Globus Medical (GMED) 5 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Brian Kearns	Senior Vice President of Business Development and Investor Relations
Dave Demski	President and Chief Executive Officer
Keith Pfeil	Senior Vice President and Chief Financial Officer
Dan Scavilla	Executive Vice President, Chief Commercial Officer and President, Trauma
Matt Miksic	Credit Suisse
Kaila Krum	Truist Securities
Steven Lichtman	Oppenheimer & Co. Inc
Shagun Singh	Wells Fargo Securities
Matt Henriksson	Citi
Jason Wittes	Northland Securities Inc
Kyle Rose	Canaccord Genuity
Ryan Zimmerman	BTIG
David Saxon	Needham & Company
Matt Taylor	UBS
Rich Newitter	SVB Leerink

Call transcript

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Operator

Welcome to the Globus Medical's First Quarter 2021 Earnings Call. [Operator instructions] 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 you, Catherine, and thank you, everyone, for being with us today.

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

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

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

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

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

Dave Demski

contributions $XX quarter we the performed take $XXX quarter we Once million, Non-GAAP QX the robotic again, in great adjusted got but sales last is We XX% our the $X.XX quarter be revenue technology XX%. All entire revenue day to US share capital resurgence well of in Spine the off a led last share. quarter facets competitive Pull-through XX%. for quarters EBITDA biologics year. EPS by QX surgeons actually was INR factors slow to increase INR to basis. Spine by of of strong Brian in And of significant market all first day a almost business adjusted you, Thank back over revenue back from up everyone. take XXXX. a typically year. afternoon, from continues adjusted the continue to our superiority first clinical robotics, XXXX. as shown market of continuing growth. continues product an were growing surpassed up of business new for our QX driving of XX% introductions, growth. was momentum the on quarter on way. million, the in QX good a recognized by share, for recruiting Revenue start US and The a our over the meaningful as was was XX% basis first and per established in half and to for

by declines of spinal the for essentially expected, composition Japan markets growth to offset there. in Strong most flat international quarter. Our transition in was was as salesforce business due primarily the implant our

we We of headwinds continue rest positive the quarter, and the but and to strong in capitals our synergies because inherent highlight a I had of they the expect these would product product development like demonstrate remain world two international XXXX Japan of introductions number growth We our of both business. engines. exciting the throughout the trends, in to about implant and in health very between

market through lateral the interbody a the to comprehensive today. most disc The of first on Corba latest space Corba Aler spacer position. retractor LXSX is patient and addition designed of the innovative the suite for lateral comprised is the novel Lateral a system interbody an solutions

lateral safely multiple the Our and of levels to pedicle either single multiple Furthermore, and solution allows levels efficiently the prone options, treat lateral spine XXX patient lumbar position. screws spacers, a surgeons or interbody MIS and Excelsius procedural technology plate to position. expandable solutions remains place a can spacer includes all address patient integrated static in the that lateral while

pedicle the tab The Early The pedicle by accuracy improve accuracy compared ONE, combined GPS, robotic of CREO maintaining very Excelsius second out and quarter arm by the rigid strength increasing trauma; Excelsius on pedicle and unique CREO is to Shifting designed specifically robotic ONE navigational XXX% XX% with steps. to first GPS. efficiency positive. eliminating traditional spine and to to the market's for screw size. systems pull surgery screws XXX in OR procedural while over XXXX. QX navigational with been to both simplifies compared tip revenues the feedback screw save in first time with up are designed has preparation

this on focused are second year. We of several product salesforce launches have the expansion half exciting planned for and

a While growth in the we slow face growth, comps. year-over-year as bit we quarters sequential continued may challenging expect coming

We have XXX-k ramping FDA on an manufacturing operations and launch. imaging system and up the anticipated are clearance filed for QX with for our

We has strong emerged later healthy also the quarter. with peers growing plan as cash this sheet to launch from larger flows. faster Globus pandemic our balance the company cranial a module for than much a EGPS stronger and

Trauma the to INR, Spine, to forward and accelerate Joints. look see future, opportunities we our tremendous growth Total in we As

we product introductions of exciting to ramp in advantage of We investments resources potential R&D forward. year, planned moving this up our an for have to XXXX. are But full going beyond lineup take

an quarter We objectives. aggressive several key will in on strategic financial Globus excellent first enable acquisition delivering targets results also us differentiate further pursuing be producing to had portfolio. that our outstanding

