GMED - Earnings call transcript Q3 2020

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Operator

Welcome to the Globus Medical Third Quarter Fiscal 2020 Earnings Call. At this time, all lines will be on mute and the question-and-answer session will be held after the prepared remarks. I will now turn the call over to Brian Kearns, Senior Vice President of Business Development and Investor Relations. Mr. Kearns, please go ahead.

Brian Kearns

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

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

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

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

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

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

Dave Demski

very from increased non-GAAP QX are and surgical million, procedures, and EBITDA up from by QX. growing. outstanding EPS revenue, report share XX% only was led XX% we spinal million, by third the is healthy technologies To QX, Brian, quarter record and for results, XX% the to Musculoskeletal enabling sales. compared 'XX. was technology Revenue good traditionally in excited up 'XX. grew business, Thank Not a to QX down market quarter The back taking are Solutions implant afternoon, for U.S. to $XXX our a the which some adjusted at for on $X enabling quarter everyone. perspective seeing but stellar million capital bounce we I'm $X compared by XX%, you, the revenue in slowest QX. give record sequentially

XXX% year. in our in last $XX However, quarter million tying the and by revenue, year, the for quarter grew posted we third highest

is health challenging the of more improvement the Given part indicative of these of sequential comps, this business. our

of QX. quarter. built $X.XX efficient in was As also quarter up opened economy and more our closed from in the back results history. able than lean, per for matching Non-GAAP robots for October into best a EBITDA operating XX% capital the business. healthy Many pipelines moving October, have our QX, along. our actually to of were these deals up did in all begin EPS we we rebuilding XX% share, the the sold deals our teams QX and in philosophy Adjusted highlight was These 'XX,

change somewhat was educational Our pandemic, to events. the to the most of travel, virtual issues inflated profitability in and as peer-to-peer such to unique limited due activities the elimination the participation industry QX cadaveric conference in

which of the EBITDA. business trauma, QX. INR EPS adjusted on rest also X percentage on of the and side, results and flip reflect EBITDA other investments words, $X.XX resulted drag in the XX% non-GAAP in our adjusted a produced trauma, continued aside in On in and In from points

our XD new We've the printed uptake is expandable firing continued line stable the in HEDRON in MIS strong fourth on all business in U.S. launched five implement spinal and with quarter. Tilo Our generation grew products of team cylinders. XX% XXXX interbody by spacer. spacers This

alluded manufacturing to access be our which these we until products online quarter, should we we XD to expand limit As capacity, to had this have last quarter.

play We also low saw significant growth locking. cervical angle that anterior profile automatic features our resonate, from new extreme

many the our In we continues grew source which to resolved in supply the issues robotics have during Implant XX% by U.S. be for growth. Biologics, of of addition, pull-through a quarter. in

addition on by largely team. the installed usage ever-growing In have emphasis sales and ExcelsiusGPS, put major to implant driven base, a we our adoption of

increased Onboarding and interbody ExcelsiusGPS to be record Competitive revenue and Finally, and a comparable late module in result. achieved the high, beginning significant to an interbody the was QX we QX two a is for factor taking recruiting years. recruiting all-time market onboarding usage launched the share. performances are continue in as see last in to

down X% business by the international spine for quarter. was Our

growth While dampened QX the the very U.K. strong were Trauma quarter, in strong namely showed sequentially overall continued 'XX. most markets experiencing over countries upticks growing and QX, India, COVID XX% Japan. XX% in by its in and results cases, performance the

to sales of the most air on invest in which aggressive to expansion quarter. part entire this earlier to year. lockdowns our Territories of new set Revenue aspects products need and surgical the continue in impacted This to be was much were rep by Technologies business have shut require which surgeons. These hospital, quarter. were several million to an the down and had travel, the a teams low, surgeons business with the $X gave team typically business for and our on this in in they Enabling expected for implant second opportunities Even We effectively executives. reason XXXX. call to capital appointments launch geographies when larger volumes the them plan call from was

via attempted maintain in effective not pipelines. momentum events, to it as virtual building visibility we simply and While was

been to have opened sales seeing to the emerge. the activities As are pipeline up, able economy lead robust a we that resume now and

QX. radical strong enabling mentioned growing. interest opening, sold than all is growth I for Surgeon expect in in demand year-over-year have actually did technologies As and for for of rollouts my produce and we October more we and QX to in technology

we and ExcelsiusGPS in the September the been development on module interbody the several front, launched On Early systems. upgraded very feedback technology has product favorable.

