Earnings call transcript Q4 2022

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Operator

Thank you for standing by and welcome to Globus Medical’s Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I will now turn the call over to Senior Vice President of Business Development and Investor Relations, Brian Kearns. ahead. go Please

Brian Kearns

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

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

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

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

filings, available XX-K are including on SEC the website. Our our

a new or do future events or result of We to statements undertake not developments. information update any as forward-looking

also our performance. will Principles Accepted Generally certain financial measures information include accordance that provide believe non-GAAP financial Accounting in calculated are these business today additional discussion to Our not with or We GAAP. measures pertinent

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

will over With to CEO. Dan now call I turn the and that, Scavilla, our President

Dan Scavilla

year's growth crossing comp, XX% full-year. record time. or with X% billion, is finished first XXXX. currency where for Thanks, a $XX strong million grew fourth $X a for Brian, post-COVID last $X.XX for Revenue This reported Globus X% quarter. the we and XXXX afternoon, the and delivered above was good for year billion constant difficult We everyone. as the the threshold

XX% $X.XX recruiting headwinds. maintaining INR, as profitability while competitive even trauma, in adjusted sales, in we and of EBITDA industry record currency absorb leading record EPS to continue heavily and achieved invest an non-GAAP a generating We significant

fourth the occurred four in quarter. of the We in seven XXXX, products new launched also launches

up prior Revenue for XX%. gains in our biologics, XX% QX. versus MIS XX% printed And currency. as the $XXX XX% rep by Spine U.S. was pull and The adjusted was Non-GAAP or expandables, million, in up reported year quarter lateral was gains XX% $X.XX, grew screws, constant conversions EPS product across portfolio driven were through. offerings. with cervical and and competitive QX notable implants robotic XD EBITDA in

to of strong recruiting levels competitive We we're years as in increase is surpassing an Designed launched This fatigue. positioning interactive and coming of focus team operational we've position, decompression. our the mount potential a lateral hiring for boarded single the that about stage, direct In continuum placement XXXX. a minimize excited approach had ease and in indicator is on It XXXX. pro QX, indirect system care. XXXX of of the implant growth enables the single surgical bed adjustable year part usually lateral on a efficiencies, we and and of in leading maximize the patient surgeon our

platform Excelsius non-robotic with our customizable unique seamlessly significant we have our available and and combined enables It ExcelsiusGPS integrates solutions of surgeons. When our our offerings, capabilities EXD solutions in procedures. interbody to range expandable and lateral with and

last XX% since robotic that a $XX year's post-COVID was were and basis on prior delivered sales technology XX% driven Enabling year, system growth. launching constant Tech quarter highest currency up our sales versus Enabling million, QX This by sales. imaging surpassing

imaging to-date. to system XX,XXX and of future will interest exceeding market lead penetrate the see that We significant to with maneuverability, we Surgeons of in changer. this single increased implant the feel continue is field view, image game and international in We to ExcelsiusXD strong with platform modalities in have the ecosystem to the high designed imaging market room. in to gains procedures through that for XX% a gains. ground robotic operating continue throughout and launched large the the system. offering this cart growing of year. key from up built continue three performed seamless is accelerate said QX and in full-year, Excelsius procedures ExcelsiusGPS is pull and EMEA together share ecosystem with integration ExcelsiusGPS An Robotic U.K. placements component three a a a in ExcelsiusXD robotic one a our the year is of It seamlessly. a communicate

for the to a to continue high ExcelsiusXD Market orders interest XXXX. customer major grow. be is and we driver enter state-of-the-art positioned remains growth technology as

sales We QX growth delivered continue strong constant with the in on Australia implant to between ranging delivered growth double-digit basis and spinal markets major excluding contributors. Japan, in Our a in compared growing to see for currency XX% quarter key XX% business, XX% most and and being U.K., record year. international prior markets,

by sequential business delivering of delivering and performance driven XX quarter trauma Our its consecutive delivered all double-digit sales offering. in XX% in uptake and expansion for product each Trauma force growth, XXth strong is growth XX% for full-year. lines, high growth QX product

feedback driver the to In for designed nail or plate expect Distal strong standalone Anthem EVO nails procedures integrated launched of either Femur systems, AUTOBAHN and in to next QX, the be we with growth be designed is key the our retrograde male XXXX. a nail the system. generation Initial femoral is we standalone a now and surgeon combo

our make progress procedures engine for a comprehensive and to development and in will joints. approach trauma within focusing spine, together seamless that product on Our designing procedural Globus solutions, instrumentation ecosystem and focus continues implants,

preoperative execution data outcome At expanding solutions patient capture surgical surgeons postoperative intraoperative of the to continuum care future planning. we're entire for time, same throughout our and in patient supporting care, planning,

has lines have I launches pace, greater of development the approach and time the historical While believe rapid beyond upcoming will procedures extended this our complex shaping significance future.

