GMED - Earnings call transcript Q2 2021

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Operator

Welcome to Globus Medical’s Second Quarter 2021 Earnings Call. [Operator instructions] I will now turn the call over to Kelly Huller, Senior Vice President of General Counsel. Ms. Huller, please go ahead.

Kelly Huller

Thank you for being with us today.

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

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

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

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

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

Dave Demski

the share. the to quarter everyone. momentum another as we market on continue in building and past Kelly, Thank years good outstanding afternoon, had two you, we’ve established over take QX Globus

draw it’s business impact difficult about results the meaningful the the Given to QX XXXX. COVID-XX, insights of comparing by to

EBITDA continues quarter to $X.XX revenue share, average XXXX. XX,XXX market U.S. reflecting on of and XX% again, from biologics all XX%. increase. XX% a as in competitive growing be XXXX introductions; XXXX, continues Spine number up recognized reached be Pull ExcelsiusGPS to INR way. a the EPS significantly a focused clinical product strong was INR U.S. And acceleration significant reflected through a was More recent resurgence high quarter was new $XXX a time $XX by Revenue of robotics; the third XQ quarter an XXXX. The strong per to our growth. million and will of per for Non-GAAP adjusted procedures contributions superiority comments share in consecutive from of our driving take up over growth. recruiting over using by Once surgeons my adoption. So, XQ second was record and of Spine announcement the QX Excelsius. the record led procedures surpassing all comparisons XX% primarily our robot million in factors were XXXX. over and business; an XX%

emanating of We’re see created emerge technology. beginning cycles adoption value several the by all from our to the virtuous robotic

robot because pathologies majority surgeons who endorse for that even master Excelsius wholeheartedly situations their surgery complex perform and to their considered in utilize have be surgeons the to without the of cases, leading We increasingly Excelsius These assistance. inoperable technology peers robotic of may additional would sales.

begun non-robotic for Excelsius of and used We to innovative to our gain Globus have utilize cases spinal exposure as well. who implants implants, due line have surgeons not previously have to but Globus entire

of to seeing of adopt the robots. surgeons who championed the and the We additional but usage purchase the Globus implant which also after colleagues initially robot, the have technology, their have success has not led may purchase of driven

additional business team after successful had the decided with to business technology, the them. robotic a attracted have Finally, we to with reps bringing a of join losing who conversion competitive the portion best

technology and these are increasingly merely have over it play focused by Excelsius At the we the surgery. on placing the the heart scenarios utilization effect a of created seen improve our The on is about business. U.S. It’s robots. years what testament As not growth business power to amounts value seeing flywheel we the our to transformation out, the utilizing in past a spine is of taking It’s place. a to two technology.

either multiple utilizing integrated and today. strong trend multiple procedural implant spine On static place HEDRON allows Lateral on of X% L levels the most growth very printed by quarter. the the multiple performance was to the Furthermore, in international lateral our expandable market front, masking most options, ability by adding Unfortunately, in Japan, interbody grew all business last of gives business the by through solution a while comprehensive the surgeons the spacers, and suite create in throughout broad position. markets XXXX. the is to plate-spacers and safely pedicle screws, the a address expect interbody MIS quarter or levels This health of transition Strong position. to world. ELSA, Japan to the remains a our patient perform necessary in lateral we CORBELand solutions declines lumbar product identify surgery, offset spacer surgeons the Excelsius of and of continue spinal raise a TransContinental QX XXX to the patient much a rest access to solutions single for long-term while portfolio lateral prone lost in We XD efficiently in treat

later late of full of well. launch waiting product second and up INR the the flat to was quarter the remain quarter Excelsius XXX% for XXXX, clearance XD as and Moving second system to regarding trauma. clearance we module over Revenue Shifting the cranial development, The compared sequentially. of XXX(k) the optimistic over QX. this system last is relatively imaging for are in to Excelsius launch and slated XX% year cautiously of quarter

are did off and for planned of way second to promises to exciting fantastic half. year grateful It to of first our If as We customers we performing and the the launches are an be as team a continue we XXXX. and I our company working half start in together parts we’re to expansion the over force the team. the product worldwide they we’re of this serve for effort All patients. focused on execute year. Globus amazing and summary, in and In will Keith. dedication, sales several members I’m call ability a turn have well the XXXX. now