imaging development file November. final with progress validation system great made in our to for and activities the FDA the expect also on and We

are QX build launch. to for expected We beginning an units

itself Finally, our for accomplishment positive third our for we the growth We quarter, the last U.S. FDA of procedures the the in grit, That on what face team in year. January. module been has quarter first to determination outstanding by remarkable doing we of I'm positive achieve it the anticipate size year-to-date received is a a an we of ExcelsiusGPS. The spinal an company. challenging in cranial our growth by end clearance implant end and reported is shown is and a circumstances. amazing our a the on consolidated company basis on as resiliency, Overall, this proud basis has year for week. achieve the in track to business on goal of had

resurgence within Of execution our call I assumes major no by grasp. over excellent course, turn that to but will in Keith. the is COVID continued now certainly our team,

Keith Pfeil

seeing Globus and everyone. quarter navigate strong Dave, demonstrating to procedures. Thanks, an growth, times, good share elective afternoon, market performance Though return delivered of a while continue through third exceptional we uncertain

to competitive robot. through These focus we million, driving in product our our increase in revenue days have our the are Overall, Japan. the remain exciting we recruiting of of QX positioned approach in gains focused look from continue continued our well international, in coupled selling number Excelsius to selling an to We U.S. launches, drive evident those future. as on $XXX.X and was successful new a progress selling one results. remain QX to as new above-market we and on As with XX.X% objectives, and R&D contributions reported, and focused and but the less the and with share products execution, pandemic, investment day the onboarding proven same

Non-GAAP over our quarter Third $XX.X $XX.X fully XX.X%, representing driving up net EBITDA of XX.X% million, cash year income prior and prior income earnings $XX.X free $X.XX the was flow diluted share, the million, was XX.X% growth million. year. Adjusted quarter. was net over per was third

Turning to our sales. attention

of INR lingering than of million the driven of spine due the U.S. third by the XX.X% quarter sales back quarter third $XXX.X impacts bounce revenue U.S. Our COVID-XX. offset partially by was lower higher to XXXX, or strong

U.K. implant business The as year Germany we spinal Australia, continues third by prior performance quarter. implant further revenue over by X.X% drive drive Italy; penetration. for growth million, and to the International India. region, and the see of the quarter business above-market momentum continue and the within growth spinal impacts to varied great Japan, our showing in U.S. we Spain, Our ongoing in higher quarter showed COVID was however, $XX strong

expected for the a revenues were $XX.X sales would profit last gross expenses to Our return been gross impact, margin third to of mid-XXs to gross of of QX noting the to reserves. profit development pre-COVID my Adjusting that gross for sales X.X% and million quarter comments compared as quarter in profit compared $XX.X X.X% Research million in with was and XXXX. And of in QX prior XX%. decline we The due XX.X% XX.X% year. inventory higher was third that consistent and quarter, levels. have

the During have investment. year, we high our continued maintain level to of

spending which approximately were quarter travel third is prior is offset related XX.X% to run year. SG&A sales investments expenses of compared R&D of expenses, higher trauma due $XX.X ahead, continued and the XX.X% or third the sales expenses sales lower in increase X% sales and our of by to expense reflective volume, and million million INR our quarter looking inclusive training. increased expect We The in for of of the to compensation the but is businesses. sales in of significant $XX.X to

travel from the continued driven training and and The lower expenses lower travel of While SG&A. of by still they impact than COVID-XX. training XXX to points basis of QX impacts is year, the are increased QX, approximately prior worth sequentially

expenses first of to sometime fourth to the until rise in levels but return the expect We XXXX. pre-COVID these not quarter, in half

in compared period. option Our slight the quarter quarter stock tax The for rate impact XX.X% tax was third decrease the in XX.X% reflects the of to year current XXXX. favorable the exercises year-over-year of effective

adjusted of It full tax margin total for our QX approximately XXXX QX above INR trauma EBITDA QX QX adjusted were we in adjusted basis well XXX ahead that EBITDA, our our points points. included our of our was XX.X%. worth is expect ahead, margin XXXX The XXX investments and Looking noting of to basis be year XX.X% margin rate EBITDA XX.X%, and XX%.

lean, culture, worthwhile investing Our efficient initiatives. the business strategic approach results while philosophy contain within our operating also highlighting demonstrate to in our

range, $XX.X activities was Looking to million, $XX.X securities. of million equivalents and cash, million. COVID-XX. EBITDA recurrence cash mid-XXs quarter the Net XXXX, and marketable an no major overall by operating cash ended $XXX.X flow expect was deliver cash with provided of to ahead adjusted we free assuming We

the tax last $XXX authorized payment flow driven with Consistent million grow quarter. QX cash as of by is our shares been highlight XX% with I our Class will Our on free cash and deferral On currently the our operating flow million Act, year-over-year its able million In of quarter, commitment our continue free CARES the we QX flow our to inventory. $X.X income impacts fund of not QX with the cash Company QX, from that original the XXXX, a repurchase and authorization. than we of cash A flow in announced was $XX which free we remaining than of free The QX federal million repurchase result in common the XXXX. program. year-to-date we've share our given connection COVID-XX any of basis, fact have a last commented despite flows. investing lower this in on did previously to cash the $XX.X higher to repurchase share year-to-date or