The in NuVasive The needs Medical preserves all-stock rapid to complementary our Globus strategies addressing commercial an XXXX. our customer to accelerate innovation, planning and on combine cash deleverage offerings a the our we all-stock to and combination reach patients. surgeons organization, relationships. fuel company focused see capitalizes surgeon and into to Moving assets increase company where allow musculoskeletal structure unmet should transaction and territory create and to strengthen and to overlap, to global accelerate investment are little on clinical our improving growth. in us globalization

We create bring to plan clinical unmet portfolios surgeons and procedural to part a to differentiated address approach our best-in-class and solution our from support technologies our comprehensive the together and patients. offering as of needs

continuum and planning focus development product surgical from engines innovative rapidly will preoperative on our Our the through care throughout to combine monitoring. solutions purse developing of increase

are the manufacturing highly redirect complementary, so footprints increase capital chain required other's resources better each supply leverage as cash stand-alone, of can operational and and Our improve investment internal to us allowing investment we while reducing amount to flow. production,

in past common a they clear has potent strengths months, several innovation the are have combine Globus organizations training truly company. become Over of both will The engineering that complementary and NuVasive for me than it with certain education to different. relations, more

We where growth, the market investors. accelerate mid-XXs will for EPS continue growth financial and to EBITDA, flows we outpace to cash gain drive increased and compete sales growth maintaining share continue discipline while our

we has meet the joint HSR, Cross-functional clear can implementation we an submission to As requirements. we are on and up, merger status, planning ramped shareholder secure once update and the the currently integration pivot preparing so integration approvals proxy approved statement. closing HSR is our when merger

We expect to close mid-XXXX. the deal in

merger of robot elements long-term mission customers to system are deliver positioned imaging I is our all planning. and and on achieve our focus core growth, execution to know to closing, introductions, In becoming world. new rep product remain value drive well company for growth. in innovative recruiting sales, competitive preeminent XXXX musculoskeletal integration about focused and the we the we

the turn to call now over will I Keith.

Keith Pfeil

Thank sales, headwinds us a the in lingering despite constant call. $X same strong currency reported revenue you Dan, X.X% and on growing Full-year COVID thank XXXX, XXXX and impacts in everyone for $X.XXX to milestone was year. to of in growing you, billion in over joining the days Globus today's X.X% billion, and currency earlier XXXX. selling a basis and on number XXXX as with achieved

Net $XX the generating income to for XX.X%, $X.XX. Currency we diluted million, per million million, was revenue of full was earnings by flow of resulting share. per in net EBITDA free generated $XXX.X million year. $XXX.X Non-GAAP non-GAAP unfavorable $X.XX earnings diluted adjusted was in of $XXX.X XXXX. XXXX income cash were fully share impacts and fully

for constant $XX.X diluted while generated the million. was QX $X.XX. XXXX X.X% reported earnings XX.X% a fully as and flow $X.XX, on was quarter. income income our of and XXXX per growing Net per share basis. was fully was non-GAAP net share $XXX.X XX.X%, diluted Adjusted cash currency $XX.X free million, million revenue QX was non-GAAP was and earnings million we $XX.X EBITDA

the in and on reported the fourth INR X.X% XXXX implant compared currency XX.X% revenue in biologics $XXX.X as revenue a and was growth U.S. was constant of driven and fourth quarter, to growing XX.X% led million, U.S. trauma. International increased $XX.X by million, for basis, reported sales. as the growing prior spine, quarter year quarter by

Full-year mix, reserves was profit point was and XXX-basis the Gross mix profit the in driven to gross higher capital freight and freight is by by year primarily expectations. XX.X% driven decrease higher lower decline in fourth versus sales by partially inventory XX.X% expenses. higher and XXXX XX% The costs compared quarter XXXX. quarter product point primarily and depreciation product with consistent prior XX-basis was XX.X% was offset The expenses. in

driven The spending R&D, basis, across of sales, compared the sales. is in spending a increase INR is lower and sales $XX.X The X.X% portfolios. driven QX or trauma continued or decreased QX expenses spine, R&D and X.X% primarily quarter. of resulting driven by QX R&D normalized Research million in was On by higher increased IP quarter-over-quarter were development ‘XX headcount spending million QX of investments million our mainly ’XX. $XX.X year versus or XX.X% ‘XX $XX in in by prior to

acquisitions were Our both XX.X% full-year prior X.X% XXXX of of $XX the or sales, compared to sales $XX.X sales, in XXXX or the were compared R&D of development $XX.X prior research year. in and Adjusting million sales X.X% year. made or X.X% of million for expenses million expenses in to periods, million or in $XX

the million the travel as compensation quarter. QX increase of well investments prior is is $XXX.X as recruiting, costs XX% of expenses million compared spending namely $XXX.X comments consistent The our increased or competitive my higher XX.X% quarter to XXXX, were selling with The a or across result sales, sales from higher SG&A portfolio. headcount on in of year fourth in expenses. higher costs as primarily

growth, million or SG&A expenses higher XX.X% sales. from $XXX.X sales, sales volume driven and million compared travel. spending higher higher sales by XX.X% impacts is of as or primarily expenses The increased of dollar $XXX.X well were compensation as to Full-year

expenses. basis the in The spending, XX.X%, compared was income XX.X% international primarily decreased driven partially tax versus points of quarter to offset XXXX, leverage training for driven higher and by by sales XXXX, lower spending by tax XX costs on SG&A expenses. fixed rate QX

