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ATEC Spine reported 1Q21 orthopedic revenue of USD $44.1 million, +46.5% vs. 1Q20. The company notched its tenth consecutive quarter of double-digit growth, despite surgical volume pressure in January and February. ATEC saw impressive results across its key performance indicators: 77% of revenue came from newer products; revenue per surgeon grew +17% year over year, while revenue per case increased +13% compared to 1Q20. Additionally, the transaction to acquire EOS is progressing as planned. Once ATEC owns 90% or more of EOS’s share capital and voting rights, it plans to squeeze out any remaining nontender shares according to French laws and regulations.
The company continues to revitalize its sales channel. Strategic distributors now account for 95% of ATEC’s revenue. The company environs a core group of about 50 distributors each with an annual run rate of $4 million. Additionally, ATEC plans to fill some of its geographic whitespaces across the U.S. Leadership called its current salesforce “very pocketed.”
Based on its first-quarter success, ATEC increased its 2021 revenue guidance to $190 million, representing growth of +31% compared to last year.
“There are huge markets where we have very little [presence]. If you name the top metro areas in the country, you’d hit some of them. For instance, St. Louis, Missouri, we have nobody. There’s a big swath of land that we don’t have anybody. It’s found money when we add a distributor. But we’re doing our best to carry the standard of making sure the type of people who come in here are the type of people who want to build a monster.” – ATEC Spine CEO Pat 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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $40.4 | $27.4 | $13.0 | 47.3% |
| Orthobiologics | $3.8 | $2.7 | $1.0 | 38.4% |
| Total | $44.1 | $30.1 | $14.0 | 46.5% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $43.7 | $29.1 | $14.6 | 50.4% |
| OUS | $0.4 | $1.0 | ($0.6) | (61.2%) |
| Total | $44.1 | $30.1 | $14.0 | 46.5% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $44.1 | |
| Cost of Sales | $12.3 | 27.8% |
| Selling and Admin | $40.4 | 91.6% |
| R & D | $5.8 | 13.1% |
| Other | $8.5 | 19.3% |
| Net Earnings | ($22.9) | (51.9%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ATEC Spine reported 1Q21 orthopedic revenue of USD $44.1 million, +46.5% vs. 1Q20. The company notched its tenth consecutive quarter of double-digit growth, despite surgical volume pressure in January and February. ATEC saw impressive results across its key performance indicators: 77% of revenue came from newer products; revenue per surgeon...
ATEC Spine reported 1Q21 orthopedic revenue of USD $44.1 million, +46.5% vs. 1Q20. The company notched its tenth consecutive quarter of double-digit growth, despite surgical volume pressure in January and February. ATEC saw impressive results across its key performance indicators: 77% of revenue came from newer products; revenue per surgeon grew +17% year over year, while revenue per case increased +13% compared to 1Q20. Additionally, the transaction to acquire EOS is progressing as planned. Once ATEC owns 90% or more of EOS’s share capital and voting rights, it plans to squeeze out any remaining nontender shares according to French laws and regulations.
The company continues to revitalize its sales channel. Strategic distributors now account for 95% of ATEC’s revenue. The company environs a core group of about 50 distributors each with an annual run rate of $4 million. Additionally, ATEC plans to fill some of its geographic whitespaces across the U.S. Leadership called its current salesforce “very pocketed.”
Based on its first-quarter success, ATEC increased its 2021 revenue guidance to $190 million, representing growth of +31% compared to last year.
“There are huge markets where we have very little [presence]. If you name the top metro areas in the country, you’d hit some of them. For instance, St. Louis, Missouri, we have nobody. There’s a big swath of land that we don’t have anybody. It’s found money when we add a distributor. But we’re doing our best to carry the standard of making sure the type of people who come in here are the type of people who want to build a monster.” – ATEC Spine CEO Pat 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
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $40.4 | $27.4 | $13.0 | 47.3% |
| Orthobiologics | $3.8 | $2.7 | $1.0 | 38.4% |
| Total | $44.1 | $30.1 | $14.0 | 46.5% |
Geographic Sales
| 1Q21 | 1Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $43.7 | $29.1 | $14.6 | 50.4% |
| OUS | $0.4 | $1.0 | ($0.6) | (61.2%) |
| Total | $44.1 | $30.1 | $14.0 | 46.5% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $44.1 | |
| Cost of Sales | $12.3 | 27.8% |
| Selling and Admin | $40.4 | 91.6% |
| R & D | $5.8 | 13.1% |
| Other | $8.5 | 19.3% |
| Net Earnings | ($22.9) | (51.9%) |
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.