Keith Pfeil

QX afternoon, everyone. revenue, and is implant through further and strong Thanks, to the profit of trend off a business quarter fantastic from and technology. cash Dave, our of growth. free momentum coming good our and market adoption penetration build continues second Globus flow ongoing continues robotics

into comparative that Before I quarter I my in the jump focus of quarter, my want discussions XXXX. of to will second the majority comments, on highlight the it

most there This a QX the However, will and provide XXXX our of I insights few business. areas will are comparisons where XXXX. of into QX provide both meaningful against

net Japan, of when income Our income two currency diluted of per net QX $XX.X million number compared share. selling non-GAAP XX.X%, XX.X% On $XX.X second a and days was U.S. EBITDA QX and $XXX basis, basis. non-GAAP fully million was XX%, a quarter in free a driving cash were selling constant of we Adjusted earnings versus million sales higher flow. day-adjusted $X.XX was revenue XXXX was XXXX. the in growing more same the $XX.X million generated and to days reported by as of on QX XX% again

was robotics Our of million implant higher second of based technology the the quarter adoption reflected XX.X% XXXX. international on in growing of and increasing compared most within by share transition. our second growth versus was the We our strong comments. U.S. QX to which quarter revenue those lower inclusive International markets, X.X% quarter, $XXX.X business $XX.X previously growth discussed second Japan, for INR, is revenue or dampened million, was earlier experienced in continued sales XXXX days which sales of across

be As we QX, headwind as Japan mentioned we in to XXXX. expect through progress a

tight. However, raw QX outlined and the to with quarter higher sales, position but QX revenue instruments expenses are by driven drivers essentially to slightly of was this the compared XXXX, the to strengthen impact QX or for gross higher planned percentage term. labor sales. expenses associated have write-off of sales last additional cases, mix yet $XX.X X.X% the inventory or markets of product of in not the Japan XX.X% in development higher line costs decline spend, will The of driven of non-recurring million a Research plan in we XXXX. The depreciation reserve and of remain and of in lower XX.X% profit by materialized primary materials. as as a increases expense quarter related our over longer

second the and of XX.X% in new as we or result quarter continue to across of million the was committed our XXXX. $XXX.X portfolio. expanding higher second quarter R&D in a develop compensation sales remain sales million of expenses However, compared team, SG&A sales for we QX to innovative products were mainly or of The our XXXX costs. higher $XX.X a of XX.X% spending to

income of However, quarter percentage the option second of XX.X% the for impact lower benefits to stock rate associated revenue leverage XXXX. was of by as SG&A tax due XX% The The rate sales. tax to driven has lower in tax a exercises. a as higher quarter effective the was primarily compared with

procedures reflective industry basis, million tax is case acquisition, QX the per rate. time, Delta to as the the our concluded R&D impacted expenses of As XXXX declining at quarter, large which a equivalents $XXX.X associated net The shutdowns regional include charge early emerge working Net and $X extended securities. marketable million. and experiencing of well guidance in diluted $XXX take record vacations of cash, $XXX.X million XXXX improvements. four non-GAAP and in cash Synoste a third lower a business, cash elective on quarter capital as reminder, in At COVID-XX. as results cash to is the million fully effective company to by with earnings the QX We capital provided flow free company share. variant a flow, of of also cash flow this was million free earnings sales cash surgeons in operating Year-to-date $XX.X million. its And $XX.X of free was due has and is rolling volume expenditures, the increasing higher $XXX.X generated activities the

vacations impact school. October We in September kids once from the back reverse go to expect and to

increases through recent that specifically the everyone been While outbreaks. the in predict spine take resilience great COVID to of COVID-XX impact and it has hard market shown share dealing the with remind previous I’ll is market able the in cases, has Globus to

revenue expect slowdown. transitory, to in QX we with in we a project While associated decline sequential situation do to the be procedural

year. the in non-GAAP in ahead diluted generated $X.XX and quarter earnings strong XXXX. revenue, the second a share. back half XX.X% to the in of be $XXX.X million we’ve to start per results looking Our Year-to-date adjusted EBITDA I’ll continue

We’re continued our focused share new adaptation technology, while products. our of drive take implant to push the robotics exciting on continuing to launch and and

on business. all will approach maintaining our in discipline of managing this We do operational while execution strong focus to and the our

We pursuit team and of to excellence. our committed shareholder continue and are which our value. pursue to I’m Globus expanding all complimentary thankful long-term will drive acquisitions investment to we’ll their of

As our we continue serve patients. and customers to

We questions call will open the for now

Operator

[Operator Shagun Instructions] Wells Singh line Our from of the Fargo. first comes question from

Your line is open.

