GMED - Earnings call transcript Q2 2019

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

Operator

Good afternoon, ladies and gentleman. My name is Jerome, and I will be your conference operator today. At this time, I would like to welcome everyone to the Globus Medical's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

Now it's my pleasure to hand the call over to your host, Mr. President Development Vice Investor Senior Kearns, of and Business Relations. Brian ahead. go Please

Brian Kearns

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

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

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

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

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

that also believe not Our these will We information discussion measures generally in non-GAAP GAAP. accordance pertinent are calculated financial today business provide include accounting or performance. our with additional financial accepted principles, to certain measures

Relations financial most of Reconciliations non-GAAP in comparable with should together be financial measures section Medical the accompanying the measures schedules for the on be directly should Investor read the replacements and These considered measures. comparable most the to and available the GAAP GAAP directly not are website. release press Globus

Dave call to the now Demski, President that, With turn over and our I'll CEO.

Dave Demski

everyone. Thank and you, Brian, good afternoon,

Enabling $XX in of QX $XX.X Musculoskeletal a over QX slightly second were but quarter million increase quarter ago. share, in result planned $X.XX million, XX.X% delivered to XX% Non-GAAP of by $XXX.X was XXXX. decrease The to million and a grew XX.X% The year down versus sales attributable XX%, XX% INR. EPS QX Adjusted Solutions EPS $X.XX the an non-GAAP compared 'XX. over from increased investments an EBITDA in per X%. tax of increase EBITDA in revenue, by Second EPS lower and EPS rate of 'XX the in the XXXX. was both a in was growth Operationally, drop ago. in in higher year are Technologies

excited are the transform potential surgery is to way the computer-assisted ever of technology more done. We about than

operating including exciting We INR, QX. in heavily we trauma are to grew to and and technology XXXX, to Musculoskeletal invest over U.S. total the platforms areas. initiatives, business spending X demand. The are delivered quarter. U.S. pace as EPS business X in bring seen Adjusting Factoring the expanding market-leading XX.X% quarter, Solutions XX% by investments several achieve business grew out of and impact the with in exceptionally Spine quarters. new continued commercial day over perform all even Globus we the in the market second nonoperational the the for Spine growth growing margins joint continues have fewer keep continuing teams selling arthroplasty. key INR in strategic we to in the well by past acceleration matters, XX% core our to

installations is ExcelsiusGPS X past of drivers. this the Momentum Year-to-date of part from very years. are pull-through implant the ahead the business onboarding and and recruiting Competitive well is recruiting primary performance strong. in

are to robotic cycle. at adoption continue and of introduction product from installations, a We strong we early see strong the stages

performance XXXX the to robotic impressive Improved growth. as The internationally. of well showed continuing bode a to factors QX all International compared management by business Italy placements, these key in Japan, 'XX. the On was XX.X% impact of constant-currency increased day-adjusted strong XXXX. access for reported. a U.K. to basis, strong Spain, XX.X% all new and education investments All grew in peer-to-peer finish and growth Spine to technology, the additions contributed

half growth that year-to-date our have second last to quarter, of results up alluded demand, the alleviation reflect As issues we as do abated. chain pent now deceleration the in supply we some distributor expect

geometry additional bringing joint for SI-LOK that we to features system spine, for quarter anatomy our launched complete multiple including the interbody for X technology. During the patient slot of SELECT, systems designed launched surface fusions year-to-date. our additional spacer. proprietary expandable in numerous SintrOS next-generation approaches is QX In SI total X spacers varying laser of for and Keta optimal half we the launched fourth-generation spine the systems XD-printed our year, There launches slated and and a are second line

We sharply million resolving issues $XX from all soft tissue-related Revenue of Enabling QX, the year. are also Technologies on a progress reviving from steady in this was making by second half QX.

ability We remain for in segment number compete confident reasons. to this our a in of

module obtained to recently our interbody track solution and we in are QX. launch and our FDA clearance spine on for early we deformity that First,

planning hold seamlessly incorporates retractors solution deformity reminder, As interbody module or spine integrated fully solution to The technology we for the enhance a navigate clinical greater which and a but provide competitive rigidly overall solutions. of to robotic for utilize ports. of will only the enables effector the advantages the technology, These Excelsius is variety will a acquired the Surgimap. that value significant Excelsius translate also Excelsius demand from not end into modules spacers surgeons believe interbody it

strong robotic among in interest launches, product to growing. spine is technology and addition In surgeons

win comparisons to with in of the technology continue competitive head-to-head majority We systems.

