- Earnings call transcript Q3 2022

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Operator

Welcome to SeaSpine's Third Quarter Financial Results Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded today, November 1, 2022. I would now like to the conference over to Greg Chodaczek. Please go ahead, sir.

Greg Chodaczek

in participating for you today's call. Thank

XXXX. from CFO, John me results the September SeaSpine released is and COO for XX, ended quarter Valentine; Keith third Bostjancic. financial CEO, full Joining Earlier SeaSpine today,

the During the conference expectations to the we and will and regard plans, securities in business of include meaning future our statements law statements, words operations make federal similar our of than forward-looking call, within future as, strategy, financial statements our other such results statements are fact expressions. statements would, may and could, of forward-looking such and believe, will, conditions. historical intend objectives All plan,

are You only today, November reflect to and our on reliance beliefs X, based XXXX. as forward-looking of current undue speak statements, cautioned on are and predictions not which only the place information

descriptions with Securities of or those and material corporate see our and uncertainties actual on at available that news forward-looking please website, and Commission, stated our between our www.seaspine.com risks www.sec.gov. statements, the could or releases differences and filings For Exchange cause which results are implied the by the periodic

release the comparable now today. financial over are measures company's Reconciliations also or will comparable read issued in measures. These that GAAP presentation that will in not GAAP Valentine. financial results include important provides are management be directly of investors with business non-GAAP directly to call together calculated and financial Keith? I turn accounting as the adjusted tables measures for accompanying today regarding provided the believes and non-GAAP gross of to EBITDA most margin should not discussion most measures Our relating accordance to accepted financial Keith press measures generally loss GAAP. such the Management the and principles considered adjusted the certain we these operation. should to the be replacements supplemental with information or trends financial

Keith Valentine

and you us. for all joining thank afternoon, Good

million, including momentum. and partners, innovative attract in record distributors to added $XX year-over-year to XX% grew to In guidance revenue, European million. million, to of partners revenue international $XX.X as as our combined execution growth more performance where by grew reaching our momentum momentum the a we orthobiologics, $XXX representing year period consistent tremendous merger increase year result we to the market look we third XXXX close ahead we The and and to the Our during implants saw accelerating consummating implants revenue planned large raise the we The expect and our confidence of offerings generate spinal million, finish to XX% U.S., forward with our XX%. XXX% distributor spinal of growth from implants the revenue growth In and and the there. fuel we the early planned of to quarter, stocking distribution range enabling we organization's XXXX delivered next our XX% quarter $XX.X our exit product with year our spinal Orthofix, the past of transformational orders, largely continue the a XX%, shipped of of technologies distributors million gave larger $XXX revenues over prior which exclusive total full approximately revenue total to us year. third

of sorry, more The the repeating of help continuous is is strength. comprehensive -- through development, advance is improve the and one-step of Wayfinder for k-wireless steps the portfolio a share WaveForm to screw novel screw fixation delivery efficiently fixation system. the associated portfolios in WaveForm XD-printed market continue launches loads system that number with other These to TLIF without product pedicle next commitment the We market iteration our of launches and entirely XD-printed Wayfinder demonstrate continued surgeons compressive system interbody the SeaSpine's commercial MIS to drive our articulating a structure outcomes manufactured to that architectures absorbs and The its product wave-like to patient Mariner compromising expand gains. loads full than technology system, distributes placement. I'm system TLIF reduce proprietary with that interbody designed and

XD pipeline FLASH five units of to with a to system Surgical. Turning total higher we revenue continues an Navigation commitment aggregate The to opportunities. the six of a the We third acquisition $X.X from per executed placed year. quarter, an for in since perspective, our annual have sales of shift percentage earn-out earn-out million deals

orthobiologics sale revenue in of products, and of we of over pull-through spinal six see in months implants to revenue those half Additionally continue non-contractual increased our terms capital post accounts.