Shagun Singh

just question. Thank from guess you I so much me. for taking the two

one The that, XXXX. a obviously strong appears quarter was on an and inflection first approach probably you capital, very exiting it it

outlook I that just and follow-up. beyond and So, helpful. touch then the the if even have the you second of half, XXXX would can And then, in beyond, be business in on a that seasonality given just

Keith Pfeil

is I our business. this feel for Thanks positive about extremely speaking, Shagun question. we Yes. Keith. the mean, Generally

the executed we we’ve that look everything the of well first and in we’ve back that has half As we’re to the share. year, taking shown half done

half, back remain business. entire our across we the to look we positive As

we’re early As several but comments drive it’s to growth. to a to future quarters, XXXX, as I think well we at it our feel for relates that we sales XXXX, on the look little to positioned give last

Shagun Singh

it. got The a question bit I capital. little on was focused just

think you then that, about So seems inflection that just and how at like beyond about back-off, to so it business, just an so talk capital? outlook the just it ExcelsiusGPS, it’s given seasonality should in us can to just that, the the point, of given a specific we bit little

Dave Demski

Thanks, Shagun.

in of third quarter the quarter budget a of cycle end the is is quarter for some think a I ones relative typically slower Usually lot other the at the accounts. to fourth capital. of the

dip tends second about the think to speaking, quarter, bullish there, you the little second adoption so little generally a that’s see there’s strongest. we’re then creating might that And So wave a that Excelsius. the at be And of demand. additional very I but

and technology about very very this bullish So next our into rest strong year pipeline of continues and to for year we’re the well. be as

Shagun Singh

just I included And over XXXX, you for the realized to was during it respect you’ve help spine understand, substantially hearing at got are then, in if that We with it. can look half. first there backlog? what guidance, backlog just us your you the

So, be helpful. backlog and including the you back half would when variants? what they then, That are of the impact in Thank for anything coronavirus you.

Keith Pfeil

to XXXX our think when back at and I issue we of to remain look the year as we the positive, back business. I go look again, I half

Our XXX guidance in XX% to growth to current from annual implies compounded XXXX XXXX. XXXX

we’re As we growth and organic that also and feel where of we I going. factors our growth comment is look shows is all business that growth to That coming that very would across level that, that drive organic. positive of

Shagun Singh

you. Thank

Operator

comes next from of from Miksic Suisse. question the line Our Matt Credit

open. line Your is

Matt Miksic

sure if congrats love the another love get if that could robot that willing I we if some you’re to on would questions said I’m been follow-up it, folks guessing you the taking QX, comment on everyone into procedures for you’re it to hear hypothesis that strong I really high that vacations. to like potentially mark two may a a per this we’d much on suspect that. average number but so Thanks thanks. to questions see because me, going quarter, would mentioned you attention, hitting I for but had just guess I’m quarter. and but something of line that’ll Hey, on kind hear share that it, your heading share have

if expect how just what yes have some you historical, is. Dave, has just are could impact, down, more in revenue historical could? I you it’s possible, should the out three down sense if trend mentioned we is the what follow-up maybe of of down And sketch then if much you expecting an one QX the five, If historically, I increment

Dave Demski

Matt. you, Thank

we’re number As going for to procedures not but robot, of average really, that excited we that. expected, really disclose a about

and excited about just technology bellwether trend. to a we’ve the what of is doing being been that’s I for super validation – really what’s think utilized so see the for that future

bit for in travel. mean In terms say demand a we spring. this just in have of started But in more situation the a see pronounced and much this they vacations, little our Obviously I after to there’s prolonged we the is, seem didn’t think pent-up school among I over year June. that I would at really point. was society

fully be starts again We’re seeing the school back expect September. in, they’ll surgeons take once that, but in that I

a a in going I we’re in dramatic the here little September, to clearly So, third expecting October a be bit strong us no there’ll to but given think change but it’s standpoint, from the quarter. COVID cause transitory, sequential dip situation,

