ATEC - Earnings call transcript Q4 2020

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Operator

Good afternoon, everyone, and welcome to the webcast of ATEC's fourth quarter and full year 2020 financial results. We would like to remind everyone that participants on the call will make forward-looking statements, these statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC.

During this call, you may hear the company refer to reported amounts which are in accordance with U.S. GAAP as well as non-GAAP or pro forma measures. to measures non-GAAP of U.S. Reconciliation view found GAAP included excluded supplemental information management's tables the the can items useful press investors. provide all be in quantify release, financial and this in which to why of and is identify be will and Chairman Jeff call and CEO, today's Miles; CFO, ATEC's Leading Pat Black.

the to will Pat Now turn I Miles. call over

Patrick Miles

making XXXX Clearly, today, Call. everybody, good some statements. Welcome, forward Conference and afternoon ATEC to will the be QX we

from that, really So listen having if you yourself will Things to well, with me going I you'd no it. read to save familiarize are complaints.

say I think when to we we well, means. what quantify that like oftentimes

so And growth X past quarters the has average XX%. revenue been over

momentum and in know-how which Transpsoas, training our a optimism is it surgeon through the good of I'll facility. reflection just provides to to that's clinical our about we're spine surgery. And that. education so most turning that, also launch on what, me Prone I I We a really sales mission come. I bit you opened the is the we're up what approach how more start prowess, fulfilling exceedingly think the give important; really month revolutionizing little that guess force increasing exclusivity, of PTP, more sales to And it's the I that expanding and of is an We're of ago. created. elevating think the and state-of-the-art guess, importantly around is doing a the really we're the And company the a

a have We lab. cadaveric station X

lab. biochemical expanded an have We

or what advancement expanded, technology an group have machine shop. We call we

strategic that advanced. starting a And so to in we've fit with the priority very is really facility

is greenfield sophistication have kind really furthering with information opportunity thing clinical we EOS. the other The through improved with of

So us. exciting to that's very

year-over-year a surgeon revenue look U.S. Clearly, XX%, of at kind growth revenue there's adoption to but growth was at it new in seems per product way -- were QX and back quarter. you if And on the good a long just away, So year-over-year, XX%. side.

from coming And products. ninth revenue get is consecutive case So category per XX% year-over-year average growth. more at into an the average increasing. new per case Year-over-year, we'll sold is our of XX%, this, but product revenue double-digit

one if and like doing like feel priorities helps we color. Also, doing we're regard meaning in distinction you're the we'll find delve clinical we this you for going a view being going these And and and is thing compelling better comes we're we'll something over you us And ultimately and And to you're and you of do all what clinical as whole over that's to thing is a our something relates And do about, better the from And better about really delve the little business, us -- that creating to so that create bit give making the make different better. procedures. strategic feel into you'll same adoption sales revitalize that it to really each hear what imperatives. is and of each channel with the we're that surgeon distinction, that. translates progress.

making we've of terms And about building reasonably in few the a we're good making what think, so you is, just things. right distinction. clinical I has been in into proper over the investments time And to the the When start to sure margin years. jump at creating that what approach of had think terms kind past of really

to importantly, more XX we So what XXXX effect been was And product launches. start has about the of on the think reflective procedures.

to has we've thesis area of say, we've that's good." And progress. you the places it biggest and made probably of, is, "Gosh, the you SafeOp. proud start think return so invested, And what significant And about what start the investment call you to pretty when most Informatix, been have look at to the I'm And that growth. not includes part. we and it's But the AIX it's because Alpha just where

making it I have a the experience in up will other -- would the the significant TLIF. places And legacy in aptitude in product is were significant posterior side would that -- ALIF, If lateral And we we're biologics products perspective, that a the procedures then PLIF of contribution year we progress I ATEC. here And And company. on development also an back the this you you should obviating off the look tell suggesting be arrived. industry's for there's there's at and home a understatement. SafeOp cervical not when a from saying what significant ever we're new and in here saying at of fixation that lateral, moment best. be sits also some

bit the really is think And world think And And we means. is we in priority when making procedure what how procedural with to make a so the and regard think start when we this you making provide what we what better, product intended you what about do look little we of needs about do development. the investments, about specific at to and a the the of where and view. think we things we to investments should

EMG, at that out mean dominating like they gosh, lateral to the themselves look I so much and of it the is things sophistication, And drivers, focused. relates very say, maybe lateral up And meaningful it SSEP as and to then you think ultimately we surgery. called start the elements need when but the start you transpsoas, positioners of like not things be to as dynamics SafeOp to SafeOp to lateral greatest to over right, is relates you start unto revenue you and some trances, think procedurally go PTP; to break which LTP, transpsoas as being being prone of gosh, say,

the specific perfect just think unmet jam way address procedural we do requirement build the do the and that ground ultimately then this trying in that the something is we there's really about people versus procedure. our to of slide procedure? of business, perfect the up in How may different fit. what really that technology love candidly And not fulfill requirements so terms pursuit from the is we And solutions that think I into really to in reactively approaches the