Keith. of to over grateful of customers year to serve together team our are they working we ability We the the will company and set well I'm members and now Globus dedication, if we're continue and amazing performing execute. patients. an as turn effort worldwide a for our the All as team. up are I parts for call

Keith Pfeil

everyone. good afternoon, and Dave, Thanks,

continued points gains. market strong our results As Dave quarter demonstrate commented, our momentum share first continued and of

income first with from COVID-XX. of execution, driving commitment standing technology This along EBITDA each to in January as is innovation on a constant our million was evidenced million quarter XX.X% grew flow positioned day impacts $XX.X long Revenue was accelerated have first well further and experienced Net the cash non-GAAP and a COVID of and as to we and move we early month free us $XX.X fully net basis, revenue impacts was XXXX. $X.XX the into first to currency income fully XX.X% cash on XX.X% XXXX. February, flow our growth. basis, XX.X% to million. focused was March. QX and quarter February compared sequentially quarter of driving adjusted of as we sales, work on Though and our $XXX.X growing grew the revenue and compared Our earnings diluted and million emerge $XX.X share. as Adjusted was profitability non-GAAP reported, per in

was quarter as $XXX.X into for versus sales. US of further INR revenue than strength million, of $XX as well revenue first US sales, X.X% representing higher or million, the XXXX was stemming the Spine XXXX. of our Moving revenue increase the first International a quarter from XX% capital the higher quarter business, by driven continued additional

essentially were As flat. Dave implant sales earlier, international noted

improvement. However, growth year-over-year contributing the in in robotics was our key factor

in implant most to our see markets. international continue of strong We growth

our However, discussed previously driven this being offset salesforce partially declines transition. is by in by Japan,

in the in driven occurred gross XX.X% of First QX of did quarter lower costs was warehouse compared were move, and the profit improvements were year quarter by efficiencies The improved prior a XX.X% XXXX. to gross in which warehouse as The lower to primarily result repeat quarter. labor mainly costs. and related warehouse profit manufacturing the year not prior

research first lower prior compared development costs. lower was headcount. The $XX.X lower quarter offset lower by higher were of meeting sales the consulting partially costs $XX.X Our year. expenses the reduced of million X.X% spending and the expenses to X.X% primarily and driven or is or and in of quarter spending salary benefit driven This for by by increased million travel, sales,

Looking and also of expectations, or Those quarter rate drive to the million, million, positioning result sales, driven costs, the offset lower entertainment continue volumes. first partially as we across of travel, a well XXXX. first by joint in the XX.X% investments higher in and sales quarter $XX.X compensation the was sales penetrate as us expenses capabilities with as XX.X% for robotics through as compared than effective higher meeting sales or for primarily class-leading higher were in of our XX.X% quarter further and SG&A income investment progress R&D XXXX. to by the line slightly ahead, the expenses though spending we will spines markets. our will to rate The of on leverage tax XX.X% plan to our trauma increase $XX.X

our comments, equivalents to previously non-GAAP earlier marketable Net flow the I and this net earlier, its was million, by and as guidance diluted expect million growth and activities overall for EBITDA first million As was $XXX.X and growth, cash was reflected We of $XX.X my leverage. and around million improvement gross provided quarter quarter as million, cash cash operating cash, free mentioned $XX.X XX.X% ended with in revenue representing $XXX growth, XX.X% our mentioned revising of sales, adjusted earlier. securities. be sales and net company fully $X.XX profit announced XXXX. year $X.XX XXXX versus the EPS be is EPS $XXX At non-GAAP XX.X% time, now full in EPS. in non-GAAP to We revenue specifically

the for to of back QX year, strong positioned remainder well execute we and expectations the all our aggressively Looking our across remain fronts. on results,

to yet the extremely We to products R&D all and expanding and truly while shareholder for our complement our investments, entire that come. over and continued term, our This drive continue while bringing is to ability feel to with portfolio take commitment the aggressively position I business growth new coupled about best its value. pursuing exceptional exciting portfolio, across will acquisitions to market. positive be us our long share

open now questions. call will the We for

Operator

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

DaveDemski

hear breaking are Matt, you. can't we up, it You

MattMiksic

Here.

try this. Hold me on. Let

that Is better? Sorry.

