ATEC - Earnings call transcript Q1 2022

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Operator

Good afternoon, everyone and welcome to the webcast of ATEC's First Quarter of 2022 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 US GAAP as well as non-GAAP or pro forma measures. items to tables can release, is included and all measures the found which useful non-GAAP view quantify financial management supplemental in excluded to of investors. US this be GAAP in identify of Reconciliations why provide information and the press Leading will Chairman be and and Pat Miles; today's Todd Koning. call CFO ATEC's CEO,

Now Pat Miles. I will turn the call to over

Pat Miles

results welcome for Casey very and to the XXXX much, ATEC. financial Thanks QX

reflective the statements. You call, some so will forward-looking the review hear on statements please forward-looking

so growth million ATEC XX% quarter revenue, And right in turned it. was I'll into ending jump another strong year-over-year which in of growth. $XX with total

some I really headed. – we're of think repetition. where is think we're important And for what's though laying really the hear you're a most bit foundation I to going

over as But we're and well confidence as what's So I of a SafeOp surgeons as conduit there's deliver PTP into trained. up think a lot set had surgery. is important information traction to builder starting to XXX

that with regard And so next for PTP. does up us what to what's sets it is

regard EOS with share the long-term is data well the us really well EOS intraoperatively terms the earning going of that US we're with front, access Love foundation the market. clinical regard starting as of influence hospital the informatics to as to foundation new we're as just are as and building and lay availing we a of operational On economic integration what's for happen in to EOS. to

that of per year-over-year is grew in terms average is in the of of excludes quarter XX% product revenue just the new thick perspective, category growth XXth growth case. and pandemic the scorecard: in XX% than products and consecutive blended terms revenue per right XX% revenue little a the average growth X.X in our case, It is of greater QX. our sold we XX% XX% needles, a XX% year-over-year revenue so from organically of And surgical year-over-year growth

as our just quick and not have change so And will a commitment. we review,

distinction covered. the We that know are stay we going that that to brings clinical surgeon and professionals course regard compels about that sales to and we creating with adoption

to market. been XXXX. think – terms been done is I regard how what distinction, of we the really widget-driven exceedingly greater has perfect development. a products historically in hunt XX% in than of clinical to pursuit procedures. our jump so But really Spine And XX good And We've represents our since magic of And procedures. have really revenue. we're product after in spine the in – our is with It creating

to market. The And lends really that themselves it's highest so market really is to that itself the the most Anybody growth earnings within the creating And growing market. most the growing the that's is we're this is most lateral distinction not market. because the that share within cove the it suggests – and kidding market coveted market. growth

we're the peer-reviewed I publications. lateral. be you're XX% none. not that's cases QX group into internally. that guessing. would which We're so in approximately such And most PTP, can X,XXX bar growth. reflects explosive And areas growth sophistication revenue that our seeing attributed versed lateral think suggest Adoption unmatched surgery XX of It's to why

was proxy in complex historically So for utilization is in Increasing we're in lateral that conversion approach a starting expanding just acceptance. market guys surgeons. walk what posterior postoperative cases a always

do site of more it kind news what service what of So and to it with pathology has of is. as well that's as great intervention kind is

your well enthusiasm that's set the training a is exists in well with unique centers it EOS. amount as What for of surgeon do think number and the this ambulatory applying is automated and SSEPs, SafeOp features when Switching the And the have automated visits like in is the I creates community. neurophysiology that's really avails hard surgery surgeon us coming they're within And really is in. That's that's of very, so in And automated something reflected to this accepted increasing. that very gears that sound neurophysiology. demand you foundation reflective well regard in with exceedingly been why continued PTP. really that's we to

is I think the these and strategic against team selling in we're place We're systems. executing objectives.

the utilize development terms work product information data collect the opportunity and is in is ongoing. postoperative really Our integrating to of pre-intra our And over and moon.