to the preservation to Before base highly enabling differentiated network orthobiologics. announced position take access combined like pull-through and have our leading immediate combined distribution put the than with XD few via complementary John, technologies, a with preservation, Orthofix recently bone will We to motion believe a off discuss us fixation, to and call motion the therapies bone to our would $XXX intent Medical. growth greater enabling I market, in The will portfolios combining revenue therapy, merge spine opportunity minutes handing growth technologies million of spinal portfolios. in

on existing now, John the the to and cost And synergies will companies manageable patient minimal our of is I'll Additionally, I United than create States. far is accomplish two will the call detail more companies own. revenue financial more believe outlook, up. their that over then overlap focused we our that financials the could and confirm turn for geographic revenue significant upside due as there on efforts our two John? wrap in merger This risk diligence

John Bostjancic

good everyone. Thanks, Keith, and afternoon,

increased years total to$XX.X third and the to enabling prior million, by for $XX to market of share U.S. million. encouraging in $XX.X the extensions technologies continue spinal over $XX.X for be an revenue year. five revenue posted and gains or and revenue continues quarter implant for XXXX. line growth. third quarter third XX% accounted U.S. indicator XX% sustained orthobiologics past to launched quarter earlier, the growth long-term in third U.S. million. the the the to in revenue revenue This XX% XX% launched via XXXX XX% of of increased in spinal to Keith Sales and to the implant fuel a was DBM revenue. Products enhanced within quarter increase growth past five U.S. XXX% drive the fibers-based within we products revenue be driven million. noted product accounted increased by XX% line. OsteoStrand of the continues orthobiologics $XX.X million revenue As U.S., International of In growth Plus years for

inventory and information of on that million period-to-period low compared quarter million higher administrative of Utilization and to year the Adjusted our XXXX implant partially was compared by gross Adjusted the tables of $X.X We offset The XX% due and year. XXXX. core compared commissions million to compared selling the to presented declines totaled and measure to with in general due Operating the XX.X% spinal third X.X higher logistics $XX and loss and quarter to gross valuable while our headcount-related expenses results period, the primarily procedure XXXX adjusted increased third third cash of average million quarter per GAAP the the loss third which gross to freight to a driven third $X.X was to we orthobiologics spinal increase systems increased the gross industry. revenue and loss XX.X% compared totaled in XX, of operating the margin products EBITDA million lower loss in primarily ago. price in of net year year. September borrowings companies our XXXX, $X.X XX.X% compared the quarter third this of development attributable X.X% the was to $XXX,XXX loss the of million financial with afternoon. to obsolete at issued Our $X.X quarter XXXX. XXXX compensation the million third EBITDA increased $XX.X of with compared the and operating XXXX. in the Cash quarter from U.S. revenue portfolios XXXX both prior quarter experienced single-digit primarily in the expenses. of and legal under associated A that release surgery expenses of spinal decrease margin and other Adjusted spinal XXXX increased of volumes of quarter was of a operating to and $XX.X in million increased the GAAP third increase of the of higher quarter fees press planned with XXXX. in implants case for implant GAAP facility. lower merger to we third of of a associated associated credit by quarter margin expenses increased expenses The marketing financial distributors increase third for XXXX costs research and charges. $XX.X per the to to low the and in against implants revenue. provides was was Orthofix a with the performance expenses and $XX.X compared $XX.X loss believe reconciliation for $X.X was in for for prior quarter to consistent outstanding equivalents million loss and for margin includes the other excess in third orthobiologics prior net XX.X% million, XXXX. quarter non-GAAP single-digits of our million XXXX comparability for quarter facilitates XXXX is for for third was compared adjusted of Net third EBITDA by European a

full line cash and property million equipment third full expenditures with inventory This to orders in Our European $XX quarter final stocking recent is build for capital implant and upcoming our includes and U.S. to the purchases growth expectations spend free a XXXX. of cash fulfill which and large year. set flow spinal revenue launches, of flows product was the for of the operating support amount the and burn, aggressive

XXXX. Turning to outlook for financial our

expect revenue million, full revenue to fourth implant full year after European of in As XX% of million the This XX% quarter in year range XX% XX% spinal of range to for reflecting generated over of XXXX of growth reflects excluding revenue be to XXXX the quarter Keith XXXX. noted XXXX. approximately earlier, the growth $XXX to fourth $XXX we