campaign, marketing consistently purchased advantages under the advantages are launched have we robust who by being Stronger of ExcelsiusGPS the their continue surgeons systems. in importantly, to published; studies accounts Faster, Excelsius; recently endorsed our which have clinical demonstrating way or of number technology a most Smarter, see evaluations and clinical highlights We adoption of

to good for pleased more in Dan provide responsibility of part made the second quarter. that on management information remarks. in business will this general I trauma assumed our am Dan QX. Scavilla business trauma detailed his announce progress Our in

and hip of opportunity acquisition the see markets leverage StelKast the high-quality to and spine and achieved our proven joint important disruptive to an our with acquisition also safety producing current the that This manufacturer Inc. surgery combine a We in supplying first as a the arthroplasty clinical solution. joint surgery quarter and I'm opportunities knee enter StelKast, total in robotics that with experience XX-plus-year acquire part such have other to technology to history record metallurgical Finally, and believe cranial and arthroplasty strategy products. second differentiated ExcelsiusGPS small implant closed of encounter. solve we with to we is with are excited it during of a announce is the artificial on total We systems systems and with success that issues there significant systems.

systems safety and implant for to able us The reliability have be acquisition on technology revenue superior that intended proven records. with StelKast capitalize robotic to of while is capturing

A robotic on a We to targeted XXXX. the for developing implant for up until have accelerated revenue investment which been ramp in for have amount activity not StelKast to results. aggressively half is total business first late We this year. an the launch, quarters, of quarter the with our robotic included line is of plan do of we the sight modest solution commercial clear joints past several in second

the our As Dan for adding total will incremental are year. expound guidance expected to upon revenue this in joint the his half XXXX of second in remarks, $X account to we million

execution are summary, with and we our quarter In momentum. second very pleased

Our growth the market. in well Musculoskeletal is above Solutions

achieve Enabling significant penetration to Technologies. in continue We

robust product introductions. accounts seeing delivering in new trends are adoption of robotic are an and number we We increasing

business, given strength the well bounce to robotics the spine, new in finish Spine the of back positioned year, lineup on and a half. for are the and trauma U.S. product tap We our in strong launches in in the robotics second

turn over Dan. to now the call will I

Dan Scavilla

and deployed flow achieved and of above-market this QX, Globus Dave. remained trauma afternoon, We total toward strong Good additional trauma and increased sets increased continued in portion strong business, Spine gains included quarter international In markets everyone. cash in and joints. growth. Thanks, business investments the the Profitability to ongoing U.S. fuel a spine trauma sales. in INR, growth

million, in several spine, a acquisition built the basis, rates adjusted XX% $XXX.X growth also day for was and flow. QX and on million million, X as StelKast, million trauma XX.X% XX.X% made free in $X.X versus basis launch year. earnings by of cash per net reported, quarter. GAAP with of XX non-GAAP $XX.X share Currency points and non-GAAP quantities $X.XX diluted impacted and less headwinds strategic quarter was or of prior delivering We was the and day-adjusted robotics, selling for negatively revenue $XX.X products income EBITDA the net Inc. sales growing income fully new

into our an ExcelsiusGPS. while assume was our 'XX QX company's pull-through onboarding Focusing The leveraging 'XX. increasing strength and patient quarter U.S. with and will trauma the strength. Robotics our $XXX a we of role worldwide and nearly our quarter with rep revenue but a was pipeline for It U.S. as innovation pleased increased the accounts spinal record than the of over double into to outpace QX on QX. continued with growth trauma business. sales. from important sales 'XX XX% sales, $X-billion I'm QX engine Globus XX% for outcomes innovation driven million, competitive of by versus management business sixth QX. Entering general was the stagnant the improve to consecutive with lower strong market, implant an the performance, to business. enter implant growing QX market QX applying quarter help were

