ATEC - Earnings call transcript Q4 2024

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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.

During this call, you may hear the company refer to non-GAAP or adjusted measures. Reconciliations of these measures to U.S. why in which financial excluded will identify provide view found today's included items be be useful Todd management's release, is Koning. CEO, press and of and ATEC's can Chairman the today's Pat tables supplemental in and to and GAAP investors. Leading information Miles; call CFO, this quantify all

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

Patrick Miles

and results Audra, much, welcome call. so QX financial to Thanks XXXX the

at You will your statements, them some enjoy leisure. forward-looking read

financial highlights. leadership. XXXX you're First, seeing growth let QX me perpetuating What is address

market. So growth we grew in QX, at XX% total which revenue is Xx the

So nice come profitability we're leadership. perpetuating that It's to see strong. very also the in

we're profitability. So expanding

finished year-over-year, X,XXX at QX which million, basis we which was cash points we're up So means $XX flowing.

for transformation. since quarter million And the first so the we really flowed cash $X

what revenue leadership. growth, And enjoying is profitable so we're

And we so love profile forward. and the growth also just where are love

when clinical I And here haul. about X% growth reflection As the for we've market a shareholders been that transformation, commitment, the long has start say XX% and to you But CAGR of -- you numbers this has talked we're go. say to think around the the have love to in wonder, that to revenue total distinction since yes. been And we're X-year are the period with over is the from reflective XX%. we robust.

created and demand. likes what we're it's doing Somebody

CAGR, XX% surgery on CAGR. that that, per believe X-year volume robustness continues a forward. procedural we X-year adoption X-year So XX% a surgeon CAGR XX% a on revenue and on

investment design. beauty about was intact thesis I leverage. to thesis the foundational intact. And is thesis The growth by provide starting being think that powerful machine and growth is And the so that the growth the is

and been absolutely we it's seeing be so fruition, excited plan forthright coming of it's the will self-sustaining commitment about. the for That's company. forth that continue are and a And and coming robust, that's time. to some and us it clearly, to becoming a And love leverage about we type

you the we Of growth million, year We at that the same-store growth sales, the territories gosh, the as surgeon in to sales. see million is the mean adjusted some to the finished the whole Love And clinical you profitable XX% the when thesis growth all growth. putting of we're we're back acceptance start XX% XX% to is profitability $XXX million, XX%, $XXX so same-store full that revenue expansion user commentary. surgical to of revenue at And coming there's was look established which is of say, XXXX, forward. see year a growth, EBITDA. $XX have in.

flowing record a First the that, transformation but quarter EOS as launched EOS of repeating. We software it's in well cash Insight order worth said as book since the dollars. there's

with Love with a the which makes clinically. EOS. sense be doing what lot second total is there's participating of we're to to So market in in world, Japan. the regard enthusiasm It largest

Summit, space. our And we so the cases Deformity our did of to And commitment we would a which be hosted deformity there. requisite first

some the to year, would bullish I'll it I route Todd and totally to so you, thrilled about And the additional tell turn on provide I'm over forward, color.

J. Koning

revenue of procedural growth, XX% the million volume $XXX million of growth Pat, to grew average in year-over-year growth revenue XX% That of and revenue revenue. and fueled Fourth surgical our represents you, per $XX Total up prior was revenue growth compared was EOS the improvement of quarter in of a year today $XXX highlights. $XX $XXX was thank XXXX quarter up in ever. Well, dollar largest P&L compared surgical XX% period. quarter million procedure X%. The of XX% by good The $XXX I'll with million sequentially. million afternoon, everyone. fourth and to million, year begin revenue prior comprised and