DaveDemski

Yes, is. it

MattMiksic

Okay, sorry about that.

really a strong congrats quarter. on So

Just I what don't even say. know to

follow robots implants. So really are up But these a question one on impressive. on numbers and

just city we these middle of that since describe seeing our growth of the the is like robot XX%, a feels coming this inflection question asked can some pull-through and category, you in what like growth quarter. a sort we feel could robots. maybe XX% So terms and of And competitive really could it last from you're there's to what a think seen an it in of you then on across strong XX%, is guess every centers if the robot or robot have describe where we same of But, needs town types like also point. timing across have center regional, feels a maybe about I maybe say year, I the

follow? that And is you're to mentioned follow two if strength implants. it sort seeing one or this quick of I quarter on implants So a driving start up here, taken the

DaveDemski

seeing third had I everywhere. growth Matt, got really buying are think robot. Sure, the centers or we're their is that We've even -- second we've

robot see to an we're getting we using implants folks I from on or see We starting is at you that quarter. in of once your generally, it, we'll then when And and first town mainstream. enough starting getting that start universities, may to I quarter quarter have kind technology in we're they point install, second pull-through think in seeing about you're it the after becomes the it's I see that where in it, following were question, the it, community, you're mean the usually part right, speed your be first of situations getting just that off trained really take to the and hope inflection right, implant

MattMiksic

you then most other pattern And interventional slowness the of of sense in as some seeing some as where quarter QX. some Any the saw color strength about of and that saw helpful category the you're implants, of would cervical types the the get of great. companies the where be That's implants that anything, if maybe on beginning meaning of in you sort spine or Thanks. talked very have centers. or to in

DaveDemski

I XD our Sure, as really mentioned in the mentioned ONE our from products my mix that really somebody we also gotten strong than else of CREO as of see a last well on we so are discernible pattern, from standpoint, don't getting prepared alluded -- I a start quick growth pattern some as real for of in line you introduced terms off We've remarks, or spacers has as us, call. maybe stable. to no, to, had that year, other the

Operator

line of the Your comes next Securities. from Truist question Krum with Kaila

KailaKrum

comments. guys. thanks, Great, congratulatory the I'll echo

And baseline can $XX now for part assuming on the grow performance forward? sales, from quarterly into the do performance, how second contribution business. this of this a enabling you're also I in going you will with Just further tech mean, the you million year imaging? with of in understand sort say help what that's us business that

DaveDemski

capital for sale you're the for think we're runway Kayla, how well as both we predict It's expect in each is unique. project us lot grow has Certainly, because it as to Yes, is to We because to where business, to the really implant going to challenging industry. do business going a that's this much easier of from here. recurring. Globus

planned So all year. factors the right be going some of as technology, QX. Hopefully, later in those in pulling rolling we're direction. we're are out this as And to additional

believe point. higher going not sales, I see So number that we'll to at this we're do to a but put

KailaKrum

mature we you strategy, or more the expect think for at how to assets I look from you've terms guys higher should Okay, of M&A you of the some earlier assets that's that fair. assets Thank see are historically, And more be chosen to perspective, you acted or same questions. expensive, aggressive taking then have stage an mean, guess, I either you does this historically, what relative priced plan I to mean, you in at assets. to grow mentioned or considering less point? the that

DaveDemski

Sure, the are terms to looking there more of yes, be we're invest. aggressive to going we in amount

looking differentiation the expanding within on But bit emphasis really bigger. So we're is our the portfolio. a little

things we're this technology, So for we're point. necessarily And looking looking not that's scale. how at at

Operator

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

StevenLichtman

you, Thank hi, guys.

US in sequential it better was Spine, solid the XXXX. even than guess on the I of was On performance which

anything I saw you delve to if could snapback. were to bit of you an a the there little XQ that what sort particularly was more as outsize biologics from the mentioned strong was you that seeing, into sequential if you contributor in wondering quarter Just XQ. know that the Dave, business,

DaveDemski

to our sequential was know was. I QX-- don't thought what QX I down it really growth from

KeithPfeil

implant business. doesn't take overall, well. business, our -- biologics extremely implant did US down And as though the US commented overall business wouldn't I it but was you It mean, Spinal Spine our like but I say back, bounce away performing

DaveDemski

February I have -- well. front We've right been a typically, in QX. six continuing for an that's so. strong seen of the hit impact then is had you numbers COVID biologics a then than us. And as And for Steve don't, me I'll stronger QX hard, of last And or just in I trend. don't the the terms that And remind But months was now. pretty in was January as March month just

were not pretty March, COVID So some in I'm sure how much I some there still it was light. know, restrictions but markets in

mentioned So it's we things that new from made launched. executing the things the robotics, just is a it's be the comeback. well products on mostly has we're four to I are continued Biologics

think competitive QX. strategy. always I couple commented quarters, on into part our we've it's finally, growth the continued of then recruiting And last is