offers designed innovative Femoral half femoral Tibial X as of In AUTOBAHN will amount These platforms the we Nail second Nail product offer into headless the XXXX. further streamlined tissue the and key systems irritation AUTOBAHN in better differentiation meaningful screws. the instruments screws sets infrapatellar field the the record comprehensive reconstruction and to instrument The that feature X for the set addition, tibial supra- innovation Both locking nailing, launched workflow. systems. placed antegrade/retrograde and soft into A/R we products nail enter while offer nail and a quarter, features reduce for and of build business

the Italy, positive continued results, half as Japan, as for We buildout. quarter million, the distributor U.K., as on $XX.X market building, to portfolio the of and The XX.X% in first achieved and or with team prior orders constant and were the the International Gains versus processed was in sales. continues due momentum second is revenue reported, through market large growing strong, Spain, XX.X% feel to surgeon QX is currency, year. combined half but be feedback penetration not ExcelsiusGPS penetration the in high Austria focus the will year.

in and XX.X% XX.X% to P&L. QX primarily our increase as spine, QX expand trauma Turning to due forces the is the 'XX. of change we cases in rest to and was for and The depreciation profit sales robotics. gross instruments compared planned the

the sales QX in and platform. million, or Research QX XX%, Spine QX were XX.X%, for and in were not The $XX.X rate X.X% reflecting in for year compared is income was investments or factors. sales, QX higher of the increase rate to for quarter in driven expenses driven prior in million, X.X%, option XX.X%, margin quarter from INR the $XX.X compared by or The QX million, or XX%. 'XX, 'XX, compared robotics. to 'XX. increased U.S. force X exercises expansion tax owing repeated planned XX.X% the quarter in investment SG&A development expenses to million, GAAP $XX.X second stock by for lower-than-usual is margin the was The EBITDA Adjusted in 'XX. $XX.X

negatively First, that quarter. EBITDA currency QX includes for a the points XX nonoperational by basis impact unfavorable for impacted

were and $X.XX several $X.XX the non-GAAP reviewing core for business. There GAAP diluted platform. Second, the earnings in prior non-GAAP $XX.X are was was strategic our X.X-percentage-point drag were of diluted EBITDA net to versus growth quarter income created $XX.X the income year worth the invest share that $X.XX the impacting 'XX. per are and underlying in continued understand to in net as earnings strength increased items we a quarter investments share million versus million. QX INR GAAP to per

quarter, rate. there's the negative $X.XX First, tax nonoperational impact a of XXX-basis-point-higher this resulting from

headwind the there's currency quarter, for year-to-date. negative Second, $X.XX a negative nonoperational unfavorable $X.XX of or in

operational headwinds for nonoperational an EPS of $X.XX of $X.XX the quarter. the for Adjusting in results

lower XX%. increased addition, investment impact compared R&D $X.XX headwinds of robotics business the expansion Net the quarter payments. marketable the quarter. negative ended made $X.XX by quarters was typically and driven X million. cash provided the securities. other in planned In We in of and resulted in delivered investments, and million robotic million an tax year, QX $XX.X than $XXX.X million to of of $X.X cash activities for increased by impact equivalents is with tax the growth payments $XX.X the nonoperational cash combined free in EPS flow core QX We a of cash was commercial cash, operating flow Adjusting 'XX.

XXXX is In per reflects sales full purchase $XXX of the bringing both guidance million the sales total maintaining addition, half remains to account of and $X.XX. the StelKast diluted earnings million, inventory and for year and guidance cash trauma. remains for but adding year. $X the The investments company the million additional acquisition, flow Non-GAAP the this debt-free. sets at in for The full to quarter $XXX to company spine second StelKast unchanged attributed share for

want Finally, that with plan Vice meet as Senior Keith the will Officer as Keith and remind attending next to and chance growth team to year, we We're CFO I role. healthcare Chief so person the I Globus community will in him conferences Keith board Financial Globus help Pfeil the us. many effective August be XX. investment transition President our the joining on you of psyched come drive of stages several have later on to and this have

now call We open the questions. for will

Operator

Miksic Matt Instructions] Suisse. Your question comes with Credit [Operator first the line of from

now You live. are

Matt Miksic

Hi thanks a question. for taking

on ask fits could wasn't you -- you it around to the Maybe if what bit quarter. news how also love I'd quite in. it contributed elaborate in StelKast, the little just a So clear that

you or that was vulnerable part more to additional minor as market And you just then of I and have think contribution, I the strategy, but accessible maybe see one that the color. and opportunity there some you love strategy, importantly, the see follow-up. some that said the