EOS franchise lateral million, primary last to up well Demand to order the of EOS compared XX% fourth of for revenue implant continues coming quarter. robust to the $XX system record year. us growth. Seasonality driver of quarter this be volume installations is strong EOS with contributed in the the for accompanied That, positive pull-through the in with and years. positions Our Insight along reception

to sales. while to R&D P&L. growth level approximately slightly turning in from was the Now year. infrastructure higher compared Top innovation was invest line of year-over-year of variable of at of Over an million the approximately the previous in the quarter million leverage related remainder half is SG&A non-GAAP and $XXX step-up SG&A drove margin instrument to XXX and basis a the purchase dollar Included on points in expense of points the gross X% balance improvements. we Fourth $XX flat this continue sales. to with leverage, Non-GAAP a than rate basis. of XXXX XX% the basis of XX%, XXX period's absolute Non-GAAP came was depreciation improvement sets. from

basis increased year-over-year. XX percent a depreciation points sales, of As about

improvement leverage EBITDA dollars meaningful for XXX in points R&D and third the represents was turn SG&A by began. I'll EBITDA, which and in SG&A remake XXX total already next was leverage Excluding of driven evaluating margin basis rigorously increased X,XXX points. We opportunity and reducing adjusted non-GAAP the operating million, In non-GAAP QX, The was to drop-through compared a to which to of marking fourth a a adjusted powerful organization the we basis prior EBITDA to strategically was and year-over-year points adjusted quarter XX% beginning sales. of spend equating $XX quarter, million, the EBITDA. measures to very took our expense of to quarter. allocation. growth investment first add points and to realigning and discipline what that discretionary improve $XXX impact, The basis operating and discipline, the reported adjusted contributed improved operating of XXX margin the organization period. Fourth operating of dollar approximately to since XX% is year positive profit basis improvement revenue consecutive of our was leverage the operational over

in Top with consistent. resulted been line You margin can profitability are this discipline deliberate profit coupled has slide see that we executing chart significant in improvement. on momentum, that and the the That expansion in a ability has measures confidence we to that fourth with execution gives commitments cost into and on the conjunction in us cash flow. deliver revenue financial our in profit completed quarter our and optimization operational the translate growth

to sheet. approximately announced loan balance the including the face $XXX to last term proceeds with $XXX expansion quarter. the million value cash, Debt Turning We million fourth quarter ended $XX related million. in at in was

was adjusted sizable increase financial flow compared alternatives of XX% the surgical fourth sales up of in was million for U.S. gross to revenue free to onboard We geographies multiple Surgical million, to EBITDA XXX X% for Non-GAAP turn over incremental $XXX approximately revenue convertible of grew average to leverage $XX an We basis margin year XXXX XX% from was million R&D primary revenue to quarter. and for positions by full channel. I'll of cash to an points period year. next of of year. options prior by in XX%, the infrastructure up $XXX to XX% and XX% that revenue. XX% sales, XX% by adjusted generated well $X $XX million variable growth our the to the XXXX, last was compared year in continue due Drop-through year-over-year adjusted and of a XX and of the heavy the of execution $XX improvement. XXXX in growth significantly Half $XXX compared us prior contributors $XXX sales, and full August EBITDA year. the year, attractiveness compared in results. points options. the our XX% beyond improvement transition improvement approximately a $XX million comprised instruments improvement and and pivotal evaluate volume EOS The to was was enabled investment million of driven $XX to were procedural other XXX full prior points million results. We continue procedure EBITDA the and milestone year. year-over-year. XXXX invest million. notes XXXX up basis and the revenue basis achieved strong half and those X% approximately the per revenue Non-GAAP of the the of SG&A XXXX. up The expense expect million was inventory XXX million, to continued revenue the Non-GAAP the X%. us was of million of rate XX improvement basis was and EOS and that in compared prior $XXX to driven revenue sales, to months of compared dollars Total points

with future compared XXXX. the XXXX growth growth $XXX use the leadership our an was profit and in of are million, to improvement while demonstrating expansion expectations business. million margin $XX in investing line and Cash in of We

Next, I'll provide year full XXXX detail on outlook.

