Globus Medical Reports Fourth Quarter and Full Year 2024 Results
Globus Medical (NYSE: GMED) reported strong financial results for Q4 and full year 2024. Q4 worldwide net sales reached $657.3 million, up 6.6% year-over-year, with GAAP net income of $26.5 million and EPS of $0.19. Non-GAAP diluted EPS was $0.84, and adjusted EBITDA was $196.9 million.
Full year 2024 sales totaled $2,519.4 million, a 60.6% increase, with GAAP net income of $103.0 million and EPS of $0.75. Non-GAAP diluted EPS was $3.04, and adjusted EBITDA reached $735.0 million. The company generated operating cash flow of $520.6 million and non-GAAP free cash flow of $405.2 million.
For 2025, GMED projects standalone revenue of $2.66-2.69 billion with non-GAAP EPS of $3.40-3.50. Post-Nevro acquisition, expected in late Q2 2025, guidance increases to $2.80-2.90 billion in sales with non-GAAP EPS of $3.10-3.40.
Globus Medical (NYSE: GMED) ha riportato risultati finanziari solidi per il Q4 e l'intero anno 2024. Le vendite nette mondiali del Q4 hanno raggiunto 657,3 milioni di dollari, con un aumento del 6,6% rispetto all'anno precedente, registrando un utile netto GAAP di 26,5 milioni di dollari e un utile per azione (EPS) di 0,19 dollari. L'EPS diluito non GAAP è stato di 0,84 dollari, e l'EBITDA rettificato ha raggiunto 196,9 milioni di dollari.
Le vendite totali per l'intero anno 2024 hanno ammontato a 2.519,4 milioni di dollari, con un incremento del 60,6%, un utile netto GAAP di 103,0 milioni di dollari e un EPS di 0,75 dollari. L'EPS diluito non GAAP è stato di 3,04 dollari, e l'EBITDA rettificato ha raggiunto 735,0 milioni di dollari. L'azienda ha generato un flusso di cassa operativo di 520,6 milioni di dollari e un flusso di cassa libero non GAAP di 405,2 milioni di dollari.
Per il 2025, GMED prevede ricavi autonomi compresi tra 2,66 e 2,69 miliardi di dollari con un EPS non GAAP tra 3,40 e 3,50 dollari. Dopo l'acquisizione di Nevro, prevista per la fine del Q2 2025, le previsioni aumentano a vendite comprese tra 2,80 e 2,90 miliardi di dollari con un EPS non GAAP tra 3,10 e 3,40 dollari.
Globus Medical (NYSE: GMED) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Las ventas netas mundiales del cuarto trimestre alcanzaron 657,3 millones de dólares, un aumento del 6,6% en comparación con el año anterior, con un ingreso neto GAAP de 26,5 millones de dólares y un EPS de 0,19 dólares. El EPS diluido no GAAP fue de 0,84 dólares, y el EBITDA ajustado fue de 196,9 millones de dólares.
Las ventas del año completo 2024 totalizaron 2.519,4 millones de dólares, un incremento del 60,6%, con un ingreso neto GAAP de 103,0 millones de dólares y un EPS de 0,75 dólares. El EPS diluido no GAAP fue de 3,04 dólares, y el EBITDA ajustado alcanzó 735,0 millones de dólares. La compañía generó un flujo de efectivo operativo de 520,6 millones de dólares y un flujo de efectivo libre no GAAP de 405,2 millones de dólares.
Para 2025, GMED proyecta ingresos independientes de entre 2,66 y 2,69 mil millones de dólares con un EPS no GAAP de entre 3,40 y 3,50 dólares. Tras la adquisición de Nevro, esperada para finales del segundo trimestre de 2025, la guía se eleva a ventas de entre 2,80 y 2,90 mil millones de dólares con un EPS no GAAP de entre 3,10 y 3,40 dólares.
글로부스 메디컬 (NYSE: GMED)은 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고했습니다. 4분기 전 세계 순매출은 6억 5천 7백 30만 달러에 달하며, 전년 대비 6.6% 증가했으며, GAAP 순이익은 2천 650만 달러, 주당순이익(EPS)은 0.19달러였습니다. 비GAAP 희석 EPS는 0.84달러였고, 조정된 EBITDA는 1억 9천 6백 90만 달러에 달했습니다.
