Earnings call transcript Q4 2022

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Operator

Good afternoon, everyone. And welcome to the webcast of ATEC's Fourth Quarter 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.

may measures. company you or to call, forma pro this hear refer the non-GAAP During non-GAAP to the of and is supplemental identify Reconciliations useful measures quantify provide financial in be and why tables the management's found to view included this excluded investors. in all press of which US release, items GAAP information can

CEO, CFO, Todd and today's will Leading Miles; call be Pat ATEC's Chairman and Koning.

over Now, to turn I call Pat the Miles. will

Pat Miles

call. the Thank you, conference And XXXX Angela. to QX everybody ATEC welcome

be forward-looking that some will at your review We so please providing statements, leisure.

to So our the revolutionizing momentum by spine approach surgery continues.

where greater was revenue, I sophistication Our surgeon unlocked in and than year launched finish four culture. cash of year XXX with including LTP, products, our for $XX procedural XX%. million. access million. our to drove which expandable XX XXXX and achieved XX% had grown creation and $XXX value CAGR. we've And our million much XX% four by We new at each we We to includes least expanded liquidity Midline first Over lateral year our PTP years, approximately greater that trained and ALIF. XX% grew increased implant. comes than a $XXX We a growth believe EOS a surgeons, is users in via

spine who worthwhile through to who committed forward say a procedural is are innovation. we we're of solely surgery, will we field describing I is on it culture not. and So are and moving And who informatic spine winning the focused

not division. I we division are we're of not? who So a say a would

only experience. furthering conglomerate disinterested a the full tour, clinical and not in We to technology implant or an uncommitted growth transaction are acquiring

unmet through exclusively create commitments on technology focus distinction. call we spine, We to Our creating clinical clinical changed. needs fulfilling predictability, that integrating haven't

an we force. we more and distinction, clinical sales effective create adoption, expanding believe force we sales adoption. compel compel we surgeon that believe access when so to have When we we surgeon And a

view different. distinction is clinical So our

more Our the To surgery, from It automated the to also requires start up required. say, you technology that we in lateral successful applying you to of is most not ground designing only must would invest lateral when in heart realization. sophisticated. is up you're us technology Around gang XXX% not here, the the spine removing We have makes to of procedure it sense automated be procedural procedure and lateral. about predictability who have be, only surgery is make that great Lateral SSEPs. ATEC. where a place the soft of think a At surgery. our but like and of a furthers to EMGs propensity complication plexus. plexus. number focus at would is exist more you realization is subject lateral one sophistication key variables, to to lumbar allows like from The spine a spine tissue skin it spine here. the A that makes surgery is pioneered draw predictable between procedure part distinctions in Why tissue. potential the lateral soft What is injury it words the lumbar is

to to So EMGs have requirement it's know SSEPS. nerve a automated the and automated is where

those that actionable. the makes the workflow combined a are technologies company two only We in with information

clinical information decision that we So believe actual improved drives making.

pre-op the affect opportunity that Our no information analytics. reason in we're information beyond covet We a the comes the stop standard company The image post vision foundation same to the really on view Judging the In better from which has op our that that the the sales. to front is information through operating experience front, real room is additionally inform behind key. is operative to predictive Bring is surgery. far really to plan literally build, is system begun not It The starts is should room back standard to EOS lateral. other that plan the that opportunity with with from experience for the time a operating of against building. ecosystem EOS. informatic capital system. out for in the work spine has into the

We have cloud, surgeon is already building the alignment process, patient time spent significant the portal of on in automated the the report.

So apparent. an time will automate at real ability the with take time measures when you the be to image, in same image the the

alignment then the be availed. specific automating be the patient bending based reports surgical Our the and rod upon will -- planning also would having immediately

in be reconcile platform. today. slow Our that regard we're on rep -- efforts refine interoperative will ability our to and an working from are neurophysiology to portal won't with also to that a There that our we technology continuing is perspective that

having based really automated reconciliation foundation upon alignment understanding based the So intraoperative preoperative begin. -- the the plan the the how against and an report analytics for is will

be related, only will analytics operational but they'll patient our So also be related.