adoption expect revenue consistent and will our surgical surgery surgical includes growth. million, of XX% growth revenue shared XX% $XXX to be the unique procedural fueled by to approximately drive million, growth preannouncement. growth, with That approach approximately our of $XXX in revenue per to January volume mid-single-digit We outlook mid-teens of which

adoption of growth, ATEC I'll on by of contributors impact revenue surgical of context which approximately with volume our driven $XX slide EOS utilization. the is and expect distinction growth. next the procedural for million. The We surgeon revenue begin the provides clinical

top left growing adoption see that can strong, the and XX% You the has surgeon XXXX. another chart on steady in in been

surgeon chart volume that our Another The new surgeon time. utilization. growth middle in cohorts consistent steady depicts contributor and top recurring demonstrated has over each is utilization of ramp to the

opportunity confidence. relationship feature grows. with penetration shifts in cases. Average revenue encourages surgeon more as procedure revenue Innovation including and earn than surgeon more like average. mix per LTP typically our we develop of that growth surgery is overall That and multiyear cases, Each towards that with surgery creates tailwind. all their complexity, a and towards our loyalty per partner increases greater procedures increasingly business utilization PTP higher providing surgeons unlocks solutions procedural Our another of complex to products which per require us surgeries as new

with implants, implants are along Our portfolio attach to contributing and now which revenue features biologics higher expandable rate case. improving an per corpectomy

to for year adjusted full XXXX the outlook Turning EBITDA.

line XXXX which growth Execution margin right to continue the plan of the half We of we million. XXXX. include improved in $XX a built, have and us an consistency a driving. XX% long-range deliberate our exited nature on has our of we profitability and the as we and well expectations at positions EBITDA been in revenue. commitments, XXXX chart $X adjusted implies the strong that expect with delivered organization are revenue discipline progress deliver incremental the drop-through adjusted depicts of That the dollars, XXXX of to sales operating infrastructure billion The EBITDA of in growth lever drop-through XX% to roughly second the on the we contributing in to

for and our the revenue outlook, So the investments flow. With the continued respect in to full previous flow use year. floor intent the our year, incremental change largest to expect the financial to The be this benefits to profit we cash margin historically recap as is expansion. due expectations inventory but which XXXX along the clear to cadence, relative flow X in keep nuance has outlook been that important the instruments XXXX. cash of contemplated our of we QX mind subtle strong drive during to growth a view period fuel for will in seasonality, That's breakeven. cash that positive of cash year to with That,

first to million spine-focused quarters quarter team flow company. investments built a $XX fast-growing of million X. through $XX have we use the In of our XXXX conclusion, through cash cash in and with the in in infrastructure, expect X positive We

flow revenue EBITDA and delivering We XXXX a return growth durable capacity which continued to resulted to There's inflection and call more I'll see adjusted the to are that, leverage, growth. With in operating to in Pat. self-fund cash back come. mark improvement future on milestone, will investments fiscal XXXX. over another a strong an through lot turn and the free those profitability profitability generation

Patrick Miles

much, Thanks Todd.

and always I would I consistent our the is focus an strategy And objective reflective say is on numeric value. a that reflecting that clearly objectives love working. performance. Our it's

and part talked we're into buying adoption, a better. doing better are in XX% and elevating resulting distinctions, because clearly such X-year over as which people are CAGR revenue a compelling reflects which talked XX% outcomes clinical about, CAGR we're a we is about, is that from means period. our perspective we're And so surgeon which force, We're creating And this. what as key in a is sales expanding and a of surgery

and we for And we continue business, this so sales you out on open to for grow those there monster. the side of listening, are

it transformation, the started we was when all so about bearer And standard spine. in becoming the

and we by is systemic durability and The always is durability interest surgery thing of is predictability plagues Our to surgery one the variables. intraoperative procedural spine and what know that predictability. revolutionize improving

and before, beyond these we we to in revision this there's us address If hip you for ways left, says look to proxies and graph showed as to your ample others those knee are surgery spine, rates, that surgery well in variables which haven't. opportunity

the really going fuel through and that And what's durability to is so that way leadership going is Informatics growth make about we're our sustainable. informatics.