nemesis in order in sold in the been the would system is starting that we has The before. to accessing we when is Creating revenue. we data we of get of million translate garnering of the ATEC not you to QX just predictability, the of for of the And important. surgery couldn't And and sell data expect. access. implant new size so in and So, the of a to implant increasing hospital also cadence data from ability really one an product we're is its in the perspective, the are and great access opportunity the accelerating years is book, place. spine deliveries important U.S.-related as reason development but opportunity accounts, profoundly parts hands north take lack only of $XX that, We're sales masses, the is places

them mitigate is what really the one last against and of every operational to, mitigate your spine surgery. to that our is lacks to and three economic. then objectives doing plan getting the that begets the to intention intention underline when this a assessing understanding that look in preoperatively, of a predictability preoperative about and plan other really variables at key what that think that the thing start predictability you the the place of and opportunity time buckets. clinical variables, imaging, one the And understand And some intraoperatively so postoperatively integrating happens plan are And to

capturing setting first that's for all predictive really of of about you're up when think that, the years, that and you not but images about analytics data talked and And think done. about same, real really the Spine's about think been you for so being you all yourself

are specific implants required the and no makes change the procedurally to effectuate so start integrate how configuration really Spine really on plan. much that modify upon of to the sending to that instruments reflective And understand we requirements -- into know elements a room really have in to work as we we well also compete labor, all and the much start surgical business. best the share there's we time, of talked hospitals provides has a configuration And processing can economically, of could and ton we running effectively then, cost freight, operationally to what's so as as economic Operationally, these the general opportunity price understand about that can. configurations based a we spent opportunity that to opportunity years the has us this at And operating time. surgery and procedure and the risk into money great trade as for for been into with such some

-- adoption. I a And I to have with really surgeon so, in lot being of regard momentum of think the creating terms reflected And we're it's clinical distinction.

user XXX year-over-year the per the surgeons case And look revenue surgeon base growth for over XX%. was growth average the in QX, said, I trained was scorecard XX%. so and the at in to

at And are And we specific surgeons of of with way we to a, align think And technology. to is, we're thesis, procedural reason a the so, really to look clearly important. why surgery continue commitment that's you for the I what's when heading that we they're have heading pathology interventions adjunctive buy to clinical innovate with because people And number think procedure. the they're that and and commitment because our and per terms going And in see into compelled, I unparalleled being adoption our the think products way that's love. the or in I think regard you by which continue unique grow. start to reflected our to

I So, is that clinical thesis you being tell clearly would accepted. our

think most need other the our us the set technology rules really to with. protect, I way proceduralization the to and and unique that best catch-up to people is

tough and apply these design and ability we're do So is ahead try a learnings. what then, we'll very procedures replicate seeing what to our have develop to doing task, is in people go to our essence continue and as

distinction, creating I adoption compelling United represented if us. underrepresented, landscape the States across we're I'd look we're think still our but are you which ultimately way. clinical And that landscape brings geographies, least a they're growing big the people to say -- so, And at we in where or

than selling And the us over growing what we're are committed are the But pan and so faster, stuck growing PTP I gosh, you flash our look is business. you litmus growing test, PTP organically real momentum you I -- And people yourself real? you and ask the XX a if a top distributors last are think for XX%. distributors within XX% so year that would is those the it in really that or who to is at see tell kind of it's the lateral rate. are

So anyway, Todd. turn it that, with over I to will

Todd Koning

you revenue. Thanks on our begin us I'll joining afternoon Thank everybody. for today good Pat and with call.

revenue fourth and in million growth over $XX contribution. million X% First prior $XX revenue EOS quarter. the million decline was quarter reflecting The $XX seasonally year XX% in the a of is million comprised strong revenue to of compared $XX and a organic

per year-over-year and was per the growth. period and to consistent shift towards contributed increasing with Year-over-year the case of in to And by our procedures driven in that our fourth expanded case, revenue compared adoption, prior XX% the XX% was feature advancement compared which our system, reflecting quarter launched dollar procedures the our complexity. the up footprint grew with surgeon mix The XX% continued standalone year first revenue continues revenue products a notable close as per increased XX% flat to the share. growth organic quarter sales to XX% Our procedures late year, users from average lateral and greater last compared utilization. last interbody PTP, expansion to revenue revenue Average of which growth the to to market year sequentially more quarter. of volume was lateral expand on surgeon also with surgeon case contributor of continues ALIF strength