StevenLichtman

about full numbers R&D ranges have bit of year and put more Great. And percentage margin can then, for you you us I'm about on talk for sure could a year. acceleration, sales talked not terms just you talk you little the the when updated for as any EBITDA for year? that, a any in goals about of secondly, Keith, your the

KeithPfeil

Sure.

in little R&D that from we move north a around historically run some spine, X% expect of as perspective, number comments So ahead joints. we that and that an XXXX. trauma sales, of look about We'd robotics, the of based we investment said in on of

As more we repeat your of think about, could was that part question, that time? first you one

StevenLichtman

the Just margin EBITDA year. for

DaveDemski

really with see we XXXX we impacts a beginning into view business. when increased mean, EBITDA mid-XX in XXXX still mid-XX we're of as comfortable EBITDA, a when we happy really look how into back expecting causing investment. finished, and the year the bit COVID XXXX; and EBITDA margin the sitting. we We're came even where of about we we're going still the I good that from started a saying concern. how with ourselves But we're feel feel came year, year expansion this business, Our little And to and we the we of see

Operator

Wells comes next Shagun of the from with Your Singh Fargo. line question

ShagunSingh

and you Thank for taking the quarter. great. on really outstanding Oh, question congratulations

So just is tracking guidance, with in wondering backlog? just could X%, how in you just I much growth X.X% talk then how March. QX EPS by about have increased And trends was revenue respect the April And you about if was to of the that relative then to outside about by sales but midpoint. at

you. about takes thought and Thank So there could discuss and the it? just you you puts how

DaveDemski

take Shagun. to part, I'll strong a first April well. as month; March be So really has the really strong continued

really is the and feel business economy at pre like So back the -- COVID least spine operating at level. I

good about to the going I'm let Keith So really of feel business. the guidance. aspect that handle

KeithPfeil

so to But and did quite as some line little volume guidance, it we're that, much. from to when businesses. share by and our line our so call But back look $XXX is line talk didn't that when about and you Also, million couple investments, to spine, out by our robotics trauma, million. one our step and increase. the is growing we and Really, XX.X%. Yes, at at the step we I $XXX compare things bottom top back want you about is bit XXXX, higher. overall the a our you an grow driving guidance, top But grew look count INR obviously,

out you there's Our comp our now, growth. stock and that do $X.XX XXXX of what to back our I doing about add you $X.XX, for and add-backs income, about at want comp, that would include items you're $X.XX call bottom us go give at will and lot line get -- call operating to look share non XX% higher to $X.XX overall grow there's more closer you a at higher would on which about looking would and look a to But When normalized basis. when something XX.X%. count. $X.XX I you're interest When take tax, it that and

you guides, really, So especially well when were we looking positioned, step look in where we our at back revised at really think and we're XXXX.

ShagunSingh

with the really QX backlog? sales respect backlog. to in of That's color attributable and the helpful just much was to the How growth

KeithPfeil

And when a coming about this we a we've about COVID. QX Yes, last $XX our driven in improvement of in we we last year, release Surely look more you mean, a that to year-over-year. call back it, But it's impact are question. January. add year, impacted a March. tougher that's almost been year, I would push step and I if at February bit to that and see by in sequential you'd started Dave, I little that? million anything think say

DaveDemski

You're was It's of sections this there kind challenging a every of implant the well I as standpoint. decipher we yes. net zero kind last to understand, quarter year saying reactions on from different or COVID But of versus think had a an year because flat, country one between year impact probably it's and basis; this QX restrictions. QX little can different last implant year as US

Operator

question with Henriksson of Citibank. Matt Your comes next the line from

MattHenriksson

on good a quarter. congrats Hi, great and afternoon,

Let's start with the Ortho Trauma results.

and and are then salesforce of XXXX You mentioned be it's What that expect rate. around at growth? sequentially, to XXX%. that Can just play how we expansion to and out detail of XXXX. driving growth the kind kind it improve more what's to kind will little rest was throughout of the then we of add a up although on the And strategies that going