XX.X%, was by stock the prior rate tax resulting lower associated the income benefits with compared to increase XXXX driven exercises. XX.X% full-year Our in year, with option

million. QX non-operating favorability diluted quarter of prior $XX.X was in interest was year share per income earnings and the net per offset to share quarter. includes a driven million by and partially was tax $X.XX The EPS non-GAAP was earnings translation rate and income $X.XX, income, $X.XX $X.XX QX in higher XXXX Fourth impacts. diluted compared increase $X.XX $XX.X non-GAAP by lower net currency non-GAAP net a

$X.XX basis, a On was $X.XX, earlier. $X.XX, by and the growing per XXXX. primarily XXXX $X.XX as per the non-GAAP earnings growth, to was to EPS in was non-GAAP fourth normalized quarter, diluted $X.XX share mentioned in compared in compared sales earnings share XX.X%, EPS prior volume diluted Full-year non-GAAP of driven year quarter

count in the non-operating $X.XX. share basis unfavorable of by worth EBITDA higher adjusted interest XXXX non-GAAP impacts, $X.XX, worth currency which $X.XX a a of full-year lower is normalized $X.XX, adjusted impacts higher Our and of worth of items, EPS and year. EBITDA XX points resulting other worth rate partially $X.XX inclusive XX.X% tax XX.X% XXXX Full-year currency includes offset income a unfavorable includes for

quarter cash $XXX.X $XX.X XXXX Net fourth the the were activities by million cash of was operating million million provided fourth $XXX.X full-year and XXXX. million Free quarter in in flow the for for and $XX full-year. the

capital higher company The in as remains namely Our accounts XXXX receivable. well working as by investments free. inventory and expenditures, cash flow free was debt impacted capital,

At this stand-alone full-year the time, is XXXX guidance. company its establishing

growth X.X% are We billion, XXXX. year full XXXX guidance representing projecting sales of $X.X versus

to XXXX. growth We fully full-year non-GAAP XX.X% earnings guiding share of representing diluted are a versus $X.XX, per

reflective are across investment to as to our and new R&D products increased we seek of XXXX market. more Our guiding bring spending business. results continued

continue output we CapEx sales and Our sales and to our spending spending as increased force increased marketing meet to and deployment. demands increased for grow set our product

that it combine addition all-stock In briefly entered in with we've our February closing, comments few relates to Dan's a X as earlier comments agreement announcement to I'll into NuVasive. add transaction an in definitive to a

EPS and XX-plus and and the are dissynergies sales revenue implant the near-term and percent likely regulatory deliver INR the NuVasive we complementary completion from This by expect first to sales offset by approvals disruptions, shareholder additional of assumes of synergies non-GAAP accounts. around transaction closes, full-year. partially sales Once obtained rep account Capital and Globus accretion

In XX% X by includes million by of X, on cost by the achieve which end XXX% and this to delivering of year of we the of end XX% expect addition, $XXX year. year end of the third synergies,

call Operator, will the for we now open questions.

Operator

from the of of RBC line [Operator Singh Instructions] Our Capital question Shagun first comes Markets.

is line open. Your

Shagun Singh

billion thank so $X Great, you exceeding in on sales. congratulations much and

see strategy? if wondering come to you could could Thank question the the up versus deal first rationale if may, things the guess, deal, financials so disconnect you other much. deal, about my close would you the digest you given thinking your but and/or on to guess that's willingness I comments of So comment investors the deal just flexibility I talk on stock some and And had be where the here? all helpful. is, Any sweeten I'm one time just the in is, you reaction, we've

Dan Scavilla

Shagun. Thanks,

just about talked believe overlap. we in global this development orthopedics us as reach customer did the we in a and what talked minimal education. to surgeon committed We've these combined. benefit And comprehensive actually is scale, in product We're a we've mind develop the expand innovative when to innovative with and combine capabilities complementary looking able can and our together a being spine really keep you're announcement, saying So to this remain about as ability nicely at and portfolio we operational that we and fit out. during as

And value out even they'll upside when us and all what what you there EPS can't you do that's that, to it. of revenue for point and for compelling at unrelated that's speak out and mentioned combine I the we and with Street, Wall see. the look several certainly It's at accretion can't opportunity, Keith say, look proguative okay. that's The disconnect, deals I to but that they're

wouldn't actually we we and market what and stock time is would change something do be for in to comes. we'll a to on evaluate see and As a with comment in that have in something position when