Matt Miksic

many, the much closing and know could this how quarters put follow-up And you’d on growth like of to implants like, of and And you rates but factor know, of been at that do X% growth how much enough. the call it of printed that of don’t a in it, is growth XD about couple than the if some are up market. stack sort underlying I a question putting I feel much faster is factor sort there’s of your then how causing and the often grow Fair movement up? distance to you’ve robot I XX% a the a is, of the the kind growth past zero several get between point, to so over various parse is drivers you

Dave Demski

technology the numbers, tell not I or I’m that computer Yes, robotic you transformational. down into will drill real the to going the granular is assisted technology but

been technology. through an made company. we technologies, surgeons innovative That’s always we’ve great So, implants new attracted if

the in still we have I on think way that, we’re is And transformation surgery robotics. this the in done. of top of leading we’re that, terms being way but thinking So,

sales big a business got more, that’s what going the us bring is reps, So reps sell, in it impact but them. to in helps also effective most at top want for this level, to over be

little to synergistic there’s bit try we to situations a some that the a effect. but of described, convey tried So that with

segment challenging out long-term we’re and trend So a the that computer something a say, up. of growth is important, assisted is standpoint, one’s lot it from more and from the to it’s really which seeing parse clearly

about So, we’re we’re going. excited where

Matt Miksic

great. Thank That’s you.

Operator

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

Your line is open.

Richard Newitter

for system Wanted strong thanks just very Hi, the imaging another – congrats have. on that on you start performance. and maybe questions taking the to off guys

of love recently and modalities, that I right timelines of your some think, FDA from views apologize. and to of approved especially missed your the there, a kind then it, and with or the with of contribution now, potential also updates turn kind for any some just if other year on I’d imaging FDA commercial competitors. one product, launch I I And hear

So, I have and there, a then thoughts follow-up. Thanks.

Dave Demski

thank you. and Rich, Sure,

responded them approve will the hopeful. quarter It’s on They’ll early now. the as questions the And we it with and it’s going quarter then with back We’re launch. to be in planning now FDA this We quarter. looks. fourth or right of the it we’re end some commercial and –we’re to a

challenging come but that of technology. it’s terms the had about you but we show getting I In have our to surgeon with a through to process obviously anecdotally, is several, tell until it who to projections really ready. the is number, will every with up ours we’ve of contracting systems other process their stopped have plan competitive hospitals, work We the just excited

significant the out going tech what’s is to today. benefits versus the there So technology bring – benefits are this

year demand. make need of this about think we enough them So, we’re point, at excited just next the to to the impact I and satisfy

Richard Newitter

Okay. That’s helpful.

quarter in implied necessarily higher guidance strongest XQ your in which enabling kind or the but stronger your here. typically seasonality, quarter is is the are kind your but around high the a what capital of XQ vacations, cadence as technologies, pronounced more updated comments you as appreciate cadence XQ, guidance typical the watermark on than the XQ, of just I not maybe is seasonal assuming little if on being side, a high Just the XQ, seasonally of, XQ and the guidance? in for

Keith Pfeil

the Thanks question. Yes. for

typically I is, QX followed think, by QX look is that way at down picking slow quarter I the a up.

terms of coming going the business. Again, different going, In slowdown that necessarily about but lot for than we’re positive we where history. to watermark I high be remain that say whole across QX, QX wouldn’t see a in QX we do sequentially versus entire it’s

we include as would the enter third in robotics which of Some slowdown quarter. the

Richard Newitter

a mentioned, your opening Dave, squeeze was one spinal Thanks or year-over-year, international in remarks, I growing comment you I could XXXX? a Well, more of think that if in XXXX lot. implants X% off

Dave Demski

Yes, XXXX

Richard Newitter

you. Thank

Operator

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

Your line is open.