If you leadership, our look which to what apparent. regard procedures, spine our of we've with growth very construction at is the interoperative to has done led our

bastion if and to health We're and so reflection. nerves objective reflection we're be where that had are the And like things of decompression, us goals that surgery interoperatively. last alignment. SafeOp the -- is goals an of EOS things hasn't what their are that precise providing If the alignment, to information using alignment objective is understand Valence an like drives exactly is. surgery using are stabilization

from have an the EOS look way goals a think perspective, interoperative of surgery, future to so and that issues a the associated And to ecosystem forward variables the the of no start spine predictability undermine with we an one systemic we that reflective that some has. If look of the in we else such we at core element. controlling that's is surgery of

as should EOS the all is be what surgery. will So of patient do, well requirements we fulfill what upon of type what are understand we're what operation that at to type surgery doing as intervened to utilize to -- the

this a And so such that is informatics If in we like realm. they're don't have mitigate variables, feel element. those to going foundational this left companies ultimately be behind

I the which move the to the spine-focused, continue our spine. out undermine being the draft off we're that would really variables that company spine there, XXX% largest ultimately known of that we're field have the mitigating who pure-play so of best forward, is in think and And advantages position to enthusiasm all the durability of to means

that, with questions. to So we go will

Operator

comes O'Neil question first Markets. at Our Instructions] from Street [Operator Brooks Capital Lake

Brooks O'Neil

on Congratulations terrific year. a

non-spine on and that talked in about marketplace. prepared So press disruption are us highlighted the that you in that not again delivery and you are Pat, to all give the industry you there you we you're pursuing opportunities spending profit and assurance to is others going What of release, Stryker leaving the ongoing out know that XXXX that can your disruption remarks? elevate take guys focused advantage in in

Patrick Miles

The I beat Yes. is And Thanks, this Brooks. beauty plan it. investments of bullish having dynamics into bit already we got of so disrupted we were the around little on having a previous a marketplace. because think good a conjured for

force to that tell of have sales would investments and the been made current expanding the I so contemplation you And lot a with regard the is of part effort. our

how undermine that don't our respond know in. to there see just we're don't a people that I financial we're the ultimately requirements feel like And of thesis. field dynamics experts excited we so outsized And kind that being more unique expense of to

disruption, continue want And expertise, what is to we of expound that which our so is on do to kind fine. with

Brooks O'Neil

a XXXX. fertile Great. excited I'm environment. for It's

Operator

move to Chopra at Fargo. We'll next Wells Vik

Vikramjeet Chopra

for Two me.

sales one or one, first up reps? additional any large of recently. this its perspective U.S. I sale from expect announced follow-up. market your then a of the either spinal Do a competitors share from you picking implants had benefit So from business And

Patrick Miles

and I one, could smarter. wherever Todd something. disruption, is I first He's is the opportunity. take there I'll Yes. there if The on think pop miss --

themselves. we also beyond environment that screws tools seeing you, room. it progressed in hasn't got firsthand. tell beyond to plates operating this I it. the and want It's we're into are gone precision-only who those candidly, so lean And kidding think to And

when I we think so platform of in And the what so look are start is And opportunities that informatics guys positioned be that us. the think very why so that see think to companies around think they from look to going favorably unique. requirements to well upon I have and future invested and Stryker is the our that in of part future, they're I ultimately I

a I go is need the be operating unique say and it's would I beyond think room are required. difficult place what tough investments for private the world in that to a so are whereby equity And technologies

I great. so chances and our I it, love are think And

Vikramjeet Chopra

Great. Pat, said question you first And release, saw press then your you in was, Japan my we follow-up with your that entered surgery.

Just plans maybe for we talk your international XXXX what about and can expect.

Patrick Miles

the that associated Vik, our purple, we common Todd about to that providing and always place committed laugh for Thanks, is Yes. doing of overspent those necessary an is to of business that. here, that the kind things infrastructure one and question. those And wasn't one that States Australia. It's a of with were much And with we or ground. that's when so on original was the share candidly growth international that with profitability at we self-sustain. Japan markets previous I

so being like markets. open And about is those It's progressive we're also to a market really wide arms lateral. thrilled techniques that in

been business, really super relevant establishing surgery, who that And a and have that been clinical expanding Chris regard that. a He's has we from disciplined. and going so beachhead super guy lateral about ], disciplined runs we've a in guy to with then Ryan [

And going to that it long in way. think doing right so the I play market. We're we're

right on the have ground. We team the

biggest bunch we've so go play that to done here. of long not a better we feel but play market, serious long about we victories, sustainability create let's and And like near-term better and growth and try it, the second it's on if in the it, we be same reap