these provide its we really like so in and And forward, analytics the looking feel inception. opportunity is to that

to release and go what the will type opportunity And be of ahead spine. the in required so understand

so have of I to but the understanding to of would implants the think alignment, often it upon as but from a be building needs lordosis to a perspective. what require perspective only rely achieved, do valuable job not surgical be or people from to ultimately

core to analytics alignment, to beyond continue we drive And but utilize engagement elements of so procedure. to specific our procedural will also build not the elements the the only opportunity in the

we PTP, PTP, offering So in as corpectomy as both as we as will cervical expand the lateral the will have well realm. well for instance, as transpsoas for as well lateral

So we compel surgeon distinction believe that creating adoption.

building growth category There X.X than XXX surgeon trained As interest more we adoption year. are and products at surgeons. clear XX% you is There here what in previous we over per we see, is more ATEC. increased can have at by

More reflects Additionally, the products is surgeon procedural working. thesis buying. more procedure per

from You XXXX. X.X in X.X to XXXX we've can gone see in

you a has to the want rewarded are salesperson a that entire Imagine would not same. who you deal or their be spine spine, surgeon with our only will We committed done focus. for if a to has career company

to with expanding on is filling Our new strategically the distribution gaps regard in compelling focused and all effort surgeon users. footprint,

a this are X% We than less point. at shareholder

endless. opportunity Our is

that are growth things adding you have a to reflection want people. independent we us the of one additionally, is year-over-year the is been period And who of time great people the in is their with know growth. those revenue here growing range for of in that So XX% of

in with that us terms we growing great gives to so And as individuals. confidence growing of we’re in as are established adding well territories regard the

real operating focus room. is in the making our contribution the the existing team to from that increasing so increase And aptitude continues sure the and here clinical

distinguish requirements of spine and serving to over the of a ourselves by we the lot we're So have to work focused haul. surgery do long as committed

front So us. can’t it right a And turn we have to that, I’ll now, about a with excited more be where of future Todd. are in heck big over we of but

Todd Koning

per solidly greater to and shift case million to quarter $XXX most the total XX% comprised overall. The Pat, expanding lateral an grew which and towards call mix Thanks Fourth over of XX% the today. And revenue growth, about average the with million continues related and XX% quarter more X us third of in to the in ALIF average afternoon, biologics products Procedural with on prior the million in revenue year-over-year begin revenue volume quarter lateral continues in XX% overall as Fourth grew average compared faster to per to while our revenue, case good everybody. than lateral revenue million prior procedures quarter. surgical appreciate fourth the $XX per related with procedure revenue year. revenue is grow $XX over complexity. was times is million, increased also revenue you revenue and I'll of contributed year growth XX% $XX to surgical to year. quarter. reflecting revenue. meaningfully We and increase XX% grow revenue surgical EOS $XXX compared revenue continued revenue related an joining and prior the

to surgeon growth number XXXX. users. volume XX% revenue million, Hosting XXX compared and year-over-year revenue EOS of $XX of surgical increase of million of case growth surgeon surgical XX% XX% Total field in revenue the average grew training and That revenue. a to driven reflecting surgeon XXXX. Full prior Turning XXXX and adoption per the year, revenue full over in in of million events compared by XX%. comprised drove year to XX% $XXX growth was year is the $XXX

both As us cases newly cases, utilization partner trained surgeons for become complex more and for increasingly familiar with more ATEC clinical with growing. also distinction and is

of our the lower year. the The created Walking P&L. to down needs to of our an gross quarter was rate, through was business. which we and service the than attach as increase continue pandemic address overall in features the service remainder a meaningfully increased attributable XXX backlog prior biologics costs margin margin the during gross EOS points to GAAP basis XX%, pressure Fourth compared non