lower progress quarter million XXXX. time we've integration made XX% our strong The with degree deliveries of of exceptional volumes volumes in million first quarter. the EOS-related improved, quarter, the first returning normal quarter reflecting $XX the associated than to new of in the labor the to EOS the on The and of end a pro reducing standalone procedure hospital reflects COVID-XX first gradually on exited While install forma resurgence growth revenue, the QX objectives $XX is seasonality in the revenue compared We we shortages recognized orders. recognized anticipated. In Spine the momentum. and a in part quarter, basis pressured by of to required at

through primarily The continuing remainder the approximate quarter XXX XX%, consolidation in the the Now, investments base between first down continued industry-leading gross The to EOS of delta year-over-year decline Imaging. driver margin was non-GAAP due the profile P&L XX% business to Operating of margin decline. the basis expenses the fuel growth. EOS' gross margin our profile the year. compared year-over-year of primary in points to was the quarter of prior was gross margin long-term gross and thoughtful first reflect

SG&A the EOS contributed last support to education to The flat annual the required expenses support an and administrative growing relatively million quarter. surgeon First the absolute of remained sets increasing year continued on organic quarter expansion basis quarters. driven $XX sales by increase. basis of prior the EOS three year loss expansion $X on XX% of Adjusted absolute and sales company sales product investments to loss in first sales training in of sales approximately compared of and support was $XX XX% approximately approximately in the which quarter, and this of by Notably, our continued Non-GAAP an XX% compared to driven quarter million over million channel new ATEC the the in a the Total to sales sophistication of sales and The the advancement of R&D to have amounted and the and was general absolute the non-GAAP period. compared operating global in prior of non-GAAP XX% approximately meeting. a launches basis instrument and and distribution dollar XX% million approximately $X prior XX% increase The $XX and expenses $XX included and depreciation an platform. portfolio also of dollar period. first of EBITDA million million year million the past was dollar and year-over-year quarter sales network, compared size the to on was of the inclusion was $XX investments increase million our to to of and $X and year.

$XX the cash While million, bring quarters, QX was We QX approximately in across XXXX annual million to to investment QX operating which of growth as inventory year was predominantly Included XXXX leverage investments ended was to with payments, to adjusted with related new million would investments and to footprint million. we continue compensation-related to instruments use excluded, cash, sales and cash $XX launches. drive previous a for $XX the full expanding first expect approximately which and support quarter, consistent was in our distribution product operating quarter cash relative full use in EBITDA if in of significant our channel the the year improve business $XXX overall. sales will

improve cash full EBITDA. includes expect year leverage value a more with year million, to carrying asset debt. this relative meaningfully Debt We convertible of adjusted was which last $XXX to favorable million year and $XXX to use

to continue $XXX last that run approximately We to at growth rate million rate toward growing cash per a million placed our debt a believe year will at of XX% of the baseline breakeven revenue convertible flow plan support $XXX year. offering

revenue growth following; growth outlook XX% last to frame XXXX million revenue Updated our revenue shared help the business EOS-related growth to with context and for XXXX. $XX for of the of about of turning to expectations total the we began guidance the increasing depicts strength procedure overall revenue we execution-driven grows expansion million its geographic mix healthy for revenue surgery. a the previously. quarter. million, to of Now, contemplate left year pace Updated I XXXX procedure full per million some $XXX which slide revenue approximate now been transformation demonstrates growth penetration right per to to full of now which We have shifts The the reflects for per momentum the in a have which EOS adoption expect exited XXXX procedures average increased per now back volumes, The the XXXX full million That essential $XX the revenue We since procedure also QX increased and and compared organic of representing to slide and and surgery to as XXXX procedural like growth performance ATEC its QX organic significant components, that year has full growth. underlying of of surgery, namely compared the at approximate $XXX with results. average includes compared to than previously. side of of the LTP, our clip. surgeon slide expect compared $XXX volumes this in average. expect the XX% XXXX. approximately higher for our Average strong PTP quarter year which year have