Globus take our I for a moment to third to my As recognize conclude the team I'd quarter. strong comments, like members

results do the spirit Our attitude our continue employees. to and of can reflect

able mentioned, hope forward As major growth, strong the look sales year-over-year COVID. a closing resurgence and be year to drive note Dave of on assuming overall no we to to

will open the for call We questions. now

Operator

question first Our Crédit Matt from Instructions] comes Suisse. [Operator Miksic with

line open. Your is

Matt Miksic

okay? Can you me hear

Dave Demski

Matt. Yes,

Matt Miksic

really lots of strong quarter Congrats given for environment on reasons. the a

sounds it us are If maybe what bit. just robot a like tone of the could sense give purchases of you accelerating little here a -- a

since and things the picking that and interest say, of it October, type evolved, follow-up. tone the summertime one seems channel? us And I in up. the then what's how Anything you when getting like here had could Sort you're in are of into tell that of that's

Dave Demski

Matt. Thanks, Yes.

history would but adopters. with of there thought I strong interest, kind when in amount certainly sort we're And characterize we it as kickers was tire to our the I skepticism question switching of in back I'll them like most think never surgeons am it's strong, becoming understanding beyond I and verge and mainstream this a It -- of then something yet, use of much the over, not go you we're surgeons feel that. adopt that early going is, we the how grow it started interested was about and technology, is huge that skepticism interest they're I more the attitude people it, It's where to bought have can my saw like becoming common, where that to if done it this first the at on benefit coming well practice? early, with we in when and perspective.

So ton them. now. experienced of COVID of due interest impact and right A we closing is strong haven't a the really terms of pipeline lot to in really

really So encouraging. it's

Matt Miksic

of little tone whatever week procedures and a Things as were Anything spent this are August, couple encouraging September. news if July is heightened next And fair August terms are encouraging that what of prospect the more maybe next a That's over under months. it several -- so, of can the August to over as see that out the talking then all pressure to what helpful. about looks expecting at from today, what, happen I you the seeing like? this, and call tonight maybe amount And time probably some what is beginning or we the great. done in even your guess then some and and or next June concerned the the surgeons bit would least, the in and see just of learned or about folks we you you're into maybe what cases months, back of anything, other and and areas to in maybe be seemed were we in July pertains might now

Dave Demski

the little shutdowns of country, of we the QX. weeks third Charleston, hearing in for down flagstaff I pockets San a are electives ago. in There even business shut question. really that in was South our various Good quarter of mean in do down. -- We fact Yes. that results the reflective back come seen rolling we've couple was bit. Antonio They've lot of on parts reports, of down Carolina. a were like a throughout are

they're board back shut are there down much across We're massive as not it's of So electives, pockets. and quicker seeing that well. the coming

had of history last actually the week our our a has as -- grown business our So in in in October. U.S. company week We best the

So these there a we're week. we even coupled very into that, and I see results last week the in this fact spite that as to the of is out through rolling are strong. even growing with shutdowns, continue produced the volumes think And company

Operator

Singh Our Fargo. Wells next question with comes Shagun from

Your line is open.

Shagun Chadha

you up I growth talk bit wondering about can more imaging if you're any at be I'm the if And can guys then that little color us you little curious I'm the may a on in incremental color rate seeing October. give platform. just you you there. mentioned know a

QX submission in full launch we to and you or I'm are once with make you a should 'XX. just track You expected guys the QX commercialize? launch wondering, on a expect in were limited

Dave Demski

October, Thanks, having month. No specifics Shagun. a on we're great

comes And when to Just that an seeing side. in to as which put from the month robots. implant volumes a I it it surgical had way, good we're we Matt talked clearly, about, strong U.S.

I ramp in in see QX. very up the this be as you'll this impact QX. revenue In happy that them, in imaging of in year. launch We're throes next in significant a tests we to verification, system, And even will the with where we're don't to but it impact think muted, We're to year production, file able activities second on a be think November. with we much final terms have that of our half but touches it's the has we'd that bit validation And expect we first yes, the track. we of half of the of the could little the FDA various to final actually the pass. expect and

Shagun Chadha

Could helpful. you discuss other what initial how we administration the could I just reform squeeze corporate do And Biden under And tax a just expect impact? to offset should and thoughts question. That's your then additional likely the you one in if on expect?