to compared the of $XX Non-GAAP improvement million to these year quarter to million, of step as indication and product improve was reduction in year. expenses the about of period. in million our $X XX% of dollar with we The in in portfolio expect platform. point fourth advance selling of We improved prior deliver sales approximately infrastructure in million the of As leverage million scales. sales XX% and year XXXX, operating expense in R&D sales of points and XX% an million demonstrating XX% X% long adjusted negative by we sales and a basis to approximately Consistent prior can revenue our year. sequentially Adjusted expand anniversary in percent a $XX was million prior which XXX million EBITDA driven delivered absolute operating margin in full a on resulting sales attributable $X and the is a was Fourth in and delivered gross basis. to our XX% a begin XXX the to operating plan, variable fourth XX% compared million improvement impacts to $X $XX sales of $X.X leverage leverage, of approximately and quarter of XXX was balance. partially Total XXX non-GAAP in as $XX and approximately of amounted compared quarter range XX% compared gross EOS the of improvement. increase margin. $XX quarter non-GAAP sales an of organically in by million basis and leverage costs of to of basis an was points up the XX% on prior Sequentially investments the points the our SG&A sales by that continued loss year The basis EBITDA to the of SG&A year-over-year. of driven $XX basis with fourth and sales a offset period, loss business improvement we

which to the $XXX an to the for points of compared full basis basis Non-GAAP XXX year a compared year year. to loss -- non-GAAP an compared of points $XX full basis basis and million, operating approximately points was of X% sales year of results. sales million, and year $XXX improvement prior XX% to of carrying EBITDA was million an sales, X% $XX compared SG&A of gross improvement XXXX the adjusted convertible down to value points full Non-GAAP and full million $XX negative period. facility. million XXX to expense XX%, compared million the to to a year. Year-end year. XXX improvement approximately R&D XXXX XXX and XX% quarter sales $XXX $XX drawdown $XXX fourth of prior was the approximately improvement $XX and million points XXXX was included Turning XX with cash. of to margin basis ended approximately year of compared prior was for of the XX% million, a debt We million of from million credit to revolving compared and debt million, an Non-GAAP compared XXXX. $XXX amounted in $XXX the prior

EBITDA, in operating $XX used last to relative With the and cash quarter million. adjusted totaled improved improvement

use entered plan. We expect we into Braidwell consistent term XXXX agreement full debt as In non-dilutive XXXX our improve to securing an year a meaningfully adjusted to with long cash facility. with January, improves relative EBITDA

balance. above now we higher us flexibility provides to revolver, to working up the million. range cash This and capital in cash instrument in our and access facility and invest growth $XXX to to further minimum plan capital a maintain long debt sets permits have new line the to With us support of top

$XX and expect million. Now includes for turning January line fourth the year XXXX growth and approximately continue of total In our XX% with approximate to to That revenue results, grow of to of year million quarter pre-release revenue and full XXXX. XXXX full XX% outlook $XXX surgical financial EOS year approximately our $XXX we and full million. revenue

growth full drives XXX across XXXX continue by achieve sales expansion. the basis points As adjusted leverage breakeven year our expect to of delivering to EBITDA we business, for

is margin in EBITDA in of sequentially. free than lower range plan. EBITDA goals that QX even anticipate us mind be third revenue adjusted the profitability keep achieve QX. Now flow long well with expansion, quarter than of basis QX seasonally adjusted delivering also XXXX, positive typically cash lower points the positions beginning the which We to XXX and And in would our

per few sides of guidance. I'll next and the sharing additional for guidance. for surgical how shaped our provide the context surgery revenue our procedural our XXXX average growth start expectations Now revenue by expansion volume

a which surgeon surgeons each is utilization. surgeon utilization. surgeons utilization We that drives will to to which continue surgeons loyalty complexity consistent demonstrated both in middle up at procedural of to The adoption and both work the testament chart year. a ramp train robust enables and have our the cohorts rate, increase Training builds curve,

these mid-teens per surgery expect biologics growth with our feature addition shift more of all for fuel to opportunity. The PTP full towards and enabling us dynamics towards overall like and more increasing than implants expandable Average to revenue procedure volume mix growth each greater attach also LTP require surgery XXXX. per of procedural percent capture year is to We which products portfolio procedure per higher surgeries procedures the our that complexity, our are gradual rate revenue of average. revenue and

year a XXXX. per dynamics percent high and these for full to surgery growth rate expect the average We digit single drive at revenue

approximately by We to supported in delivered anticipate expect $XX we and this Turning XXXX, EOS year. to the year an the full existing million revenue pipeline expectation that for installed EOS. be

market benefit a EOS maintenance revenue In And of revenue addition, domestic we see ASP. driven predictable is as overtime, shift just to by toward gradual increasingly over third that deliveries will also one EOS stream incrementally. will recurring contribute a