in utilized products require in and more turn, ASPs. per surgery, with generate being greater are solutions procedural higher surgeries which Our complexity,

expansion distinction ATEC cadence growth price the percent new at surgery The this expectations approaches command growth driver give the math. set into average of shared, will we I when And connect ability of and grow case. that revenue our to this and that We average of our growth hope us procedure to in revenue volume multiple of volume the volume a rate. generally for central are engineered continued per to revenue launches revenue mid-teens fueling of surgery. just external expectations, procedure year confidence per average product factors enable level per the in us context another premium, and help Finally, the the drivers continuing

full for raising increased year expectations to average per are guidance organic revenue due direct case. We

year, growth revenue With of percent for of per the QX, the high-single-digit which in now XX% case average full expected compares rate expansion mid-single-digit achieved we previously. to rate a anticipate the

we out believe philosophy opportunity thoughtful and Our be numbers to reasonable guidance achieve how prudent a exceed. that about by is putting expectations set to we we have can and

certainly business done. So to plan. aren't the delivering execute growth We closing, we continue we built and capable most in sector-leading methodically of a

at to in Investor continue I'll confidence that. come. delivering earn create over see revolutionizing to call and is where on market when hope Day our we throughout value create to focus a spine you I surgery executed meeting to mission ATEC a that market in that, decade share relentless to the do Pat. just the with and reproducibility massive intend can unmet needs and Our by ability the predictability turn to well And back

Pat Miles

Thanks so much, Todd.

I PTP XX%. we're of What us does And We're would provides halo we of effect surgery. create So the expanding is? the to to that at opportunity. the for meaning say and opportunity Cervical really share that surgeons reflection portfolio that to look point over doing are is to confidence the by opportunity our to one us change continue also a of be earnings grown that a going our where It front that out advancing has that's halo to and distribution. EOS and our We're strategy, hospitals monster that way implementing making ultimately business. going enable spine us in will internationally. And and US the

you are the Day. mentioned, so, invited Investor as And all ATEC to Todd guys

share there ask online. that RSVP you would and more please we We will

that, take with questions. So will we

Operator

[Operator Lake go Street will We Instructions] O'Neil now Capital the questions. Brooks open The comes Please first Markets. from ahead. floor for question from

Brooks O'Neil

or drivers Obviously, XXXX towards off continued continuing with to the one drive related future everybody. year company? next for or I which in is it. my the for there question. the Good in two you guess the think other expect afternoon, lot areas a start be of PTP taking of Are growth relative you to that the Thanks to to would see pull-through opportunities big of growth. key we key and quarter. PTP, Congratulations proceduralization seems I your the do

Pat Miles

great Yes. we question It's and a tons of opportunity. see

surgery predictability you if masses. generally, type And in that spine of intervention. it the think at lacks that's I just of the across almost look hands every

in and to lateral feel lateral we lateral feel of like And the is away, so, position lateral we position. decubitus in a the like opportunities not going surgery improve surgery there's number different

to part think there's We in there's it intervenes is terms of And in is improve to laterally. in the and great a different what oftentimes portfolio I ALIF, they want where with enough opportunity procedures. of intervene LX-SX myriad to so, our then we when of can an do improve someone distinctions think

So We any for improvement. an scoliosis itself what that's we're a predictability what of patient combination EOS we're think key process. unto perspective, opportunity from and positioning key and perspective the the from idiopathic much a in around ALIF perspective, to create what doing way. we're is think doing that is more an doing injectives from way predictable We a

It's And environment. not so And way opportunities of are love a think just reason requirement sophisticated being of there others the are so, they in is, because regard that the it Brooks. with out matter to I we that think this the we approach there, prioritizing. many the industry the that