Keith Pfeil

this I really on I at Thanks, no that. Shagun. mean, comment point, have

is corporate the Our appropriate view market in is will tax administration whole that going at if change due it's change, the that affect a deal there to an with we as a time. to and

Operator

Stanley. from with comes Lewis David Morgan question next Our

line Your open. is

David Lewis

quarter for on return this recovery, year pretty last but what taking guess this, I you the the if Just granularity here. of we some pretty you, couple driving the it's I give a clear and me and momentum substance. the for think that? for us appear know mean, traction sort again, just it is maybe you're quarter last wondering can I more year first is U.S. I this does you have is built you COVID that Dave, share.

out could sort of attrition, a share situation of has looks of of kind capture And what for a new rep months you? products, like Keith. wondered I then accelerated, acquisition, couple what I if you for of flush last a these So kind had lower follow-up six sort

Dave Demski

you David. of it a factors. Sure, couple major Well, hit

behind large had this which with this to and XD extremely installed I recruiting into lift off robots recruiting introductions but our T base folks trying Combine And that just we've base, of convert cervical each We resonate, getting like is of lot is year. I from the our spacers. new that a some there's our going one our mean, hired right, great out all, the this quarter. -- buckets, product or the there, some We're growing That's expandable separate that getting tick process generation our onboarding produces is well. traction I of SABLE business. First go onboarding, HEDRON device. is our momentum fourth we've two got then think some is folks of saw been that. as through, and line pull that about plate

our when him months, While the a as have at around or see folks come that. then rep non-compete, their XX And either well. significant off is his growth that's on they XX months non-competes do as we'll to

the combination really sales executed So, being by occurring and all you're those seeing U.S. things well quite our of team.

all of So, above. the it's

David Lewis

you double I help the Keith, have commentary then, be And very of over how I going 'XX U.S. thinking you is of provide if other us gave can confidence be for Obviously, wonder should you of helpful. on you helpful? And maybe than could trends? your very mean, clearly and year kind any bottom next are XXXX. numbers for 'XX digits underpin line in numbers, us probably to next sluggish. up be top margin to give I over little or appreciate can margins ex-U.S. materially focus you we just a the those getting would to granularity margin terms in about Any Okay, more help very, year. sort growing us, us you could which

Keith Pfeil

Yes. talked the XX% the little Thanks about about for being for EBITDA. We've question. range I'll XX% in margins. talk Globus a bit before to

tailwind inventory travel COGS call because training headwind in higher reserve. of a did but to we landed of a I and little that some we of quarter, that we a a This had SG&A, out did in because bit little of bit

say, next not a go landed quarter, move still sales going this by or want have a to pretty we would bright points as be don't range. But But as to we comfortable we number I what feature in impacted at that give me, normal and XX% I to point. ahead. COVID, XX% specific that that into Assuming this caution we're I'm to would to year that sales I

margin U.S. is to story to to helps going investment continue into fixed line, sets. up look going we drive time, bottom the I get drive in those depreciation or This profitability your the as market, you're continued at move and help the dropping you're leverage the dollars in drive penetration depreciation on which because investment going on sales to to cost. additional overall As will ahead gross expense. the incremental in see same But city U.S.

a COVID. I ahead, mid-XXs or gross sales environment look in profit impacted by feel as So about I that a in non-COVID still aren't good

Operator

Our next Ryan Zimmerman comes BTIG. with question from

open. is line Your

Unidentified Analyst

Max is This for actually on Ryan.

the as Just pull-through deployments, wanted the Porto you should installed of see about of back grow to and base how, past, to kind aspect exponentially. grows, today, go in talked the robotic we and

when the Just saw efficiencies result if of in can then systems just provide you wondering think kind in possibly certain could and when exponential of a pull-through do pull-through graph, we moving robotic where you think a placements third of place? say, number an the good off? if thinking, you And some kind about possibly And if of takes could already so, milestone? detail that you around sense is pull-through you having there as hit a you -- quarter ahead, more have or of

Keith Pfeil

Matt. the Thanks, out not to be on Probably help able much you Yes. analytics to going there.

go much as conceptually, The more a cases Just efficiently. work robot, screws. our they with sell better much we

through. So pull right there creates some that

We also purchase implant have where deal. deals an the to there's component done

the well. factor. there's one usually in utilize their is with two or that hope to surgeon a the of built-in long the we And hospital. other surgeons see is the hospital there champion as that -- surgeons oftentimes And and strategic but pull business the several partners robot surgeons potentially folks operating to then adopt goal the the technology, along operating champion implant our who get robot, as term, in the and their So purchase there's usually who structural

us the a surgeons. adoption, been late it's to and of drive and that good can growth. that go then tell sure numbers impact, -- our analytical for part or make it's the with that's basis that any from folks to that bought Don't our to reason I terms have launch in you there, So of it's focus it, share you other really of gives that is the after but