Shagun Singh

versus for you recruitment rep final sales? And as the follow-up implant a Tech QX? about parsing are contribution pull-through for to And the just relative Enabling from questions. just Can And then U.S. it. talk implant sales Got you thank from question. taking versus NPIs you out and imaging

Dan Scavilla

we're to Thanks, they you Shagun, things the you, a whole. apart Again, ability those wouldn't since I honest pull to all as really be what and with running were. business tell the have

growth I more think as the continued sum we've that probably important the outpaced fact to market significantly with the the of parts. is

Shagun Singh

it. Got

Operator

you. Thank

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

Matt. please, questions Your

Matt Taylor

taking question. for thanks Hi, Great. the

can of about. the concern dissynergies, a the talk investors think So that lot a talked if little able synergies I mitigate how more Can this? is main specifically, the you have that you you you to you here could be wanted turnover also I discussed And the about to bit then some address see timing that? maybe with you that the and about how revenue offset of of may

Dan Scavilla

Thanks, Matt.

want that expect reasonable there as like have think course, a the where going of and access anybody of go And prudent filings amount future. detail. we you in that near that statement. any different things some We're in to proxy we're too signaling, we into deal, won't So to have is certainly in dissynergies. would our put that together would much I to What would in

reps occur. whether competitor, natural that that a to be switching just So going to that built in would account way, we've things that

by get a multilevel What our market when to their expandables. and them that's have, I on our Keith lateral they what would for hand a hands we procedures, technology. open up said stand is, can however, can are we're disc enabling able to We that cervical

will things this. have I would we over believe couple a occur of all those And that in offsets strongly of we All years. believe actually think

some stronger. will the we'll strong we're building XX pain, for looking not company. out So combining but but doing we're by this the see current And come the pains really both long-term, are to say, for a markets portfolios, the combining multiyear, short-term months,

Matt Taylor

Maybe on X I synergies. could follow-up just the ask

laid that of to harder Maybe it You that and seem pull very hanging apart confident just identified you in much of out. plan? of target you'd kind about how how call much fruit? talk it stuff And lower is in your well synergize is that or

Keith Pfeil

Thanks with Yes, early better good million I do the working the $XXX in we're question. feel that say teams understand the the stages cost in of would for about to achieving synergies. we the business. look together. at feel versus combined But at we're both our as these to the you confident structure, we structure, companies we achieve when that savings look their able cost spending of

Matt Taylor

you, Thank guys. Great.

Keith Pfeil

you. Thank

Operator

you. Thank

question of Our of next Matt from Barclays. comes the Miksic line

Your Matt. line is open,

Matt Miksic

Hui, Matt can wasn't I you if me you -- hear name, referring look but hear Miksic. to it’s me after less me quite I can okay?

Keith Pfeil

Yes, we you, got Matt.

Matt Miksic

of Yes, on a Matt these calls. lot

follow-up, talk guess, follow-up. and And have replacement portfolio sense the in sales. the additional what you they GMED have a synergies I I Taylor's could, have mean So -- on Matt can maybe if and on then included things of not and that could, on I one are if driving about one in disc what have those one included potentially fair synergies I the number? if Are there's cervical on margins, then included amount I those? and the robots not of is you just so you in cervical comment, products, at complemenary I complementary are, that

Dan Scavilla

sales Is for right? Yes. that Matt, and talking dis-synergies. clarity, you're so I about synergies believe

Matt Miksic

Correct. Yes.

Dan Scavilla

Okay.

lot going detail. savings we're that. Again, with not of a go into So granular separate cost to from the overall

at too. take look NuVasive strength we're that it's saying what combination. has look, a really a we're an where can we think benefit, and way us, just I opposite is what It's saying, for is

some into placeholders a we're ability to is it. early stages, days through we've some that blind We really bit look right? being gone but more And We'll with ago. and have ideas announced focus few this little at clarity. just We working through, this a from

have confidence sales in synergies. back to actually question we're then our on And what just of kind asked dis-synergies? is enough to the had we think that offset offering Matt signaling I costs tools

areas several to at. have we Again, look

by accounts or those haven't and through like are in realized of down We or just working the early those. abilities there, that we're department. fine-tuned We certainly even that anything the stages

Matt Miksic

it. Got

That's as based that us Okay. kind of out on play of helpful. as talk range looking you EBITDA top where your of you're number can some the EPS margin we And about of maybe year puts Can on this kind end the here tell the kind in mid-XXs year. then keep throughout obviously, facing would to of Thanks. you're those helpful. kind how and line going be for coming some the forward, far headwinds of that you're margins $X.XX of you you the sort low leverage for this year,

Keith Pfeil

the question. for Thanks Sure.