Operator

Jennings TD Josh to next go Cowen. We'll at

Eric Anderson

in great and PTP several LTP. quarters. over the just for looking Are Eric still you drivers great full Those those way have just with here. early was another offerings surgeon quarter Congrats hear target to is I This on size inning ATEC past bases? Josh. been the their phase curious have that for discuss up to launches? And growth on within garnered your the was is potential? think penetration those there any procedures there in of we're we to what I

Patrick Miles

Todd reflection we I'll the to to I growing innings, positioner so -- it's that It's and from the growth lateral. And much X early we're LX the give X, great is SX, numeric perspective, [ reflected you, a do X, in is it X ] a We're to and to because above I larger seeing first, tell say reason up. and meaning like lateral X Thanks. then ALIF have the and super Yes. the the the what to still screw and from than would I'll -- in in patient using meaning opportunity do doing market growth. and but sales X the much I'll

that I so I'm volume rate, clearly, high but think not surgery still number. the of super at that in And a we're the reflect seeing growing

innings. relates you beauty it PTP, spine of to the The have time. are and PTP early As the access same super in of the front the the of to we spine back is at the

pick reflected pathology. front pathology the a multiple with procedure the so people of upon of and the like a with that access The based such clinical to would value procedures so having the in birth associated often, has resides. types And opportunities many wide more flexibility intervene where back to PTP avail

because and ALIF it I we're innings. opportunity is do And to speaks at we think so PTP see the relevant. PLIF so super applicability just the of TLIF type or Whenever even the above, X or I in again, X, have early people of

J. Koning

And XX% a the the us being market $X size Eric, XXXX. about share talked about in that sense of the in U.S. about and here billion market lateral have see we you that, we how market having to and for give

market. through the there's traditional talked very lateral TLIF that tells addressed so approach. And approach you that as is that posterior not be and well, PLIF that we're opportunity about can of $X billion in penetrated here, as in we've And surgery ultimately a

think ultimately surgery. utilization the today we $X lateral be billion $X And adoption as so of expand market can we at and billion the broaden that

very we're just about getting but where we're so And are, we excited started.

Operator

to We'll Piper go O'Brien at Sandler. next Matthew

Phillip Dantoin

on Matt. for quarter on is nice flow positivity. This Phil and really the Congrats cash

the efficiencies discuss you targeted. to wanted that Just

remarks, Where maybe this how point? XXXX? mentioned found? in prepared You the And might your that found bottom program savings this the you efficiencies lead realized fully in potential at to in SG&A were this line upside the cuts Are on here quarter. these

J. Koning

deliberate our going look Yes. as they're as took organization approach Thanks, reducing of of are at really the discretionary what mean, very where investments size them most Phil. I aligning highest priorities. and we the thorough our clearly taking with to is spend a very our and well where a all and

invested operating we as the organization and with some assets getting in last in their the the to professional we at that, would so XXXX from will cost effectively you of as improvements utilizing some throughout we inventory quarter, clearly, those that I the return. benefited better ongoing look of think over out about have, maximize operational fourth took the out at of all instruments the in And we more you better we're and we've the tell expense that and efficiency, that that continue months, XX the assets profile. But or

the and as And beyond we'll And at get view kind this just is exercise balance stronger we my better also it. well. sheet so P&L. as continue on the to It's it's of muscle,

to looking why got forward part of improve in continue our area us we've ability this to in to the commitments our in that's I'm here And believe confidence financial so to meet and seeing that, reason beyond. and XXXX

Operator

question next Barclays. our Miksic at from take Matt We'll

Matthew Miksic

if the little update share talk could in -- as of Maybe in the strategy of into terms some sort sense maybe year exiting in, field capture you of of follow-up. finish. an put sort strong really that of you last a upgrading on have it's and contributed kind some maybe about strength year And of of some that XXXX? the inning Congrats I how what bit sort and has of place a terms pull-through we're one regional of teams the to in to

Patrick Miles

Yes. the first Matt, one. take I'll

think everybody appreciates to continue I -- I better. it. It's like get think that we

especially sales is sales force and hard I adept thing. think is adept kind the large of force a clinically building

that you people. when surgeons, reflects implement but you sales it's -- a the the surgeon capability force then portfolio build to so inspires procedure. that then that to And like confidence drive ultimately the a have better it And in inspires of better

think we're in. big way geographies into And we're irrelevant that is so that somewhat I that have effort. The good a still problem we

so market as the but an such we And X% so in -- to we're holder, great long share And have way sales. a part same-store is the go. validated

sales. growth You start the see to in the XX% same-store

I think working thesis the is clinically.