And in pursuit think, of so like of this get surgeon a sure surgeons, to the it's Surgeons it pursuit patients. that value-creation tech we're compels ultimately, And engine that that what because much make what interest it have we it think And adoption. their with them we're serving appreciate the it. I very they're is aligned doing. feels does is I

investment kind terms seeing the revenue XX%. success, importance. ultimately that But long success of prioritizing a walking implants per I that, of is. that ago, were the at in is the we're thesis year-over-year case of keep keep look what the sophisticated not make is if at we things investment oftentimes, treating to just of the remember or surgeon the doing in in the for And friend the average so to thesis X.X in difference up And fifth reason reflection just them growth guess, per a talking that the make numeric you And case patients. aggregate, may his revenue growth. per those and and we compelling more difference. be categories fourth just And really, This more a things we're and things. surgeon, we better, I means ultimately the then so product

engaging the requirements fulfill often, to What so implant, And can that effort. care. think we better of stewards the that in and the technology surgery that love spine people I the not surgery way actionable companies are decisions a that what fact integrates our make doing objective case. think a is during is it's we're just to so I

so you that start One you start LTP doing sophistication a much and maybe of distinctions perfect to say, of in procedure. to we at number that of the with at surgery we're regard is we tip is the start we think to of better. different direct it's the here to just appreciate relation the the around number you And could that also You ways regard is clearly, look the When look we're we what care of of with are you -- speak, to to to PTP, that quotes the you subject. pursuit the lateral, literally gosh, iceberg, about draw so the to products And I per the could for ultimately realize to create to and opportunity? ultimately how getting? what surgery have adoption start the fulfill influence

value. And creates we believe that so that,

think I I'm it to group. perspective, and from off when exceedingly we revitalizing our very well. we're it's And gets. I and the that about field And of a hats good translating how so as going channel, that sales to a team, it's great tell as have sales proud will to you, And them. you start management think that

And with continue making by the turnaround. big those street agents that We been will I that, volume distributor the still that in of been. it of and have is -- to the revenue sales and growing percentage maximize turn and open is the ton growth size. channel is walk distribution so the the is of trying minimize significant and of growth in of from and XX%, we Jeff keep part that's the over strategic is, But people a geographies, grow Black. strategic revenue The our that U.S. XX%. we're on part the to great number And a driven I'll group agents of has to sure -- per

Jeffrey Black

for spend and today. on some the us that minutes all announced we commentary joining Pat, thank few you, just today. on color quick Thank results you I'll a

was revenue. First

in pressure product expanding industry strength initial We just the year recovery we Following our of did walked of some acceleration on new really QX, all XXXX we from in the even Pat in cases. product a saw, that guidance, QX revenue, robust that portfolio QX though ahead and we in impact see initial COVID you U.S. saw the and uptick our actually did late on see the through. the COVID volumes finished

supply the front, international legacy and winding our at a On high that for for low mid-XXXX. expires in and when agreement expected, we're a look you our noncash is running international excess basis, on margins, in non-GAAP XX%. our we're range agreement basis, the OUS, XX% excludes gross down the as On that products in gross On margins, running and obsolescence. GAAP charges

reserves that the about past reason years, inventory, been we're now out stripping for XXXX, basis the over outsized product about in XXXX. basis So XXX we've XXX taking points in E&O is points legacy really on our X representing

end On us. E&O a But margins behind be continue GAAP normalized with investments couple the of our drag of be we'll between primarily and we on prior the we the to channel. mid-XX% some year, quarters, range. to comments by the in XXXX. and E&O this P&L. basis, to expect A sales somewhere development XXX So in product Consistent that and should continue XXX basis points, of focused in see

For this pipeline. look you of at out as stock-based view, strip to litigation, investments. continues core we revenue, as really we transaction-related restructuring, to when costs, of track continue our provide it peers percentage true to a And fill sense R&D product a compensation, above the the

similar in investments channel, a into XXXX. the as broader that revenue associated and a profile increase strategic in our key ramp geographies. in similar represents story expect into deeper growth going can You new really also making it in well variable existing geographies sales our it's SG&A, costs in an as SG&A, we're into with

we'll pretty as scale, secured to we sheet. Balance quarter, continues significantly. with In beginning on EOS. We shored infrastructure. investments date, make fund held reduced to to already the in the the But the balance the purchase G&A our business continued line capital to line. and the really debt, to cost on pending fourth as well in of are leverage G&A G&A-related need we've sheet investments up As we business required see acquisition the

public balance than So perspective we business. a quarter sheet secured the and stock, positioned ever $XXX the and placements during better capital execute to million private common new fourth in from we're through of

