've longer or That mean the leavers, as technologies, still XXX type side different mixes is that reasons down but occur.

And the in some there's know so we as stay with we strength because XXX well. that areas

we this after to look And out. it, achieve the so as and at still evaluate set guidance QX several see we we pathways

Richard Newitter

guess on conversion different the but there Okay, capital the you XXXX? to capital achieving levers, month You initial the recognition this different might or get those pushed you're whole your this thinking it, I and the might way of or some delay you within at thing point - might months get still is targets you where you just going about or need get are about think side a XX like good pipeline into timeframe? is a of Is kind feel

Dan Scavilla

know feel take would the categories a about make nothing robotic And off we What is rethink for there's not our can pause our think year. we're I with that if not elongation bullish us. see that us we I robotics. the we're Don't some there. thinking We're since accurately QX, while that singing or answer do backing

Richard Newitter

That's guided 'XX million kind kind past estimate you the it, that X call in or X Dan to trauma million of range. revenue and that it range. of consensus suggested the Street's Got modeling in the of in

you for that's with that. place holding line? still good that felt business comfortable feel You Do a

Dan Scavilla

out. we place. us. for holding think seeing is Dave of I amount launch significant sets Tibial we good the coming mentioned, acceleration by We're like Yeah, Nail thought as We're encouraged would, a that's a move

So I they're point think at still guidance valid this to numbers use.

Richard Newitter

as on were into below your Dan could just or on what gives can the see things you and you lid through can as side the one, just alleviate the we if margins expense run mid and I transient those kept average Thanks. and that XX% soon Okay, one last the things move a that you as XQ? that confidence year should alleviate them the through

Dan Scavilla

Thanks Rick.

So through script, quickly. drivers the really a again There's I I'll out go called here. that but in that few

timing components out that them expenses those the had those forward. had anything for non-GAAP, had going are to coming impact there, of We meetings pull for do non-operational things did put truly usually the None about. of up those higher currency company to is kind as up. out would in of I've rate of before we for occurred and One really were well not to some talked We tying didn't carry some expect settlements, travel continue year. the the that we'll offset that occurred legal watch. and We not not or think legal for exchange that. If a I break need that assessment. some for have conversation, of I'm different way we of the just full make unfavorable carryover that a expenses that have we down. out that get to through through then different but quarters I and some but settlements just recent sub we

Richard Newitter

Thank you.

Operator

from your Matson Needham. question And next of comes Mike

Mike Matson

for thanks questions. Hi, my taking

space. Zimmer customers. some and product, are with but and creating more that of product seeing actively and coming, [indiscernible], their regard but then approved the you're Zimmer what marketing out there Medtronic to the Obviously, even there selling of robotics with potentially competition issue just in base of is what I and out I'm and here pre curious uncertainty was the gotten pretty so Medtronic for the of is their Scotland that, out wondering Just sort sure products part getting there is, noise evasive recently their

Dave Demski

question. Sure, the for Mike. Thanks

it's the want executives careful the are I out The surgeon a do adopt fact potential to with that and there. the latter the to more are who of that's champions think asking these evaluation combined technology it's everything alternatives.

ago year was really there other only a choice. one So

their four way or conclusion. to to work through a to Now more they that come have are potentially there three

point. we're seeing this that's So at what

Mike Matson

a good offers but to in systems. that clear, also like is other be pretty benefits the with still features and you you're software position Okay competitive and feel these just to

Dave Demski

the opportunity Absolutely, extend further. that number market the we interbody add going on now. one And it's I we're the lead right when even think to to

Mike Matson

- going internally Okay, you something that those modules developed partner and be like is be Globus it's then or the you like to by something just kind these working an smarter for other system a something? may or are imaging that alarm exalted mentioned, it where ways with of

Dave Demski

and almost you They're to in be ready the in all internally show developed they're not that fall companies. going point. We're to think cases, other going we're partnerships I all by but into to something, with

Mike Matson

you've then And products just or maybe trauma what they got and you launched Okay. just talk finally, briefly are? currently can on through walk systems

Dan Scavilla

certainly, have XX with look going bone your mean, extremities started feet. we really we cover through really out that all we of I we out the your launched long collarbone active, to Well, down from

proximal distiller end the concept a to from for And the and type day, things, with several then some the won't the afterwards. ankle, fragmentation cover go out But launching through some over percent every you ability that of and we're the expand at out nails, or that name small have through us is to so humorous bother single procedures whether was I of XX that.

Mike Matson

you. thank Great,

Operator

Fitzgerald. Craig Bijou question comes Cantor of next from Your

Craig Bijou

guess may you there know strength called see terms XXX? orders you of the taking in instrument was to provide seeing but to a with bit color could that some contribution just you I you're business for I early in growth you out quarter. - thanks guys, if I particular regions Hi, growth strong that that saw, little be the how then on in. wanted obviously sets, wanted international to forward start and And the of that going more if very see questions.