can the second leverage to and dynamic operating the that with rest sales that Now We drive began XXXX. P&L. respect the XXXX half in of to expect growth of the demonstrate to in continue we

with this of year points XXXX leverage the And of for the margin gives EBITDA began of we in of of saw for for infrastructure in basis XXXX variable leverage come adjusted in will SG&A to negative X% Our the delivered implies margin And relative SG&A the breakeven points continue guidance investments year from saw was infrastructure continued in as improving dynamic Like XX% from driven of second XXXX. confidence second a half XX% variable half scale. XXXX. expense. profile. adjusted benefits will in we EBITDA to play reported And that balance made the by XXX to the an implies XXX the we us to guidance out that the leverage XXXX, coming half years coupled with progress the expansion improvement basis full selling expense expense second operating of

which flow to Investor meet outlined full we adjusted position free and P&L will cash EBITDA forward meaningful commitments the us our in are that progress May. our XXXX, year Day looking last to for We demonstrating well

XXXX closing, marked in year. Now pivotal a

series past story growth for the has was first the annual procedural demand answered that developing. And been clinic about instinct demonstrating we the XX% delivered our rate The have a four over as compounded solutions of were ATEC sustainable question years. growth team

we where deliver made. are have return entered the company's the a investments on we next beginning have phase our growth we of Now to

in the strong. which are story we flow the As wheels momentum cash in motion XXXX. adjusted a of what behind we improve cash achieve result expect the of walk in growth this towards as doing are and is breakeven use we Clearly, EBITDA operating, to will our XXXX, breakeven

to up opportunities a is back seize execute. to the that, confidence. on continue in call earned the of your it our team serious delivering over that It's my our front is hope to And our is that and has turn far to financial us thus Now team about with I'll This commitments. Pat. performance

Pat Miles

Thanks much, Todd.

will what think will change. strategy not you share our find earnings I is

That will people confidence us that will effort that way Those is our type complexity will procedures expanding more The us. That out investments adoption, to different to way. the ultimately that before avail we investments a in opportunity. enable an and will that expansion What have so we the our created come will these will will sales halo those the the value We address way investments that of allow now an effect and portfolio procedures. will continue like we that you made made see other garner expanding to sales product have is through LTP. people telling and pathologies a increase of confidence compel opportunity of exploit PTP adoption. been in

We international in marketplace. are the our continuing early experience

direct those As we stated, and spaces. narrow we will be in

As it we relates EOS, only just begun. to have

value 'XX, an translation literally information So believe the and is foundation is in creation, laying will that pay from avail real of ultimately opportunity information that we 'XX, itself the systems. comes EOS We off very the that we're the that love for be the an avail will investment the will sell future units, those 'XX. of iOS it in where that before to will us that an translation

is So exceedingly enthusiasm our high.

care nimble is to opportunity improve apply our massive. to Our focus spine

Our questions. With will are ahead. we best that, days take yet

Operator

Sandler. from The O'Brien comes Piper with first Instructions] Matthew question [Operator

Unidentified Analyst

This on is Phil Matt.

multi-parter Just guidance here a on more.

And what take really the gets end you with as see I what So what LTP likewise to there? you in there? the from standpoint are move into and XXXX, what it, but range the bottom? are we're you top and excited by the do your of seeing puts industry we really the mean,

Pat Miles

We're I think ability go best. the overly The So I And guess And bullish I’ll audience. Todd I access into let the because the changing. interest second will just deep ultimately XX lose the always, the to different of and LTP. of to not get game first. I reasons may one position on to each why, as just qualify. change hugely it's is do quantifying

so becomes And bed very ALIF is do hard. tried historically to do ALIF they've in it been, to that And inflations and at to lateral that position an a we supine. that a and I agree the tape best a have patient think surgeons XX,

you if game it's And so wise access media at the a between XX, can changer. bifurcation get

protecting a And very go a tool. is the things four orthogonally to with so have perspective it patient safe from one and valuable to like to able an neural controlled LTP ups, positioner elements be patient and with the

inception, And so end we of avail to ultimately is what confidence elements do we are guidance, start the when from the as And to think think say, surgeons pioneered we the in see of the the through who who guys our top building. of ability what lateral that that all is the in. the we And our you come signs interest. compel confident have our through I through