Squadron pipe about U.S. balance just continues a forma implant revenue supporting in forma now closed that cash operating it and -- burn, available million. support The our the in the you $XXX a take pro investment growing large past cash for was revenue majority the was in secured cash at cash basis, credit CapEx. new terms look quarter. profile, December you and cash with kits revenue of our ramp. accounts QX, When about of our sheet including which and we base, of it this facility on in of have Monday, cash reflect available our and to through In to pro we inventory in XX% product XX% for burn As instrument

XX% we ramp-up the in are That fourth guidance we'll by growth. in surgeon guidance, strong revenue. a and revenue million will U.S. strategic to quarter, distribution, provided that expanding we $XXX driven the be new adoption, reaffirming On continue see products. revenue represents That in to continue

I Our of as international agreement, August mentioned, in will supply XXXX. terminate

all finally, so as we seeing down EOS. just transaction, guidance we're update quarter, you again, an in second EOS as know, close when to And with which that expect wrap up transaction that expected. ramp to in we'll And guidance, and this closes. And update the not included the on

revenue. under strong elements capital up of in new impacted at second a robust in We the XXXX get tomorrow strong. though still on reported we They're book a that the to or As tender are products. XX% When their ago that the revenue you just will they business. year-over-year it transaction. seeing the look track, close in X their expect expect month demand saw, file they by on you execute likely we're Recurring seeing Even offer is quarter. nice results, to uptake business, it did in pandemic-related

So to vice the business in about real Very them with base board. to on bases significant overlap us implant and customer ability for bringing installed our and very advantage opportunities, we're cross-selling of excited their versa. opportunities access minimal take

Pat. So that, we're about it evolves. transaction that to And over that turn that on and more with back excited I'll as

Patrick Miles

Thanks, Jeff.

in -- front going. on clinical to contribute, by run more a to going force sales We be surgery. excited. long-term we're Cervical -- to products we do year, which towards sales And provide the to We're $X distinction is sophistication meantime, -- start per multi-faceted XX the EOS have both we to million can't I So think a to like to keep channel, strategy. feel tell a the is you, and been we're has growth and going on us advancing more start got The I biologics the perpetuating meaningfully so. opportunity distributor, X we'll goal. we'll revolutionizing

to have, believe and And other force for international of headwinds dissipated, looking the supply we so from we'll forward most the a to surgeon to and compel reputationally. headwind we're And continue the the sales adoption part, expire. agreement

weekend next of It excited. who was is Science very those of Seattle more at pro Foundation, PTP. And this gave a be talk lateral presentation can't gratifying fun surgery. past Pimenta, really was a one the I it watch undisputed So about Pioneer lateral in Dr. what's of the experiences to

PTP. if And in there's so part with believe guess we'll of more questions. to investor will about it presents, -- our the I website, opportunity interest take our I But understanding that, if linked be

Operator

[Operator Instructions].

Lake comes Your from Street first question Brooks Capital. from O'Neil

Brooks O'Neil

everything. Great quarter, great presentation, great

picture I with is what to a question. of So wanted start off big kind

picture How and to you things Number next the in you to the to you about You accomplish overall you one. these respond. would years years, get feel of can in company the the of things spine begun a are of X are to Number ago, of boy journey? big couple great you the other two, the hope milestones? you've as over XXXX, with in or job ATEC done kind think your boy/little need cross industry? couple the guys took point to of side and couple big you over stock's then of And to a kind where spine a big what assess X the you

Patrick Miles

Brooks. that. we're going big are like we've run Well, kidding always at I'm just boys, to you, we felt so

this So thing. early I super in we're tell you would still

important And tell the SafeOp, without it surgery that that that delivering part acquired are of only be suffer. that into guys such to to to was deliver an conduit got going devices when we can we things I a information. are information was fun One those mechanical you

to much the better so opportunity surgery. the And through something of of make is informatics

created can we a But surgeons acquisition. them. actual importantly, that thrilled rely more to where information are upon delivering And that about so we've meaningful we're conduit

of And to and And most opportunity sure for element the that's think of the each start. informatic a requirements our of start make we predictability. deliver it's I make great that important really the such so that, procedure was to kind identify

that's so exciting. super And

I is that start all profoundly to EOS make and through ability through are take the will the think able they preoperative information just take and the that And to plan to continue need what elements to conduit 'XX. be sure that a getting valuable. that surgeons

That's to thing closing start about this year. a think EOS. big you so And

continue year, We'll to start at to things sophistication to indications nice cervical relates expand start and as like You make cervical perspective the this look will been some LTP. contribution. it from to we've -- an developing PTP products a so

so And on maturing a process in very that's I there's think very, XXXX valuable. going that that's