XXX in expansion XXX basis P&L. generating the XXXX gross XX.X% we of the Moving anticipate to points margin down for still points the compared basis to full adjusted XXXX. year We reported

$XX.X our to the XX% to XXXX. reduce adjusted in expect by compared EBITDA loss XX% to million we reported We

an through the We penetration expect from of and exclusive distributor to by partners mix. gross and of the quality a of technology continued onboarding favorable generate launches high cadence these market operating fueled from from further more growth the FLASH combination adjusted unique efficient margins sales increasingly transformative revenue higher improvements robust of through more product XD

seek XXXX Our the expenditures One XXXX in point, expectation $XX to significant anticipate paid sets have growth more to call Orthofix launches implant burn has as growth the earlier greater additional distributor full growth that for increased two comments. generating This related to million XX% $XX year the over received we closing other rates full cash increase to we product fees we continue with Keith fourth revenue This merger. revenue like long-term we have investment. associated to the legal, we XX% to for onboarding spend to we accounting I'd and than to inventory of $XX turn investments underscores date, long-term the more making primarily this and And in cash in the is higher flow to to driven back confidence To for factors. spinal for two, more free and of quarter year. and as million. nearly committed of this million year. transformative At support the sustained than by partners exceed the

Keith Valentine

by to outstanding continues Thank evidenced increasing sustained and SeaSpine you, results while as our revenue John. gain guidance. momentum

overall take mix crew. We hard winning winning and a increased and outcomes great share, simply are combined and in The results with of improving requires execution are market financial share. innovation, lot recipe success. The a taking proper work, market product

recipe our importantly us, chart together. for future support. I entity with merger with yielding are you Orthofix, more becoming to thank better forward stronger this taking as that, even time combined With We and all into outcomes look your your the our and course winning by we

open questions. now to it We will up

Operator

Instructions]. [Operator

The first BTIG. question from Zimmerman Ryan have we from is

Ryan Zimmerman

as implied of what low you if of kind of fourth underlying on through ask, take to your assumptions guidance low the your want us assumptions thoughts revenue quarter, end high Just for underlying end the about end, your the for high the we think what could are fourth are for and the for kind quarter?

John Bostjancic

getting with coming are Yes. sales spinal driven with and the coming and by we're implants of team and great penetration revenue U.S. obviously XX% quarters, U.S. off XD. from both orthobiologics It's revenue capital our in the deepening

to got world, we've in expectation to obviously, ability different deformity. the meaningfully we we've able in final We going orders. to in six really, stocking product U.S. was right, the in the even in seen our spinal we've we OUS, across expectations a see the to and capitalize come or from you'd months, growth most board, sell a it the from implants those quarter. on So network. orthobiologics because pipeline on that to momentum the of those implants change in in think brought again, additional of but the or launches got continuing doesn't up past those just market the our fourth is in orthobiologics upcoming some the and larger That impact adult the year Mariner third elsewhere transformative it on spinal quarter implants benefits for But launches, the U.S. the distributors ability in bring product down in European and we'll exclusive expect be exited to see opportunities Europe board for want sell it's to Europe, both distributors spinal And with distributor is capacity the picking piece, with and of doesn't recent XD

the of third So really, the minus what in did of lot the orders European same distributors. quarter stocking it's we the for a

Ryan Zimmerman

for kind just to is or no that wave have may And macro table there anyone a want Okay. COVID just concerned I underlying clear, to get assumptions of be off that. of been anything. it about the

John Bostjancic

Correct. kind quarter. by not to continuing in since seen, see fourth the the volumes continuing have third year No been the in been assumptions COVID really all impacted fortunate we've we same quarter saw volumes this Omicron for level same waves wave, we've COVID, at that we any expect the that and assuming the of

Ryan Zimmerman

then just follow-up mean enabling you opportunities. appreciate specific revenue you're and motion the about revenue revenue around also And merger, me. And the whether kind synergies as I especially around you integration -- where of where Keith, merger, how think about a opportunities and the like tech any Okay. greatest the that's think the just capture or of we it's risk product I you're that commentary feel certainly you see you question Maybe mitigating one, organizations? in two just synergy, within the the categories preservation or can most cross-sell? for

Keith Valentine

Yes.