Unidentified Analyst

going top to and weren't to HEDRON go or then whether you trying how bit. sense a much again. I'm would have can demand And And in any it. And Sable back able what a little provide detail fill impact switching around third get you of potential the that to Got been just the just online backfill any quarter fourth manufacturing then whether increased quarter. fourth be we line? or you in in these see and/or capacity to of had products a your to I'm get trying a of the these orders? XXXX. to sense early And come Will revenue Bolus quarter. you to topics could able not of from the not

Dave Demski

Yes.

not really the You're actually going get it we online. the late until in probably see coming is capacity to quarter and whole fourth November, made the the In in products through quarter. that can't process and sterilize and

going and a backfill place well. surgeries to home So you're really from to QX patients are There I the should Those orders. have done. don't next QX, in hopefully and no cases year. performed doing is be think impact but been big are the to that opportunity incremental see Those

to doubling just Give capacity. the focus future. quantitative So we're have some we our metrics, on you

than So to continue go what we'll add traction double it. expect we have capacity see sell we And clearly, forward. we as to we more as we if that, can

Operator

next with Our Matthew Sandler. comes from Piper O'brien question

open. line Your is

Unidentified Analyst

But that hospitals really to just mentioned interesting. appreciate Patrick the want coronavirus. a questions. you it they're if follow-up. the you shifting hospitals Matt. about those a they is Any advantage have you and I seeing there to talk which found to and We by Then because things you certain work, have curious the who capital. kind you really you're in start. you situation. seems differentiate now? of the to dynamics differentiate willing appreciated. the just I I talked with for expand in lot taking have wanted would speak really time on at spectrum towards on you? look quick themselves, to who answering for right Last of quarter, -- to get to of customers of great. hospitals At is have take there's or really some kind color time, robotics of I'm And don't This interest, ton marketplace the impacted same Excelsius that wanting it surgeon you time a themselves more the be Are of like our could

Dave Demski

access. we that could in as mean, virtually, in front gaining of Patrick. equipment. cementing their to shut message and but executives in that effective we terms we that's from were attempted really Sure, the go wasn't We're purchase to interactions, QX, of which folks really face-to-face more to getting forward with just I best interest is the down stay them

benefits out days, skepticism now the need think of of it. we the early are the So saw surgery. I has help I competition front a as robotic extolling that my one there of earlier have to don't the only to practice be the able in I think also it's that mentioned folks, this in to bit And the I that tone callers, not us. is It's we're changed going how fact versus little we towards that

have striker with in orthopedics. of driving really Mako robotics the like We use

think And who's is tone just that and feel going got that there. has battle think general surgery become I way we we more best system, most get who to It's systems the where can good is the at done. change I So as will about I and competitively. and really out offer more changed, stand to the point, advantages, the continue

Operator

Newitter with from Leerink. Richard next question SVB comes Our

open. Your line is

Richard Newitter

revenue curious consolidated And to that I'm to especially XXXX. And kind to you a is just basis just a grow would last -- this said the on total potentially that that's level? of growth congrats international what a and sustaining to of trend you're there? on total track just That case, high-teens that underlying mid-to the a on growth this Or on Is you pickup year, that expect if total since for assumption there? revenue want in XQ curious in sure I the there relative in digits, think to fact, heard in for continue I double basis? the I'm you year? in I to implies U.S. a the at is enabling in you're technologies accelerate get environment. double-digit correctly, embedded expectation continues said that grow challenging quarter revenue XQ going

Keith Pfeil

Hey, Rich, thanks.

so we're track end this the October. actually to in end to consolidated the growth, U.S. for years. the on year-to-date clarify, week goal It's achieve of to a by grow of Just U.S. the and the implants,

But So think that's and are we components working that on achievable, say not those believe it. that, sliced hard that, on there. we're a we're get from. I and have track diced shot We good to for I but really basis, really at coming haven't would an we where certainly overall

Richard Newitter

based But Okay. not seemingly saying wouldn't quarter, nothing business, if core the better, to all stable spine side, else in the correct? least that the is There's trend U.S. equal the of else for rest at on be implant you you're strengthening October. equal that suggest in the on

Dave Demski

U.S. Our now. spine is business really strong right

gone I great a said, October. October. have We we what and back did haven't last

numbers a So tell my we and mind. I month. the -- you growth we're had don't But in having qualitatively, good have I really can sequentially

those piece? the strong enabling we expecting grow I'm into for quarter start growth all that out in given it not sure How have. I'm the are. what to pipeline rates each So the shakes

Richard Newitter

you share benefiting Could of someone got question. think U.S. your rate of then better Globus how sense potentially shaped kind And clearly of and spine you're versus helpful. doing just just down recovery kind much normalized I others what issues improvement take your you're just and fulfill the That's an are share. does us What earlier purely that in think it give work the market market gains? now you? you to than the want taking of be specific at XX%, the just Okay. from I what some a kind pick to this up right the backlog in versus relative is market maybe growth

