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ATEC reported 3Q24 orthopedic sales of $150.7 million, up 27.4% compared to the third quarter of 2023. Year to date, the company generated $434.8 million in orthopedic sales, up 26.3% compared to the prior year.
Company leadership spent ample time during its recent earnings call bolstering investor confidence that ATEC can deliver on its long range financial commitments: $1 billion in revenue, adjusted EBITDA of $180 million, 18% margin and free cashflow of $65 million in 2027. ATEC’s next milestone is cash flow breakeven in 2025.
“We recognize that execution on cash generation is crucial to rebuilding shareholder value,” said ATEC CFO Todd Koning. “We are focused on growing revenue and expanding profitability to generate cash, which has informed how we are attracting investments and the realignment of internal resources. Those efforts are complete and strengthen our position as we progress towards cash generation. Our organization has a lot of work to do and a lot to be excited about. As we seek to rebuild shareholder value, know that this leadership team is confidently aligned. We know what needs to be prioritized and the work is underway.”
ATEC’s internal moves are aimed at streamlining the organization, including narrowing its investment in hiring and more efficiently utilizing existing resources. One thing that isn’t in question, though, is the company’s ability to generate revenue.
ATEC’s third quarter scorecard was once again filled with big growth jumps: 30% surgical revenue growth, 20% surgical volume growth, 9% growth in revenue per procedure, 19% growth in new surgeon users and over 200 surgeon training engagements.
The company expects 2024 total sales of $605 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 | 3Q24 | 3Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $122.6 | $93.0 | $29.6 | 31.8% |
| Orthobiologics | $13.1 | $11.2 | $1.9 | 16.7% |
| Enabling Technology | $15.0 | $14.0 | $1.0 | 7.1% |
| Total | $150.7 | $118.3 | $32.5 | 27.4% |
| Segment | 9m24 | 9m23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $349.1 | $268.1 | $80.9 | 30.2% |
| Orthobiologics | $39.3 | $32.5 | $6.9 | 21.1% |
| Enabling Technology | $46.4 | $43.7 | $2.7 | 6.1% |
| Total | $434.8 | $344.3 | $90.5 | 26.3% |
Orthopedic Sales by Geography
| 3Q24 | 3Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $141.8 | $110.1 | $31.7 | 28.8% |
| OUS | $8.9 | $8.2 | $0.7 | 9.1% |
| Total | $150.7 | $118.3 | $32.5 | 27.4% |
| 9m24 | 9m23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $408.1 | $317.7 | $90.3 | 28.4% |
| OUS | $26.7 | $26.6 | $0.1 | 0.6% |
| Total | $434.8 | $344.3 | $90.5 | 26.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $150.7 | |
| Cost of Sales | $48.0 | 31.8% |
| Selling and Admin | $109.2 | 72.5% |
| R & D | $20.2 | 13.4% |
| Other | $12.9 | 8.6% |
| Net Earnings | ($39.6) | (26.3%) |
ATEC reported 3Q24 orthopedic sales of $150.7 million, up 27.4% compared to the third quarter of 2023. Year to date, the company generated $434.8 million in orthopedic sales, up 26.3% compared to the prior year.
Company leadership spent ample time during its recent earnings call bolstering investor confidence that ATEC can deliver on its...
ATEC reported 3Q24 orthopedic sales of $150.7 million, up 27.4% compared to the third quarter of 2023. Year to date, the company generated $434.8 million in orthopedic sales, up 26.3% compared to the prior year.
Company leadership spent ample time during its recent earnings call bolstering investor confidence that ATEC can deliver on its long range financial commitments: $1 billion in revenue, adjusted EBITDA of $180 million, 18% margin and free cashflow of $65 million in 2027. ATEC’s next milestone is cash flow breakeven in 2025.
“We recognize that execution on cash generation is crucial to rebuilding shareholder value,” said ATEC CFO Todd Koning. “We are focused on growing revenue and expanding profitability to generate cash, which has informed how we are attracting investments and the realignment of internal resources. Those efforts are complete and strengthen our position as we progress towards cash generation. Our organization has a lot of work to do and a lot to be excited about. As we seek to rebuild shareholder value, know that this leadership team is confidently aligned. We know what needs to be prioritized and the work is underway.”
ATEC’s internal moves are aimed at streamlining the organization, including narrowing its investment in hiring and more efficiently utilizing existing resources. One thing that isn’t in question, though, is the company’s ability to generate revenue.
ATEC’s third quarter scorecard was once again filled with big growth jumps: 30% surgical revenue growth, 20% surgical volume growth, 9% growth in revenue per procedure, 19% growth in new surgeon users and over 200 surgeon training engagements.
The company expects 2024 total sales of $605 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 | 3Q24 | 3Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $122.6 | $93.0 | $29.6 | 31.8% |
| Orthobiologics | $13.1 | $11.2 | $1.9 | 16.7% |
| Enabling Technology | $15.0 | $14.0 | $1.0 | 7.1% |
| Total | $150.7 | $118.3 | $32.5 | 27.4% |
| Segment | 9m24 | 9m23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $349.1 | $268.1 | $80.9 | 30.2% |
| Orthobiologics | $39.3 | $32.5 | $6.9 | 21.1% |
| Enabling Technology | $46.4 | $43.7 | $2.7 | 6.1% |
| Total | $434.8 | $344.3 | $90.5 | 26.3% |
Orthopedic Sales by Geography
| 3Q24 | 3Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $141.8 | $110.1 | $31.7 | 28.8% |
| OUS | $8.9 | $8.2 | $0.7 | 9.1% |
| Total | $150.7 | $118.3 | $32.5 | 27.4% |
| 9m24 | 9m23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $408.1 | $317.7 | $90.3 | 28.4% |
| OUS | $26.7 | $26.6 | $0.1 | 0.6% |
| Total | $434.8 | $344.3 | $90.5 | 26.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $150.7 | |
| Cost of Sales | $48.0 | 31.8% |
| Selling and Admin | $109.2 | 72.5% |
| R & D | $20.2 | 13.4% |
| Other | $12.9 | 8.6% |
| Net Earnings | ($39.6) | (26.3%) |
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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.
