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ATEC reported 2Q23 orthopedic sales of $116.9 million, +38.9% compared to the second quarter of 2022. The company’s first-half orthopedic sales totaled $226 million, +45.7% compared to the prior year period.
As it approaches half a billion dollars in annual sales, the company shows no signs of slowing its meteoric growth rate. In the second quarter, ATEC grew its surgical revenue by 41%, its surgical volume by 32% and the number of surgeons using its procedural solutions by 25%. Average revenue per case grew 7% year over year.
The two remaining portfolio gaps for the company are navigated robotics and cervical motion. ATEC plugged the robotics gap with its recent acquisition of Accelus’ REMI platform. The company seems content to wait a few years before turning its attention to motion.
ATEC expects to have hands-free navigation cleared by the end of 2024 and full integration with its lateral procedural workflow in 2025. The company is excited about the flexibility offered by the system’s small footprint and lower cost.
“Given the fact that our core price point is about $0.5 million, which is significantly lower than other robots, our ability to do earn-outs [is enhanced]. You don’t need five surgeons to sign up for the deal. That really opens up so many more opportunities for us to essentially commercialize this thing in the long run in a way that works for everybody,” said ATEC CFO Todd Koning.
The company now expects 2023 sales of $462 million, representing growth of 32% compared to 2022.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $91.0 | $64.2 | $26.8 | 41.7% |
| Orthobiologics | $10.9 | $7.9 | $3.0 | 37.5% |
| Enabling Technology | $15.0 | $12.0 | $3.0 | 25% |
| Total | $116.9 | $84.2 | $32.8 | 38.9% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $174.8 | $119.1 | $55.7 | 46.7% |
| Orthobiologics | $21.2 | $13.7 | $7.6 | 55.5% |
| Enabling Technology | $30.0 | $22.3 | $7.7 | 34.5% |
| Total | $226.0 | $155.1 | $70.9 | 45.7% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $116.9 | $77.9 | $39.0 | 50.1% |
| OUS | $0.0 | $6.3 | ($6.3) | (100%) |
| Total | $116.9 | $84.2 | $32.8 | 38.9% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $226.0 | $144.9 | $81.1 | 56% |
| OUS | $0.0 | $10.2 | ($10.2) | (100%) |
| Total | $226.0 | $155.1 | $70.9 | 45.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $116.9 | |
| Cost of Sales | $52.4 | 44.8% |
| Selling and Admin | $87.3 | 74.7% |
| R & D | $14.6 | 12.5% |
| Other | $14.1 | 12% |
| Net Earnings | ($51.4) | (43.9%) |
ATEC reported 2Q23 orthopedic sales of $116.9 million, +38.9% compared to the second quarter of 2022. The company's first-half orthopedic sales totaled $226 million, +45.7% compared to the prior year period.
As it approaches half a billion dollars in annual sales, the company shows no signs of slowing its meteoric growth rate. In the...
ATEC reported 2Q23 orthopedic sales of $116.9 million, +38.9% compared to the second quarter of 2022. The company’s first-half orthopedic sales totaled $226 million, +45.7% compared to the prior year period.
As it approaches half a billion dollars in annual sales, the company shows no signs of slowing its meteoric growth rate. In the second quarter, ATEC grew its surgical revenue by 41%, its surgical volume by 32% and the number of surgeons using its procedural solutions by 25%. Average revenue per case grew 7% year over year.
The two remaining portfolio gaps for the company are navigated robotics and cervical motion. ATEC plugged the robotics gap with its recent acquisition of Accelus’ REMI platform. The company seems content to wait a few years before turning its attention to motion.
ATEC expects to have hands-free navigation cleared by the end of 2024 and full integration with its lateral procedural workflow in 2025. The company is excited about the flexibility offered by the system’s small footprint and lower cost.
“Given the fact that our core price point is about $0.5 million, which is significantly lower than other robots, our ability to do earn-outs [is enhanced]. You don’t need five surgeons to sign up for the deal. That really opens up so many more opportunities for us to essentially commercialize this thing in the long run in a way that works for everybody,” said ATEC CFO Todd Koning.
The company now expects 2023 sales of $462 million, representing growth of 32% compared to 2022.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $91.0 | $64.2 | $26.8 | 41.7% |
| Orthobiologics | $10.9 | $7.9 | $3.0 | 37.5% |
| Enabling Technology | $15.0 | $12.0 | $3.0 | 25% |
| Total | $116.9 | $84.2 | $32.8 | 38.9% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $174.8 | $119.1 | $55.7 | 46.7% |
| Orthobiologics | $21.2 | $13.7 | $7.6 | 55.5% |
| Enabling Technology | $30.0 | $22.3 | $7.7 | 34.5% |
| Total | $226.0 | $155.1 | $70.9 | 45.7% |
Orthopedic Sales by Geography
| 2Q23 | 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $116.9 | $77.9 | $39.0 | 50.1% |
| OUS | $0.0 | $6.3 | ($6.3) | (100%) |
| Total | $116.9 | $84.2 | $32.8 | 38.9% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $226.0 | $144.9 | $81.1 | 56% |
| OUS | $0.0 | $10.2 | ($10.2) | (100%) |
| Total | $226.0 | $155.1 | $70.9 | 45.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $116.9 | |
| Cost of Sales | $52.4 | 44.8% |
| Selling and Admin | $87.3 | 74.7% |
| R & D | $14.6 | 12.5% |
| Other | $14.1 | 12% |
| Net Earnings | ($51.4) | (43.9%) |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
