Copy to clipboard 
ATEC reported 1Q24 orthopedic sales of $138.5 million, up 26.9% compared to the first quarter of 2023.
The company said its dominance in lateral spine surgery lays the groundwork for future growth. That position is protected by the competitive moat of ATEC’s proprietary neuromonitoring.
Additional growth drivers include the expanding capabilities of EOS, the Valence workflow-integrated robot coming in 2025, a narrow and deep international strategy that is taking root and cherry-picked talent from disrupted spine companies.
ATEC expects the spine market’s disruption will play out over an extended period.
“As we look at the market, we see it as 35% disrupted,” said ATEC CEO Pat Miles. Other than us, the rest are apathetic. What an opportunity. These things happen over a period of time. There’s a great proxy out there in Stryker K2M. It was a dynamic that transpired over multiple years.”
During the first quarter, the company deployed $60 million in inventory and instruments to support an expanded distribution footprint and product launches. It ended the quarter with $144 million in cash and carrying $527 million in debt.
ATEC raised cash in 2023 to capitalize on industry disruption but may have to do so again soon to fuel its rapid growth. The company projects a cash flow breakeven in 2025 and being cash flow positive beyond.
ATEC raised its 2024 full-year guidance to $601 million, reflecting growth of 25%.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $108.8 | $83.7 | $25.1 | 30% |
| Orthobiologics | $13.8 | $10.4 | $3.5 | 33.6% |
| Enabling Technology | $15.9 | $15.1 | $0.8 | 5.2% |
| Total | $138.5 | $109.1 | $29.4 | 26.9% |
Orthopedic Sales by Geography
| Region | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $129.8 | $100.0 | $29.9 | 29.9% |
| OUS | $8.6 | $9.1 | ($0.5) | (5.6%) |
| Total | $138.5 | $109.1 | $29.4 | 26.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $138.5 | |
| Cost of Sales | $41.1 | 29.7% |
| Selling and Admin | $113.7 | 82.1% |
| R & D | $18.0 | 13% |
| Other | $14.1 | 10.2% |
| Net Earnings | ($48.5) | (35%) |
ATEC reported 1Q24 orthopedic sales of $138.5 million, up 26.9% compared to the first quarter of 2023.
The company said its dominance in lateral spine surgery lays the groundwork for future growth. That position is protected by the competitive moat of ATEC's proprietary neuromonitoring.
Additional growth drivers include the expanding...
ATEC reported 1Q24 orthopedic sales of $138.5 million, up 26.9% compared to the first quarter of 2023.
The company said its dominance in lateral spine surgery lays the groundwork for future growth. That position is protected by the competitive moat of ATEC’s proprietary neuromonitoring.
Additional growth drivers include the expanding capabilities of EOS, the Valence workflow-integrated robot coming in 2025, a narrow and deep international strategy that is taking root and cherry-picked talent from disrupted spine companies.
ATEC expects the spine market’s disruption will play out over an extended period.
“As we look at the market, we see it as 35% disrupted,” said ATEC CEO Pat Miles. Other than us, the rest are apathetic. What an opportunity. These things happen over a period of time. There’s a great proxy out there in Stryker K2M. It was a dynamic that transpired over multiple years.”
During the first quarter, the company deployed $60 million in inventory and instruments to support an expanded distribution footprint and product launches. It ended the quarter with $144 million in cash and carrying $527 million in debt.
ATEC raised cash in 2023 to capitalize on industry disruption but may have to do so again soon to fuel its rapid growth. The company projects a cash flow breakeven in 2025 and being cash flow positive beyond.
ATEC raised its 2024 full-year guidance to $601 million, reflecting growth of 25%.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $108.8 | $83.7 | $25.1 | 30% |
| Orthobiologics | $13.8 | $10.4 | $3.5 | 33.6% |
| Enabling Technology | $15.9 | $15.1 | $0.8 | 5.2% |
| Total | $138.5 | $109.1 | $29.4 | 26.9% |
Orthopedic Sales by Geography
| Region | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $129.8 | $100.0 | $29.9 | 29.9% |
| OUS | $8.6 | $9.1 | ($0.5) | (5.6%) |
| Total | $138.5 | $109.1 | $29.4 | 26.9% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $138.5 | |
| Cost of Sales | $41.1 | 29.7% |
| Selling and Admin | $113.7 | 82.1% |
| R & D | $18.0 | 13% |
| Other | $14.1 | 10.2% |
| Net Earnings | ($48.5) | (35%) |
You are out of free articles for this month
Subscribe as a Guest for $0 and unlock a total of 5 articles per month.
You are out of five articles for this month
Subscribe as an Executive Member for access to unlimited articles, THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT and more.
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.