DanScavilla

Scavilla. Dan It's Matt. Thanks,

us the stepped the I the and to board. see but go that. that getting will break not don't rep smaller with out higher only continue helps more again certainly bring couple really we're Difficulty] have by in see of mentioned further that consider the into [Tech an by way. would recruiting we significant And mean, QX, us have we in what I our think in growth that numbers, activity matter support, in quarter. and on coming I of occur get So of Dave also inroads second that and to that people it that drive have I part year. time, helping But and we would right up will again, we'll products in we the we the things. grow rate have that's that markets reps pleased we launches rep there's now expect further year. At that help through and I same product off a

year our it's said explosion. not by an going be way. playing and think always with just traumas focus. investments to year longer our And So growth a term to have we've and We out I that continue

MattHenriksson

there, product that's more the launches. for recent acquisitions thanks moving the recent get with cervical color then and attention to starting just Okay, to and

And future taking had the your are level two C have development You've to traditional fusion? market commentary your that questions. the great. compared And indication, you on but of of kind thanks secured be with on thoughts kind for the overall, any would what any then

DaveDemski

secure Matt, me I let gently We only for have two don't just And challenge there. have on Sure, us. C. We you think correct a that's levels one level.

it's I lot has do for patients. a segment a It's think think treatment of But that right not good I huge potential. future now.

are actively options And be we're going said. in Matt, out competitor will We evaluating a you couldn't forward what we bit. cut segment. hear that little a our what So you strong there.

Operator

the Wittes Your comes Jason from next with question Northland. of line

JasonWittes

taking questions. for thanks the Hi,

that what -- in volume of to you're the we And figure year, minimis your pretty quarter input? much a forward. it the going of just out COVID. pretty much anticipate implying you quarters might affect thinking de how, rest And the clarification. impact just final for month is the an Are trying on COVID increase how should First, the saw I'm

DaveDemski

The our March the was month think best month good was history it revenue. a overall in I actually in because

of country were down bounce electives, regions month. So there were others still that and shut think it back. the some but there that I restricting was to included alluded strong were earlier, some I Like

net typical COVID on a quarter. a March kind sort I basis; of was of a So think pre

we're But any But I think month. ball. more as going is back else's. clear is guess there's that's going Your as our to the forward. crystal a good than and anyone don't vaccine is anyone And normal hopefully effective. April good forward.

JasonWittes

helpful. you or give robot, of color implants. And kind just actually, that Okay, in their or some do can quantitate utilization increase of more in you a that's also dramatic us of of you it little once don't you -- It on the what transformed sounds -- accounts installed. give that how a terms happens a in they an terms place like can gets guidance usage. if sound us terms is a acquire see I what get in explain of robot know and account

DaveDemski

It goes all for over that services that so the cases map, use there's much some itself that robot. drives efficient where our the more screws, in utilize typically robot the itself for is that volumes the they

devices. implant Now installed it to either is also we used that we from more base that buying with competitors that. works which solutions will have agreement And interbody a or will interbody off our a significant it. our their deal the find time, number the And we rebates Again, that added with capital with be hospital. interbody as it then committed are much pay something of with a purchase scenario do we've our solutions efficiently sites well. over have to of where upgrading And a the lot

have scenarios. those So of all we

any three. say one what it's particular So account of hard be could to those

as going and keep varies, to we the have actual that and So it impact, information. we're shared quantitative competitive not

Operator

next Rose with Canaccord. the comes Your line from of question Kyle

KyleRose

about last I broader growth we've more to market Globus But relative And exceptional three today. talk big we're of function a question two the mean a since here. wanted competitive Spine seeing picture just the So Great, step you I of in seen US that a more kind growth to all really for third you for the me take right? thank also quarters, questions. bigger the taking quarter the to of Can dynamics for group. obviously the hear

real help you from So competitive really the from. just much the product that's how coming and been bucket maybe where generate products, indicates coming seeing just trying growth to robot? much kind to is new company's from really through that's could how from implant new How pull- much And iterative we're from if able then taking here, coming flows, of coming understand some an coming it hiring, where from? rep is just, exceptional is us the just share

DaveDemski

thank masked strong agree we've well, Yes, last really, quarter. you, of with the QX Kyle, you, I year

out we've been our a I year just where going you to continue by telling pulling from standpoint. to those a to from But I'm half, pull and track So We're on this it's not executing. I about them for keep a coming am team is confident say. levers, going we're you going help all competitive to would and and

you So I now. with share right that's can all

KyleRose

That's fair, I had to try.

question. one ask Let me more robotic

obviously, start But growth Now, to really strong implant quarter seeing really here. the good year. we're also

some unit maybe of outright or seeing help or we're revenue the help really placements us sold So on are just side. proportion of I me robots being enabling of how many, outpacing versus am are the the to placed. understand what just trying are, understand how much