Dave Demski

can happy great you. Thank We strong business, on This got think with a a we've there. that seen to had We've in we've competency impact we've Yes, Sure, the have the Matt. I and is real spine. robotics think just Dave. team. very the core we're implant the developed success on elaborate strategy,

so some looking in track looking for really safety were had to looking an other We strong wanted the success we companies weren't of leverage go. technology, have logical that to to record was we that manufacturer and reliability, place at that with for ways of buy joints, the other So and total revenue. a implant thought we a

solution that not the really to into our invest we're development market. point going in and this the We're of at focused robotics And completing really growing revenue. on entering

right talked not included, about opening in be or going other to at we're on do that sharing And opportunity. something too the for reasons, that very the is details point. planning big with amount all question our to your we're in spine a the not competitive then now, so think disclosing, in that specific we about -- on you You of this out the was mind breaking of we're that market; not revenue, but we have specific

Matt Miksic

was Okay, just Tech, whatever last that? million, put $X would spine, point, we wherever on where in we that the that then, second or was it should -- in Enabling and quarter, the was contribution the that or is

Dave Demski

in it's Solutions. Musculoskeletal Yes,

those So are implants.

Matt Miksic

you. Got

company. large against behemoth then very, up spine perhaps Okay. going up against but selling follow-up, case, is against years this in behemoth this on just a robots you've gone global view I this Medtronic, there challenged if very could, core And that the you're and a -- for in in in XX the business,

if executing that maybe are business. is could steps you success, of spinal think part on highlight maybe surgeries you robotic what important the in series the next having in of So where the you're

Dave Demski

And competing Sure. we've Thank little just for is you. X we main our point, for for years. like them almost well. feel compete to a Well, as that in so the bit, $XXX year, with We million me, in you we that and robotics side in correct were and we XX what you And we're so at been guidance developing thing better done market, have value is technology's technology. this you, is can not shared terms the surgeons today. know And haven't pretty we We're in working utilizing consistently seeing spending the way the really certainly we're we're on added OR. we It's with -- of of there. see are seeing that but the amazing; lot details a it. some that money can we're stuff our the

We believe in strongly. it

this a it's of the good us strong, So else kind to for guys business a systems add our happy we're to sure second who position. compete to two-horse this I'm terms so point, financially know term. the how really the in race, about what the to indefinitely and to well, we and we really We're while, what a in know spine works. seeing capacity continue about very this them long because technology I have great other win good quarter. not have the And that. surgical I'm it's delayed into at going I practices, them, we quarter, At talked we the so feel have little thought. about really feel the I'm incorporates had of with We And third way point.

Matt Miksic

thanks. Great,

Operator

comes question next from the with Biegelsen Larry Fargo. Your of Wells line

live. are You now

Larry Biegelsen

Thanks with quarter. than just and -- strong back half your out come wanted call to margins my margins question. this Thank from into One knee And Hey, of might this put message? What had people taking the obviously but was follow-up. StelKast that might were how then concern the quarter, second we a little hip very pressure additional the the start Dan, And we margins. on a margins. taking nice guys. for a step line on the think market a about Congrats you, what's year? away the for that investment on is weaker margins, the Top expected. on should I this entering just market,

Dan Scavilla

Thanks, Larry. Dan. with the I'll It's start last one.