R&D that some as stepped should really as EBITDA show the think -- we've about invested lower you about on on move jumped range. our when recently, the investment of that's So the going done a we little show bit spending, fruits you That more We've will into think we've forward. Salesforce. in up come out. in standalone basis, of out the year But things a does margin end next

mean I a specifically and to business. year, million still back quarter about you EBITDA. about we're bit overall impact profitability. talked a product to mid-XXs little that, currency XX look a points But a have $XX feel XXXX, stepping that on basis headwind full-year. sales was mix of bit the Capital worth in this we I little But at the of if the

the So I've I that freight business about at when driving this Obviously, look a see at healthy I Places inflation. talked we we're that, business forward. and that lot still I look year. and see we're the

from I just think we've rest the prices tick P&L. quarter, up freight in the each of seen fuel across

in sequentially dissipate. inflation fair I as you're year COVID in think the to Last some XXXX, assume that starts travel grew seeing travel. it's to

got into QX to as -- while as saw travel. well, people you think I year, But you the really take to continue the and this inflation hold

the that in some leverage drivers there, absolutely it's which of of SG&A. some you're in the So benefit the increases leverage growth offset see the or you -- seeing might

Matt Miksic

so much. Thanks,

Keith Pfeil

Thank you.

Operator

you. Thank

of Wells Our Fargo. Chopra question the line Vik from next comes of

Vik. please, question, Your

Vik Chopra

Hey good questions. taking and the afternoon thanks for

me. two So for

about competitors First, overlap overlap, the related have question you've you to the but to perhaps XXXX orthopedic competitive expect large a about to of is XXXX. out may deal, market think divest? or and talk categories My has application second of know is said any there's to in and continue Excelsius the limited impact talked I you whether where to the one which talk Can customer ability with coming robot assets some sell you systems? about can in and your you product spine landscape you

Dan Scavilla

Thanks, Vik.

move So get we've always actually about just market question. of one to the -- competitive. this grow We've become on through I second the and first over we're will naturally time expected would part always and how the of the talked

question, procedural planning all loops. kind applications through our things of about asked you stay feedback talked relevant. multiple We've to from development post-op you We've what together. ecosystem talking fit about our pre-op do been of continuously the and that to do data of So the

We're a well the keep All us those not relevant us That of actually of driving. pushing leader but out. were here. will We're ahead items as only curve. keep

I can come question bring the And We've your long-term That of continue pull because deal the of we're up coming first will first strength apologize, how you and to They're part investment again that's on build properly here. talked down to investing a natural. the as to the our for was gains part. go And continuously competition itself? about R&D so we're success, and listen, our spend. going in because innovate

Vik Chopra

sure. Yes,

assets about or potentially Just where the talk categories is may of divest? you and to you you divestiture, the can on some which have product think overlap

Dan Scavilla

at tell we're this would size, significant great of that middle in We're of divestitures you all I not question. time. this filing. anticipating given No, the any it's our a

the government So with again, we're of that we've concern would the anything wait. got we're not now or But seeing that trigger significance. places in thought the and any hands of in right going

Vik Chopra

Thank you.

Operator

you. Thank

Please line Saxon Needham & Our the next David go of David. question ahead, of comes from Company.

Unidentified Participant

just new launch. Hi, -- towards upcoming Could the robot maybe that? guys. the Maybe strategy is going David. you talk be some This looking Joseph to are on of about accounts the What initial you're targeting. for behind

did of could sales talk possible, with expansion You could commercial about talk to force, but those you relative maybe also maybe investments the maybe about the if you currently the And pricing and then, set feature robots? associated quantify available launch.

Dan Scavilla

yet. Joseph. wish have I data could, all don't Thanks, that I of but we just

and So question chunks let go them. those break me at your into

I think and have certainly, we hospitals. ASCs would our certainly on eyes accounts,

to in or both the approach. go at We'll with So one going say type look I that we're specialize wouldn't of other. to

correct things we've capital will in steps are reps projections. that require You our our investments into to initial reps that us thought built obviously, was take implant and

going, out But if them us, go bang. just and concentric group a We we'll we've done and a on have big where pay we in the it as again, and get hire you circles go for stabilize and don't past. moving, on, know use

got pricing, And signal that investment price there's of an takes wouldn't would curve what actually we're said, way. like we've just bears, we'll will on doctors. like drop market add recognize I value solution tell that. or that you, We appropriately. do viable market the the that at a depending a there's I We that in a position us major finally, feel with I So out to to off anticipated there. And competition our

Unidentified Participant

maybe maybe stabilized Okay. Japan And commercial you have out there's to wood in there, the update quick give could Great. chop? on things Yes, maybe then sense. makes a that more just if still team

Dan Scavilla

where now would about have down to right it's would be. it's see I quarter the year. of point where expect behind what Yes. some I it probably it half wanted tell of should is building that the at where a But it's into in the settling we're think actually to you is I that phase, up first we in stabilization seeing this

Unidentified Participant

Thank great. our the questions congrats quarter. and taking on Okay, you for

Dan Scavilla

Thank you.