KeithPfeil

since of ways that all can them mix earlier. sales different outright still, of are getting of terms in how mentioned we've our the sold The that vast majority still But Yes. outright our really we robots, the changed robotic majority selling they're and of robots started sell sales purchases. the changed, Dave hasn't are haven't

Operator

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

RyanZimmerman

But taking for kept if pace thanks you competitive Globus up and has. the the ask afternoon, that Good bit. I'm a we in as questions. a take manner, environment, Dave, not is the going noted all Kyle's different with little to question see

you've doing what you you they're for out larger like the the over in been mid now, how with competitors of seeing think there? I of ask way, not ones? And you're seem the that so Because would year or these share mean, and another what does you characterize to particularly that market, it at gains. do a this types In terms

you they're if any so out. your And other doing And you've that know of something competitors? kind on clearly, I have figured don't not thoughts

DaveDemski

stronger, implant and I Yes, So I market. of right? is our they're is if you, that enabling the clinical tell driving be technology. ill spoke the value. driver would remiss anyone they're They're technology in fundamental technology, I differentiated, Ryan, will But

sell to enables that good us come differentiation for attractive They're it's want good that, relationships, companies very they they over the that reps, stuck well. then time our other got underneath outright innovate. reps that the So there. at been company, technology also on to implants, but other just for and are we over have those to and as sell spinal there. market, best come strong it. And spine, for it's to competitive the long we've really drives a really group noted the the so We've It's a really, the thing continue obviously, across recruiting

we're and Our it about and what know know that scratching enabling already you actually don't about have technology just what you you robotic with surface is yet. we the

We really And and are then But in probably those ortho joints, that we you won't innovation things have year. things some have well. exciting next between until area coming. see some area, that Dan's in coming trauma the as

technology. down core. all founded comes it company, remains that So were We an as our to and engineering

DanScavilla

think things lot one executed And out thing we're that I year of extremely comments that I seeing. I that talked I executed, of we've through to the and have, half, when has think the helped well, exceptionally would as that well we've there's all we would say done the that add to benefits a think company really that's you drive about a Dave last year, Dave's the

RyanZimmerman

there. Sure, helpful color appreciate and that's very some given you've

Just one follow up for me.

there running you if capacity. you that But of me be does, and comment was did think, I any specific there. whatever wrong kind online on when quarter, in does And categories I I'm if product comes in you. just So what additional for product first of or weren't and expected, some you guys up and what of Thank could the fourth the it kind families additional correct expand 'XX. really constrained in? out built think that capacity And to manufacturing that you that on quarter

DaveDemski

Sure, to products still we we're get particularly are got the you've constraint cycle. we've yes, XD, made, through of a put equipment, to capacity the them you've distribution some the of in and the big got the qualify get added that segments got to company, sterilized still, you

nine last that have. problem months, we're that. the capacity, the we've problem seeing where with right up demand. we So impact the in in it's great environment in now, to a keep seen here continue challenging not But we're still add it's actually, the to with full growth that the to And of

Operator

comes line question the of next Your Saxon Needham. David from with

DavidSaxon

quarter. and afternoon, really an incredible Good

placement. tech, some an First international you enabling question robot noticed just on

I preparing if And was wondering as launch, imaging lined quarter? be point, could have that were. at up mean, some share orders So third you you're then the this those where just going easy you for to are the for I

DanScavilla

what I the say the laws can don't that is take are of what that and are lot excited disclose of product in. forward. first it countries the selling product bring enabling I'll really the tech, about can question that about we what marketing will in, there So part in sell a actively we And we're going countries we're your we a product,

DaveDemski

And David take in able terms not until XD of for system, the orders approved. it's we're market to or it it

product as and So have a surgeons that that, seen say of input the it. I on we don't there's us given lot have interest been will

their too the out and it's their wouldn't as while launch, over so get the skis anticipate approval. quarter And subject get we thing our we with approval. it's So to have do to a FDA, other third I far

really going don't So have. well. would to know we're We're products surgeons and I the submission. And love technology sell start the confident going that know yet. to the interest just in our I we when like

perspective, for a So from term great a it's product going to long us. be

DavidSaxon

for second back planning the noted, trauma, Okay, got just it. my product question And you you're half. is then on launches,

you how much questions. so XX Is full of taking is to longer the just month for Thanks term? kind little a process? like get that Or it'll trauma to XX that a So long portfolio. think a wondering to take