We the acquired this. just as little plan Dave a we on with longer-term solution bit again, said. larger, company, So robotics

And term carrying pressure, think if noticeable any short this. we in so margin at don't see with all, I would the

We'll that the have issue point full and our think time. it's we and XXXX out late to data know more I target address at right XXXX, get a with point, package there. a that's in don't with that come I to as So necessarily if if don't

I feel the points to that robotics points but We're it's X.X XX%. in through as that again, X.X impact, like such went decision because increase What related glad good I on far and margins, it a again. is saying to is currency touch I'm our the is, in script, to our opportunity. investments at As

healthy, on So nonoperational I look and to now. is feel seeing bit one is I the we're What of way the a right take now a advantage different. extremely decision headwinds core at of opportunity little it. any don't this the it's

Larry Biegelsen

was helpful. asking I that's the No, half. second about

question. on I'll So second follow-up one my then that, just ask and

I the on guidance, half, Just margin. original the second EBITDA was think, mid-XX%

how the just basis second half about about what ability XXX think share to as you quarter, trauma, the $X then you for U.S. Just for on Thanks Dan, sales million targeting -- past questions. you've sales $X margins. of in trauma the about and trauma and your we the XXXX. the do -- the how in kind market kind still about And were second annually, second should well, on in in capturing of points in taking talked of you're addressable the million feel

Dan Scavilla

Yes, Larry.

cusp some really having I'm trauma numbers. really the as is, first a QX. relatively We disclose notice I We'll that's out right small minor I'm of so more those, yes, don't community, building told sales. So put investment and inventory the activity. I've pleased now, why them lot this. sets of right again, And with we're more think but about there, most thing of talking in QX at the

more I will meaningful in starting then think some in that QX, QX. be to see and activity we're

range of what around correct. is toward. that That's placeholder, think aiming million, that rough $X I we're

getting launched that's the them placed, systems but getting that. and why course, do here, that to we're Of means

think touch think mid-XX%s company didn't first end year but your a thing, really this we in I as So that's on I one. that the probably EBITDA. answer to the I

lower I And that's bit always land would said we're have sure somewhere I remember, with XX% that level think I've a a headed where we make in the but is for that range we you investment end, pathway XX%. this toward between year. investment. range look that little even As to where of to

Operator

from of Cantor the Fitzgerald. Craig line Your with next Bijou comes question

now You live. are

Craig Bijou

with thanks. guys, to start for Hey! robotics. I Thanks questions. the want taking

guys You QX. cycle about the talked in lengthening selling

you that out there, of the the So given full comments, about what competitors Dave, pushing see to with wanted launch. talked you're one seeing especially the

enhancements if since -- in getting if just on any see a so So there you've you're are about if any that to of until or or talking of changes from then feedback some you're been any seen is enhancements the the hospitals wanted that just wanted to you hesitancy to maybe that any the new in impact come QX. see guys And well, that have coming robot that later year, making sort delay out. out purchasing as this

Dave Demski

I still deal question competitive Craig. your thanks, It the would like being seems very each Sure, no, competitive. is dynamics, on say, hard it's fought. first to

means we've folks We going up the And adjusted -- our that the longer cycle we're have of some you second about not expand And get pace. account a question just once flow to all. sales can now and that ramp hired in kind just hospitals, for force. our at that you overall from more on delays

factor We accounts lot and -- in to delaying them a we of in see hasn't a of specifics haven't point, is. what talked wait it been with terms so at it really this and

Craig Bijou

that's we sounds robot. the would joint opportunity, late Okay, like can -- the total And is when then helpful. see on XXXX or we first it

guys there to want of launched trauma And into trauma, just of delay. contribution. or you want to some kind ask, was when I So little also bit got revenue understand a

on on wanted your your So core from for spine, now robotic that and get the how total trauma, you'll perspective, joint. launch manage to just adding spine, thoughts then

Dan Scavilla

Okay, Dan. Craig, its

of which acquisition profile made We the a and piece modify we robotic it. platform. a first safety and the take can build build certainly I'll product get into So from to with and this history

can That sales. increasing million, $X run of that by the is with that's see you given acquisition platform out year the currently, the annual and rate out anything larger obviously more the there the we obviously second related this. versus product figure activity So half the said, about foundation to a by

for and what through we're XXXX think So the will that's just really right whole way, passing contribution one that that be. we

Dave Demski

the that question, to greatly your going area. multiple may Boston I We've how and in on the KB projects its technical acquired talent launches. has of bought and there. the understand manage own Surgimap, We're couple if in the going management are that spend software lot with built all spine. products. who where our a of are so in up companies team. Switzerland, that's team on -- a and INR that expertise, particular also very also team we recall, you you're our some strong increasing out is Medical, have and, the maybe the, you will, -- that's if development we then that And in we And all combining, -- We've And seeing in of all those

Craig Bijou

thanks taking for questions Okay my guys.