buy-in the from been great. people on think team has I We just need more perspective. the sales great a

And long so in the love of why a built the disruption that's run. of we that, because the that's space, been think we the ecosystem requirements love that's and we reflective

really And I the pieces place. in of are so think kind becoming

we larger certain we're it's a the need influence geographies. need step in just a of influence the there, and step in Now world. academic step. But by kind larger We getting by

relates bit it And you as we where a you little but of numeric so think it not that, color reflection, I precise that gives to are. gives

J. Koning

points maybe that. think, continue positions in disruption. that add grow One, if inventory, and last over instruments the again, I very months, just And XX I take us advantage of to could made the X to and we well to investments

ever demonstrated. And strong. revenue And million in the the grew at is the I at opportune. we of I I $XX business we that think we've momentum fourth year-over-year strongest then dollar growth is So surgical in which the That's if the amount think in exited quarter. look you that XXXX, rate growth absolute think

Matthew Miksic

right is in maybe year, at one pretty then get at growing least coming of And not helpful. lineup, and circulation, super in robot questions but but robot pace. this just got that's share a -- you've now you still great a taking Todd, broad a don't have sometimes the we the

so enabling maybe you're competitively you've about other lining up what bit got how a you broad players little we call a like you with portfolio that could already with feel of And imaging of the pretty Maybe technology. year sort and growth with sustain you're and a into year kind the of putting or enhance robot up out rates there? could there like robots, how this next talk

Patrick Miles

really I about we variables think one. is it interoperative Matt, north the in people relates such And and that our great systemic that of why screw the and have when within tried X to placement. the And Yes. start I surgery say, to of describe not. said a then your commentary of view is to variables. start revisions you And short as think world missing XX% deformity. in controlling controlling of because it's to segment XX% of you XX% it's or years surgery, to guys in it's and XX% And

so it robot issue. And was that absolutely then have screw solved about would placement, the if all

is another kind spine keep think I their Stryker robot. see proxy of their interesting out, you spin division but they

could And these so robot because all to the out group ills, rolled in answer they surgeries. have one have would was robot of if never the the spine seen they that register utilize would Stryker their then the cash ring time every

think I and navigation part the the like things, of think solution. are all I what's so And robot

there's that's environment talk think is guys This about what talk part. back we half elements. It's part going robotics the are I planning, the have But mitigating I think to that year. And when in ripe We're ours surgical also love we is of you that And hear that's systemic it as evaluation. reality should of expected. intervene, the so excited And when we so this an for about that navigation analytics. intervene do? it. procedure meaning And of if at variables, predictive should And in I to interoperative is going all? we

variables. opportunity the loop provides the that is EOS we feedback this mitigating constant that for there think of that us so And foundation need where systemic accommodates the

configurations with on plan on spend people less instruments support think surgery. further less our ultimately plight opportunities ability thing what the in The is stuff, we inventory contemplate freight, have don't If other I our and spend is that know go less support to go surgical send operational that to the into to exactly we regard narrowing to these.

And us. so that's business unique lineup in is level this of our know-how of we of reflective candidly like a to feel technologies

think I ATEC to And so why jerkish space. of having not that our but that's the that's type this on growth, be you're is impact seeing about

So but felt anyway, the the diatribe, just for needed. I sorry

Matthew Miksic

No, just I maybe transition open the that's super if And Stryker, opportunity sort that could, KXM the color. helpful could on one follow-up, of up.

important that's You've in necessarily and that's got talking EOS. in a to idea pretty there to -- there's helpful. transition. a any reps would and lean see off like-for-like a we're talk the great kind in that pediatric academic be that bit not in the kind a about that picking scoli about academic sure, around position super centers of that's Maybe of opportunity that team little replacement, center And but centers you situation,

Patrick Miles

again, like you're think an nobody It's we're Matt, Yes. abject at exactly point. pediatric surgery this right. in I