XX long lot so such our got -- the to, company their way think tell years you, based term, that's next of of I like I "hey, environment like opportunity. upon but And the understanding running great giant and working?" that the a And kills ultimately going of there's be us. we're what's to to a the look listen, who's I requirements There's feel with regard people that

super I'm so long-term about company. prospect this the And of excited

Brooks O'Neil

to the some the your of from into the distinguish offer you robot think Can a with the just clearly, Great. about all about you fantastic. your it, efforts cetera. in were surgeons from see Obviously, industry other up I the there thing, it the of And but people there? are approach sort get who right just great OR. That's just spine thrust empowering is really are out tools, talking you with guys last and informatics, thrust et robot, think then

Patrick Miles

I thing. with impact technology. the to you when outcome what's say, "Gosh, whole genuinely not going associated robot instance, for start we of, to Completely. are to you What's is that the prone being the And neural of by And going where have got you, position robot?" And greatest on neurophysiology, and say, important identify And to is "Gosh, positioner. an a a I then meaning you again, patient understanding It's prioritize to or elements health the to or them. it's priorities more a what hope specific the PTP patient wrong the developed effect start there's so types -- to able that think have start say, close. have tell And think individual procedure. the at I -- far on or specific are robots. nothing you a view. that of when But to even I I a predictability that are to get I'll larger look nothing there's surgery?" we -- some things transpsoas But a with of requirements robotic it's what against procedure.

don't on understanding so a very a I'm you, the the with the doing. anybody should value. perspective. when to priority I what big end get demand And what reflects want product in on tell at bullish of what be see are I to requirements got But the market argument the we're from the development over We'll our

Operator

from Cowen. question Jennings comes next Joshua Your from

Joshua Jennings

how just about see on approaches are can introducing. a you of some in the congrats you thinking techniques and procedure Brooks' strong guys SafeOp up aren't been surgery your the question platform the InformatiX. on Jeff, huge standing I end follow SafeOp enabler share wanted and for has Pat progress. about to Anything you evolving? Alpha still to of I imagine the you year all neuromonitoring. on and terms guys and and

Patrick Miles

Yes.

very inspiring It's kind of we automate been been It's lot where the was and part. by why -- where signal can't it's we technology think really and has small of get to well, somatosensory SafeOp, that around a so like applications we it reason SSEPs elements technology But ability a to standpoint. the I a like a other great the But it the that revolutionary. people these of deliver the over, apply meaningful. do we the -- are very from and up speed small which really is the of capture people potential kind consistently over over but has core And most are a of of foundational information the can the what the pick in signals can super beauty way technologies is where the significant. signals that can question.

But hopefully then -- information And look that continue So TLIF? more can there's as I we a some is and we the so to some start as to can believe "Hey, valuable important to And or gosh, some in be opportunities at, look very individual there's in it you then of we're those important that, deciphering a at that experience. other retraction we of we that injury look cervical are with utilize Or there mine that as that may kind is neural DSEP the start we say, it provide. many addition this that canary coal to at, saying think so technologies?" the there's surgical say, verify technology ways applications? to

feels we're And getting it going front. so on like that just

Joshua Jennings

I was the and of guys Informatix Excellent. of into just kind that And I about of kind platform? and think help Informatix, integrating kind you're noticed in in how it intraoperative Alpha TrackX. us guys could your evolving Alpha imaging product build-out you how then listed portfolio hoping that's you section

Patrick Miles

best of surgical gosh, we're about do elements And And ways We orthogonal. much. that you entire great of we think people sure happened don't It's thing imaging bell Thanks technology, one this of is robotics. It's are the curve to what love devise the but that, can going the imaging will predictability to like that Yes. creating one buy EOS. like making funny. talk do And is is reproducibly. procedures technology. to

it's very movement. because if an so you that's very spine a straightforward go And the to front the into cervical ACDF, of directly predictable

to the front If it's you predictable. the lumbar spine, in very spine, of the go

absolutely predictable. you directly it's go site, If to the

staying that, radiation we you with in say, to becomes that if able fluoro to very my in I able safety. perspective, be be it hey, happens essence, is an informatic that corridor. safe what And creates believe and so continue biplane to am a lane,from lane, And utilize in TrackX, is which,

our you to whole And like [indiscernible]. sure your your to that making we bro." much says, part of "Stay feel very It's so of when TrackX tease like car, your it "Hey, they're it's out out surgeons of becomes your lane, -- hair, staying getting lane, valuable so in And element so get a we the you're start alerting lane."