And the technique our through would in come we’re will I say building, and to people is so the volume expand clinical effect that that ultimately the compelling of confidence aspects across the portfolio. lateral the halo the of then

a in of PTP early run. We'd there still so is get in more big way. its wide And out infancy love LTP much a to

momentum. see that's early to a and it start You part come just enjoying the speaks to of the in this expandables company

Todd Koning

the so And growing think think about you $XXX XX%. of million guide, I as kind

digits, our can planning. ASP. mid was. ASP you procedural putting we You in terms through the than being range then range being with of and about high if I growth what the higher our you the at surgical really a and teens and component, procedural of that that's and actually here reasonable and much that's in very And to being believe revenue assumption laid out really I volume assumption look over we volume guidance think procedural our philosophy that that our out single have And line achieve And think opportunity numbers plan coming long exceed. see XXXX component long that, our in in

I is I so about I out. so just Pat think I laid question think all more really guiding to stronger think to we're the ultimately our your our relative that that to adoption of through much when I guidance. I factors. our continue have compel come think about And really things upside to tell ability through think And was you XX%, to will surgeon And industry volume

the I adoption about how It's really to continue So our range that's kind through on mostly ability It's can to things component. of surgeon volume compel dependent the and where think probably clinical on distinction. defer.

Operator

The comes next Jennings of line Josh from question the with Cowen.

Unidentified Analyst

Josh. It’s Eric on for

it and procedure PTP, innings now, is of months. seems and really do it is on for recent think How been do early has starting in penetrated PTP still utilization solid you think? right adoption Just like PTP adoption you the

Pat Miles

the are from like, And Those -- look such distribution like sales growth multiple established been It's if right? to provides far that's what in of PTP we you The rate to a success is different infancy. reflected force really pathologic of applicability established the regard is that with selling will who've who the at beauty to you, I see when it. for distributors states. enthusiasm interesting us fascinating, perspective tell is what's it's out absolute us technique to its XX%. businesses less with are start had perspective. you are who the --- It's that people people growing at have or a there a those surpasses

the enthusiasm like so in utilize things opportunity to to And deformity, our utilize it things it like corpectomy. in

is such it phases of the so PTP. And early

the so applicability opportunity. me thing And The thrills very, wide. foundational is made that exploit to the very investments is ultimately the we've

when learns to that avails ability to expands And into expanded apply us someone to to those unique that as applications. technique, pathologies more their so design an opportunity how apply what

the where would more going. say And with can't regard PTP so infancy is that its in be and things bullish absolute to I

Todd Koning

I'd dollar that market beyond dealing relatively opportunities really the true, PTP level existing lateral as straightforward that well. one or be, well to described, a it the talked Eric, which think, thing as applicability is that complex to at we've to the And of case such well cases, us but just beyond with about as is when singular the gives And I is think us it. procedures it beyond defined has degenerative today. look expand would market dollars we've of availed you level complex billion I it’s as degenerative two the Pat billion kind single cases as I opportunity, PTP, only add think into from the that frankly, And an

so or And more address existing about through surgeons of surgeon as apply kind you surgeon you utilization you think in procedure more good. is out I obviously, the get use, can with more the our But think base. the complexity penetration can the procedure, you of

Pat Miles

great a more more a what get technique there is It's reality created people get new an an run and early have more who and people in we pathology. with there will But the adoption point. adoption of type of people complexity, demonstrate who seen the curve, on whenever when is complexity bandwagon you is forward becomes

Operator

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

Drew Ranieri

thinking question. of apologize, Maybe in were kind kind and multi-part to a of able last you is revenue your this do start, and I But about what to year. just guidance

I Just think just maybe upside we willing have context of should Are are any surgeon of And that still drive the to dynamic. kind really more your mode of in love adoption? EBITDA that or potential through investment the to Just about to to line, you let in bottom thoughts your volume you a follow-up. dropping how kind on breakeven. commitment fall and

Todd Koning

thing say the first implies is, through the our about think I'd year-over-year. drop XX% on And guide I

kind pretty where a so really through drop that's that's of we and are big so And starting.