And [indiscernible]. our view so, do anyway the is there's now into to from work

Todd Koning

And our is top be years, multiple for to our business continue Brooks. will and commitment unwavering to driver and in lateral line a

Operator

Matthew. from from take Blackman Stifel. our We next Please go question Matthew ahead,

Unidentified Analyst

first track similar about regard in on see Hi. that now for kind had with what raised quarter, much. question magnitude in it what very recovery COVID? with as quarter COVID you kind with a This guidance. to impact significantly with you did Last of factoring Did are I the and Thank your to And XXXX quarter you pretty quick in guidance the shift? just for Did it commentary of expectations? Colin impact a guidance change in you relative raise. talked is having strong a Matt. XXXX, in

Todd Koning

Yeah.

So I the thanks question. think, Colin, for

the last lack said and evenly sized of, kind we be for year, precision the quarters. On up in XXXX – kind split of the would call XXXX in quarter, COVID kind basically of set the across and of impact similarly

second some the in and QX not and anticipating I us books now year. implicitly is, And or organic in COVID of so impact, QX factoring the of any in the grew really impact, remaining more less, in XX% half is or implied COVID understood. that's so our we QX, we're the point business. and obviously, for growing think as But probably we're there's kind

say, it And those and so of down there slow not of us COVID that through from any the – impact, to clearly, growing kinds much. certainly extent grew would was was challenges, didn't I

can So certain assume second not last about of what materially we the a at saw amount that, second and certainly any the COVID quarter. half, half in of the year, end of day, here although think you there's anticipating not in impact we're I the

Operator

O'Brien from next comes go ahead. Sandler. Piper Matt The Please question from

Unidentified Analyst

follow-up Drew the Thanks question. want I is guys. Hi, side of taking This on for on for things. Matt. PTP the to do

had pretty put driving training PTP in we what's last big those new large then second, even quarters. are two those come? to things should really you. guess, additions this two fantastic last surgeon You've number, for already that or good you factor first, biggest I two the And Thank been quarter, influencing more the up over step-ups quarters? expect the in step-ups

Pat Miles

into Yeah. It's education, the of and and lag fascinating then translation whole sales, always. the in a there's surgeon terms

of second growth and last great in reflected And think the foundation part quarter so now year I the that of in is third the this the are much year. built is, being

a with set home, a and what to and happens surgeon do patient so narrow oftentimes simple. hopefully, indication so intervene they a bond have is relatively goes and identified so something a And they'll

And train and how someone running do to get some so quickly their ultimately few is, a the intention can up of cases.

and pricing starting else. somebody and trained, do that, I ultimately you time tell would takes would tell drag make a probably ultimately, two-quarter you cases. in everything little the a that, there's that I to sure all to sure it and so we're then hospital make being But And the to

in continuing we surgeon education line. quarter's reflection the to top as future just the so And expand see it of speaks

Todd Koning

have different quarter-by-quarter. we surgeons, the procedures you with is who And been at track of as of see the of things kind we Drew, those that And one we of the into trained our cohorts, that. lines go and continue cohort couple up things. to utilization kind do do right of you the a look of And is, one see,

of that launched back in And so tracking we XXXX. since we've PTP been really QX

early And when they simple more would and those a point is get start and as so comfortable Pat's simple pathologies. they they what and do and more then on I use get say begin more procedures, and do couple that, can complex of probably to they then more comfortable they to they that procedure in

us that's And comfortable that and going physicians more I so and really be a And increasing the they halo trust and a ultimately, grows that is you then about, also their more business, bigger of effect understand to talked as multiyear and it. more time. get as begin think ultimately avail to walk utilization over overall as more we we and part as with us understand

and share quarters. aren't, these I for bump two continue get ATEC The their trained I their will today hey to today XX XX I train with business a so years. and So grow for

Operator

comes next Jason Loop. Our from from Please ahead. Wittes go question

Jason Wittes

Hi. Thanks taking the for questions.

