Q4 2024 Alphatec Holdings Inc Earnings Call Transcript
Key Points
- Alphatec Holdings Inc (ATEC) reported a 28% total revenue growth in Q4 2024, significantly outperforming the market.
- The company achieved a positive cash flow of $9 million for the first time since its transformation.
- Surgeon adoption and procedural volume have shown strong growth, with a 19% increase in surgeon adoption and a 25% increase in procedural volume over a five-year CAGR.
- The company launched the EOS Insight software and reported a record EOS order book, indicating strong demand and future growth potential.
- Alphatec Holdings Inc (ATEC) is expanding its international presence, having completed its first surgeries in Japan, the second largest market in the world.
- Despite strong revenue growth, the company still faces significant debt, with $590 million in debt at face value.
- Non-GAAP gross margin remained flat at 70% compared to the previous year, indicating challenges in improving profitability margins.
- The company is still in the early stages of penetrating the lateral surgery market, with only a 15% market share in a $1 billion market.
- Alphatec Holdings Inc (ATEC) is underpenetrated in the pediatric surgery market, despite having foundational tools like EOS in pediatric hospitals.
- The company faces challenges in expanding its influence in academic centers and certain geographies, indicating room for growth but also highlighting current limitations.
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 US GAAP can be found in the supplemental financial tables included in today's press release, which identify and quantify all excluded items and provide management's view of why this information is useful to investors. Leading today's call will be ATEC's Chairman and CEO, Pat Miles; and CFO, Todd Koning. Now, I will turn the call over to Pat Miles. Please go ahead.
Thanks so much, Audra, and welcome to the Q4 2024 financial results call
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