You bet, Ryan.

I captured that research mean, like each. are that overlap. I to we is, we feel of you we them. is there's about excited area all minimal components There did the think in that one

what distributors, product ground think be have we we're combination dealing able means that our And so with best to especially fusion have to minimal distribution, And with preservation portfolio. about exclusive is to very cervical hit powerful. that overlap going the the really be will strongly now who motion ability with running the will feel

that, In ability has think in going I be to to BGT opportunity. addition a exclusive us interest greater exploring is there to distribution drive how the that

the bone having distributors So Stem that interested do we and therapies can on business what in platform. growth also by driving the focused

areas great a only all think, XD can in you it placements look surgeries, from I of can when outright outside spine. also and spine enabling combining or for us use the benefit I be earn-outs. a be And from the is used agnostic surgeries going benefit we to also sort what we of I start in know, and understanding great as it can be as either not of other some meaning but at think organization XD tech, of used think platform, that's opportunity different

Operator

Canaccord. question we is have Next from from Rose Kyle

Kyle Rose

-- you wonder here? far expectations we could as And for OUS get just XD the U.S. how will as I through end to in start, your just trend quarter. that the year breakout just then expect if

John Bostjancic

anniversary that inorganic. either we versus Yes. organic focus guidance revenue talked acquisition about the revenue we just we're to now capital provide shifting But sales critical upfront or on because the Remember, revenue, acquisition, from an we the wanted placement the benefit because Ryan, is of through the to benefit on earn-out. sales longer-term anniversaried to part, revenue, of placements growth is a giving we've get the We the which revenue capital of right? get the

So with spinal been results, focused whether orthobiologics. the it's talking of or to give we're accounts pull-through over non-contractual going in in But we're not to revenue. on uptick capital were spinal it's stay the instead different opportunities earn-out, capital our sales implants we see as the implants we're going more units, about because sale on the the or to earn-outs, field, sold, mentioned, units color Obviously, starting half units placing the seeing XD of for we're contractual. revenue we're but

it's other the So that to capital kind sale. of benefit

Kyle Rose

And respect the just then little your that early, Can have thereafter? as realize conversations us as how you Just how commercial settle still their have I as help everybody respect exclusive conversations in team bit and to merger type reaction with either the new commercial now you've merger. transformative overall talked to the since announcement potential a presumably trended well chance at well dust NASS with team, to distributors as check to merger the but -- had both of distributors. those with after existing the you just about it's understand with with a

Keith Valentine

tell NASS. you, energy real I'll palpable there was at a

of them. of what on marketing sales not that along team impressed the to pleased create teams all that's that bring. further or had, investments opportunity level spine well. everyone the part going about further a I a they the team about was teams just was of distribution opportunity be apprehension company They're tension I with lines really were which But we strong were sheet news previously what enthusiasm with going have as opportunities. I can certain I answered our being and growth management so a is balance was kind the very think in excited larger the obviously, and mean, this can only and lot enable upside to development also speak. synergies will be for what and there a excited. of our that enthusiasm certainly They're And this can to excited

that excited about the even enthusiasm think So quarter companies roles the I momentum We're are how NASS up demonstration moving as they has forward think a I the post how where continued. it's teams see and and their meeting want to shaping combine. and focus to

Kyle Rose

And get changes the the helpful. the overall, with you're challenges previously demand those we expectations to Any Do to will Ryan's year trends respect of really macro piggybacking into Just QX? kind then the across to would end bit environment, think just you're easier question into staffing partners? macro. when the just on regards with seeing hospital speaking be of

John Bostjancic

Yes.