Joshua Jennings

I just it one to have more, just sorry, in. sneak

I think a But are have the of it's portfolio the anything PTP, just you launch. you performing kind clear as halo an of the customer, and of halo that in in of cervical? can introduce cervical some I the the experience procedures, was in to what when can and understanding maybe percentage your invasive surgeons directly, about effect PTP technique wanted launch excuse we Just more me? and cervical pull-through [indiscernible] kind think products, get even minimally lumbar And help some of effect just you you does surgical just like for categories. specifically, I other mean a wondering, procedure launch also trajectory?

Patrick Miles

you an Yes. interesting confidence And are Josh. the things is of when to love you, got likely what someone is halo them of Because the or I Thanks, less I is effect. happens to throw them, business. create you nomenclature with complicated for tell that compel the important. this kind

created earned is the opportunity by a us for like best-in-class confidence to so And portfolio things often PTP. the cervical through create

we'll that evolved surgically a well, get much that And funny touting and we ultimately in is see so conventional that view the are to is do people we'll do way -- the relatively candidly I things our what when allocated things it's and we'll bet are straightforward. haven't hard very things us that very

all you in confidence has And surgeon the reflection so great -- but do. in they're it's what a the because

is stuff so that And it's this important best-in-class.

cervical. contribution here, of InVictus that's term. launch one thoracic OCT, and in in So to other I've to very what's the to -- system, near here that it's things, the and And called we're the going going occipital come about excited we're going we're launch cervical in time the been

time the of that it we of here others level been to period on our most gone speaks safe we've to touching development so just I And even not head that think where And prowess product the to of come group. from have close have experience. will

Operator

Kyle comes Canaccord. Rose Your from next question from

Kyle Rose

to I some year. guys of clearly you I want So But market. this I just of you talk above XX% mean little that's step when the grew PTP, a take the in products, the mean key about on multiples the that a broader about back. I are a cases more mean call, you last think take those that PTP. -- when I training. lot SafeOp, products XXX those I think talked surgeon bit about techniques are

So I'm us out to for you more how in just much in burden how to heavy this think understand see understand, XXXX, market new upside of easier, And get growth get people. when the I'm to help in in sets about this really front understand you some you of up product able XXXX? the continue groundwork I guess underlying required and was launches? when more put of of education, informs the to XXXX were 'XX late can the the hopefully just of that growth like in trying really despite trying type the growth in to lifting how really

Patrick Miles

color, in to I probably entree. -- think Yes. speak what I'll kind and some that Jeff add it. XXXX the But let I'll then of the initial the just to was we intelligence saw really

that the price One that part of evaluation. PTP has that if we on you of our evaluation lot at is the things it something And categories significant surgery, very impact it's great the upon a robust. for of I per was And a the think number based look is alpha products do used. like alpha of

fixation in lot a of SafeOp about start and and, to you stuff categories there's candidly, and when so like And posture interbody like PTP. think things

magnification start through pile we to a the cases on that you believed would. there's when it the delivering ultimately,are volume of of what reflected So earned revenue

that are -- developed delivered or you And growth. types the majority the I the those have of that things would so tell of

technology The other that they not groups books type a think And thing company coming to surgeons. for and significant and of start that is, candidly, that get has, business underwhelmed. of they're this new have feel there's inspired I sales our way the

there's fun worse so think ability the things Jeff? that with want add part you that Do technology very that And with anything, has not and our successful the been these than very people is, that, to their to high. bringing fulfilling you regard over, I created few expectation be

Jeffrey Black

Yes.

expand that think just bit. to on a I

I certainly it's maybe head that all Kyle, hard drivers. products. around get But to are I And using a base are exists from think think the of that why number surgeon already a where existing kind I it's think, your you expansion of from. growth that's it's But our already for PTP. coming there of it's

from already incremental So we're And to they're into doing. it's geographies. deeper perspective, then going to just point, geographies, we're not expanding what existing Pat's that going

a So of levers, pull sort could gets growth to that you there of rate. that you we that growth will, are if number

Kyle Rose

trying in the No. That's to the of just understand 'XX. second in full very the year saw to in half I'm helpful. we relation guidance type for growth

So little you a strong. maybe year let's touch on out very that bit. the closed Obviously,

QX. apples-to-apples you into months cases have the -- QX. clearly peers, in a continued for not growth. given latter they saw When you first you're to the X listen although part think of I listen your your seems the your That the when peers to in to slowdown

still you've so should half. the will XX% term? the the second of in Just progression -- we big we and some given comps the just near think about about through the obviously, think have growth headwinds how understand year, year-over-year we revenues when COVID some got in But

Patrick Miles

I to beginning the is end And I everybody's year part is great we Kyle, -- year. I of some the the that of the say at the is the at view and uncertainty lumpiness some of then of felt commentary my think that would dissipating. think Yes. the the lumpiness

the terms surgery. And in confidence so just availability of in upticks seeing we're the deliver to

And so terms different would -- it of but and we saw. of say I saw wasn't what they in the what dynamics