Dave Demski

really I where back draw Yes. Both occurring. certainly nice procedures overall. a to We bounce in know saw don't line. are that

just on X. how those the have would But taking we're in it we're interesting our -- the that. don't other know market be So systems to folks We that see differentiate to all granularity I report share.

that So be -- helpful. can't sorry, more

Richard Newitter

business. for the low that product know I quarter? is to called been rate that you growth disruption in trajectory going Okay. that one some one. the And actually, a that had What teens maybe business last past. I was good issues due pressured a business that Biologics, growth last was forward? for think out And

Dave Demski

it. called rate didn't quarter. in of the resolved frankly, don't comment this front quarter. last opportunities some the us. -- quarter on That's why saw And we We some have more I things know we We out. growth it

XXXX I'm better of So be issues. some hopeful resolve the outstanding will as we even

Operator

Taylor with comes question next Our Matt UBS. from

Your line is open.

Matt Taylor

I'd surprising, guess environment. the frankly, working wanted robotics here. you're on of enhancements again to little helping competitors? do to to are So enhancements I how into just more separate you Do about from think focus demand given Or is think hear this playing be robotics? on for the a pickup It's the yes. love overall I of a you you any could those the that

Dave Demski

our our There's think sell established I'm it's programs I technology. out not are sure enhancements, helping the of not adoption. Yes, really only enhancements Surgeons high lot I a do but at are level. really the us seeing our we the that true in operating that's competition. there, a think for always the value just longer are get robots,

also standpoint, much other market the than out really but that the alternatives. speak that's a we is better as consistently to know I evaluations doing, what get into I head-to-head technology, from usability, as overall we So a factor. can't grade functionality

Matt Taylor

is continue hoping offer your a the some it's environment business? of what bigger you do And now. to have some become some I could thoughts could are going business. the harder like I that up? part your Do for trauma hospitals on to to factors was the for break imagine And back outlook gating into you you trauma think when momentum

Dave Demski

promising appreciate we're COVID have products right the record and taxing the question. I is and the And sales allowing QX. what's in that down did We that over traction, half with approach. growth committees while surgeons, somewhat came right VAT from selling getting new Thanks. is new is of certainly the

certainly with investment the coming on rest certainly I but COVID recruiting XXXX. some still that growth of by trauma year strong this think remain of see activity, us. the offset into continues of out hindered the through and all bullish Again, again by we and

Operator

comes Our Rose with Kyle Canaccord. from next question

is line open. Your

Kyle Rose

about stick more theme less robot want of to and the year-to-date, what maybe here kind I but on I the talk seeing, guess, you're So future.

year-end that imaging the innovation recently of imaging steps I the at and the going does So then year. you've submit just addition just from should the understand what the launched platform launch next about and interbody to guess, module, of help platform across think you're robotics? us strategy enabling next your how we

Dave Demski

two component navigation. surgery, you spine think you components. would really Sure, have about Kyle. if just be One imaging computer-assisted The

do clearly, strong robotics in the not to you pure you robotics and So from pre-hand case. to benefit you're of from the with using navigators images combined where where in are of going We've freehand guide to space, you're experienced the but to all the where the of then And navigation procedure. a lot installed evolution the is robot a next there's navigation, XD using instruments base track been navigated. competing

expanding want -- are portfolio who we -- if a our into you segment. substantial move that's So address pretty And the not will, we're ready to able the to really to be want robotics. be we to navigators, to make

of it tool you I what really one address we've as unveiled I So group. navigation. much computer-assisted and us on just think don't more And beyond think we're forward, gives that to working imaging look overall

that probably the talked yet. we're system, thing Total a more but just will navigation do the and -- the goes projects, And That the focused We're horizon. on on fact and on to working other along we've total the then the next do think I we're then that we help then to with and of the not have next ultimately, ready imaging be about robot be which couple cranial hips. that knee those will a steps, rollout. unveil

Kyle Rose

appreciate of from I robots. utilization quarters, a you and metrics Great. couple the on the color And seeing last additional pull-through talked encouraging some the side that there. the of about you're just

maybe the can is seeing Or you're enough in has more with there on how also just it? implant sales the sales that on utilization got process have call place talked you've guys about focus that now years systems sales past the teams of that implant about evolve? the Can the different talk with team. you the focused that You implant several about evolved something over course is the fact you

Dave Demski

under just So team we that together to become of -- it's not works sale. teams in have use with the that implant robot, more convert they robot surgeon down a the implants robotic doesn't it who -- they're the own as that the that, implants in really they surgeon we which become effective surgeons going experts to benefits technology follow uses the our team once want that gets capital To our sales to much. brings. the to implant well. over day-to-day surgeon still through how process patients, converting advantages the hall using installed, that competitive as the use We so operation and means that on the our It's technology capital

Operator

with question next comes [ph]. Our Taylor Securities from Crumb

Your line is open.