and not very quarter, No seems for of kind surgeons booked knowing one unusual, any Most about their our fourth with conversations been that staffing. up to market completely checks positive. up are usually expressing shapes Some QX. have concerns be that in how

to to the in longer work be I that that the more flexibility. wants or going everyone Not have everyone to ability weekends is work shifts sure think OR. there flexibility,

forward and they're absolutely looking through and it spoke an kind not their getting scheduling. any OR stable slowdowns of to perspective, that that again about surgeons think I have most worried is from

And this as be anticipate of and availability else very so, at far as don't to it similar staffing any everything we and point. and as the quarter it third in saw what disruption I kind should view

Operator

from The Richard we from question Newitter Instructions]. [Operator Securities. Truist is next have

Samuel Brodovsky

on Sam is for This Rich.

us. question first from Just

they how the we conversations be add And as should are think entity, terms going plans to should felt? of come direct where and reps, felt direct still In those should about reps be -- those or are board they combined on and a to when happening? when

Keith Valentine

Yes.

process a will we both a year, has found, in that diligence of or do of general strategy during manner, along the meaning that to make but direct all progressive that have that have reps an space direct the second we all is we and reps I speaking, know been sense alternative distribution good in will And can't that add agreement areas have be the pursue we're So white in that have direct been. half it. now areas in

at changed, take for technically even be combined that of may the and hasn't and at look us we it. space could accelerate overlaps where there white see advantage the able both of speaking, strategy we're it have entities. once look to once have We'll So the just and and to

Samuel Brodovsky

sequentially And on next R&D guidance give then tick about sort few spend merger? how any over in to the of leading think here in just and up OpEx Can XQ. you quarters to us up the

John Bostjancic

system has up, spend by and with implants spinal with influenced of the and the of R&D in development next-generation of the making lot a proceeding the XD programs XD the system that's acceleration and Yes. our that picked it's more seamless. camera -- integration

XD and So about to acquisition guidance over of some that spend talked a expect percentage that XXXX. to back as accelerating up and pick revenue in gave we in R&D of we'd the how time dating

play have again, a And been percentage stand-alone expenses, similar guidance, I at long-term on R&D heavily least out as XD we're basis, in revenue, clinical you're that accelerating by So obviously a haven't influenced seeing with spinal largely would we post-merger? of given development for then consistent influenced yet. that's expect invest by going orthobiologics, think XD. on programs up implant aggressively XXXX data. and shape continuing guidance How development to gathering to those programs. But product and We all that that

coming the mostly entry not of ahead to that market. want in the and that competition changed the that is we rate has hasn't XD, before all in But grown. at has because there another R&D to continue grown increase spend the into from keep increasing as So same is revenue technology

Samuel Brodovsky

should think on commentary similar like -- over quarters. any How that's right? just the And SG&A next we virtually few

John Bostjancic

mid out single-digits growing typically component, year-over-year. adjusted the we So split G&A has been G&A which

in line. be from you get portfolio had transformative the implant across thoracolumbar, G&A because changes didn't we're we're with on still those most more on the leverage the complete when long-term the fundamentally that sales think at efficient Again, had hardware don't up-to-date to offered how we to sign early in trends we've rates, spinal and getting perhaps really share. driving distributors yet but to to that able to distributors the business now I premium line. we see interbodies, starting share. of we these don't that continue with merger, guidance, of I take our G&A board well able give yet So into to marketing premiums We because because the changing we And commissions perspective, are benefits offer on. arrangements we're past, of out market But stand-alone multiple to commission the best where and did a the look bag the we're market need rates leverage see portfolio and that commission that believe we've cervical, large year premium those distributors, that'll up got offer

but but can in distributor upfront on commission bit that direct outweigh well. typical a cost So out a think to of model, I leverage efficiency it near-term, continue because we're as the we'll sales of in sales might more gradual that, the we also the hire longer-term, near-term bringing continue leverage more dilutive in be commission of get from lines as see going distribution to but the reps, the think direct to I force,

Operator

Thalmann. question Cohen from Ladenburg Jeffrey is from we The have next

Jeffrey Cohen

questions from Just side, close. I kind a our the two 'XX with guess, into macro of questions

XD penetration you've marketplace. and respect So seen seen your the pull-through from in folks the with as and to the your we've hardware

in through you with play yours? how might 'XX to perhaps hypothesize Orthofix portfolio that So out can the addition

