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ATEC reported 3Q20 orthopedic revenue of USD $41.2 million, +41% vs. 3Q19. The company doubled down on its identity as an innovative pure-play spine company that can take share from both small private companies as well as massive, diversified players.
The company outperformed all its key metrics and closed the quarter with September generating the strongest revenue month in ATEC’s history. Performance highlights include:
- 20% year-over-year growth in revenue per surgeon
- 70% of sales came from new products
- 13% year-over-year growth in revenue per case
- 92% of sales came from strategic distributors
ATEC fully expects this momentum to continue. Leadership provided 4Q20 guidance of +5% to +10% sequential growth compared to 3Q20, with full year revenue in the range of $140 million to $142 million, and 25% growth overall for 2021.
“We are investing in things that will compel [new reps] because they have something unique to bring to their surgeons. Some of the bigger companies are bored with this business. So [reps] at the bigger companies are thinking, I have another 10 or 15 years in this business and I want to come over to do something with a company whose success is determinant on spine. I’ve always said I love the NuVasive clinical attitude with the Stryker sales discipline. Our salesforce culture is evolving in a way that’s creating a very predictable, clinically adept assembly of people.” – Patrick Miles, ATEC Chairman & CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $37.7 | $26.7 | $10.9 | 40.9% |
| Orthobiologics | $3.5 | $2.5 | $1.0 | 41.8% |
| Total | $41.2 | $29.2 | $12.0 | 41% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $92.2 | $74.0 | $18.2 | 24.6% |
| Orthobiologics | $8.7 | $7.1 | $1.6 | 23.3% |
| Total | $100.9 | $81.1 | $19.8 | 24.5% |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $40.1 | $28.1 | $12.0 | 42.8% |
| OUS | $1.1 | $1.2 | ($0.0) | (3.4%) |
| Total | $41.2 | $29.2 | $12.0 | 41% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $98.0 | $77.1 | $20.9 | 27.1% |
| OUS | $3.0 | $4.0 | ($1.0) | (25.8%) |
| Total | $100.9 | $81.1 | $19.8 | 24.5% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $41.2 | |
| Cost of Sales | $11.9 | 29% |
| Selling and Admin | $36.0 | 87.4% |
| R & D | $4.4 | 10.6% |
| Other | $4.5 | 11% |
| Net Earnings | ($15.7) | (38.1%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ATEC reported 3Q20 orthopedic revenue of USD $41.2 million, +41% vs. 3Q19. The company doubled down on its identity as an innovative pure-play spine company that can take share from both small private companies as well as massive, diversified players.
The company outperformed all its key metrics and closed the quarter with September...
ATEC reported 3Q20 orthopedic revenue of USD $41.2 million, +41% vs. 3Q19. The company doubled down on its identity as an innovative pure-play spine company that can take share from both small private companies as well as massive, diversified players.
The company outperformed all its key metrics and closed the quarter with September generating the strongest revenue month in ATEC’s history. Performance highlights include:
- 20% year-over-year growth in revenue per surgeon
- 70% of sales came from new products
- 13% year-over-year growth in revenue per case
- 92% of sales came from strategic distributors
ATEC fully expects this momentum to continue. Leadership provided 4Q20 guidance of +5% to +10% sequential growth compared to 3Q20, with full year revenue in the range of $140 million to $142 million, and 25% growth overall for 2021.
“We are investing in things that will compel [new reps] because they have something unique to bring to their surgeons. Some of the bigger companies are bored with this business. So [reps] at the bigger companies are thinking, I have another 10 or 15 years in this business and I want to come over to do something with a company whose success is determinant on spine. I’ve always said I love the NuVasive clinical attitude with the Stryker sales discipline. Our salesforce culture is evolving in a way that’s creating a very predictable, clinically adept assembly of people.” – Patrick Miles, ATEC Chairman & CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $37.7 | $26.7 | $10.9 | 40.9% |
| Orthobiologics | $3.5 | $2.5 | $1.0 | 41.8% |
| Total | $41.2 | $29.2 | $12.0 | 41% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $92.2 | $74.0 | $18.2 | 24.6% |
| Orthobiologics | $8.7 | $7.1 | $1.6 | 23.3% |
| Total | $100.9 | $81.1 | $19.8 | 24.5% |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $40.1 | $28.1 | $12.0 | 42.8% |
| OUS | $1.1 | $1.2 | ($0.0) | (3.4%) |
| Total | $41.2 | $29.2 | $12.0 | 41% |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $98.0 | $77.1 | $20.9 | 27.1% |
| OUS | $3.0 | $4.0 | ($1.0) | (25.8%) |
| Total | $100.9 | $81.1 | $19.8 | 24.5% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $41.2 | |
| Cost of Sales | $11.9 | 29% |
| Selling and Admin | $36.0 | 87.4% |
| R & D | $4.4 | 10.6% |
| Other | $4.5 | 11% |
| Net Earnings | ($15.7) | (38.1%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