company? outlook And ahead versus is and progressing a placements if what if what opting – you're something of more on your are at things for how think purchases you've guidance. as sort solid placements? within you appetite you I'm quarter the the market's people how that off, for you EOS position for it are and First raised also just curious, – expectations, and pretty the – had look of

Pat Miles

of a XX% color. look bit X.X% But my that at Todd sense as the if market go. Yeah. you in is shareholder, X% company demographics after in I'll look pipe to I our of the to little say, we're that, at let

institutions. we get demonstrated prosper. institutions, license is And the to think several we reality And access so to we access I to hunting want is, and that we on a occasions. when create get And we've

someone more. one we're they're you'll in they'll we're so then what CBI, want they'll marketplace to going is, a like – And Dayton Edge. and ES places unit a to to seeing of like seeing essence garner the from in previous upgrade is Children's X.X what earn see an I do And out think

it's show not there, everywhere. want of implants ultimately data the I to also so out will be in And access capacity driver to our a our both. value I access but the integrate the data of of combination to want I this procedures, And want translate spine the hospital really biggest acquisition. because only

be enthusiasm. would my so And that

Todd Koning

purchases And of that the think we're large seeing I and in and Pat's by access about. Jason -- Yes. terms talked getting

So, engage I The customer think, of wants economics that and by multiple ways. same the can flow we terms really structure the these large our It's how and in things us. cash are to on more front. ultimate to

placing flexible. to we're well So doing machines. the where But I we're think to EOS machine as economics the getting business on we're access the Pat's point, getting as

Operator

Phil next Please question The comes from Coover from Sachs. Goldman go ahead, sir.

Phil Coover

kind you different factors question always. a the been guys after outside may -- have quarter better in than of your I deterrents already few ways, is that how raising as of on or one from quarter a thought control in of you lot ask Hey, this even did. thanks performing inhibitors confidence decompose for would I my in much for taking the me guidance so

out shed the the we So the little staffing a about one impact hoping questions you bit than you I'm on which potential shortage of that quarter just potentially some COVID former Can chain perspective have you from the had acquiring have it's pushed also to talk procedures would had that at may the any an about made deferred and environment componentry inventory And in that stronger? headwinds had otherwise? XQ procedures or and then might supply talk even were inflationary of or the have look terms that can perspective? more light absenteeism and rate from things on a that maybe

Pat Miles

to the from of guess, I is we've to Pat. things kind same it off finish say a of the been demographically, have quarter start challenged stronger I would kick by weaker quarter. Yes. -- this a The I'll the

staffing the our me to you regard so some to freight were. heard mind And of supply what chain of what the what view was and of the have at electronics or stuff. staffing consistent -- into up to of that board for and for FedEx I've the with type predictability computer that think comes have chips suggest what start impacted impacts the is the When we things customer-type us None some elements enough like across things like. around pretty chip not with of about issues. in FedEx and and by We're the operating serving challenge manufacturers would room paying running a the to be the

it. kind the anyway about way think I so of that's And

Todd Koning

Yes.

February think and Phil normal. really what looked is I elsewhere. you've think March with heard And I January when than better we pretty felt January tough. at was like that's -- consistent

that I is to more think did one definitely saw in products we QX utilize in than our we QX. surgeons add

to increased of the the January we our in number and And had because so We in but you that's we volumes me then saw surgeons -- quarter. less so still products using in grew February. ultimately, the being encouraging challenged

where business And overall then a how we terms so share continue it ultimately April. our think March as in I think to saw be. rates we at growth both I rate. of we exited lateral at we our we And on looked grow faster that And and than grow perspective wanted as the volume improvement in to

of impact an case ASP average the our basis. that seeing You're on on

guidance our And raise, so rather about case than the really I revenue about the on component talked that volume talked component. when I per raising average

higher nicely. anticipated. than ASP We're volumes the in think volumes. came in came very in confident Case I So

business QX of confidence the of, stronger the into quarter. than, on overall to in lateral average us kind gives ASP raise going that the ultimately year. And the of basis was guide on Our case expectation our kind full in

Operator

next our take from go question Wainwright. H.C. Lee ahead. from Please We Sean

Sean Lee

you great a afternoon, on taking guys. Thank my for Congratulations quarter. question. Good

the potential you that international things have guys last as for planned expansion quarters the major several well medium-term. basically you Over mentioned just over

was whether on some about how I your would So can wondering share you Thanks. are more that front? thoughts And on go you details what it?