Dan Scavilla

Craig. Hey, Thanks its Dan.

divest So journey. you structures. or couple different And been things, this to has if we're looked long We've remember, we've from, a markets management pleased focus at a changed this. with on

as that As to do we more in sets now put and are and even we're alpha we places seeing a also penetration products surgeon to conversion in significantly coming products who that. out out are offsetting. tech only and increased are purchased and year, the market And last the of out penetration Globus awareness continue not looking in than switching continue in education in we mentioned of but Japan business, had like we stronger

very for double so it's of Italy a solid of So really countries are and digit been continues a market very has with that off like us those that. growth products, really now pleasing. can all strong are lot lot attractive two rattle that a Globus pleasing right areas I through Spain well, the continue we as UK is lot going has And in of you us said, move even focus country Europe. strong and into main for see And Dave and this. if stronger. a the as activities with to recover promising get that. a Australia

Craig Bijou

I'm much of not you what or application on see a times the on there. opportunity and helpful. been there's time sure kind strategy these it's Great, mentioned that number cranial I know you calls the of guys the have spent

XXXX it you a contribute to color assuming bit to but could going So how just a it's to provide of monetize if you Or just wanted how I revenue, to could overall can it not contributor there? little much XXXX? how see that guys maybe be contribute, application. How I'm guess,

Dave Demski

Sure, Craig.

true in I think way can it's a patients advancement their care surgeons the today. cranial for

leap I think the care of them robotic a opportunity forward. really is navigation. But think provides standard I

won't selling terms really that. predicting a into begin we really will think market I to great get the say for the Until difficult us what impact In idea of and we at point. this have it, be. That's

be us And investment that the couple will, over you the better do leverage argument The other impact could allows it thing that a a end to in executives of it we'll that if XXXX, it's much it's impact same won't possible there that the of year, the it end the see that's but is they to be be launching some we before towards platform the so as spine year. even different some can will specialties. because

Craig Bijou

from I investment any there need perspective that of is force sales to a or hits or guys to once And follow investment it in up on the other that market? actually bring market just that, make any you to could if that kind

Dave Demski

that to marketing bag. force sales adding be we'll sales that just their force No, will the be through same that capital our Excelsius

Craig Bijou

Great, thanks for taking the questions.

Dave Demski

Sure.

Operator

Your next Matthew of question from comes Jaffray. Piper O'Brien

Matthew O'Brien

Thanks question. the afternoon. for Good taking

those we sure a - going like on the of mentioned I'm you've Dave, then enabling as And deals focus in technology bunch were most really quarter. shy closed you looks the are revenue four about of that people QX. So you're already what at investors It look here expecting. systems to in

what people here closed front? opportunities the going that you thing fair what are it were that more you pricing head think outside deals this that's in over those do up on get then, period? system of see a going where versus expecting are to closed? to a little figure trying to is I to that the been is benefit revenue is of you've multiyear on came the have to obviously you're we that going really say four did be up head to you But that other recognize Or anything with something about big to competitor out numbers doing is the because you going huge. of shy the the market if And have size, to right, So true already were

Dave Demski

Well, Matt. basis. a managed quarterly on Thanks, business we've never a

bit whether a about question close anything I little them, to do special to think the it's So reverse. we had

for have could do do the been the to extraordinary I thing We we that's we business. got to don't right them willing into think our quarter. think really something had

and So them bit your we kind late. of question? we that just our closed If helps a line held little

Matthew O'Brien

just ton be have then time yet, It of don't on feature well the other the the features, the field close you feature, does. That's launches, And as interbody to triple a as very helpful. the was by systems hopefully, digits field. as in in but systems as question other interbody getting you'll the far

to products then And how about left feature? lift, revenue specifically the for perspective that a all think t interbody designed lateral approaches sell from p upgrade cetera. So do you a going lift, we is that cycle that et be are and it

Dave Demski

Yes, all so it's approaches.

for impact will terms at look I in module upgrade be cycle, that alone. modest it you If the the of think

does enhances the what think value overall it system. I it is of the

in it's enable us systems think sell I to to future. more going the So

Matthew O'Brien

it, Got thank you.

Operator

Matt from comes of UBS. question next Our Taylor

Young Li

so also a what's for that? forward and quarterly you can QX basis. this year, in I on for as was year guys, Maybe of on be seasonally just lumpy also the at last one, the wondering, guess, seasonally is and taking Young the that capital question. looking slow do I QX I'm And guess, is business see for robot quarter Li Hey just back just number or looking Thanks your the slow a understanding a watermark Matt. pretty view quarter.