Operator

you. Thank

Steven from Steve. Our line go Lichtman of Please next question Oppenheimer. the ahead, comes of

Steve Lichtman

Good evening, guys. Thank you.

to Looking versus components you Tech, on any the guidance, there? U.S. U.S. if Trauma. growth, Spine, at Emerging can of it XXXX color incremental Any wondering color provide sales

Keith Pfeil

and going parts we question. for very the bullish We we're But business typically feel to U.S. at into, don't ability grow. the our back I it. year and Thanks look about I that think and still pieces. its when step Great break out Spine

came grow, cognizant and U.S., think entering to between we I Enabling quarter that a Tech. I the see off that continuing a into we're in Biologics Trauma strong recession. that

of we one However, sales the things is that internationally. of units greater those see happening

detail into that So give something that's we much as as But going of the that's in feel good year. about next about terms bringing out guidance.

Dan Scavilla

I these. projecting this it. levers in It we'll while And we enough is can we've never achieve we're upon and the we one right, one feel past. of Steve, we're like forward exactly really performed each or one thing have pleased seems not I'd add these to get of that I'm two with that strongly dependent that, get into which as here

Steve Lichtman

it. Got

tenor Okay. retain help think you then term, ahead reps of near you as what of prevent look ahead the group just couple and overall the you of of do to is here? you feel secondly, to And the there anything three last in deal of any sort the here weeks coaching the sort closing? just Or need

Dan Scavilla

to a some discomfort. great And in change nature have human look, of it's question. state the It's

we've do other historically beg is reps, our that don't bigger intend been thing we companies. this. best and mind Keep communicate we unlike in what change for the with company, is to without So need is we, because do to pay the and here to as doing strongly that Globus

strengths we're So the side that. to the field person same Globus on of them on in our us doing we're same to NuVasive have with maintain for actually give the with they've the in that. time, and we team that process understand to the side, discussed the going are about portfolio At the

can spine market everybody we're the the then, strong near our with looking Enabling can at along So system become and Pulse we're that. powerful offering term, Technology, course, tool, with strongest I really of in think always arguably see what products that. a innovation about the And talking And then compensation, most future offer going the for yet can powerful can When people, that that it's thing to is with focused and ecosystem. that compete up these together long-term fingertips against that months, through at the tough in tie they're within their offering be to a and XX wise a significantly have to rep we recognize industry.

Steve Lichtman

Thanks, Got Dan. it.

Operator

you. Thank

from O'Brien question next of Please ahead, of Piper line Matthew. comes Sandler. the Our Matthew go

Matthew O'Brien

Hey, you O'Brien? I kind say broke Matthew of up,

Dan Scavilla

He did.

Matthew O'Brien

for Okay. my Thanks Fantastic. taking questions.

Dan, can then take the at the about it was timing before vote X% this you it stock the from actually Keith of under guess, versus I lower a just prices is NuVa And point. or It's where talked the So about traded shareholders. announcement.

how So into are committed a investors that if And more this between to you and have so be cash, done? make transaction up to you it voting this Chris? be, would even to follow-up. sweetener, one or gets those talk need offer do you stock for deal are And more going sure this you I

Dan Scavilla

Thanks, Matt.

will up versus as be long-term and Certainly, is this investors I show create with there. questions them stand-alone. why what is sense, in significant that yet do. going to comment to to that get them not the gain makes this we're a lot this a them it you to tell stay if a going understand to So to on that position math deal going we're would we a talk we're lined show of acceleration

steps be talk probably thing So to other at the biggest I with this it. about would think it's point But premature. any

from refrain I'll that. So

Matthew O'Brien

hear be the year I then. we we the could would Okay. all XX, vote? when closing, the months mean, the where you right, of June so sometime Dan, few vote the next before -- middle is think, see But

Dan Scavilla

the create Sorry, leave then with Really, now of get the We're compiling need did that. joint I exact vote. HSR said don't we that's off. in is do priority process this I I the filing the get as have my that can joint we in, it's date but to what in that, get wasn't that is the that I going avoiding now get first and so right proxy look, working, in we'll statements, to right to an motion. say proxy done, get obviously where

Matthew O'Brien

the the a Dan, you from of this double part cash Ortho the of longer down much bigger now to more. because are this in part Is think that a bigger Thanks. there, Okay. was of you adjustment reaction get the strategic anticipating, of the question get direction kind become strategic down flow stock push because then big doubling again of invest and I a in to spine in business space? areas term, of spine, other diversifying kind on lot And away most are were think then more company entity is the of I the follow-up, more of a for

Dan Scavilla

Again, a Matt. Thanks, really good question.