Operator

comes O'Brien Our Sandler. question from Matthew from next Piper

Matthew O'Brien

into moving And well as moving question just been growth. market Pat, what the versus, decel you're a guide I bit rate, talking biologics you're last guess I as obviously, cervical, a growth a far up to mean above XX% for over is X on of the more. a bit little you've year. quarters It's little the on bit little XX% Kyle's into about growth the follow then phenomenal.

shifting the on again. make Are those here you're our to things Any color that anything lumbar, the plenty be along opportunity conservative into on trying things so -- side down there with little just So maybe the penetration still conservative, that understand to bit we're trying be year? slowing that opportunities are outlook you for be I'm of to just would to helpful. sure a you're trying cervical out just of trying I versus more or call lumbar lines

Patrick Miles

just too things out irresponsible Yes. lumpiness ain't one get to be having pandemic, where down. slowing The a there. would come like ourselves. It's it's those ahead at start us you thoracolumbar of of out of And look and to -- there's it

so different And what of growing this thing the very procedural chart in we're enthusiastic out. And we terms do about categories like we is carefully. our influence

the do a about not is different forward, being we do. do the how what matter we and over but lumpiness environment architect so just of gosh, matter more It's doing it's of demand we're what think just have trying for we're the affected. to that And a our saying, of things concern to the

trying to think I about thoughtful. we're know that so conservative. don't I be And

talking I growth. think nobody is XX% about else

So profit. those just it's of one be we're stewards the the to of trying things proper

Matthew O'Brien

Makes And space. thinking the total about then sense. Okay.

you bigger dental, you And a don't off X sizable have you've but not after player. speaking, X generally their player, a spinal, they are Just the of dental spinning so piece or of that's that their business, can't X got player players, but go businesses. biggest bigger a

Is a are accounts Because they're about guys of a some -- I thrust already know thinking big into those presence. some or there make there? have domestic way that already to bigger a nervous. You push pretty

or So that a about share next into is get there maybe then of more way curious a I'm really over amount of national the Alphatec And the to two? organization disproportionate kind year also accounts.

national a You about just doing from I'm that. perspective. what account haven't talked ton wondering you're a

Patrick Miles

there's that Yes. Yes. we one thing it's If disruption. love,

because one leaders I how it's fact what about can't have of it because gosh, the we significant like that to of ton excited I that optimistic the is student space, the this requirements so where make of to things we much of super disruption. think feel don't think environment. been -- with that, mean don't better. I surgery it the And fatigued that. When And of on the avails great the to making is companies better I things -- so that we're opportunity spine And spine that think opportunity. a opportunity especially people it's of disruption, more is, a think I I there's there's say do we they there's about like know be And one And like there's that it. when love companies haven't virtues company

And off, their them divisions And the we be about spin we'll want of continued if love disruption. that. spine the thrilled rest so to

the so to doing. national -- not I'm what bullish just -- it accounts, And as we're to on relates

reality have IDNs of I things of respect we're portfolio. has we've a the doing. else utility. one "Hey, it do experience, of bad have nobody earning And number so the they of apply our terrible prone becomes, that a to upon surgery. got we're people lot they the transpsoas something The think ways that based it's I fully And upon developed lot say, based say a a And designed is you a then into of then of the types this." fact baked haven't can that's unique? specific and they for and A stuff

footprint then our to IDNs these to with unique the having we to is being is opportunity with our best and ourselves technology with so can them. And able insert regard expand

places based having to And upon so of a we've unique successful, something lot gotten better. that's been access and very

fun. part of it's the anyway, So

Operator

Your Blackman next comes question Stifel. from from Mathew

Mathew Blackman

training end to color if on and customers great to whether give a that has metrics I Or got the adopting? Congrats customers to resurgence? I've that with little to Is a bit a adoption to Pat, on date, start, there's of incremental Pat you Maybe, COVID the more a follow-ups. something new more And to? surgeon the us you've been a skewed have appreciate can it's year. Jeff, PTP just you assume couple of follow-up headwind? been is, then any And given of there's balance share or able ATEC to to that bore perhaps been questions. or on a rollout the to required. the then adjust XQ able rollout full go

Patrick Miles

been rollout has than It's more group be interesting. this Yes. anybody. nice. as Great. lateral lateral I that, trying When This has The experience experience. has said, much as say Okay. I been interesting to place I'm in that,

surgeons candidly there happens into and have what compel get ultimately their solicit large a overly been trained adopt practice challenging. has come not so go you surgery experience out who to is and you lateral had And and to with them it to

deem we've of reception. And just people reasons stay so already good to is one really bunch the we been with types indications, who the to great reason surgeons very who've approached core gotten what PTP surgery not have historically The we've from a adopted -- perspective. of specific done a of surgeons have be also to a but attract who in spine posterior

patient in to approach have position them them. have it from that and positioning so much more And familiar a prone to is

are this is prone we're these when guys operating that, I comfortable luminaries I continue based in Luiz going Pimenta listen something Bill And it should like the "Gosh, And they position. guys. field to Taylor our upon and lateral people those so expectation a say, and they in These is spine. expand to know Gosh, ultimately, then most the guys, to." we people of feel like are initial see who

your so hopefully, that question. And answers

Mathew Blackman

appreciate I just X it, And makes then sense. more. Yes.