DanScavilla

Thanks it's Scavilla. Dan David, questions. the for He,

a with and the we're rate half and we of both launches second in investment is mentioned strategic market at our for than Keith placement the meaningful that will that have yes, Globus accelerate planning planned filling So to be actually of the products ortho initial increased both will the in trauma Dave plan. joints while our faster do the development What bag. the the and still year, had the

exit we're compete. company, we an be I date leaning the exact to on actually to organization that you out really throughout as faster. I financial tell for strong of bring don't to we'll a so you. resources using position have And muscle this bag though, fill will in the more year, the in

actually really to displacing larger that's and of have significantly they goal XX think this we'll to months, institutions the within make I And XX more start supporting is competition. investment increased happen that faster.

Operator

comes of with You Taylor line UBS. next the from question Matt

MattTaylor

relative from have was I and question. the on great was so is am January There in to improvement allow the and March March. the to true, some growing I back like XX% flattish. square in February Hey, been last sure rebound to you you I I the to business call. don't your the on digits in had year, a Then said some in double of comments real wanted a must if there getting Remember kind January, drag in taking was improvement just that drag trying right then know would a US quarter. us underlying rate exit just saw math guys, XX% just February. for that to the you been last make congrats that's Thanks into

DaveDemski

in were will to COVID rates terms or if you that fourth our, hit October, seeing to it of quarters run Yes, started was we December. relative again November -- the in the

'XX. was March but halfway that as was hit March COVID XX% through got to that comparing we of year we're So off in XX% keep mind, the last commentary with

neutral about a impact year-over-year, so of there and compare was was definitely last as between I earlier was March as then in good. one negative impacts impact callers January negative got COVID better And 'XX. and the QX was year. flat you March think and quarter, we impact So progression US saw 'XX year within relatively a you've QX had on bad and this And in January February the February got the in the the asked,

MattTaylor

believe you Japan given and in any business, just your through help recovery could that what on a out year us exposure worse? your look or to or take the And thoughts will us better international like Help parse through bit. you Great. some doing geographies

DaveDemski

we've almost every there. The well, year. we're certain in of in doing going we're in process that's it's market. away a other headwind, is if going where robotic from Again, Yes, technology Japan biggest have And gone you confident place out will, that rebuilding, distributors, to the team country. be our just our is we those in areas to this roll

a be well. point that'll So leverage as

I as each And we we to mirror see pick the some this year. Japan that go a So offset start large saw what by probably hopefully, think two year, growth of end this to the of quarter, where it'll extent, through to other sequentially. are going the we'll in up

Operator

the Rich question next Our of line Newitter. from comes

RichNewitter

questions and for congrats this quarter. the Thanks the questions. Two performance on taking

in the March. quite assumed The up had the appreciate curious that XQ. more the first at now, just second raised baking you strong commentary beginning much what the guidance a much relevant on I better really bumped back than assumptions you you're you provided on for very the wasn't XXXX. a a assuming half. But what's Keith, I'm to picked just gross in that guidance, The with pickup curious weren't the is strong you had half when any the that outlook year of big, for March than year, of I'm guidance suggested in right in back that last XQ. of half April of

KeithPfeil

Thanks for the question.

a clearly and think to QX. finished you going strong about As we million came out million, from $XXX with the $XXX

back feel conservatism as into statements We global to we're is Stepping we about April, of not turn but still still we're is into still little we I at. QX from in in we be had to year. say where a conservatism of last it's because I QX quarter, there's the about QX feel to expect going going as bounce about a year, when we will is from as in just backs to to of a clarify say of a look into the the want QX out. strong strong and QX, would the As now And we just positive fall year. we now, some slowdown maintain back that where we still that is that back I I look, we're momentum get this strong But land. the positioned lot end bit QX, still think came of think the we're but could perspective going half April, we holistically QX, March, QX at we about we still, there because to QX and between feel million you strong right that a the will where still good happen out and know sure really QX, looking $XXX and still those environment a we're earlier appropriate how or

RichNewitter

of then as has extremely you shifted robotics an just got beginning just what's if it for has if if either you're wondering XQ Okay, prioritization conservative. the I'm placement of Thanks. like long long kind to strong it, sounds just I'm you dramatically you changed, it a something how kind Like or And remind side historically, changed there. anything hearing capital close how the takes on being of been It's you selling and still what conversation cycle, capital capital matter? deal. the can anything when But mindset, quarter. the you correctly, structurally the and encouraged, that us or