Pat Miles

Yes.

communicated And very would I the announce narrow foreseeable I in going into the first deep. are to UK, is Zealand. we've term. that we Zealand, to Japan, I we're New think think Brazil. to done in that that kind countries and potentially have be go we going what our and deliberate PTP that with the And been to Australia, go going we've potentially of That's New regard

New country. now Zealand so And is PTP

outside can't about more I PTP. proliferation States United the just be great signature procedure in of so the excited our And

Operator

Joshua Cowen. comes Please question The ahead. from from next go Jennings

Joshua Jennings

afternoon. the Thanks taking strong maybe on Good Congrats been lateral share. PTP or Pat Pat. huge to XQ. a – SafeOp Todd has the gaining questions. the for also strong Hi. for this of procedure you and your enabler one is and

platform on for while, I follow-up. I to Just but have checked I evolving of see how procedure? that see how And proprietary in you you just element on important one haven't your keeping that and on this a of plan then lead kind wanted neuromonitoring your

Pat Miles

very that's in things talk integrate things like just hard the EMG of kind surgery doing to to is are in do workflow you this the it's unparalleled. stuff to I truly a business. what These we're Great. automated an this Okay. in our to when about start most ability elegant because from lateral think And perspective, about

to mine SSEPs. our so automated canary coal of upon then ability the the nerve And its health and in determine based the find

going well, And is It's best and extraordinarily in phenomenal. the team so around that is business. the the that

thing way here NEPs. NEPs and our jumped ultimately do that have things coal patients bed not-too-distant off the from other canary in the that enables really where And a us an ability is SSEP the do you'll the tells what us automated perspective. affirming the in The mine in to facilitated to future see

in that technological the happens it us more run advancements is perspective. about from great of And part of be to that when what And so to an the is, middle SafeOp. there regard that excited SafeOp, more is can't information in a the with send we long so is we in EOS operating is enables tool like confidence valuable of a room create we're

And information we avails that conduit deliver ultimately that so creates us. a what opportunity is into it really can to

so think great terms SafeOp such that doing a And step of is in we that. first

So question. anyway I appreciate that

Joshua Jennings

a particularly being on just that just multilevel more have Do out as risk in back come that suggested increase, XQ complex a hit? a of at you level And case is at a of guide than But postponed case. and XQ the checks there's gate when of doing one some that through complexity, even ASP a that PTP there? XXXX, increasing try at year that clip Thanks -- Todd to a help some they your Could see maybe single-digit in taking about for were higher on board for started ASP revenue mix lot bucket higher? per questions, you the better move case last and expected maybe high think least the laid cases increase, of of guys. here office lateral talked higher nice ASP single admission cases kind we hit shift of complexity potential driver you those has for about case increase ICU the higher our to and towards for competitors as into where Thanks. details. can Thanks out roll that of per proceeded just follow-up than

Todd Koning

Yes. Thanks Josh.

mix and overall the about as really thinking case more actually year. of the I was throughout than we think, a growing lateral ASP guide I the As component contemplated ASP rather it's in

initially really So business, in a than a guide. higher lateral about average we growing of which had the I it's rate than throughout year faster the at contemplated our think has our overall more kind ASP

And for so I guidance. our we that's did kind basis the think what in of

it's logical. few there next but don't procedures think get kind to have of nor I a of really page, worked me the That Jan-Feb comments I over to a logical. if is months? those set timeframe, need that the deny, would kind to question confirm that couple data neither your that and of through that and delayed got seems more on extent in complex of

Operator

Coover from from go We Phil have Goldman ahead, question Sachs. Please sir. a follow-up