2024년 전체 연도 매출은 25억 1천 940만 달러로, 60.6% 증가했으며, GAAP 순이익은 1억 3천만 달러, EPS는 0.75달러였습니다. 비GAAP 희석 EPS는 3.04달러였고, 조정된 EBITDA는 7억 3천 50만 달러에 도달했습니다. 회사는 5억 2천 60만 달러의 운영 현금 흐름과 4억 5천 20만 달러의 비GAAP 자유 현금 흐름을 창출했습니다.
2025년을 위해 GMED는 독립적인 수익을 26억 6천만 달러에서 26억 9천만 달러로 예상하며, 비GAAP EPS는 3.40달러에서 3.50달러로 예상합니다. 2025년 2분기 말로 예상되는 Nevro 인수 이후, 가이던스는 매출이 28억 달러에서 29억 달러로 증가하고 비GAAP EPS는 3.10달러에서 3.40달러로 증가할 것으로 보입니다.
Globus Medical (NYSE: GMED) a annoncé des résultats financiers solides pour le 4ème trimestre et l'année entière 2024. Les ventes nettes mondiales du 4ème trimestre ont atteint 657,3 millions de dollars, en hausse de 6,6% par rapport à l'année précédente, avec un bénéfice net GAAP de 26,5 millions de dollars et un BPA de 0,19 dollar. Le BPA dilué non GAAP était de 0,84 dollar, et l'EBITDA ajusté s'élevait à 196,9 millions de dollars.
Les ventes de l'année entière 2024 ont totalisé 2.519,4 millions de dollars, soit une augmentation de 60,6%, avec un bénéfice net GAAP de 103,0 millions de dollars et un BPA de 0,75 dollar. Le BPA dilué non GAAP était de 3,04 dollars, et l'EBITDA ajusté a atteint 735,0 millions de dollars. L'entreprise a généré un flux de trésorerie opérationnel de 520,6 millions de dollars et un flux de trésorerie libre non GAAP de 405,2 millions de dollars.
Pour 2025, GMED prévoit un chiffre d'affaires autonome de 2,66 à 2,69 milliards de dollars avec un BPA non GAAP de 3,40 à 3,50 dollars. Après l'acquisition de Nevro, prévue pour la fin du 2ème trimestre 2025, les prévisions passent à 2,80 à 2,90 milliards de dollars de ventes avec un BPA non GAAP de 3,10 à 3,40 dollars.
Globus Medical (NYSE: GMED) hat starke finanzielle Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 gemeldet. Die weltweiten Nettoumsätze im 4. Quartal betrugen 657,3 Millionen Dollar, was einem Anstieg von 6,6% im Vergleich zum Vorjahr entspricht, mit einem GAAP-Nettoeinkommen von 26,5 Millionen Dollar und einem EPS von 0,19 Dollar. Das verwässerte EPS nach Non-GAAP betrug 0,84 Dollar, und das angepasste EBITDA belief sich auf 196,9 Millionen Dollar.
Die Gesamtverkäufe für das Jahr 2024 beliefen sich auf 2.519,4 Millionen Dollar, was einem Anstieg von 60,6% entspricht, mit einem GAAP-Nettoeinkommen von 103,0 Millionen Dollar und einem EPS von 0,75 Dollar. Das verwässerte EPS nach Non-GAAP betrug 3,04 Dollar, und das angepasste EBITDA erreichte 735,0 Millionen Dollar. Das Unternehmen generierte einen operativen Cashflow von 520,6 Millionen Dollar und einen freien Cashflow nach Non-GAAP von 405,2 Millionen Dollar.
Für 2025 prognostiziert GMED einen eigenständigen Umsatz von 2,66 bis 2,69 Milliarden Dollar mit einem Non-GAAP EPS von 3,40 bis 3,50 Dollar. Nach der Übernahme von Nevro, die für Ende des 2. Quartals 2025 erwartet wird, erhöht sich die Prognose auf einen Umsatz von 2,80 bis 2,90 Milliarden Dollar mit einem Non-GAAP EPS von 3,10 bis 3,40 Dollar.