Kyle Rose

robotics Great. And I bigger I quarter. the capital to, a respect demand, the with strong what want Thank much. picture just maybe robots then the wonder interest on follow-up. you the seeing that things sort your if one could or for you expectation as, far kind you have if as installing upgrades you the perspective, robotics have base of you talk as reiterate from how and pay field, have placed. order to the as imaging where within and a it of very comments with maybe customers and seeing now, on from I far any Are that go-forward installed stands basis, in the then difference modality, as you’re

Dave Demski

thank Sure, you. and Kyle then

an seeing own that with constraints how will it, And people I no customers to to us willingness everybody we’re terms would there. but with there’s make just that technology, to say probably with interest they us a that technology In and the pay that Excelsius big really or up a change it more and know change we’re other over experience I familiar time, our to capital their system, because it challenged opens for works in have think segment want currently are in of address. they has are not competitive that prone for value brings, our really and how imaging arrangements. have

So they’ve, computer computer that doing at achieved navigation, benefit the some technology assisted from if free adopted someone has they’re and already that point. hand

get So a robotics. to challenging it’s step to the them to make more probably next little

comparable a people that up we’re today, business So having able along to by have moving compete for to be what Excelsius with to to product exists XD, going to robotics.

Kyle Rose

technologies. go just Great. you’re then very yourself mean, trauma. I spine several bigger helpful. launching and Obviously a That’s And the extend picture more years, last from seen perspective. from enabling we’ve you over into

cycle You kind about long-term, or the of think you organization, merging hips and broader next? orthopedic acquired of potentially when sort knees StelKast a we understand where trying and to into just of a that and going, things are in life what’s from extremities

Dave Demski

Well, think particularly of a again, the think area. really assisted I particular lot have joint computer total the is starts can work do We the bring advantage aspect. in we with made to that we’ve we there the

where competition. of differentiate to So, from our there. then we’re we’re as still development to be robotic And on solution going the able ourselves

to innings great as early portfolio expand to through grow it’s at and alluded and So ways considering through we years. over point have as business you on to discuss to then where walking we Keith trauma active area. the much last that point, continue the we’ve has and acquisitions, progress our there that making And this is we’re And don’t expand other but footprint.

Kyle Rose

you. Thank

Operator

Our next from of comes UBS. question the Matt line Taylor from

Your is open. line

John Lee

John from given seeing paying just impact increase Delta the to some more QX. follow-up that in the that or Hi, Lee you you’re Matt. some U.S. the and areas of you’re areas you’re in mentioned I some early OUS for the questions. guess of hospitalization? Thanks maybe on, seeing impacts What one taking for attention is to everyone, that my are this

Dave Demski

comment at it as so to Yes, I it. on. just Louisiana point. are seen and a I don’t I’m not of lot Internationally, We’ve the most that personally had think this significant, outbreaks mirrors has close to where have, Arkansas Florida

John Lee

one include the how are some was more in perspective, I flat helpful. do and do sequentially products some portfolio? it maybe trauma, was families much focused guess wondering are you types the think sales this you portfolio you new competition, launching product on you It’s expanding the where product force to great. on Okay, maybe and relative

Dan Scavilla

Dan Thanks for Scavilla. is the This question.

real is horizon. couple always a trauma and at play, things. long-term of a long-term a look We’ve we said, just So

So, as while just the several compared we’re flat to record actually not it’s so sequentially, a records on high along in QX. relatively up much breaking was QX something of hung that’s our territory’s journey. with

us We That Dave that the to should said second accelerate at think up to very the of several positive when as trend So, further of we’ve procedural point, that maintained actually XX% expansion have that out of that get the have a we our ability to into gap. as R&D to is will of go coverage. fact in mentioned, and will ability we good that hired the forward That off the key half into resources to more got XX% this. cover we they’ve we a cover do about planned the come our with the XXXX planned for further year. that us with launches procedures

there feel a on and to I and what get be where bullish the portfolio. So, trauma very next we out steps really complete are traction the are, we’ve made

John Lee

Thank right. All you.