John Bostjancic

Yes.

more opens I XD said, the in space, technology through right, in capital Keith capital those Orthofix, up opportunities or for both sale and the earn-out it's just channel but there orthopedics as leverage in with opportunity And same whether accounts. is to the earn-outs. think way it sales spine not

to we've broader on opportunity been non-contractual take an include account. preservation and to pull-through increases an capital merger a that motion of think but So to seeing the revenue pull-through implants able revenue what with contractual we're the and advantage whether earn-out is I drive only sales the spinal an placed pull-through also and our base earn-outs in it's unit when now a in addition biologics, of

opportunity advantage I'm with we to it take because the already of been the just merger, see we've excited with to XD. So where increases able it take can

Jeffrey Cohen

got could some you how both play at the as areas the Okay. bit out to your and the hypothesize and organizations, as that I on side, skeletal it. perhaps about us two on research of preservation And integrate far talk in other your might SeaSpine, little a future and as they Orthofix system. of thoughts motion

Keith Valentine

the research again, that going that was to What Yes. Was combine? is how question? the

Jeffrey Cohen

the vice Yes, related to of and some body the versa. to R&D perhaps taking innovation your spine other areas of

Keith Valentine

not guess I'm tracking on that. Yes, I

about Spine that's in we'll on haven't talent, how product up, innovation. -- also that will and a new how be work we'll been for will look combination and stream new but that splitting So combined be effort introductions groups decided, thinking product not only the how be

But excited from we're of as stream forward there's working probably and perspective yet. done products of right A lot well. really not there's -- a bag really doing products on a to fill what is out. that moving next-generation is So big not the we'll now, be lot work of

that work process is again, after really the and but until be -- stream finalized in combination. So won't

John Bostjancic

large continue different of on our innovation the to a combined that's Yes. organization. is pretty to in the it and add, all across think something we've business, invest as portfolios The is take one I commitment been are change clear, share I'll innovation So Jeff, doesn't aligned market right? thing both groups

Operator

[Operator Instructions].

Ross Next question we Cantor from from have Osborn Fitzgerald. is

Ross Osborn

conversations the But this Starting to NASS? off, at is share is full you'd point of like launch maybe feedback realize there from any still I Percutaneous new. at

Keith Valentine

Yes. Percutaneous? XD

good Percutaneous we and continues went full So minor alpha for had to beta created which a some with launch. that it, considerations -- the changes into

Perc. But was Perc clear, to when as system what's Perc, look one mini-opens that interesting seamless that at other for big with a but of you Module, is it of we think do lot is Perc the definition found advantage what Perc use very just use I well. folks a the competitors

you And can use you Perc, require so the have which the with mini-open, scan. to don't would system, interoperative you have have the regular the to -- use

a because and do type standard makes that's enough use mini-open, registration, will. traditional that the Percutaneous feature, quicker it so we procedures, give very even And a can mini-open do but if that some do folks most system, you exposure can which a big

Ross Osborn

And it. then on Got Okay. just one merger. the

about we sales current think start you gain expect be Given to do SeaSpine's What the will how with to perform challenging Orthofix' areas portfolio, international ramp areas initially? particularly more And well? to respect the you portfolio expect traction should what presence, to of OUS?

Keith Valentine

Yes.

opportunity, that think broader looking I internationally technology, footprint which we're to enabling now. the forward So is one

so is that's I think one super And that exciting.

see. probably Does in evaluated commitment, implants is be finalized. I we're merger yet. really may as haven't We and spine It that a think that this new present other the consider that happen there open burdensome Europe, won't wait with us we very and pathways regulatory a example. a but now it's opportunity until for after still can for holding

-- think, network internationally. with to broader much on, to looking or is that be integration the that our time something a we one is a broader better a is the at. But the of we'll really be great the from haven't spent implant going XD, think presence brings that spinal perspective, it of other be sure, seen, remains I for streams deal European Orthofix which than opportunity but I part of distribution