Unidentified Analyst

congrats the quarter. on And

be of I companies, quite getting and baseline a or would can mean bit we're commentary at guys or as normal guidelines a a XXXX of looking just So asked, I think, XXXX, I forward are lot you think, for be? sort helpful. to any going we is about mid-teens XXXX is you considering of a year. XXXX Or should as place that anything of guys And that be off growth year? The into modeling look level we reasonable sort next else is in Street right there now, provide

Keith Pfeil

is This question. the Keith. for Thanks

premature quarter. get think XXXX, be going land. think to As to through where really I this we to we're really about think We we it's want discussing

Some U.S. news and that to today regarding it's came that the across rising of cases over concerns going the Europe to out come

to point. as position in next we get give give get quarter. XXXX, I if think guidance, that this to given that, And to would I through we're like a guidance at

Unidentified Analyst

the it track right guys a just you segment. quarter to like me are tech deliver sounds business, on a I robotics in the enabling on to couple Great. And then now mean record

quarter. guess you're I million the to sort want enabling in first mean, follow-up imaging for I could momentum guys a $XX this $XX sounds And seeing durability launch like So the then in it the of system, just you understand a on just the expecting to the I are to October. be million mean, of business? tech I quarter

thinking with you what would to you're launch first Just Dave, you good understand think skeptical, made about a love Excelsius? when and saw launched how think, that I I point launched strategy were the compare, docs Because contrast the you you it super when just robot.

little items. would bit I clarity love both think a on more I those So

Dave Demski

really And and last land probably That's that's an we you base evangelical I the with system. different of expect will, launch really the we got that navigators. But out than sale pie, installed The quarter installed where yes, XX the quarter. that. to to more going expanding after be imaging on much Sure, the with Kayla. than base Well, a it of -- in targeted year, with we assisted, we're imaging did system we're million you going robotics if the in where when fourth expect was we terms system, is share computer there ExcelsiusGPS. can this really to all is imaging at for

technology had and there. today, which be that a design we've big over from we've the advantages they're been with using the of anticipation our as the preview focused of through feedback ASK, seem installations on we'll the of some And walking lot There's and surgeons, very in bit it has So teams and a little some our launch. to be to what a showings advantages compelling. excitement those get of lot able

Operator

comes Our Securities. from next question Northland with Mit Jason

Your line is open.

Jason Mit

you First did what if you I'd love see any out And at off, all but possible the to some mean point that? don't of know OUS, the I there I the in U.S.? to first quantitate off, -- it's COVID quarter. guys how in the quantitate impact was

Dave Demski

you impact… sure, not understand I when the I'm say

Jason Mit

the way of curious, a impact is if you just look potential you of quarter? at what of look range I'm of at there this your and accounts, volumes understanding procedure if COVID kind was

Dave Demski

from in real to procedural We seeing then we started really on anecdotally, to was quarter, don't that that can the to or through is alluded certainly ability in I a last entire was that uptick a the of in Analytically, June, we've whether sort kind differentiate a be of standpoint. got -- between third last have to seasonality we volume which patient supposed May continued quarter, no, back. week. came operated and one But that unusual tell we bounce you as

a So and surgeons activity I But and was our on that our I clearly, because say, -- gather the the we're from lot that at of the second that information recruiting quarter. the getting same we new know new back customers. can time, bounce those from products, new of

growth piece So don't tell have you is the to which ability it's market. which and both. But the we is

for So growth I and shares companies market will how the as you sense a other bigger think guys shifted. have report, overall report, folks get that as the

Jason Wittes

And record on or Okay. mean, the one side, a driver That's driving I you that then is your pace. big at recruiting continued a here. of helpful. success on the pieces Obviously,

reasons. a it with you've as like I companies though, pace I trying the other pulling Globus, up it pulling of larger step excitement seems are where which landscape of across recruiting quarters is a as whether continuing. is you do general, think hinted of pull lot for it companies Do that in up And the a the look you sounds actually the competitors at sense back to back like from, come there's variety couple or given you uncertainty? to your the last wonder, sense all? efforts have of well, I in are that larger

Dave Demski

I everybody recruiting. No, is think

we or our is which robotics, that the imaging have we advantage in we've been technology the with platform, implant a the we've leader in now XX success you technology, the have, XX think enabling coming. I the And system had for that years. couple

selling business their about ability common to gives to in they're grow, perhaps excited new grow think we're I they're It technology. influenced. just and them

company great technology. has to a come to want they So that

have recruit, that we don't the tools think to the fact just we think with. it's I I recruit So, it's