to drop we've think costs is, after our overachieve about for the we what's there and business. it of how bottom two thinking that's to margin is gross the thought revenue, better think grow believe to invested thirds ultimately, growth want third with And the gets I go such and incremental that to how in are top about spine of might the you one fueling variable left we about extent sure to And to business it. kind drops kind line. of the are opportunity back it machine. R&D that line. and kind that to that continue drive make this I associated and the we for innovate, make Really an to that the guidance, surgery of think how you the way We of we probably the

Drew Ranieri

And context. force it or But I were out sales the profitability and then you Pat, still calling on reps. attracting sales compelling like mean, sounded

and this the the of sales given back industry, that mean, expand as EBITDA potentially, And an are thinking breakeven to greatly sales evidence you to step are seeing environment more we're committed and you opportunity? that Just from I about in acceleration you additions? drive longer the any year would and maybe force force a term

Pat Miles

tell themselves, vocation guess, least we've are of our our way thinking. you, of aligned we any coming to best making our But opportunistic at about us to will And efforts. as to present company, who with be with regard commitments. inception the see off out people that that don't decisions I to there the in I are to will there is better And team the the a got spine, interest and I'm thinking I those people companies are we I do. only I being that lot are since of make I to something committed way our people, and assemblies same force you, the to. a that spine of the tell committing make opportunities got way always think is feel love committed we better. of people the view

the and we for joy with the people And great that expand team enthusiasm our spine have experience is with do. so same to

Todd Koning

And as force. sales investing plan, in Drew, our you think be the will appreciate, our I can guide, assumes we that

important think an guidance. I that's about And to component understand so our

adding. be the we’ll knowing going year into We are

Drew Ranieri

cadence a down first that And quarter. reason just your better Should there digit with as your back of into any the it the given or year could like be is comments, maybe tail single specifically mid heading think really growth the at 'XX? the of on we some on about sequentially, drivers, why step ends

Todd Koning

in related? EBITDA question the think I or terms -- the revenue was adjusted So of

Drew Ranieri

We can both. hit

Todd Koning

revenue, a surgical step the sequentially, on think typical dollars seasonality lead couple -- perspective, to be would we top-line, revenue I you XX, see. the down a probably million probably would you'd I typical from did seasonality guess

another you from million last it the was year, I QX looked $X to if probably EOS think, at seasonality QX. going from

our So could the if that quarter, investments XXX-ish, somewhere about that. probably know fourth one -- the think in we in that the do $XXX organization talked area at is in were about million those, first the of quarter. around Pat people, We you biggest

sequentially, and types And up from the things, step of some to those taxes of QX QX.

in meeting organization a investment We that QX. sales also always have in the isn't national

an And there's sequential reasons. so bit those for up expense standpoint, a profile of a step from

that of how If second expansion your XXX then the in EBITDA, full point appreciate that basis if and the half. probably adjusted first kind basis just a take points basis XXX margin point and the you half that's flows if you XXX-ish through improvement year improvement think you about on in

absolute I think in kind of single number a get to negative the you EBITDA digit adjusted mid quarter. first

I so And positive in seen second third we I And shared think as the a improves that earlier, the view number quarter. -- obviously quarter. in

Operator

of The Mathew Blackman Stifel. comes next line question with from the

Unidentified Analyst

out we you in wave if with features pace product on EOS what Emily touch XXXX And example product product in of through today compared done be they to kind how an side needs 'XX, us on to for. be to and of terms might EOS? of versus features that is pull these surgeon should how it further new there's the using This for looking wanted be and be if might then product opportunity? of optimize I Matt. that on all using EOS keep And then note to procedures, out the then of anything give I just next wonder could XXXX,

Pat Miles

bearing Emily, think you so what rate provides. biplanar opportunity that what skeletol is entire a adore single my system both that’s do then a the you EOS the image in that a output And the could And heart. absolutely today, And just you front question can a the in side. reconstruct I warms image. view, when and the output the is standing is today

of each go such perfectly will the that and you operating sets, time through give perfectly different that And year, the term process the verification frames, provide, so and accurate. near of this feature I'll they're what like we'll we know some

of will year a this effort the the be really elements. so And verification

we're so software images the are infrastructure and friendly a required to and cloud now other the things like high team elements right building IT house ultimately way. is with is that our HIPAA And trust what in doing team

the And things are in on those going so background.