Operator

Ranieri question next the Drew from Stanley. Morgan line Your comes of from

Your open. is line

Drew Ranieri

everyone. Thanks third on came just in quarter. the Hi factor and And question. for the decline seasonality off the in second quarter, the you record sequential sales taking the

has look the but it’s will consensus sequential of help and just business? the And entered decline given the of like seasonality the decline, Is of what in the and history and quarter. momentum to and right look third at at think picture, million kind underlying think to kind trends changed the sequential any for see of you portfolio I $XXX just back difficult the way has the about framing that just robotics kind third that given quarter. has the

Keith Pfeil

Thanks Yes. Keith. for question. the This is

you roughly that think XXX. around said I

we’re history, that from sequential back when decline, like, with more that flattish going at makes the I and second when and about as look look raised feel of look strong I typically And to is comments our at you QX, QX I here little think QX. to it, feel but bit like at sense. QX seen quarter we kind

is that So, I there comment think reasonable. your

Drew Ranieri

that kind just broadly and also back as remains want understand was how not solely or year you. materializing your into just moving it. is comments, at on across as that we’re that Thank SG&A the guidance comment? to Thank spend, of And of market the the better was got directed labor Okay, of R&D type that built the around you. dynamic half kind

Keith Pfeil

Yes, Yes. on I look wanted had want that more R&D, that as aggressive spending is in market’s because and number The really QX there I to we it really change focused higher being compared My tight, do out point in talked spending, because comment $XX.X out. previously is million doesn’t about investment there. view. is with was raise of to XXXX. thing, R&D I flattish call to our about the the investing, our to labor I one a at people wanted in

from I is like there, from the COVID, would would of the a P&L, stranded. is to COVID One – acquisition coming previous savings costs there’s looked the mapping what so and the we’ve growth. add And call is last we’ve that travel. thing of and things kind which We’ve worked I back back of things costs of spending some is, done our coming gone last year during that out take back and at those our identified R&D

in still of as You’ll bit a to R&D see a travel. little it relates tailwind

Drew Ranieri

taking questions. Great. Thank you for the

Operator

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

Your open. line is

David Saxon

morning afternoon, taking for Good questions. my and good or thanks Yes.

me but Excelsius XXX mean, you’ve correct imaging I’m on passed I off, if Just I placements. one launch, just guess the

next months those Or that with the of get the then think XX accounts dependent to I So And can right? Did I feel imaging you supply how is over you XX on majority do that to could you issue. hear into just mentioned months? the like of a launch, kind an goes? launch be

Dave Demski

– The really anecdotal surgeons that. previewed in like to David. on of There’s challenging hospitals interest more It’s what the to thanks, their enthusiasm really spend. technology been them. as expressed a would it’s comment lot translate we’ve the supply to Yes, by was to

us So, is not more think other I I to though value sell to it just to – us, that robotics selling – today and users after go a on your current other for is our customer. to technology of the for significant same other users, point just but about value really where

this see take the really I to computer So, assistance share side. as our market ability again, and

David Saxon

on then Thanks. and I been follow-up a it to has And ortho, focus. is think, and the the Okay. R&D focus I mean, a just labor trauma markets, and

any initiatives? heard. much give there an I last And on then for the taking is was questions. Thanks so just robot? impact also, those XXXX total I could it update on joint think So, you

Dan Scavilla

Scavilla. Thanks. is Dan This

talked Keith about on in the our to forward R&D was that, of details resources the on future launches. So just in and accelerating year, had went into and we earlier expand intent pulling willingness that some and with in invest

while especially currently the looking world, the shortages. U.S. at labor some So, entire and is

having launches at up, could of We’re faster we we only those of not when forward a do an that’s any comments. staff our signaling this bring point, pace what on intent at that impact really in-process the

and on information part As the to we of feedback. robot based joint become currently that And the for it well, surgeon to track some positive progressing far on half later is half is the gone of the marketable second second the do believe as we’ve we designs we’ve possibly on through XXXX very have. several had gaining all of point where trials freezes it, design the

Operator

from Your Citi. comes the Henriksson Matt next from of line question

Your line is open.

Matt Henriksson

Yes, for the questions. taking hi, thanks

even of or Are up those legacy point faster, the more? fact speed First new reach inflection adopters would adopters get even lot to talk turning are back Excelsius of procedures. And average seeing adopters robot users and you robotics have That market. you you water is down you interesting of a a kind that utilize high in an normally new record kind seeing the get given new to the and about your the average.