Phil Coover

the much for so Thanks taking follow-ups.

my on prior Just EOS one on side. of the question kind

asking EOS before have question was it deferral basically a angle a if came if or of was about backlog different if timeline? it's I that kind So asked more you in same from in talked ahead if order asking happened terms may. and And strong that book then any of one there might XQ of slightly kind installation kind of of on side I the actually capital in expectations

provided more cumulative with that And with for the follow-up a where number your is question regard that those far XX% total XX% of the of cases? of of year in to to somebody to to to And follow-ups relates of regard that the question that sort directionally, cumulative as slides Thanks a again. sort PTP? to if taking number the XXXX or cases two your as looking is, number first or -- before up X,XXX the so XXXX a ends in three You is kind lateral in of is that's of viewpoint a total PTP kind back kind to percentage that is then procedures number just like XX,XXX asked growing number? a

Pat Miles

I to So to them. the because keep I'm and answer questions start not up I'm smart all going enough can't all of with

I'm So targets. my defer going other to to

one. So here's come -- they hope intervention back. don't and an I'll come answer the once We PTP they for

what the years PTPs done So the or it's of PTP been. number X.X it over last is number is the cumulative whatever

is of is approach including heck these start ultimately posterior greater be above And [ph], enormous procedure But this resolute of the are improves to to is, marketplace. start POS dynamics so X,XXX from anything it's of anyway, the that and understand getting application we of X,XXX. in believe fastest-growing really to not from the a it's what X-X like the strategy good people just -- PTP. a And from a so abated the standpoint it a a absolutely a it's a X-X than

Todd Koning

we of is that does in to to total And terms contribution of way Phil, driver PTP answer be revenue? question a will our of expect of us. I you to maybe continuing the continue had for -- on a growth where and and kind of terms in kind PTP be And think is that

we're We in leaders high over we're such, is would to And in that space. the time. better objectively. Our to market of kind estimate single-digits doing share what distinct mid- that that expect of we as in is be believe and

expectation. question of And think on I is And think so, will had tell, the but pace time that you EOS. I a that our

Pat Miles

there a Is question. I backlog, was the think

Todd Koning

EOS. in Backlog

Largely, we're applying EOS. on There's answered of the think question the reflects to and that bit I've installing. I We I here. outperformed a expectations. a more operational of think rigor delivering I think in cadence business So terms that just the

of a of seeing of in here first I the over more things that sales be US reflective presence. we'll see the marketplace the time quarter think will one you're is and then more

install buy them US drive the distributor-based been business. made OUS multiple markets And machines. in the sales growth channel deliver to is our so one the them people market. in where market And We US historically versus we've investments a in have distribution

to install to And so got that that over time. is has then gating And then orders is create installation what item do a to degree. part reality we of take some team kind an demand of we enough is that have team installation the and those want them the

a US volume calendar today you're installing and more And that's so that is and based our planning line time reflects requires rigor I think also delivering and you've installs. what which more a on seeing on just got certainly on rigorous and a bit

bit drive history you've a why seen by half sales. the rather lot think so seeing the revenue saw is first the was throughout be EOS than $XX in is you're being what historically more that's you'll what the here a in quarter. us about a And growth, probably see I second that and number And XX% year million because influenced half, balance XX% we of to the in the distributor linear largely

the sales quarter-to-quarter I terms think the reflective as we've become sequentially again, the market so sales. presence made on the in and here of front, investments more And of you'll see we more US consistency

Pat Miles

the the part that I inspires us. And that just I would is growing. funnel And add that's think

Operator

now concludes session. our This Q&A

So I'll hand the Pat. call over back to

Pat Miles

ATEC. everybody's interest Casey. Thanks And appreciate in I just much,

love in we're appreciate and number literally We Thanks so game inning in what and interest much. are of a doing one everybody's great ATEC.

Todd Koning

you. Thank

Operator

now joining. the Thank This for all call. you concludes

lines. disconnect may You your now

Alphatec (ATEC) 8 May 222022 Q1 Earnings call transcript