Dave Demski

Sure.

Operator

Your the Leerink. next Newitter Richard line question with comes SVB of from

You are now live.

Richard Newitter

for thanks my questions. Hi taking

the be start to contribution should international thinking as all we was is revenue Just And I wanted of XQ off OUS? mostly that an wondering, with contribution? that StelKast. in

Dave Demski

Rich, small but your catch domestic. didn't it's question. a the it's the part company, all It's last all then U.S. I of in And

Richard Newitter

color relatively to the use degree be kind you're barely you. thank is there, on I guess right your time last question initiative, I more little there. right a little why trauma? and could just Thanks. to trauma still adjacency, could in part that's of before -- timing which now successful the the going you just big taking and be bit, guess, new I the that on another a answers guess I into And orthopedic seen a that No, tangential launch, but we've especially

Dave Demski

it so. that, to robotic down terms -- with lot do factor from in could, started company we're of I We but you're We economics in didn't going potential some well leaving underlying really to that, was with total ways, capitalize In think enter existing certainly wouldn't trauma have going you The into but curve the technology. which the difference with on, just, momentum joints all we time going that motivating hopefully of existing the that trauma. developing on to want only expand I is the there an acquire it the product scratch we're with technology. Sure. products. robotics a for and buying there's to that, in Well, the the that improve line. we're if some table is We're an so

But speed hope will reason a standpoint. we what us. joints is really that that bring table for a to can robotics So launch the from make we're we faster doing the it

Dan Scavilla

Rich, I add well. would a as to little that

maturity that at Just trauma question have commercializing, any getting of we're different into along we're door, the the to and curve, the now, why of and market your with out point that with projects where so penetration, going do we multiple at stages company's getting and this They saying, in is and and groups is capable resources, as and have come wave now engineering of I putting out. we're with different this do next opportunities. invest, Dave different the of teams can this, so think

beyond trauma investing what I that now growth along good where time at a start and those to to look be think we happen. how think the of the because it's will right are. items is curve, strong robotics make It makes sense

Richard Newitter

Dan. one that, just on And Okay. follow-up

year the year margin, we Should for thinking said -- EBITDA robotic level be still about margin in of should a basis Is reinvest thinking be term, growth going initiatives. half of rebound longer given out a but margin? appreciate we is it on So points you future on XXX some joint kind if mid-XX% the initiative intact? historically, that any -- of always years really this you in so the EBITDA the you're into see back like as a to you've sounds total

Dan Scavilla

of mid-XX%s because the to in to there. mid-XX%s. We're It's think simply on the and pathway right help That's the on clear We're that's our the why a those that the way and years. where spend putting get forward. is. model fact curve We going the lower now, investment the outer reasons shooting for there's light an opportunistic end to with Yes. spend for investment we're a it's look realize we've increased

Richard Newitter

Thank Okay. you.

Operator

Stanley. from comes Morgan Lewis the question David with next Your of line

You now live. are

David Lewis

afternoon. Good

Just think was a going the the me. few unique. when I said ones strategy you in be recon Dave, quick to past, discussed from you robotic initiatives

me you at to going the segment service. come you're kind robot guess, announcement or which me-too the one Which it? the implant leads of believe has is a to I uniqueness today, So to market the that from acquired maker, looking

Dave Demski

want It robotics, certainly be want entry at from we're talk could we about I are be going far it. -- competitive standpoint, too segment too specific away launch, from the our as a at and much to both. this more because It's looking don't be and but to don't potential a competitive point advantage. as to

David Lewis

back XXXX, And is understood. topics back a to mean, that XXXX. I XXXX? wasn't is half clin/reg/submission Okay, or that of clear; half launch, those on I kind a back you've half timeline, of hinted timeline, commercial

Dave Demski

Yes, very late XXXX.

