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ATEC reported 2Q24 orthopedic sales of $145.6 million, up 24.5% from the second quarter of 2023. For the year’s first half, the company generated $284.1 million in orthopedic sales, up 25.7% from the prior year.
The company’s second-quarter results across all KPIs are impressive. New surgeon users grew 20%, surgical volume grew 15% and average surgical revenue per case grew 10%. ATEC also conducted 244 surgeon training engagements and launched EOS Insight during the quarter.
At launch, the system features AI-driven alignment assessment, 3D surgical planning and simulation, patient-specific rods, intra-operative reconciliation and post-operative analytics. ATEC believes its solution resolves pain points around preoperative planning.
“The reason most surgeons do not plan surgery is that it is onerous,” said ATEC CEO Pat Miles. “It often takes a very long time, and it’s imprecise. You’re dealing with non-standard imaging modalities where magnification and other challenges undermine accuracy. In short, it is a lot of work for little precision and objective value. So, it’s just not done often.”
The company managed to drive sector-leading growth despite hitting a few speed bumps in the quarter. ATEC outgrew its supply of one biologic offering and one expandable implant, but has since addressed both constraints.
The company is also upgrading territories with new sales agencies to more strategically reflect the ATEC brand. While the new sales agencies ramped up, incumbent coverage wound down more quickly than anticipated. The company expects some quarter-to-quarter lumpiness in the underlying dynamics of revenue growth.
These challenges have done little to slow ATEC’s growth trajectory, however. Given its start to the year, the company raised its 2024 guidance to $602 million, reflecting 25% growth over 2023.
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 | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $117.7 | $91.4 | $26.3 | 28.7% |
| Orthobiologics | $12.4 | $10.9 | $1.5 | 13.8% |
| Enabling Technology | $15.5 | $14.6 | $0.9 | 6.1% |
| Total | $145.6 | $116.9 | $28.7 | 24.5% |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $226.5 | $175.1 | $51.4 | 29.3% |
| Orthobiologics | $26.2 | $21.2 | $5.0 | 23.5% |
| Enabling Technology | $31.4 | $29.7 | $1.7 | 5.6% |
| Total | $284.1 | $226.0 | $58.0 | 25.7% |
Orthopedic Sales by Geography
| Region | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $136.4 | $107.7 | $28.7 | 26.7% |
| OUS | $9.2 | $9.3 | ($0.1) | (1%) |
| Total | $145.6 | $116.9 | $28.7 | 24.5% |
| Region | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $266.3 | $207.6 | $58.6 | 28.2% |
| OUS | $17.8 | $18.4 | ($0.6) | (3.3%) |
| Total | $284.1 | $226.0 | $58.0 | 25.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $145.6 | |
| Cost of Sales | $43.0 | 29.5% |
| Selling and Admin | $112.7 | 77.4% |
| R & D | $19.1 | 13.1% |
| Other | $11.7 | 8.1% |
| Net Earnings | ($41.0) | (28.1%) |
ATEC reported 2Q24 orthopedic sales of $145.6 million, up 24.5% from the second quarter of 2023. For the year's first half, the company generated $284.1 million in orthopedic sales, up 25.7% from the prior year.
The company's second-quarter results across all KPIs are impressive. New surgeon users grew 20%, surgical volume grew 15% and...
ATEC reported 2Q24 orthopedic sales of $145.6 million, up 24.5% from the second quarter of 2023. For the year’s first half, the company generated $284.1 million in orthopedic sales, up 25.7% from the prior year.
The company’s second-quarter results across all KPIs are impressive. New surgeon users grew 20%, surgical volume grew 15% and average surgical revenue per case grew 10%. ATEC also conducted 244 surgeon training engagements and launched EOS Insight during the quarter.
At launch, the system features AI-driven alignment assessment, 3D surgical planning and simulation, patient-specific rods, intra-operative reconciliation and post-operative analytics. ATEC believes its solution resolves pain points around preoperative planning.
“The reason most surgeons do not plan surgery is that it is onerous,” said ATEC CEO Pat Miles. “It often takes a very long time, and it’s imprecise. You’re dealing with non-standard imaging modalities where magnification and other challenges undermine accuracy. In short, it is a lot of work for little precision and objective value. So, it’s just not done often.”
The company managed to drive sector-leading growth despite hitting a few speed bumps in the quarter. ATEC outgrew its supply of one biologic offering and one expandable implant, but has since addressed both constraints.
The company is also upgrading territories with new sales agencies to more strategically reflect the ATEC brand. While the new sales agencies ramped up, incumbent coverage wound down more quickly than anticipated. The company expects some quarter-to-quarter lumpiness in the underlying dynamics of revenue growth.
These challenges have done little to slow ATEC’s growth trajectory, however. Given its start to the year, the company raised its 2024 guidance to $602 million, reflecting 25% growth over 2023.
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 | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $117.7 | $91.4 | $26.3 | 28.7% |
| Orthobiologics | $12.4 | $10.9 | $1.5 | 13.8% |
| Enabling Technology | $15.5 | $14.6 | $0.9 | 6.1% |
| Total | $145.6 | $116.9 | $28.7 | 24.5% |
| Segment | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| Spine | $226.5 | $175.1 | $51.4 | 29.3% |
| Orthobiologics | $26.2 | $21.2 | $5.0 | 23.5% |
| Enabling Technology | $31.4 | $29.7 | $1.7 | 5.6% |
| Total | $284.1 | $226.0 | $58.0 | 25.7% |
Orthopedic Sales by Geography
| Region | 2Q24 | 2Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $136.4 | $107.7 | $28.7 | 26.7% |
| OUS | $9.2 | $9.3 | ($0.1) | (1%) |
| Total | $145.6 | $116.9 | $28.7 | 24.5% |
| Region | 1H24 | 1H23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $266.3 | $207.6 | $58.6 | 28.2% |
| OUS | $17.8 | $18.4 | ($0.6) | (3.3%) |
| Total | $284.1 | $226.0 | $58.0 | 25.7% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $145.6 | |
| Cost of Sales | $43.0 | 29.5% |
| Selling and Admin | $112.7 | 77.4% |
| R & D | $19.1 | 13.1% |
| Other | $11.7 | 8.1% |
| Net Earnings | ($41.0) | (28.1%) |
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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.
