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ATEC reported 4Q23 orthopedic sales of $138 million, +30.2% compared to the fourth quarter of 2022. The company generated $482.3 million in orthopedic sales in 2023 and grew +37.4% compared to the prior year.
Full-year surgical grew 40%, while procedure volume grew 31% in 2023 after growing 25% in 2022. A 27% increase in surgeon users and a 7% jump in average revenue per case fueled ATEC’s revenue growth. EOS generated $59 million during the year as the geographical mix shifted toward the U.S. and benefitted system ASPs.
ATEC acquired a navigated robotics system in 2023 that will underpin its ecosystem of technologies. The company believes “objective informatics” is a key to improving outcomes in spine surgery.
“Several years ago, I said that the Spine business needs ATEC, and I have never believed it more,” said ATEC CEO Pat Miles. “If you think the science [of spine surgery] is settled when you have a 10% to 15% revision rate within one to three years in short-segment surgery, and 25% to 30% in two to five years in deformity surgery, I think you’re kidding yourself. I think there’s a very clear requirement for spine to have an objective informatic ecosystem.”
The company has a unique opportunity in the near term to grow beyond a mid-single-digit share player as disruption settles out of the spine market. ATEC leadership said the company sees the market as 35% disrupted and 60% apathetic. The other 5% is, of course, ATEC’s share.
The company expects 2024 total revenue growth of 23% to approximately $595 million in orthopedic sales. The guidance contemplates $530 million in surgical sales and $65 million in EOS sales.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $109.9 | $81.2 | $28.7 | 35.3% |
| Orthobiologics | $13.1 | $10.1 | $3.0 | 30.2% |
| Enabling Technology | $15.0 | $14.7 | $0.3 | 2% |
| Total | $138.0 | $105.9 | $32.0 | 30.2% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $377.7 | $270.9 | $106.8 | 39.4% |
| Orthobiologics | $45.6 | $32.0 | $13.6 | 42.5% |
| Enabling Technology | $59.0 | $48.0 | $11.0 | 22.9% |
| Total | $482.3 | $350.9 | $131.4 | 37.4% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $127.6 | $97.0 | $30.6 | 31.6% |
| OUS | $10.3 | $9.0 | $1.4 | 15.4% |
| Total | $138.0 | $105.9 | $32.0 | 30.2% |
| Regio | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $445.4 | $326.7 | $118.7 | 36.3% |
| OUS | $36.9 | $24.2 | $12.7 | 52.7% |
| Total | $482.3 | $350.9 | $131.4 | 37.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $138.0 | |
| Cost of Sales | $42.8 | 31% |
| Selling and Admin | $104.1 | 75.5% |
| R & D | $22.3 | 16.2% |
| Other | $18.0 | 13% |
| Net Earnings | ($49.2) | (35.7%) |
ATEC reported 4Q23 orthopedic sales of $138 million, +30.2% compared to the fourth quarter of 2022. The company generated $482.3 million in orthopedic sales in 2023 and grew +37.4% compared to the prior year.
Full-year surgical grew 40%, while procedure volume grew 31% in 2023 after growing 25% in 2022. A 27% increase in surgeon users and...
ATEC reported 4Q23 orthopedic sales of $138 million, +30.2% compared to the fourth quarter of 2022. The company generated $482.3 million in orthopedic sales in 2023 and grew +37.4% compared to the prior year.
Full-year surgical grew 40%, while procedure volume grew 31% in 2023 after growing 25% in 2022. A 27% increase in surgeon users and a 7% jump in average revenue per case fueled ATEC’s revenue growth. EOS generated $59 million during the year as the geographical mix shifted toward the U.S. and benefitted system ASPs.
ATEC acquired a navigated robotics system in 2023 that will underpin its ecosystem of technologies. The company believes “objective informatics” is a key to improving outcomes in spine surgery.
“Several years ago, I said that the Spine business needs ATEC, and I have never believed it more,” said ATEC CEO Pat Miles. “If you think the science [of spine surgery] is settled when you have a 10% to 15% revision rate within one to three years in short-segment surgery, and 25% to 30% in two to five years in deformity surgery, I think you’re kidding yourself. I think there’s a very clear requirement for spine to have an objective informatic ecosystem.”
The company has a unique opportunity in the near term to grow beyond a mid-single-digit share player as disruption settles out of the spine market. ATEC leadership said the company sees the market as 35% disrupted and 60% apathetic. The other 5% is, of course, ATEC’s share.
The company expects 2024 total revenue growth of 23% to approximately $595 million in orthopedic sales. The guidance contemplates $530 million in surgical sales and $65 million in EOS sales.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $109.9 | $81.2 | $28.7 | 35.3% |
| Orthobiologics | $13.1 | $10.1 | $3.0 | 30.2% |
| Enabling Technology | $15.0 | $14.7 | $0.3 | 2% |
| Total | $138.0 | $105.9 | $32.0 | 30.2% |
| Segment | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $377.7 | $270.9 | $106.8 | 39.4% |
| Orthobiologics | $45.6 | $32.0 | $13.6 | 42.5% |
| Enabling Technology | $59.0 | $48.0 | $11.0 | 22.9% |
| Total | $482.3 | $350.9 | $131.4 | 37.4% |
Orthopedic Sales by Geography
| Region | 4Q23 | 4Q22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $127.6 | $97.0 | $30.6 | 31.6% |
| OUS | $10.3 | $9.0 | $1.4 | 15.4% |
| Total | $138.0 | $105.9 | $32.0 | 30.2% |
| Regio | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $445.4 | $326.7 | $118.7 | 36.3% |
| OUS | $36.9 | $24.2 | $12.7 | 52.7% |
| Total | $482.3 | $350.9 | $131.4 | 37.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $138.0 | |
| Cost of Sales | $42.8 | 31% |
| Selling and Admin | $104.1 | 75.5% |
| R & D | $22.3 | 16.2% |
| Other | $18.0 | 13% |
| Net Earnings | ($49.2) | (35.7%) |
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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.