EOS think top key same growth on that. we XXXX, drivers we in basically of layered with XXXX saw about as the they're drivers Just all the in

geographic order XXXX? think channel we you've think all the that XXXX? those at U.S. XXXX changed contributor of of the we expanding about in it and versus couple directionally And those, -- each channel rank of as times, a revenue footprint, expansion, importance become As about bigger specifically, procedure, mentioned versus upgrades U.S. per does productivity, has the a

Patrick Miles

will sure larger how that which ultimately them distinction, will which we of success it breeds those right? to compel of one the we we then It's ultimately things where kind clinical success I a way always is of of like it's sales gets a kind a think being it's say, as drive finds to Gee, can And order surgeon success. think surgeons, kind about and that gosh, that's the then drive start in all and making tough of reflected footprint things. important. contributor, I be so going saying, always think with of one

about commentary, think what differently just has any And described. don't I so unless Jeff any I other it -- it's than

Jeffrey Black

case, expand. average through Yes. per on as of stage, presentation, categories And run I still early would to Pat the ton had say, the the a in room product still

case so geographies. so And as being case opportunity to well we're because into expand growth There's drivers as were both existing as deeper just I about very think getting expand and they per go product revenue geographies XXXX similar in then would still started. per much and

growth levers XXXX. they were similar very are So think in what to I the

Mathew Blackman

number clearly, on the the in of sustainable got are numbers guess I'm the can of about and think question, or for like for here. or any I It But think in things like with of beyond? anything Or success like the that Alphatec several question. about reasons XXXX, be growth sustain innings momentum very 'XX asking, following early earlier, then there Kyle's a fair law up question should should years? you EOS in change there we And to XX%-plus next over you're or sensitive 'XX, is still and rate that? sounds what that, in last now top all how we on I sort how you you've in a of know not this is large growth

Patrick Miles

a in pure numeric that smaller we're Yes. the perspective, we're just a but think from We're early playing like company It feels I innings. big.

company us. so of I significant for And ahead that a runway think the there's

this "Hey, and a -- of and basis say, to not as well tough ourselves." it how on It's to to it's we so on great reflection handle what do And get pandemic we're just was not year-by-year like a can listen, ahead a yourself. we last year do as of going ahead getting know,

pretty we'd are what and stay at that we tell would and growth. to course like I just to and the we going on good will do, so love focus reflect feel And that we're you what

Operator

Wittes from Your next question Northland. Jason comes from

Jason Wittes

a few Just here. questions

case that be point. not right you And first some like the this was you way discernible somewhat to to also have necessarily at -- but some, it indiscernible. Again, but XXXX we're this into growth there rate business it? the think that guys did your given that going sounds it's mix have? hit, So of about Is maybe it is guess off, I the COVID into may the

Patrick Miles

now it would was it's And lumpy like year the -- of we've a XXX a own say it's I XX tale counties it's beginning back. is as is as like I when describe their the it's talked decisions Yes. because tale of used about, to states. And XXX tale the of of it's to end lumpy. at the and they the counties. year kind making of of everybody kind of start

of just demographics very to hard. reasons And why people so it practice with operate regard that in prognosticate and confluence the creates type -- -- and a layer it to then and is able the of you the type be to just -- that

But in of back and of lot on whatnot. feel we're it dissipating, end. and well the is closures for a like hospitals we've we just us, so the And lumpiness seen

Jason Wittes

do And so that I Okay. you slick it you mean, technology. exclusive That's strategy seems to to that. That is the can And about fair. bell was relationship, think It's radiation, that on reducing as curve talk your I basically, every central all is something narrowing something navigation well? surgeon to TrackX. it do pretty mentioned and earlier a consider And if also guys? you that

Patrick Miles

Yes.

fans of huge So we're things is of one the that -- workflow. the

continue because single require upon so how shot very biplane ultimately upgrade lot brand-new fluoro with on a the technology is And very, TrackX image. so -- becomes is a And such and becomes image is you acquire requires. ability to doesn't tool. fluoro within part as or is of able And a workflow the or based update it do a to the And great it the integrate be important. someone's image what of happens spin valuable to the

experience you kind the fact fly that the And really on at love the pace. it a what so rapid workflow can of keep we do of and the very is update

are to the relates as As They before around -- did. same relates to relationship things it company all is started we we PTP. it time exclusive the

not it's from a perspective -- is PTP they it but a so exclusive posterior And from perspective.