And and with regard been that tool idiopathic, adventure have kind has people a have has interesting around like hospitals. been of part doing company EOS so some small foundationally been the it's in But of placed a the great we stature pediatric we system. -- to the that's

what had of and pediatric them. had we is so we we to bunch And had really hospitals, a nothing EOS in support

few is the to product is we've making to to we that make because what sure what reflective a fulfill sure from portfolio informs do surgical surgically, output happens done is our EOS over we surgically. that the that years committed can is think of last what I that perspective want

tell interest. you that space. would the innings I there's, so again, in any And of in very, early prowess we're reflected But huge that very

EOS. opportunity huge tool having foundational think upon that there's I based in

I value say would that woefully adjunct EOS the proposition just and great that been. we're we opportunity so to place another where what to underpenetrated, And have it's has

point. great a it's think I So

Operator

take Caitlin question next Genuity. Canaccord at We'll our Cronin from

Caitlin Cronin

great Congrats quarter. on a

on Just EOS.

to some the what the rate Do Insight guidance expect of you and rate or see an you guys to the enabling point somewhat in pretty under XXXX, from? at bringing inflection that tech or the implies then So growth increase growth pull-through a you're hopefully given similar for EOS did but year. other maybe getting on

Patrick Miles

Yes.

and to And start ultimate one timing. to over me I'm answer of is going turn the challenge Let The yes. is it Todd.

this. in early the the is Insight that of tip I such think The EOS in here team we and is of are proverbial France responsible of been has the most EOS for iceberg. the reception outstanding. phase Insight, It

I is academic providing think what's access their that are in to More data. us environment. be going going kind so it's of to And the reflected groups happen to

You'll more. it from the podium see

problem think you of for very, momentum so that? undercurrent year, like an very expectations I so it's exciting. next when you where start do how that's set jumps Todd The in. And that's And that is out value there's to

J. Koning

And contribution I context, our with in about think feel in to million Pat's point, of plan I comfortable XXXX. $XX from long-range EOS $XXX To million assumes think that guide. we put our

our is implant about the start it, over time is a Pat's bit of then, million north that of we've we'll of you we'll said, see think if so point, that I growth, adoption, there and kind Insight And people interest, continue as monetization straight and hey, seeing also But got little which talking placements more between through you see to value and begin more of gets the delivered. people expectation grow pull-through. it, what that $XX.X of start line to EOS more the really to

Operator

move to Wittes We'll next at Jason ROTH.

Jason Wittes

quarter especially and a solid looks positive the which here. very flow, on cash Congrats

maybe hosted I first mentioned could your summit. you deformity, So ask, if you

line the could is, deformity next addressing what's specifically what now of you -- summits. that kind if know plan love for game portfolio, to in helpful. maybe the you're might what what in right In to product the you presenting I'd available And very be would add give -- year first the terms these terms of of what

Patrick Miles

is Yes, And think, tremendous. the we Jason, in think reflective is I the that always of opportunity have I a company. deformity maturing space,

need. start when what an adult we to that so at look we And you from deformity, you everything today, have have

And my early the more previous and onset idiopathic. so of on commentary the dichotomy scoliosis was kind the of

of to type All adult maybe in garner that clearly today, gestalt algorithm mostly in and so to deformity. you revision deformity, to And the I when today, things much suggest procedure And the analytics about of ultimately foundational that I gestalt in this to is going think say, is on levels patient, have no what many really when so type talking deformity, our that we adult that do. as the think tool. start deformity this predictable was think And you you're see that about best. is such ultimately kind summit rates focused up first this you is when adult EOS there's and a there's opportunity best of hey,

anterior perspective, PTP we so of And -- a the have have we applied all from InVictus, deformity. but product The the EOS, columns. portfolio, to is product adult

sets. We osteotomy have

things like We have SafeOp.

a people We've which One require disease, mostly ultimately way think doesn't same the of to idiopathic sophistication the an potentials. more is facilitated that they of the MEPs in is what's called volume the things the deformity, distance overlook you patient means start talking I deformity. When evoked doesn't SafeOp that of in about of voltage, MEPs, of which use jump. gone rotational motor

not us of and the as assembling PTP reflect it itself, LTP, so in will sophistication just in well. has serve pathologies types And deformity to technologies really served of but specific