DaveDemski

Yes, the out compress enough thanks the and compelling Rich. the the cycle Well, to to capital that opportunity make technology break cycle. for and our goal is economic hospital capital of

would challenging but I in now. surgeons. executives it's last that possible say and front couldn't challenge, year still And So you it that's when get of was a

our and we of year, one year is will end remind exited then was pipeline difference the strong. I at I last as that said that you between really structural So the

that pursuing as continue we we QX. say have were and potential I'll that, as that quarter a at we deals to closed in had the -- the of them look lot strong So exited a got pipeline Several we've the were we we year. again, and of

Operator

next line comes with Piper Your Sandler. Matt question of O'Brien the from

UnidentifiedAnalyst

on Karen for on for taking the Matt. Hi, Thanks this and quarter. the is congrats questions

that impact XXXX So Q will for of baked a should guidance just imaging, how on year? Or that be up more into we first off, expect? following of this is much that

KeithPfeil

from to $XXX break and a pieces. number. to our parts million, some nice We this pieces, $XXX are know out coming not in that that will know out the maintain we we it I later or and and we that parts QX, the it we forward, our from going year. coming Because not sit move is still conservatism hope breaking though to was one we're But thing launch want to do say million even

UnidentifiedAnalyst

in And new space the last your yourself that then the you. on in shift still there's competitive to positioning the thank setting? to stay channel, can ASC Great, are expand push through How ortho you hospital but that, one, ASC. efforts in of to one some you just huge the a

DaveDemski

operating I to That's budgets, know that of typically way at anybody's don't this capital probably go. out our terms efficiency their sets that both a question. constrained of and and in But in in constrained great of budgets. their point. fully issues. is implants space the They're their terms figured They're more terms capital

products all those at look to trying of we're address constraints. So that

will challenging, us. as we environments, opportunity focus but on well While it's the hospital for a impact high so

Operator

of question Craig with line comes from America. Baggio Bank the last Your of

UnidentifiedAnalyst

question. taking the for Thanks thanks. guys, Hi,

use thoughts then couple expect there progression the how And robot? ballpark? time? the then a percentage you couple high of Just wanted done level over of how Is over you high spine with percentage robotics get with next level and ultimately what on sense robot? for roughly maybe is the guess be will really what's for your secondly, the see XX%? years? questions Or procedures use robotics And in are start on a I it higher of that a to procedures the in wanted of us you to could that -- spine of in level, on that that give a Are sense

DaveDemski

Craig. thanks, mean, I

an of the terms highly driving focus grow. company internal continue that's going of from to though; to the why right tell that information we our we're share it's In don't and base. focused now, I standpoint, will you percentage in install adoption that ultimately, utilization competitive it's on Because a

utilize is assisted it. measure that'll of years, sooner. be; more they're technology lot they're care. a I think surgeons hard shifting it think guys within evidence to and there's recognized, certainly do by acceptance are it, actually say. going doing; and that are those I As just I see to be when people the to of it, XX where of don't able value know I be of more standard the anecdotal we're everything do computer going And growing a think And I over seeing could to to really technology. It's it's benefits.

we're And in the as and to trying use pushing hard as to as more that technology that. make in the the doing we we're as OR. well So focus efficient drive both our can just field, with better, procedural easier to

So I where But our it's I on answer going I'm wish for had you. better to there. super a bullish and ability compete

UnidentifiedAnalyst

commentary. of that, up maybe and just on your follow acquisition some a Appreciate

assuming you've more and Your I'm one areas But those focus Anyway, there ortho, the the than of or more there target done of areas, couple technologies. is looking it spine enabling at those maybe a deals areas. the all others? a any you're technologies, of is

DaveDemski

that the would But think have And on spine, that as I opposite innovation something likely them. answer is very a well. side. we we broad the in so all we're less it's ortho probably of there at Well, find true the line looking of of is

to open areas fit to bigger better any that So differentiation what we our into doing those impact. all of things a are going portfolio. we're can have we're be probably and the improve where But and

Operator

any call comments. like turn for the over I'd back closing to

Brian Kearns

Thanks much night. everybody. a With no Globus for further good Have very call. questions, Thanks earnings us. joining Medical quarter this first the for ends

Operator

and conference you today's call. your participation. concludes thank gentlemen, We for this Ladies

now may disconnect. You

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