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ATEC reported 2Q21 orthopedic revenue of $62.2 million, +110.1% vs. 2Q20. Compared to the second quarter of 2019, the company grew +128%. ATEC expects full-year 2021 revenue of $238 million ($212 million organic), growth of +64% compared to 2020.
A significant increase in procedural volume and continued growth in average selling price contributed to strength in both spinal implants and biologics. EOS imaging contributed $6.1 million in the quarter. ATEC believes that surgeons are accepting its thesis of spinal surgery, pointing to the increasing number of products sold and revenue realized per case. That thesis, as a reminder, is the company’s emphasis on the prioritized list of procedural requirements and not solely on the specific implant.
The company launched 30 new products between 2018 and 2020, and it plans to launch eight to 10 annually going forward. Additionally, ATEC says it is under-represented or has no presence at all in about one-third of the U.S. sales geographies which could generate a significant tailwind as those areas are penetrated.
“We’re realistic about the contributions we get out of respective areas of the world. We will be well served by being very narrow and deep. Anybody who’s been around the spine space knows the great 5 or 6 markets. We’ll focus on markets that have a good paying environment and have a clinically sophisticated environment. We’re going to go into these markets with the best of the best, which is such an advantage. A lot of people dump in international markets. That’s not our way.” – 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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $57.1 | $27.1 | $29.9 | 110.4% |
| Orthobiologics | $5.2 | $2.5 | $2.7 | 106.9% |
| Total | $62.2 | $29.6 | $32.6 | 110.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $97.4 | $54.5 | $42.9 | 78.7% |
| Orthobiologics | $8.9 | $5.2 | $3.7 | 71.3% |
| Total | $106.4 | $59.7 | $46.6 | 78% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $59.3 | $28.8 | $30.5 | 105.6% |
| OUS | $3.0 | $0.8 | $2.2 | 271.7% |
| Total | $62.2 | $29.6 | $32.6 | 110.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $103.0 | $57.9 | $45.1 | 77.9% |
| OUS | $3.4 | $1.8 | $1.5 | 82.6% |
| Total | $106.4 | $59.7 | $46.6 | 78% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $62.2 | |
| Cost of Sales | $21.2 | 34% |
| Selling and Admin | $60.7 | 97.4% |
| R & D | $7.8 | 12.6% |
| Other | $10.8 | 17.3% |
| Net Earnings | ($38.2) | (61.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ATEC reported 2Q21 orthopedic revenue of $62.2 million, +110.1% vs. 2Q20. Compared to the second quarter of 2019, the company grew +128%. ATEC expects full-year 2021 revenue of $238 million ($212 million organic), growth of +64% compared to 2020.
A significant increase in procedural volume and continued growth in average selling price...
ATEC reported 2Q21 orthopedic revenue of $62.2 million, +110.1% vs. 2Q20. Compared to the second quarter of 2019, the company grew +128%. ATEC expects full-year 2021 revenue of $238 million ($212 million organic), growth of +64% compared to 2020.
A significant increase in procedural volume and continued growth in average selling price contributed to strength in both spinal implants and biologics. EOS imaging contributed $6.1 million in the quarter. ATEC believes that surgeons are accepting its thesis of spinal surgery, pointing to the increasing number of products sold and revenue realized per case. That thesis, as a reminder, is the company’s emphasis on the prioritized list of procedural requirements and not solely on the specific implant.
The company launched 30 new products between 2018 and 2020, and it plans to launch eight to 10 annually going forward. Additionally, ATEC says it is under-represented or has no presence at all in about one-third of the U.S. sales geographies which could generate a significant tailwind as those areas are penetrated.
“We’re realistic about the contributions we get out of respective areas of the world. We will be well served by being very narrow and deep. Anybody who’s been around the spine space knows the great 5 or 6 markets. We’ll focus on markets that have a good paying environment and have a clinically sophisticated environment. We’re going to go into these markets with the best of the best, which is such an advantage. A lot of people dump in international markets. That’s not our way.” – 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
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $57.1 | $27.1 | $29.9 | 110.4% |
| Orthobiologics | $5.2 | $2.5 | $2.7 | 106.9% |
| Total | $62.2 | $29.6 | $32.6 | 110.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $97.4 | $54.5 | $42.9 | 78.7% |
| Orthobiologics | $8.9 | $5.2 | $3.7 | 71.3% |
| Total | $106.4 | $59.7 | $46.6 | 78% |
Geographic Sales
| 2Q21 | 2Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $59.3 | $28.8 | $30.5 | 105.6% |
| OUS | $3.0 | $0.8 | $2.2 | 271.7% |
| Total | $62.2 | $29.6 | $32.6 | 110.1% |
| 1H21 | 1H20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $103.0 | $57.9 | $45.1 | 77.9% |
| OUS | $3.4 | $1.8 | $1.5 | 82.6% |
| Total | $106.4 | $59.7 | $46.6 | 78% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $62.2 | |
| Cost of Sales | $21.2 | 34% |
| Selling and Admin | $60.7 | 97.4% |
| R & D | $7.8 | 12.6% |
| Other | $10.8 | 17.3% |
| Net Earnings | ($38.2) | (61.4%) |
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.