Dave Demski

where a Yeah, same I it's we're I QX. QX, comparison like we had end feel a QX. great into at going the to we think QX position, and were in of the great

watermark So be year. us would that this for the and anticipate for the I low do

Dan Scavilla

be driven results, by I would add change but we're this to as looking we've and the that as we're not and quarter. there'll there's ups drive place spinal long-term. recognize nascent you at focused over here well to that And some over the we're times years, lumpiness, said, the that's one cooler do that but said drive that on I quarter. And best we're surgeries. about in as of will okay because five cycles, be downs, to and and elongated and continue a we because can. in to we're talking bleed three we'll not market There'll just things and

Young Li

appreciate Okay, color Thank you. the I really guy.

Operator

And your question Lichtman from Steven of next Oppenheimer. comes

Steven Lichtman

issue? talk think biologics I take those Thank steps completed about mentioned half. second you. you getting the you're need in to Hi, guys. confident Can the you you to what clear in

provide can that take what more we to you. curious, get it'll Just behind you color

Dave Demski

waiting changes is now, the culture samples is to need the And the were a see those cannot into well It's delay get I going but period specifics, changes make process things. there's our or effective. get we the you And we letter. a then products through will tissue some lot by really were if is what those what warning if through they haven't validate testing. requires market made changes the in for some what that's affected of the to cycle and back that as those it just to those as of process on validation kinds we and changes us hand, of with it

Steven Lichtman

you're on out? the way secondly, And how call you'd any state Dave. then or you us the update could if Thanks, an about it. changes spine other feeling Got on or one market, the give maybe volume overall price of that

Dave Demski

feel As get us hard we've a the share for commented in the to past, it's for have. overall given market the that we

market We're good. so is the looks don't So, our it businesses I from our growing, from but our in digits, know certainly and that perspective, means really looks if high growing whole perspective great. single robust the it

Steven Lichtman

Okay, great. Thanks, Dave.

Operator

Hopkins, question America. next is line Hopkins from your your Mr. And Bank open. from comes Bob of

Bob Hopkins

that. Sorry about

Just for taking question. thanks - curious the

third perspective and flexible that's of placements for follow up that. like leases. their Surgical that or will up watching to some on What's now your the been for going quick financing latest percentage the we've sort of on thinking outlook up? robot on operating sales a of like where Obviously, robot something be looking front their are of situation or, Just end lease expectations a your topic? forward your the Intuitive What's versus that kind

Dan Scavilla

its I an to one you with to would array we then depends, offer we're anything willingness but in more disclose there's Bob a going order them, robot those. a right work see out that using options to and else get Hey, with not that. placed we've each that Currently, already we purchase tell of the of customer been of actually Dan.

right they've not although leasing to leases us in. to do do we're that that there anticipating large been now. allows party in or we are in house third house have revenue out upon using grab blended options the works which shipments that the ability, bring a yet to And we're So seen actually us out not capability I we and now. have do for a

Bob Hopkins

hear there point. this in are did I so majority at Okay, of them that today, least at upfront the

Dan Scavilla

and think options. the to several just offer there's today outright an been been purchase do willingness versus other but has majority we would I options, do any that Yeah,

Bob Hopkins

Okay.

be the function cycle more and a you sorry primarily way then to you Okay. missed competitors if in are of guys choice I it? And know, just a couple read the careful the consider, therefore, there's, being referring to clear, little to just And is to selling that this, is but marketplace. the evaluation right now longer more that a center process is about

Dave Demski

Bob. is right That it to read the way

executives making kind not back think competitors, they're competitors, there's hospital the I right potential the at only and the surgeons make to decision. of there's and are go forcing their sure

need there through the well what's as on So as the evaluate evaluation be go market. what of might now of process they to and and

Bob Hopkins

do when are of you're one the situations it's more two - you're in things or in you're And situation, those where head compare to where then a a head itself go or little you those guys that either differentiating highlight a a situation and contrast highlight what what in as part when of Globus? or the as as a the really with to situations? reason company key you're the package you Like, robot

Dave Demski

our think workflow you in that advantage primary to and we able it's think that see I and surgeons consistently. way borne incorporated of the see practice is adoption I I out the just think into the the be And statistics. the

thing. So be that main would the

well with - two to as two It's use that integrated competition as room, if two it. has also registration would imaging fluoro. the there's different really add system, it want fact two in You so processes and fully that pre-op systems modalities, three CT, ours monitors, inter-op CT whereas to a different works boxes the the you

adds It's just harder a lot it's steps. - it use. of So to

Dan Scavilla

out things that that can our that's around move lack redeployed lot anything add and that you completion. and makes it And with to to when the Dave there like of that's can out different the of do the a versus I mobile be anything said flexibility It it, versus unit, out it's to surgery, design, entire the parts it fact would that it strength really the in requiring superior at pulled superior arm robot needed. the used could that waiting can move allows or it heavy the also workflow is a so of of there surgeon in as for of another be in the there. to also finished surgery

Bob Hopkins

super Great, helpful you. Thank guys.

Operator

for questions, you Thank the call. Globus further no With this participating. first ends quarter Medical earnings

disconnect. now may You

Globus Medical (GMED) 2 May 192019 Q1 Earnings call transcript