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SeaSpine reported 2Q21 orthopedic revenue of $47.5 million, +66.1% vs. 2Q20. Compared to the second quarter of 2019, the company’s sales grew +20.8%. The company raised the bottom of its previously stated guidance, now at a range of $201 million to $205 million. This reflects growth of +30% to +33% vs. 2020.
The company remains “cautiously optimistic” about a sustained return to pre-pandemic volumes in the second half of 2021. SeaSpine leadership believes most of the backlog built in early 1Q is now worked through, and the remainder will be depleted early in the third quarter. However, SeaSpine has invested more than $40 million for alpha launches and instrument sets for 2021 to fuel growth.
An additional variable for the company is the greater-than-expected number of “earn-out” deals struck for 7D units as opposed to outright capital purchases. These earn-out deals typically extend three years with a linear revenue progression.
“7D is still very much a “1 plus 1 equals 3″ revenue synergy opportunity. There are modest cost savings in things like trade shows and driving more collaborative relationships with 7D suppliers with higher volume commitments over time with our stronger balance sheet, that we can drive down cost of goods sold some, too. But really, this is all about revenue play. It’s taking more market share faster and growing because 7D is pretty much bolt-on. They have specialties that we don’t have in terms of product development, optics and software development. So it’s all complementary to our base of strength and it’s all about the revenue and market share taking opportunity.” – SeaSpine CFO John Bostjancic
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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $24.2 | $14.7 | $9.5 | 64.2% |
| Orthobiologics | $23.3 | $13.9 | $9.5 | 68.2% |
| Total | $47.5 | $28.6 | $18.9 | 66.1% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $44.7 | $31.2 | $13.4 | 43% |
| Orthobiologics | $44.8 | $33.5 | $11.3 | 33.8% |
| Total | $89.5 | $64.7 | $24.8 | 38.3% |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $42.6 | $25.9 | $16.7 | 64.6% |
| OUS | $4.9 | $2.7 | $2.2 | 80.8% |
| Total | $47.5 | $28.6 | $18.9 | 66.1% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $80.1 | $57.7 | $22.4 | 38.8% |
| OUS | $9.4 | $7.0 | $2.4 | 33.9% |
| Total | $89.5 | $64.7 | $24.8 | 38.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $47.5 | |
| Cost of Sales | $17.5 | 36.8% |
| Selling and Marketing | $25.4 | 53.5% |
| General and Admin | $10.0 | 21% |
| R & D | $4.9 | 10.2% |
| Other | ($5.0) | (10.6%) |
| Net Earnings | ($5.2) | (11%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
SeaSpine reported 2Q21 orthopedic revenue of $47.5 million, +66.1% vs. 2Q20. Compared to the second quarter of 2019, the company's sales grew +20.8%. The company raised the bottom of its previously stated guidance, now at a range of $201 million to $205 million. This reflects growth of +30% to +33% vs. 2020.
The company remains "cautiously...
SeaSpine reported 2Q21 orthopedic revenue of $47.5 million, +66.1% vs. 2Q20. Compared to the second quarter of 2019, the company’s sales grew +20.8%. The company raised the bottom of its previously stated guidance, now at a range of $201 million to $205 million. This reflects growth of +30% to +33% vs. 2020.
The company remains “cautiously optimistic” about a sustained return to pre-pandemic volumes in the second half of 2021. SeaSpine leadership believes most of the backlog built in early 1Q is now worked through, and the remainder will be depleted early in the third quarter. However, SeaSpine has invested more than $40 million for alpha launches and instrument sets for 2021 to fuel growth.
An additional variable for the company is the greater-than-expected number of “earn-out” deals struck for 7D units as opposed to outright capital purchases. These earn-out deals typically extend three years with a linear revenue progression.
“7D is still very much a “1 plus 1 equals 3″ revenue synergy opportunity. There are modest cost savings in things like trade shows and driving more collaborative relationships with 7D suppliers with higher volume commitments over time with our stronger balance sheet, that we can drive down cost of goods sold some, too. But really, this is all about revenue play. It’s taking more market share faster and growing because 7D is pretty much bolt-on. They have specialties that we don’t have in terms of product development, optics and software development. So it’s all complementary to our base of strength and it’s all about the revenue and market share taking opportunity.” – SeaSpine CFO John Bostjancic
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
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $24.2 | $14.7 | $9.5 | 64.2% |
| Orthobiologics | $23.3 | $13.9 | $9.5 | 68.2% |
| Total | $47.5 | $28.6 | $18.9 | 66.1% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $44.7 | $31.2 | $13.4 | 43% |
| Orthobiologics | $44.8 | $33.5 | $11.3 | 33.8% |
| Total | $89.5 | $64.7 | $24.8 | 38.3% |
Geographic Sales
| 2Q20 | 2Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $42.6 | $25.9 | $16.7 | 64.6% |
| OUS | $4.9 | $2.7 | $2.2 | 80.8% |
| Total | $47.5 | $28.6 | $18.9 | 66.1% |
| 1H20 | 1H19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $80.1 | $57.7 | $22.4 | 38.8% |
| OUS | $9.4 | $7.0 | $2.4 | 33.9% |
| Total | $89.5 | $64.7 | $24.8 | 38.3% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $47.5 | |
| Cost of Sales | $17.5 | 36.8% |
| Selling and Marketing | $25.4 | 53.5% |
| General and Admin | $10.0 | 21% |
| R & D | $4.9 | 10.2% |
| Other | ($5.0) | (10.6%) |
| Net Earnings | ($5.2) | (11%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
