ATEC Announces Record Preliminary Revenue Results for 2023 and 2024 Revenue Guidance
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Insights
The reported 37% revenue growth for Alphatec Holdings in full-year 2023 is a significant indicator of the company's performance and market position. The growth is primarily driven by the adoption of the company's lateral franchise, including the PTP and LTP approaches, which indicates a successful strategy in product differentiation and market penetration. The acceleration of surgical volume growth to 31% suggests an increasing demand for the company's products, which is essential for long-term sustainability.
Looking at the full-year 2024 revenue guidance of $595 million, which represents a 23% to 24% increase, it is clear that the company anticipates continued growth, albeit at a slower rate than in 2023. This projected slowdown could be due to market saturation, increased competition, or the maturation of their product cycle. Investors should monitor the company's ability to maintain growth rates and margins in a competitive landscape.
The emphasis on self-funded growth and profitability commitments is reassuring for stakeholders, as it suggests a focus on financial discipline and operational efficiency. However, the actual impact on profit margins and cash flow will be critical to assess in the upcoming financial results.
Alphatec's emphasis on information-integrated procedures to improve spine surgery outcomes positions the company at the forefront of a niche market within the medical device sector. The spine surgery market is expected to grow due to technological advancements and an aging population. Alphatec's 100% focus on spine care could be a strategic advantage, enabling them to capture more market share from 'distracted conglomerateurs' who have a broader focus.
Investors should consider the potential for Alphatec's innovative approaches, such as PTP and LTP, to set new industry standards and drive further adoption. The company's projection of sustained revenue growth into 2024 suggests confidence in their ability to continue to innovate and lead in this specialized market. However, the ability to convert revenue growth into profitability remains a key factor for long-term success.
The medical device industry is highly competitive, with constant innovation and regulatory challenges. Alphatec's projected growth and focus on spine surgery suggest that they are effectively navigating these challenges. Their lateral franchise's growth is particularly noteworthy, as it indicates a robust product offering that resonates with healthcare providers.
Alphatec's strategy to distinguish itself through information-integrated procedures could be pivotal in an industry where data-driven outcomes are increasingly valued. This approach may lead to improved patient outcomes, which in turn could drive provider adoption and support premium pricing. However, the company must continue to invest in R&D to maintain its competitive edge and comply with stringent regulatory standards, which could impact future financial performance.
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Full-year 2023 total revenue grew approximately
37% to over$480 million -
Expected full-year 2024 total revenue of
$595 million
Preliminary, Unaudited Fourth Quarter and Full-Year 2023 Revenue Ranges
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Fourth Quarter Ended December 31, 2023 |
Full-Year Ended December 31, 2023 |
Surgical Revenue |
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EOS Revenue |
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Total Revenue |
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May not foot due to rounding |
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Preliminary total revenue grew approximately
“Our conviction that good spine surgery is good business drove sector-leading growth again in 2023,” said Pat Miles, Chairman and Chief Executive Officer. “As we look to what is ahead, we know our best is yet to come. The vast need for more predictable, more durable spine care is not and cannot be met by distracted conglomerateurs. Leveraging
The preliminary revenue results announced today are based on the Company’s current expectations and may be adjusted as a result of, among other things, completion of customary annual audit procedures.
Revenue Outlook for the Full-Year 2024
The Company anticipates full-year 2024 total revenue of
The Company will report fourth quarter and full-year 2023 financial results, and provide guidance for 2024 profitability, on Tuesday, February 27, 2024, after the market close. The Company will host a live webcast that day at 1:30 p.m. PT / 4:30 p.m. ET.
Webcast
To access the live webcast, please visit the Investor Relations Section of ATEC’s Corporate Website.
Dial-in
To dial into the live webcast, please register at this link. Access details will be shared via email.
Replay
A replay of the webcast will be available through March 5, 2024. Access the replay by dialing (800) 770-2030 and referencing conference ID number 97241.
Long-Range Financial Plan Update
The Company will share an updated long-range financial plan at the Lotte New York Palace in
About ATEC
ATEC, through its wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A.S. and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction. ATEC’s Organic Innovation Machine™ is focused on developing new approaches that integrate seamlessly with the Company’s expanding AlphaInformatiX Platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC’s vision is to become the Standard Bearer in Spine. For more information, visit us at www.atecspine.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described therein. Forward-looking statements include references to the Company’s expectations with respect to future revenue and growth. The important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to: failure to achieve acceptance of the Company’s products by the surgeon community and changes to our financial results for the quarter and year ended December 31, 2023 due to the completion of financial closing procedures. The words “believe,” “will,” “should,” “expect,” “intend,” “estimate,” “look forward” and “anticipate,” and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. A further list and description of these and other factors, risks and uncertainties can be found in the Company's most recent annual report, and any subsequent quarterly and current reports, filed with the Securities and Exchange Commission. ATEC disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240108127425/en/
Investor/Media Contact:
Tina Jacobsen, CFA
Investor Relations
(760) 494-6790
investorrelations@atecspine.com
Company Contact:
J. Todd Koning
Chief Financial Officer
Alphatec Holdings, Inc.
investorrelations@atecspine.com
Source: Alphatec Holdings, Inc.
FAQ
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