So all something is anterior exclusive together doing we're that stuff that is to the us.

Jason Wittes

inclusive full year, $XX close this deal. you Okay. like million of you something That I an look the initially range on think deal, helps. EOS, year million $XX of on I to announced a think the not then reasonable year that's the when for And of out in That's when XXXX. that's threw a But full basis for estimate not what you of might year, a is expectation -- that in XXXX? EOS still full

Patrick Miles

I'm the that, Jeff it, and specifics. but... was on out, thrown that will not jump me sure -- I When provide then Let

Jason Wittes

Okay.

been have might my It assumption, but apologize. go I So ahead.

Pat. Sorry,

Patrick Miles

No. No. acquired interest X very little customers EOS check overlap start the our already how we as very it businesses. guess can is as of the channel that high. to as is way we And in about the in that No. exceedingly of see high. there's institutions think have And the we also academic I role some the think technology, being a we in play we EOS, that

colleague, my But to significant. is I it as opportunity the Jeff. that's -- so And on it's where relates quantifying rely it,

Jeffrey Black

shown you're the revenue what consensus is Yes. combined forma that Jason, when profile numbers. illustrative well, had referring X we announced we pro I a the to deal, think

that's what referring think I you're to.

-- So that's think that exactly I number. that is

say provide is the much modeling that, better what still to prepared be guess business. We'll closes. it once I look, guidance we're we'll so And

Jason Wittes

to years me it ask EOS question does And a now? of If from it on does a fair. integration a lot it there's what mean integrate to be would day let does on of look assume whole the X? And fair within I What like it like sort That's standpoint, ask. XXX? Okay. day does informatics five to look from like just within X? you fully platform work look I just on itself. like what look What day that's Alphatec done

Patrick Miles

it's sure the kind that but one not to we that. or No, of -- do we run want authentically integration at things fair responsible about be thing, Yes. go of the want we the is this how super of with to doing I'm not.

somebody important. will office just will part very have of team. And in how be the of And that so sitting we Paris start things from of very, to as together this we cadence the kind do

for when be thing first knocking with doing I all And the so that equipment on to do surgeons, regard very important movement. once hospital you for quarter," administrator will and a we sales a to this and create and have excitement And ultimately telling is think very of piece it selling is synergies. how guys impetus help a other hard then they're done see each "hey, becomes this capital is door the they of

we buying with so number is high. the and it much a administration, kind field -- guys so think, have And much position when creates more hitting the of capital then every perspective the of that on really in day of having the sales a force implant a the faster technology an guys the to, we because relevance I the hitting route surgeons from have and then on surgeons

going there's the of And deliver ultimately makes in we we're that to that and a that think is things very, first platform Alpha to planning informing much that way nature view so information through things going to quickly, opportunity do. surgical that's Our be start surgery and then of Informatix we better. very the some

so And type to of better. things to have information take the we feel of like make years opportunity we

don't of makes of projects us as are so what and of so like, know what And it each what know I those exactly line I that's the looks But time excited. yet.

Operator

Your from Sean next question from comes H.C. Wainwright. Lee

Sean Lee

where my which to coming higher new new in do products two the In per these been well mentioned view as the of how that just questions you procedure product driving as could you exclusive you see the as level products wondering, goals? one the number of but for how on with answered, switching portfolio. increased have I remarks, years. the a have help Most most main prepared I the distributors -- do your see of was portfolio Where product of you do feel products? most part number you driver

Patrick Miles

Yes.

it's great a question. I think

so these I we but it's earn forward, where the things mean regard a that if to don't be -- to opportunity and as We exclusivity. it's be business we nobody think And have business guys really trite -- create in with make I the well of great saying the our that, earn as like and can technology you big very to is exclusive. like have their type confidence confidence high. --

lateral I when really, "Gosh, product clearly, think, thinking say, with start lateral to is say, to in lateral regard start we categories that could least now, resolution to to look that type distinguish then And surgery. right But really just see I'd comment you procedures." this at start X like so lateral the halo can we ourselves associated to And very high. surgery, there we way of -- the here the regard is the PTP. may with you say, you things different I start "Gosh, these be see surgery, gosh and with objective I when to And surgery." that start -- about thought be the effect, cervical

And that so becomes of type compelling. that thing it's

ultimately so the exclusivity maybe of then the of halo things effect nature. get compelling conventional things And the different I some more PTP. about And that like in are excited with

Operator

this Thank Ladies call. for last concludes gentlemen, today's And participating. that and conference was you question. our

now You may disconnect.

Alphatec (ATEC) 5 Mar 212020 Q4 Earnings call transcript