Operator

Our final Capital. from from question Loop Jason Wittes is

Jason Wittes

quite has still spread I maybe bit, just or closed there's spread So if ask, here. bit but could a the a a

the what mean, You've on you I any you with of qualitative spoken commentary that? been Orthofix? this give Have support shareholders, has -- deal can to

John Bostjancic

we're to with We've touching spoken our because vote important. shareholders shareholder Orthofix obviously, and base the be will

leverage, channels profitability got So we're sure a they getting growth to we're is clearly making we've and channels scale leverage. we got They've the this can opportunity the great right? that message that at that out can time, and same and create

has positive. with So I conversations investors the think been

that right, of a not merger lumped you're we big home we're think message companies, have really I into to to get starting sometimes where going this beat dis-synergies. that the spine is giant

companies implants. less two in combined share a of with than X% got spinal You've market

You dis-synergy what that's shouldn't out. revenue the bore overlap diligence lot of due see and and a geographic risk,

conversations, to get going that's talk about way the for $XXX on we're synergies think announcement clearer complementary the synergies, organization. it the risk, So revenue sense, planning of on lot upside be due And into scale concern the day there putting channel, each why that not distribution was lot to don't the doesn't as and diligence. synergies, is big But I I just revenue its side talking able model, to and right? this integration something be We're merger, really lot it's well, and revenue of and that deal on combined the we're a really right? a to was were just revenue those now of million built. initial There that through So bid but to efficiency synergies pull to that's going revenue be model that's make there, think focusing should that one, an there's of complementary on $XXX the going to focused there's really none working that as million from after there revenue the that of we're that but right? of to people focusing we becoming a upside with were and forget the built expense that we can in out we're focus dis-synergy that the and operating that them jump on because on overlap, represents

grow with opportunities take an to revenue and cross-selling costs. opportunity out faster, get even So

after that think, better initial announcement. I a people situation it's the than, appreciate think I

Jason Wittes

you in characterize regions distribution. as I overlap I to you That's you made not point. strong maybe much you're under both terms this able -- could salesforce the you've they're at you're guys guys probably scaled, and of are them details? in don't comments, very some guess how know but And know helpful. penetration would there in in are I that, understand if that companies I But of -- terms or especially provide strong you review are

Keith Valentine

made through to And market is, upside right, plans Both us portfolio-by-portfolio, we the to if can portfolio their we've because motion all the So take company, can fixation been to it the we've continue the in we've similar and got got network. we don't investments thing bring motion move got great in in the share about distributor immediately able hardware sides have market take combined take but pipeline, I that's the they've to market they've mean, got talked for share we've you the by innovation. the we have is with preservation. preservation, projects opportunity forward pipeline, their spinal and our projects

view So we're again, that lot I in continue to and to upside, of a invest as going innovation.

believe DBM to they got where entire use best They've want orthobiologics believers able the patients. in true in some surgeon Trinity we've data and marketplace, is true been some the best graph the and be there a the in to DBM the to got, their and in side, and cases, we believers are in preference very cells Others marketplace. in we've cellular going shows cells, On provide. in are the data clear

has as now, we clear can an as preference. competing, combined we as area -- of of that preferences don't think the think surgeon in span surgeon we very So company, it of it a spectrum we

that just through So of we technologies, spine but have is larger to enabling much can XD Orthopedics through and great best a talked cellular their bring sales offerings channel business, as orthopedics worlds both the Keith they international DBM and grass. channel, to for business the not and pull-through other about bear. in

cross-selling the complementary of there to is nature to all of take everywhere to products. the you advantage look. be And So me, opportunities able opportunity it's

Operator

questions at closing you, further now floor to and there Keith no Valentine would comments. like Thank turn I this for back Ladies to time. sir. the over gentlemen, are

Keith Valentine

Yes, thank you on you everyone Have will a evening. for our next great and with call. talk joining us, we again

Operator

you Ladies Thank concludes then for gentlemen, conference. us. that sir. Thank today's joining you, and

may disconnect lines. You now your

SeaSpine (SPNE) 2 Nov 222022 Q3 Earnings call transcript