So even that. about way think talking XXXX launch. But end the of to probably the is commercial we're about

David Lewis

Okay, you. you've Enabling been in you give kind think thinking possible? Technologies 'XX. us about Can sense you for you Enabling is then commercial just year-over-year? Very that think double-digit any how clear. year-on-year. comfortable growth of launch of now, business late quickly growing can this Tech year And Thank Do Enabling Technology grow

Dave Demski

really to say. But certainly first challenge. possible hard big half see. we've with it's It's had, a It's It's the that what possible. given we

David Lewis

That you to share focus much. so past. see interesting make that this and this see the enhanced a talk there? product call, opportunity last the drive more to you Does SI just -- that you're me, from joint you in hasn't opportunity you product, a market traction more the and concerted huge for going thing the bone signify the -- this Thanks the just you're effort as announcement -- then And SI Okay. enhanced about on for fusion. how been made

Dave Demski

an to segment. really product the implants, to just huge not marginal this We've some call and market we've is But fusion the strategy SI We our Sure. sales. all things it'll line an with That's think of It success product And be current incremental that in that that adjusted think of certainly joint of I shift. add had in feedback date. of some to it'll would our we the want is along just had we attractive kind a to surgeons. terms add. heard and philosophy all a an be enhancement. we've system, on

David Lewis

much. so thanks Great,

Dave Demski

Sure.

Operator

from question next the BTIG. Ryan Zimmerman Your comes of line with

You live. are now

Ryan Zimmerman

question. Thanks for taking my

would or this. have on you want to you disclose, ask I the StelKast when missed -- housekeeping I say, about one acquisition? then And Just robotics. you may closed Did

Dan Scavilla

think, Dan. it, it's We in as Hey, May. had sort I late of recall, done Ryan, I

don't whole we if And date kind kind of a the going where not it just not. mid-quarter, of was quarter, was. lot is I know in It so there it. with have the floating where for or that's it's if you're really

Ryan Zimmerman

on Okay, to robot, that's interbody do install components existing then base interbody helpful. go additional and indication your the retrain the And new for out for have indication? or the sell the you to on

Dave Demski

yes. Yes,

and and new is really of the sell and proposition I our we'll accounts. to opportunity robotics back back with go is us a to there economic install the our the adds to customer. potential So overall. be impact going attractiveness just But bigger on base think opportunity, It add a for to value that to solution just existing an

Ryan Zimmerman

outside what on you at just could I'm All U.S. relative opportunity you're seeing then much guess, quarter, a you, right, if business in And look least would saw helpful, business, U.S. if the because Dave. imply lastly robotic stronger, we the the you the at from the it or just sales comment wondering I in U.S. from Spine me, for the to overall market,

split see we -- some robotics be going maybe forward. so U.S. OUS and should thinking the about in love around color and I'd between you how And it how just

Dan Scavilla

answer I that. Ryan, guess I would

be it's majority the U.S. in now think to right going the I

at international than think into more anything would certainly as opportunistic, that, because we that market. while split see placements, and I a successful certainly not I you're international been I with look the in out I lower this in to anything little go model, strategy I certainly a developing if driver, more things that volumes we've it's than so a with heavier think still looking the else as think U.S. but you,

Ryan Zimmerman

Okay. Thanks for taking my guys. questions

Dave Demski

Sure.

Operator

Your comes the of & next question Company. Mike Matson from Needham with line

You are now live.

Mike Matson

down expansion, really but far the last and really that partially Hi robot as sort to my growth slow guess sort in? start down this so is starts of that of to for that's start the strong accelerating, with your sales growth growth kick understand spine that seeing, placements now taking growth strong could as that does imply robotic year, the in lag placements lagging and overlap, had of first you the and I spine we questions. -- goes, year, of -- the of effect want just did robot half implant thanks component partially some implant I growth that kind is that the you're slow I as but to

Dave Demski

past, Mike, that to as our don't alluded placements. in all-time is And components feel we've any is -- recruiting at competitive the we're X see mean, highs. competitive I I robotic sort as it's Yes, well slowing like recruiting down. of reason the to think is growth remember, spine our I