Dave Demski

Yes, take more to at not Matt, and point, – think to I my I have users while to the greater utilizing top sure are amounts, technology is more, kind it so it’s speed that. a the I data answer probably of up go. does new to legacy I’m for granularity the the level, users because and your the get

Matt Henriksson

still XXXX. you’re seems helpful. you in up Japan? And in turn little any are driving provide line, Could headwind market. additional on then the countries that just timeline you just and or commentary just which more on but guys comment That’s then which second Okay. the growth? just markets over of progress international color The making you into still a were the with Could quarter Japan

Dave Demski

worst got there. us and as growth still the we’ll a in be behind back back then market. believe – The the we’re – numbers to but strong last looking in year I we’ll have year, And reset of that we’ve I through full we the Sure. Japan, get cycle, right. is kind full to

number track them. a of of is In historically the that the us we’re Germany, we UK, with good the terms medical we’re pretty of and companies populations of world kind and strong directly for in countries are where Australia, care of rest major and

Matt Henriksson

Great. Thanks for taking the questions.

Operator

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

open. Your line is

Jason Wittes

taking for questions. thanks the Hi,

in the particularly in with So the robots being maybe elaborate that you haven’t done mentioned early you terms used newer past? how before done in Can this procedures doing new of commentary been you’re been those how that the robotics. types – that procedures haven’t of in

Dave Demski

Well, can tight to where just of I the with and don’t in a difficult rely it angles necessarily they down the not manual room get on the they just them lot entryways, of procedure, to deformities complex sort challenging spots. a robot of kind themselves precision of and to have think comes really trust would for

corrections, come those tumor like it of sometimes deformity or in So resection, a would procedures. kinds

Jason Wittes

trauma run the Okay. get we this of update what in That’s is the at terms for I helpful. if point. on don’t the And business, rate of know an kind could business

of that of sanity run business? rate current know for what a as the the about is talked know Just curious I’m rate to run kind you that growth kind rates. check, at I

Dave Demski

our we when that tend forecasting the on stay reps don’t swing project but total And that. just comment or really difficult do top the with we our we business can we we or it break launch Those accounts. out on them in to a sections of hire general, for how them away how into Globus. size, are at trauma depending enter to So out, given its and lay product, forward with especially just

Keith Pfeil

trauma cents right tend that a part our on and perspective. larger really the when dollars to from And time. we’ll not at a break now appropriate But out focus it becomes of we business,

Jason Wittes

might That’s all Can of very I be? threshold kind the fair. what ask

Dave Demski

we’re away lot think – but believe, years threshold several of still that. little And planned, we from I things we’re while have from I away I a mean, that.

Jason Wittes

to are just of rest related sounds you I’m at that into the needle? sort – some it sounds there, kind at the products of you leave move products, like you’ll our this differentiated fulfilling next of of really call. product these round It terms in just sometime on probably least trauma in beginning to might question year. you’re in like last out in And of the from could. I curious the Okay. of the or putting if commentary year, had sort XX% terms coverage portfolio by And are products portfolio the add of also out this you end

Dave Demski

little a is answer The above.

intent, complete, that that which is but now going So that the go some innovations the tested, we that we we it accelerate spine. accelerate and we fast do in to in getting did it’s focus we’ll additional as as and innovations adding of to attention fill we’re and of that, That’s plus do, usage like market follow but allowing on bag with need features just have to then getting the forward. want certainly our for and be the bag, some get strong What though, on, you to basic, those looking features some us market. basic we penetrate and gotten the the

Jason Wittes

you very I’ll out. much. jump thank guys, Great

Operator

[Operator Instructions] comes Truist. Your of from Brodovsky next from line question Sam the

open. Your line is

Sam Brodovsky

question. the taking for Thanks

the to Just jump sequential quickly back comp. to

in of coming in more about surgery comp typical as percentage of the there? potentially revenue fourth that revenue quarter, the October. vacations, talked a read as little bit a from revenue by bit fourth revenue maybe back quarter delay or year, a given Should then September, into then we little that better sequential the a a You total more

Keith Pfeil

any question. conclusions know draw that. that Thanks I from Sam, for strong would don’t I the

be to right sequential look I the as be – QX. asks, in to that from that closer to QX think commented I to able the versus we’re had I consensus? slowdown earlier QX we back feel a relative that to does now, going feel a I – really it’s to obviously that half what like that we question QX. going to And comment on

back don’t half to to we of in As spread, I as to typically I where go look that lot mean, years several the a the QX look see year. of in different our being whole XX% I the I typically sales back roughly XX% QX.