-- So obviously the seat years. from it's always it's interesting for

an is to For looked, to acquisition now eight right of you going the are to do? we've sort are strongest years, you asked you We've we we've this multiple is and looked investors do? do made time back analyzed, What to How an to really been we've back acquisition? We've the portfolio opportunity our what this this. fact going the But through it. by being are to folks stepping decided scenarios and have go patient, it. do are throughout going make came

over we touched We're acquisitions combined and financial to use organically. create move strength our Doesn't want will time. which prowess. larger stronger we other and will to the right, just the is engineering benefit won't as exactly just you our what to that significant, cash the as us on launch well then shifted on to be we've will innovation saying mean company And our combine, and flow itself, individuals, be than allow when

Matthew O'Brien

Makes it. of lot much. Got a sense. so Thanks

Operator

you. Thank

next Our ahead, the line Bijou of question comes Please go of of from Bank America. Craig. Craig

Craig Bijou

you Tech guys a a internationally did was for so had guys. bit to taking Street focus here. on know talked it than in maybe Thanks, -- record the And expecting. strength guys the quarter. questions. And the about wanted I -- Thanks you see I to little have Enabling changed last months either then come funnel, in with three U.S. funnel? see what And Tech. OUS you anything versus of or you over the parse wanted so U.S. out kind the with quarter the of kind OUS. has or in trends really your since Enabling last lower And

Dan Scavilla

my delivering Thanks, recession not and first -- will a challenging I'm would I sure I in market. for use XX% Yes. Craig. apologize growth a

that's strong was performance think that team. a very I done by the

And while has, The of so a with this lot little concerns. say the along that activity one. think, the COVID. of because a in some came a stay close robotically of by bit that than in demand, to recovered I'll of U.S., year. lot I U.S. I Certainly, economically And we XXXX, last better year pent-up had international you sales these

kind spot way we're that with signaling that us So of take we've internationally put out some and robotically. with imaging strong said, placements right is the just that continuing where seen system. now back what as advantage to Really and we're also into that that And overall we've of great we've what is doing put U.S. market. a

Craig Bijou

Tech. stick And view comment up, response like the the made Got in questions. see your of or either on thinking in following recession one a don't about the into and Keith But looking to appetite the of it. for or still previous you you any Enabling a But feel I'll just capital, at concerns hospitals? changes ’XX, strong there's actions any on hospital

Dan Scavilla

this. divert we've too I and behavioral last year, COVID things even been would a ripple and otherwise, soon through a that, mean, that call. it's all have staff to getting shorting I through concerns say funds have they seen and us little that to certainly, changes of into for all like

for and understand the had chance years to and state look in if don't to of normal steady the recession. I at what's a So last three know we're now, face really a a we two

would there our So fairly you numbers enough But tell Enabling on we call. be levers numbers. confident achieve, there's again, strong feel we Again, can we out may what difficult throughout I the to achieve have we those can that feel in pressure is guidance. And Tech. recognizing placed some stand-alone that we've that, overall portfolio, we

Keith Pfeil

only year, finish delivered comment It delivered XXXX, last Enabling through business million look $XX what I and we in XX $XX to back that And million. back step delivered we 'XX. going Tech, Dan, to sales to We stated, million 'XX. went in if delivered $XX Dan the this add to year would in And at COVID, you and at XX.

Obviously, our going issues the and through get really our faced in work really with. end we're going has But the always of them business So hands customers. of grown. that day, the there's to to be capital get to at we're the really

Craig Bijou

guys. Got it. Thanks questions, for taking the

Keith Pfeil

Thank you.

Operator

Thank you.

is Our of next of Rose, Canaccord question line the ahead, from Genuity. go comes line Kyle your Kyle Please open. Rose Kyle.

Kyle Rose

guidance. my about name I talk line there. to taking the hear Sorry, you I questions. bit a for Thank top want little didn't

would eye off there You some insights basis? outlined closes. potential out. half there's the Any play some the be once doesn't close. the expectations first dis-synergies wondering provide a stand-alone helpful. of if people maybe year there on contemplate of you of that the ball, Any usual I'm thinking deal sales for then about just how guidance that And pre-deal upside the the taking you're sort can

you've the robotics launches some from we the new come ahead to Is underlying fair some implant see robotics gaps still to on the new a systems product But in improve that in need detailed application products, And along it talking about should the expect total maybe or past, total then secondarily, joints. launch? perspective. product of you're those joint of

Keith Pfeil

take and to over the for I'll Dan. Right. second first hand Thanks the part the part question.

guidance, relates XXXX, thus off we seen the see We're we've guidance So anybody I looking far don't see as meeting in what expectations. quarter. to and don't ball. the at are with taking or Sales their -- happy it stand-alone eye

are -- moving is announcement. intended prior and their we as forward business, eye to a off don't deal taking So see we're business anyone running I the the ball. we It