And so reconciliation. are preoperative elements, things I specific planning the the some the of rods, would measurements, is that say on the do right patient automated to interpretive ability going the and now

'XX. call through things you mid the marketplace So see sooner those be late will go the the first process in, that. than on that to We'll let's verification much it,

in And the so late it be marketplace is will this year.

portal, excitement and our to interoperative exactly imaging a the exactly experience of with is, environment. the a foundation having the so an back then the was And pull what ability it the plan predictive the image understand plan, the what from to associated down surgeon what that's reconcile is,

the it's feel hands so an And volume us the when today start of in variables. to really variables spine. the provides like spine of exist different great in not the we to surgery masses, that opportunity you address EOS is And why say,

i. measure. of the to bone, what you material, then e. a we in, to when to correlative the bone not term ability very, think going what is. objectivity surgeons. start timelines outcome type And of down long on things greatest gosh, important quality into very into profoundly durable devices of elements. the are knowing types the putting alignment, of when devices These putting think you become that like we and But those what's the is bone foundational are say, to design start about to future, So other which effectuate there's things ultimately my the to provide I'm

time, you And effectuating surgery to start period about a long of over so foundational when think becomes this so standard important.

foundation it's And day, our make be that's of be interbody going overtly verbose, not And see even that and would pitch is opportunity the to going becomes our we start it's informatics, rules to probably so so to like anyways, going write I to a it being outstanding think great. device. a and is the say is on spine informatics But a why the longevity surgery verbose. better sources screw, though just I the when view in best to be you pedicle not specific about is informatics what ultimately of that's without

Operator

O’Neil Markets. The Street next comes Brooks Capital with Lake question from

Brooks O’Neil

kind of talk of ATEC? for hoping impact bit, in we guys whether or consolidation bush just the the but you can ongoing around you beat a positive the little a I'm maybe and about space spine that negative see as

Pat Miles

we you, question of create do a adoption need with fair compel surgeon that and is And view tell a that And clearly out expand genuine are sales it's So there's amount. a our people is to force. lot clinical what there I come my thinking. way our would distinction, the has aligned

market we to opportunistic beyond consolidation. still our And we're is so there, chaos runway. address. share we as today we can say enthusiasm better understand laughing chaos. this be. bearer, business the If got to opportunistic And to the out to interest want one And what standard we're we that is the make we going be going because that with we've the beginning is The as We're love to a that requirements spoken than guys be of there's long in rules would anybody. XX% chaos. our X% we have is holder, be thing the X% from long be to market that to any the regard I

anybody about we're And it. to you know, we so that's how think else. Candidly, indifferent

what focus on we're doing. Our is

Operator

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

Kyle Rose

about investments, get commentary that on from think whether picture additional How we drop a through sales So from scale year, about you Obviously, and and how perspective, productivity when you should wanted beyond year leverage out longer drop it's us a previous XX% basis XXXX? term on about on understand make just zoom I think I this basis. the we ratable incremental force to help think or cohorts. revenues. a as through big we should that about -- just this Maybe the

Todd Koning

Kyle, XXXX EBITDA, from to XX%, going kind million XXXX long we of range said, in think in of $XXX EBITDA I adjusted think adjusted out margin million a be $XX and about revenue plan that's in and we XX% XX%, XXXX. Well, and laid I our when and then XXXX in

that's we have thirds come that's so really two it, and from of infrastructure walk, selling and made I variable our where going investments did will we balance to the come call our leveraging that we expenses. in And as headed. that improvement we from the of said, the think are And ultimately,

plan out on And think headed laid profitability we to direction kind and year-over-year But profile. relative so you math we’ve margin the are ultimately, on I the of can do that's that. the the

Kyle Rose

I'll be then follow-up And and greedy just -- take here I'll a as well.

surgeon the You surgeon per productivity as of increasing utilization case well products on -- talked about users. the a new basis as

Just it wanted could saw we you see the to chart deeper. if level take maybe but one there, just --

you procedural or several I'm As in you of how go seen physicians, be market pulled pandemic? just are to rates trying the of curve normalized wider forward? the coming have group the last as cohorts, how to understand the the elongate changing complexity utilization the out has