Kyle Rose

XD any that quick highlighting you NASS there that likely Okay. a think kind was product question. during And had then just launches worth Is last not the and XXXX? you lot attention. are getting new online NASS drive of of

Dave Demski

think I rolled No, out at we don't NASS. anything

time, trying got earlier. get projects that new on or of we things more year. XD end we're alone. well, The stable. really in the is out any printed have cervical So, to we doing at this plate we're We've those cages spine XX a XX to But we're in focused alluded development couple always, by

a we've, established pipeline innovation. the just years, of So continuous over

Operator

next question Oppenheimer. Steven Our Lichtman comes from with

is open. Your line

Steven Lichtman

on could you color wondering maybe versus of were you're terms I if seeing ASCs some pre-COVID increasing flow pre-COVID. more average offsetting out patient in an Has today think XXX% shift provide We to see Last quarter, do called returned of at and levels. to that what just of the you XX% XQ of downturns? about all procedures you looking ahead during any

Dave Demski

We and Steve. quarter significant analytics. normal it's that folks' Yes. on minds, part our question we information gather Thanks, last not a because of was knew that

So we did not update it.

can't more I really I provide volumes color So on be it. strong. know our to continue

hear potentially in quite all. question means is adequate I And terms was ASCs. clinic it your flow think about didn't I second assume that I and So -- the strong.

So it. maybe you could repeat

Steven Lichtman

Yes. I Resurgence downturns that potentially fall/winter to of offset future the has if if buyers in more increasing ASCs, the shift time procedures a any was could of the just wondering line?

Dave Demski

stuff There complex time saw in and first was do cases, for but shift can't really ASC. the some around. that they Certainly the into the we the easier ASCs

have big the So that we impacted. kind be saw we of if a shutdown country-wide in past will

we the saw duration we're which quarter. us kind less the that As I spoke to second sporadic shutdowns, now smaller, earlier, the about what of are in seeing not impacted extent have back

Steven Lichtman

Okay, great. That's helpful.

reps that Any should new can many currently? the one in products on? in be Just have on field we follow-up trauma. on the provide XXXX how in color focused you And progress you quick any

Keith Pfeil

don't Keith. I sequentially business recruit and we're We the and that on actually continue going -- just have number to of as to add move comment of watch it in continue any is reps. to grow our terms we and forward This year-over-year. to

Operator

Blackman Matthew from comes with question next Our Instructions] [Operator Stifel.

Your line open. is

Mathew Blackman

of are the rates? to back a execute roughly I international, growth back the through just to And on it beyond you us like items looks revenue how start case growth. tracks pre-COVID need to levels. get but appreciate resurgence double-digit you towards help there Can think business that to actually pre-COVID where I is back wanted specific COVID, you're you that confounder, sustainable on to

Dave Demski

done we have just a the haven't for approval that a world really getting surgeons, last strong we've that. prohibitive we we seen I be to we've representation. but really is And that seen starts surprisingly is Japan first markets, of which was in -- and been in sales international that demand us driving placements can for When And fourth this, to having best of force in COVID, to We've the and into then system make some we our frankly around quarter. encouraging. would be the and always get will there and been as two largest added we we're years really technology, have strong reps, in we several a do which that concern with got Beyond a installed our technology, has Certainly successful, hiring price going the things or which of lot international we the the opportunity market, and have hopeful forward. interest sure tag technology be good a enabling the now, front the big strong. have

Mathew Blackman

And question. that. my then appreciate last I

look as the others should hiring, XX When here bit to months? and that I most I'm of It's of as it, obviously, elements again, about next and have You It's that I'd of pick would are the being differently. there sort frame, about sort think time over you through little there the and just multiple sort any how thinking you them the it XX think sure out -- there a us gating deployment. we portfolio. important this again biggest are or months, were others. evolving one or that tackle. the next But months trauma. training asked set left list XX you the about out ask two is of are think on factors over

Dave Demski

from the street. to expanding XX Right footprint think of but be the I months it's now, most through about you points, Well, picked now. on at we'll go the going feet

have. access the we accounts the procedures additional and we're same have XX gaining the months. and key. At and taking the first majority in growth sets existing into where with become be we in the time, us and recruiting getting So access more for that the That will will of pipeline drivers

a second XX gain will where months of Street existing a expansion in, we be with full are continued the competition the going access. question. while The feet displace portfolio. wave what The our up continue to and portfolio we really on to to XX-month to expand getting can second meaningfully come That's It's

Operator

I questions, us. Conference Medical will conclude further no for With Earnings Third now the Globus Thank Quarter XXXX Call. you Release joining all

You now may disconnect.

Globus Medical (GMED) 28 Oct 202020 Q3 Earnings call transcript