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ATEC reported 4Q20 orthopedic revenue of USD $44 million, +35.9% vs. 4Q19, with full-year 2020 revenue of $144.9 million, +27.7% vs. 2019. Excluding its international distribution winddown, the company has averaged +30% growth over the last eight quarters. In 4Q20, despite the COVID surge, ATEC continued racking up wins across its internal key metrics: new products contributed 75% of revenue (48% in 4Q19), 15% year-over-year revenue growth per surgeon, 13% year-over-year growth in average revenue per case and 1.9 products sold per case.
Moving into 2021, ATEC hailed itself as “spine’s new revolutionary” as the company builds procedural solutions from the ground up. Company CEO Patrick Miles went on to say that ATEC is the new home of lateral spine surgery, and that competitive hiring candidates view ATEC as a giant killer. The company has reason to be bold, as it has notched nine straight quarters of double-digit growth after struggling with an outdated portfolio and weak distribution network. ATEC is poised to further differentiate their position with the renewed agreement to purchase EOS imaging, slated to close in 2Q21.
While many of its peers are cautious about a soft first half in 2021 due to lingering pandemic effects, ATEC reiterated its previously provided guidance of $176 million in 2021 revenue, +25% vs. 2020.
“If there’s one thing that we love, it’s disruption. I think that there’s leaders of companies that don’t like spine because they don’t know it. And I think there’s so much opportunity to make spine surgery better that I think people have fatigued on how to do that. When there’s disruption, especially with companies that haven’t been excited about this space, we love it because there’s significant opportunity.” – ATEC CEO Patrick Miles
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
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $40.2 | $29.6 | $10.6 | 35.8% |
| Orthobiologics | $3.7 | $2.7 | $1.0 | 36.7% |
| Total | $44.0 | $32.4 | $11.6 | 35.9% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $132.4 | $103.6 | $28.8 | 27.8% |
| Orthobiologics | $12.5 | $9.8 | $2.7 | 27% |
| Total | $144.9 | $113.4 | $31.4 | 27.7% |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $43.1 | $31.1 | $12.0 | 38.5% |
| OUS | $0.8 | $1.2 | ($0.4) | (31.3%) |
| Total | $44.0 | $32.4 | $11.6 | 35.9% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $141.1 | $108.2 | $32.8 | 30.3% |
| OUS | $3.8 | $5.2 | ($1.4) | (27.1%) |
| Total | $144.9 | $113.4 | $31.4 | 27.7% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $44.0 | |
| Cost of Sales | $12.6 | 28.6% |
| Selling and Admin | $39.7 | 90.4% |
| R & D | $5.4 | 12.2% |
| Other | $13.1 | 29.8% |
| Net Earnings | ($26.8) | (61%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ATEC reported 4Q20 orthopedic revenue of USD $44 million, +35.9% vs. 4Q19, with full-year 2020 revenue of $144.9 million, +27.7% vs. 2019. Excluding its international distribution winddown, the company has averaged +30% growth over the last eight quarters. In 4Q20, despite the COVID surge, ATEC continued racking up wins across its internal...
ATEC reported 4Q20 orthopedic revenue of USD $44 million, +35.9% vs. 4Q19, with full-year 2020 revenue of $144.9 million, +27.7% vs. 2019. Excluding its international distribution winddown, the company has averaged +30% growth over the last eight quarters. In 4Q20, despite the COVID surge, ATEC continued racking up wins across its internal key metrics: new products contributed 75% of revenue (48% in 4Q19), 15% year-over-year revenue growth per surgeon, 13% year-over-year growth in average revenue per case and 1.9 products sold per case.
Moving into 2021, ATEC hailed itself as “spine’s new revolutionary” as the company builds procedural solutions from the ground up. Company CEO Patrick Miles went on to say that ATEC is the new home of lateral spine surgery, and that competitive hiring candidates view ATEC as a giant killer. The company has reason to be bold, as it has notched nine straight quarters of double-digit growth after struggling with an outdated portfolio and weak distribution network. ATEC is poised to further differentiate their position with the renewed agreement to purchase EOS imaging, slated to close in 2Q21.
While many of its peers are cautious about a soft first half in 2021 due to lingering pandemic effects, ATEC reiterated its previously provided guidance of $176 million in 2021 revenue, +25% vs. 2020.
“If there’s one thing that we love, it’s disruption. I think that there’s leaders of companies that don’t like spine because they don’t know it. And I think there’s so much opportunity to make spine surgery better that I think people have fatigued on how to do that. When there’s disruption, especially with companies that haven’t been excited about this space, we love it because there’s significant opportunity.” – ATEC CEO Patrick Miles
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
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $40.2 | $29.6 | $10.6 | 35.8% |
| Orthobiologics | $3.7 | $2.7 | $1.0 | 36.7% |
| Total | $44.0 | $32.4 | $11.6 | 35.9% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $132.4 | $103.6 | $28.8 | 27.8% |
| Orthobiologics | $12.5 | $9.8 | $2.7 | 27% |
| Total | $144.9 | $113.4 | $31.4 | 27.7% |
Geographic Sales
| 4Q20 | 4Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $43.1 | $31.1 | $12.0 | 38.5% |
| OUS | $0.8 | $1.2 | ($0.4) | (31.3%) |
| Total | $44.0 | $32.4 | $11.6 | 35.9% |
| FY20 | FY19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $141.1 | $108.2 | $32.8 | 30.3% |
| OUS | $3.8 | $5.2 | ($1.4) | (27.1%) |
| Total | $144.9 | $113.4 | $31.4 | 27.7% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $44.0 | |
| Cost of Sales | $12.6 | 28.6% |
| Selling and Admin | $39.7 | 90.4% |
| R & D | $5.4 | 12.2% |
| Other | $13.1 | 29.8% |
| Net Earnings | ($26.8) | (61%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