Pat Miles

are wrong I we people and they'll seen what guess what have come is, it here do and out here tell question out I got compelled they'll your is, come if I PTP. understand for me, is if to

and they PTP the successful products. will PTP, had will of a utility they they things more of a And learn degenerative different and of utility cervical experience have will into expand like so commoditized

we The I lift. to apply to different gets complex to And the start they halo dollars And experienced more so reflected see think will starts is the get with effect. they'll all more per the incrementally that PTP, the procedure procedures.

we realm if question. so the it PTP dollars your the answers the contribution by that will ultimately in will see start the and and procedures to PTP. skew don't I relates greater to all math entirety of the And as that know

Operator

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

David Saxon

the next cohort ramp. Is the chart docs able it that ask LTP. mean think And doing looking at LTP? be there PTP months? why doing But docs how market and it with kind LTP of overlap share we any you what it's know over about ATEC's I could call to those adopting of with the wouldn't to XX not, showing see XX the wanted then I any early. should utilization a reason to and opportunity surgeon if And on for LTP?

Pat Miles

who It's a great the And it's dependent do both we have and oftentimes and I bunch PTP of pathology. LTP. question, think a upon dynamic is surgeons

So want the to you like do I in you decompression posterior to want pathology do a a decompression. I have If a single to do if position. don't surgery, this and want that's position in lateral

position. prone a in it do will I So

start types or pathologies way being this we're see to is of individual starting unfold patient applied surgeries individual seeing physician. to individual so you're And the to

LTP, is reflected very, column big. our seeing and think pendulum XX to is what excitement. a we drive to the But of us, view time do very And surgeons is tell utility to the your reflected And into yet we're procedures. as want is want will has at so that of the you be to at think the What's least of lot the don't one clearly of different say, that I what I swinging things we impact the back is

doing surgeons as, contribution So a do ALIF ALIFs ALIFs, means want when close you to what is the lot hey, to realize hear number, are people there's a more of say, in that bifurcation the And can your surgeons XX through. as meaning get you can, position we we physician from better possibly that perspective, a at There's laying you supine a the operate back. on are. that more to

designed is upon And why which what best we years plus LTP based is our lateral, understanding XX the to respective experience our position for means in so patient the requirements. as of

because momentum have really -- so pregame the an And we times And not we perspective, fronts. have. may both clearly, to avail bullish the build to and in lot dynamics us evaluation a is maybe on from they perspective. opportunity going a to past give LTP where from a think marketplace the the I totally think we a are is a that solution And PTP an we people reflection, it's solution great great have

Operator

Sean the H.C. The comes from Lee line of Wainwright. next question with

Sean Lee

of the last over you looking expand internationally you're So as avenues potential well couple mentioned the to the to have grow. quarters,

the lateral main be as would So going as I for we EOS with you well? focus be was this seeing of And whether or in year? there be still that that more you would if would arena wondering leading so,

Pat Miles

Chris that the in out who New outstanding of what what thing And Lyons, is excited one there's process we're started internally in is to and and our Japan. international assemble an in figuring guy Australia we're do The a Zealand, here, team to about team.

lateral will the sophistication, a with so they're experience. steeped our in of team lateral lead kind And Australia

from in And EOS to XX terms build. I we in start Australia, of a like as which a there's so is think it of nice has like our foundation business. I chances so translate, the And to building foundation

And an exciting hugely a enthusiastic so also then that I think that Japan place down is just we the ability about. are is us. place for And translate clearly, to there

will in bullish is so And so that deep much narrow I to continue what the these business. we've like markets. very international in about of terms assembled in But we're and very our of think team and be the we future team the looks

Todd Koning

to Sean, we our international kind when commitment and about talked of does reflect sophistication I the bringing And it markets. narrow deep, the lateral think to

that. and to plan And our so ultimately customers patients definitely that we is how serve

Operator

further call for There at will closing Pat are back this no questions turn time. I remarks. Miles the to over now

Pat Miles

thanks, everybody interest And Angela. in for much, your very Thanks ATEC.

our lot growth ahead. year ATEC. but days a appreciate interest we of are yet in this clearly Thanks And everyone's best so and beginning much. just are We

Operator

call. concludes This today's

may disconnect. You now

Alphatec (ATEC) 28 Feb 232022 Q4 Earnings call transcript