Dan Scavilla

What I our knee see my come that would will you're before on is now. launch your out initial out working We're to knee be we applications application would have say going application. that I would question a thoughts. robot second on will not them the other think

said, that way. start to So have move with we'll I other and the real then think as hip ability we and into we time migrate over out applications the

Kyle Rose

you. Thank

Operator

you. Thank

the of from comes Blackman Stifel. of Mathew next question Our line

Your question Mathew. please,

Mathew Blackman

question. Hi, it’s for Stifel. Matt Blackman from taking Thank you my

just inputs think most and into as synergies thinking better is do inputs? about most perhaps the you you those there's deal different most the put one, your or the Just about flex where revenue said, model think the opportunity maybe you risk dissynergies,

Dan Scavilla

beat in probably question. be feel I We're dissynergies. the what product and we to might general. by think what focus nature, us, we do think but that able that you so have And we teasing not think be. a the light is to would tell want if areas, would retain we group Yes, just in it's if I a conservative you think answer. what planned We specific, great synergies those in question, better don't little right sales could the of bit within I a dissynergies know But we will than aggressive our we be were and we've I like probably synergies in on

Mathew Blackman

Thank you. appreciate Alright, it.

Operator

you. Thank

from comes Richard. Please of go Newitter of the ahead, line Richard question next Our Truist.

Richard Newitter

the taking for Two Hi, thanks for questions. me.

surgeon minimal overlap I'm essentially you overlap. companies. Just was on you threshold could between that to the the X for those grown defining overlapped to surgeon per whether in still will be you the customer consider especially a hoping be what way that territories you deal, region, I into mentioned to need are trying on in gauge necessarily the not to was because translate that territories. minimal minimal disruption just the elaborate split going

bit hoping was I could elaborate a you that. little on So just maybe

Dan Scavilla

give There's going where but we I'll way. do do lot with these I lines. on not what you in this, think a right I along certain we're Rich, will reveal can can a I that Yes, now

it bankers, to during surgeon by go. down was was diligence, So level blinded and And of it not done as to way the of logical all the traced this course, a data we most us.

be that the was would XX-XX you're as -- or the if is found themselves. that what that, we of either someone by complementary of had XX% maybe after kind what definition And majority vast the of complementary. the may we overlap. XX%, less, a is have surgeon XXX%, And And it

And the I reveal extremely of this, of so the up. found would really to we ability kind match can't in I high what -- is but say XXs

with that, our very or surgeon we a differently. unblind look screws NuVasive's we well overlap, interbody vice see and even We But surgeon be using in pedicle as we could go. perhaps adjust, the Now versa. it that is

may that conflict. Does best. it that Do keep they thought decide can be where So it we being keep one way? reps, case, what's the a The that the product lines, those those not between both is even along surgeon?

Our to maintain goal reps. is all of the

enough have this. do space, We opportunity to enough enough growth,

really this the we believe thing favorable a rep the And to that is very a deal what it's So is not minimize for that out market will disruption. signaling rationalization. we're about

Richard Newitter

-- just I think your augmented you then reality conference new in a last And it. call. XXXX product Got headset had on referenced launch

curious that's on the there. what track Just if be might timing still and

Dan Scavilla

you to it's through it kidding. No, track. on listen, speaking I'm Rich. No, now, right

to with that the I part that what's off that thought filings. I we tell think be the player going But sure us for the that, continue type again, and be latter will to we you ball. never say towards can you in great for eye get out take no it with this by a of FDA that with to on our And out It's differentiate the this approach. signaled of means would would going year.

So priorities. it's of one the top

Richard Newitter

in anything guidance And there standpoint from baked in? a Okay.

Dan Scavilla

we not. us look how whether good. not it came answer or Well, in numbers, achieve one total, always our take of we It's feel levers we'll did something to that the So that, at, know off market you ability it's to our that right? but would

Richard Newitter

Great. Thanks a lot.

Operator

the next from Stanley. Drew Morgan Instructions] Our Ranieri of [Operator question of line comes

Your question Drew. please,

Drew Ranieri

Hi, thanks question. taking the for

Just one international. on

said about was seemed of give Japan. market. putting detail were you XX% up ex-Japan more call acquisition And It key then Can any prepared the bit from emphasis moving with like the all-in on number there us the a two lot kind on you of of reach you maybe comments, the think the drivers a global in companies. little comment year-over-year. your I just in international international

more share would be that detail there great. So any could you

Keith Pfeil

question. Thanks for the

on end impacts grow. some is obviously expect earlier. what start the into of this at business stabilization international, we that down. saw on XXXX, to as So see really forward and There's as well. the Dan as we touches sales the to to were But quarter look get got commented we the in currency to we Japan back we there as move But

Operator

for no concludes the With Call. Fourth Thank this you Quarter participation. you. further Thank and Analyst your Globus questions, Medical XXXX Full-Year

disconnect. now may You

Globus Medical (GMED) 21 Feb 232022 Q4 Earnings call transcript