And see we greater so reflects these do technology love ultimately way predictability. in as enveloping And we what that procedures. is a in things

of number think space we can so we things And that within do that is the that significant.

but... hit that for, you're what hopefully, So asking

Jason Wittes

that And I if No, to add answer could and that. I think gave a of just it. did insight lot maybe

of attending are In progressing? targeting new users? you're ATEC is that how terms see Or the summit a of or doctors? targeting, this you that do current these doctors set the Or

Patrick Miles

we're seeing guys forth residents Yes. really fun have And both. things And It's big come of guys. is that That's makes the great of these the academic one groups a is question. fellows. what and that

course. Friday And we have so a literally, and deformity on Saturday, fellows

deformity is surgery ] we that who weekend. faculting in so our who's course this have like And a [

with familiar ton get a They'll very familiar very our And system come very fellows familiar InVictus, neurophysiology system. see get so our EOS. will screw with forth you'll of with and get

just that of demonstrate into very, the of things start opportunity academic to value we to we some reach have, these institutions very And the think, is so valuable. and

great a these it's we're come more guys of and doing to in doing. so with what time kind seeing relevant And familiar be we're such become forth been a what that environment is academic

Operator

David Needham. to Next, we'll Saxon go at

David Saxon

and is Japan, understanding but already I my has on been asked, quarter. there. the over major international, if society ask this apologies on wanted Congrats to you're working the with

of you see it's rapid think once adoption. think kind there, And you get JSSR. fairly can I I in

is in part that So ramp group, second should of first how I you from to of cases just to versus this think your hear much kind there, markets major terms it Zealand Australia kind how understand about we and of kind the EOS you've is, are like of -- point. looks getting engaging X X% where question of wanted sales international wanted the how at kind that the understanding them, international you're the I to what of in New you're there? And think in then it's the buy-in of just seeing about done quarter. I was are

Patrick Miles

things. to been you in Todd I'll Yes. welcoming color, our I'll the a has facilitation that would answer of pipe in numeric and Japan the great Japan. market. tell clearly, through I let very on local is the and us guys JSSR

us in is a would play a and surgery in have in type that yet. a substantial as team great there, of meaningful And We we so so to again, sort of bunch -- Japan. market want it. it's that reflect are important to done of momentum nothing along the literally, pre-game. like We've but but of we any that But

in And so that I there. we're would say

around There's directly surgeons of we're But kicking that people business. kind The the from enthusiasm bullish. business right surgeons the us. engaged. have are great right the the yes, are communicated off who for We

J. Koning

some And revenues. surgical for between X% and brackets to X% contribution David, at of total just the around revenue put international, it's

Operator

at next Morgan go We'll Stanley. Titchmarsh Kallum to

Kallum Titchmarsh

But Feb Street appreciate and color QX. business I'll already would broader term market comfortable ask how and touched been through you're the you us whether less exciting have sits any for that where the of on in been nearer and Jan just light has tracking, can with spine I on the headlines guess, give those just modeling one. today

in to into our cadence of that's I from to guess be that, kind million any assumptions we need prior revenue. years? factoring that revenue about $XXX I models think differ

J. Koning

Yes. Kallum. Thanks,

I from exited I of we commentary. a we with But tell would think momentum. giving any level refrain that very intra-quarter you strong

I we feel is reasonably the where think comfortable with. the commentary in Street at on the quarter, first

you historical. I seasonality going I of kind of QX models would think do some have QX, And stage. from that to kind be think which captured that definitely at have

of is sitting with the consensus comfortable reasonably where in terms QX today timing. we're So

Operator

call that And closing now for back over session. Pat the concludes question-and-answer to Miles turn I will the remarks.

Patrick Miles

Thanks for thanks, Yes. Audra, in ATEC. much, everybody, your interest very and

spine getting about are much. and excited just We Thanks market. started very the

Operator

participation. This webcast. for concludes you Thank today's your

now may disconnect. You

Alphatec (ATEC) 26 Feb 252024 Q4 Earnings call transcript