Sam Brodovsky

then drive appointments system, as thinking give Great. the sharing forward? how launch you get to potentially That’s great think closer maybe system. of TransContinental helping Thanks. we imaging is how really the driving And or to we going robotics, the imaging helpful. about us out company selling – Can implants to can even about the greater systems

Dave Demski

Sam. the our impact sort going it’s the robotics enabling Thanks Yes, a I of mean, going – with better to has. tendency same work to to there’s think technology. the and implants I of it it’s have will be implants utilize natural

of in of think that I terms robotics So, seeing they’ll with it. impact we’re pulling similar implants very in what a have through

Sam Brodovsky

taking questions. the for Thanks

Operator

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

open. line Your is

Unidentified Analyst

the for Matt. questions congrats Hi, on on the this taking is and Thanks for quarter. Kreene [ph]

pressures? such the the to your do So, eventual withstand [indiscernible], sell in with And coming as new future? ability the market, new first us foresee to company are these impacting for competitive robots how positioning how to systems navigation this – competitive you you

Dave Demski

Thanks, Kreene.

robotics the mean, it’s seen computer navigation. think surgery. had step evolution assisted so I that success from is we’ve next we’ve far, I in in the a up

So, competitor systems our on I from all sales. a newer standpoint. at going navigation navigation the to impact are It’s us think have of in robotics another terms don’t an

offer, everything very there’ll got competitors in are, some know stack we seen that but I And competitors. significant that them. that up favorably certainly are So with advantages over the the I market imaging system, haven’t against be today. other everyone the we’ve to has

Unidentified Analyst

go Helpful. the going modeling the – Thank the to margins that with past, where going that like lastly can does into where you. range you’re from suggest confirm the that just it guide for the can the a shake to EPS mid-XX% suggested you of but you’re and in in of and you kind that’s And EBITDA top-line end XXXX? year just stay the standpoint, on probably seems out

Keith Pfeil

Hi, feel look for I EBITDA question. of we’re going had back business mid-XX% say expect I ahead, continue. to yet. to the year confirm as that a about half We talk still the a little mid-XXs it’s early what perspective. I our history being like thanks the that we can still to from of XXXX I and a But EBITDA would that a we’ve is business, think

Unidentified Analyst

Thank you.

Operator

from the Bank of question Bijou comes last from Our Craig of America. line

Your is open. line

Craig Bijou

guys. for Thanks afternoon, Good taking questions. the

you’re Dave, Just the you’re views to expand robotics. comments your a one to that back go seeing accounts on that couple beyond the champion. that made you want you’ve seeing within of placed the Excelsius surgeon

I comment, that on interesting. that So found pretty

now potentially years? couple last maybe see is one ago. placed relatively were accelerating starting So, of if haven’t you’re seen that a or a to couple that’s the systems to over if see that you from And it is you it, years of new if for phenomenon, saw just what

Dave Demski

beginning, now Craig. general robotics surgeons by I has would the from say there in Thanks, It’s interesting been grown. is

think think the anything interest I in it’s it more – particularly I that to just us. So, there’s think don’t just I – I is robotics. accelerating.

trained of the are So, hospitals, kind a in That’s where us a we’ve for getting sold more ones layup surgeons in interested. they’re and that they’re interested where already it. if

early have we’ve among across from two because beginning So, some systems but the the seen our usage surgeons of growth the that of now of were board. multiple and accounts it the sales the

Craig Bijou

an mean, accounts kind And the multiple systems you do installed? growth top where of how in I then just, a you’re where Excelsius your in Got on have is I you it would mean, characterize Understood. growing what you the of otherwise? are it.

Dave Demski

account in we do your robotics If grow the than I question, we faster non-robotic accounts? in understand

Craig Bijou

was asking. might what hoping that to extent. some was I I That’s That’s Yes. you yes. quantify that

Dave Demski

standpoint. information just I’m sharing from comfortable my it. competitive That’s not Yes.

Craig Bijou

taking for Thanks Fair. the guys. Okay. questions

Dave Demski

you. Thank Sure.

Operator

earnings With Globus no Thank Medical the questions. evening. have for good quarter further conference ends And participating. This call. a second you

Globus Medical (GMED) 5 Aug 212021 Q2 Earnings call transcript