Dan Scavilla

strengths And to launch innovation. that one strong have market create many us in the And that, Mike, we new said, we add launch of and of front and also and into also Dave in as and interest. that helps one is product rapid have year, we're a that penetration itself I'd launches, thing is

of in that year the we've in what year. spine strong this it's any robots significant as record think given and seen to have recruiting, don't competitive So us robotics. of as really factoring first any I well would half look change

Mike Matson

launch can then Okay, robotics initially, recon mean, be this of and the helpful. fact when to eventually sort And advantage, you something, can platform thanks, you with the with I company multiple entering you're that a to is it some going regard that that's going seems kind between that with of market all to procedures? to just would enable just do first the have of this that offer different do of an the with sort platform one like the like maybe single changes hardware in minor procedures. It robot kind

Dave Demski

be going that. probably Yes, it's not to

understand them actual that you they on I I'm very to that at the technology value agree to is dynamics and share and challenge, have that that application. when I there, one into focus point, a other that get proposition getting and to on the think going like but sure getting which the specifically big think all total the the specialties, we're have you challenge. a espousing you're is different and I all them thing not -- And accounts to -- the that joint can of be surgeons

to in So I tailored keeping it benefit to little each specifically a more think there's specialty.

Mike Matson

sense. That you. Okay. Thank makes

Dave Demski

Sure.

Operator

line comes UBS. with Li Xuyang of question the from next Your

are live. You now

Xuyang Li

questions. Hi great. Thanks for my taking

the marketing wondering, campaign The for was first robotics, on made Excelsius. you comment a about

is that how campaign? And it? early what's So on wondering, I'm just the feedback big

Dave Demski

for Well, selling question. of Xuyang, a other into of piece being as it. We're a sort forms at incorporated thanks time it the It's in social well media, as of a -- media. it's

feedback's market at I terms understand technology so us, A of been good. strategy. just are our out peak articulating our there have think, what is of the there is things offered is that else told really them things we're in mass, surgeons You'll the better kind it, about lot Initial talking why see we're in to for than today. everyone of in that

Xuyang Li

I robotics. Okay, thanks. And maybe follow-up on guess a then

So to as there impact QX robots the rebounded for the any I'm from help number? performance just that in pretty curious, compared price were you nicely changes or QX, to deliver

Dan Scavilla

through It probably a more going Xuyang, the a as Dan. seasonality pricing change to It's approach. leads from QX X really impacts or portfolio those there into of about or just certainly well. factors. no in really No, and type was some of QX playing it's Hey, any

Xuyang Li

taking great. our question. Thanks Okay for

Operator

with the next comes Lichtman Your Oppenheimer. from of Steven question line

are live. now You

Unidentified Analyst

is Steve my taking Hi, for this David questions. on Lichtman. Thanks for

synergy seeing recon between ability businesses I Excelsius, your joint current implants robotics, the follow-up. besides to but are just there products? StelKast have one you're mentioned You with and leverage opportunities Thanks, any other and

Dave Demski

things Not the solve think understand sort reason in last to with the the the for them built has for well. I robotics over engineered been but success help solutions, one mechanically of current to but to and our on solutions and works what particular the several any ability really date and as products, surgeons, our fundamental products is are was Globus to with dive listen those. of today, the years, what today into challenges Initially David, it

value this this we as well think between as moment, product we So the core have the But space company. real I can just -- lines. through synergies to aren't bring a competency there clinical at our

Unidentified Analyst

you add term? Are Thanks feet looking you that's on the us I And Okay, update of just street your in to helpful. wondering, the force? you any so then sales the trauma additional where could are buildout on was much. near in

Dan Scavilla

This Dan, David. is

we expand way. force. supplying have and look and said, sequential promising. growth So record an obviously, core sales and seeing, kind, times gain product quarter, other very it again, that right a helping them We'll certainly in, access, I've each is, We'll to appropriate as again with we're for group always opportunities do now, which

And so there. there's plans out

couple think to can be that makes by story and of supported it because a I the continue that We hire in come, where sense, look the and to for business. increments will do years it we'll be

Operator

at and you Thank Quarter no you for thank there a are you have Call, concludes Medical further Second everyone, questions call, Globus this time disconnect joining this Conference day. may the now our great

Globus Medical (GMED) 2 Aug 192019 Q2 Earnings call transcript