- Q4 net sales increased 6.6% to $657.3 million
- Full year revenue grew 60.6% to $2.519.4 billion
- Q4 GAAP net income rose 76.3% year-over-year
- Generated $520.6 million in operating cash flow for 2024
- Strong 2025 guidance with projected revenue growth
- Expected EPS decline post-Nevro acquisition (from $3.40-3.50 to $3.10-3.40)
Insights
Globus Medical's Q4 and FY2024 results demonstrate exceptional execution in a transformative year. The
Three key performance indicators stand out: First, the robust operating cash flow of
The 2025 standalone guidance of
The company's focus on enabling technology and procedural solutions positions it well in the high-growth segments of spine surgery. The record number of product launches in 2024 demonstrates R&D productivity and should support continued market share gains. The strong cash generation provides flexibility for continued investment in innovation while maintaining financial discipline.
AUDUBON, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal technology company, today announced its financial results for the fourth quarter and year ended December 31, 2024.
Fourth Quarter 2024:
- Worldwide net sales were
$657.3 million , an increase of6.6% on an as-reported basis and an increase of6.9% on a constant currency basis - GAAP net income for the quarter was
$26.5 million - GAAP diluted earnings per share (“EPS”) was
$0.19 and non-GAAP diluted EPS was$0.84 - Non-GAAP adjusted EBITDA was
$196.9 million , or30.0% of net sales
Full Year 2024:
- Worldwide net sales were
$2,519.4 million , an increase of60.6% on an as-reported basis and an increase of61.1% on a constant currency basis - GAAP net income for the year was
$103.0 million - GAAP diluted EPS was
$0.75 and non-GAAP diluted EPS was$3.04 - Non-GAAP adjusted EBITDA was
$735.0 million , or29.2% of net sales
“I’m proud of our team at Globus Medical, delivering incredible results for 2024. We made significant progress integrating the business and creating a strong foundation for future growth while remaining focused on improving patient outcomes. Our spine sales force is the most dedicated and talented team in the market. Our innovation engine delivered a record amount of new product launches in 2024 and remains unmatched in our industry.” said Dan Scavilla, President and CEO. “The potential for Globus has never been greater, as we continue to redefine spine surgery and address unmet clinical needs with procedural solutions built around enabling technology.”
“Our financial results demonstrate the potential of our combined organization and the growing value creation from the merger”, commented Keith Pfeil, COO-CFO. “Despite the complexities of integration, we delivered record fourth quarter and full year sales, while maintaining our disciplined approach to operational excellence and cost management. Our team executed against the strategic objectives to drive integration success, which has unlocked tremendous value, as demonstrated in our financial results, which include record operating cash flow for the fourth quarter and full year. Looking ahead, we remain well positioned to unlock operational efficiencies, while delivering innovation and market leadership.”
Worldwide net sales for the fourth quarter were
Worldwide net sales for the full year of 2024 were
GAAP net income for the fourth quarter was
Net cash provided by operating activities was
2025 Annual Guidance
On a stand-alone basis, Globus Medical reaffirms its full year 2025 revenue guidance range of
Conference Call Information
Globus Medical will hold a teleconference to discuss its 2024 fourth quarter and full year results with the investment community at 4:30 p.m. Eastern Time today.
Participants may access the conference call live via webcast on the Investors page of Globus Medical’s website at https://www.investors.globusmedical.com/news-events/events-webcasts.
To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The audio archive will be available after the call on the Investor page of the Globus Medical website.
About Globus Medical, Inc.
Based in Audubon, Pennsylvania, Globus Medical, Inc. was founded in 2003 by an experienced team of professionals with a shared vision to create products that enable surgeons to promote healing in patients with musculoskeletal disorders. Additional information can be accessed at www.globusmedical.com.
Non-GAAP Financial Measures
To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), management uses certain non-GAAP financial measures. For example, non-GAAP Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation expense, provision for litigation, merger and acquisition related costs, restructuring related costs, certain foreign currency acquisition-related impacts, and gains and losses from strategic investments, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. As of December 31, 2024, we no longer include acquisition of in-process research and development as an adjustment to non-GAAP Adjusted EBITDA. Our management also uses non-GAAP Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Provision for litigation represents costs incurred for litigation settlements or unfavorable verdicts when the loss is known or considered probable and the amount can be reasonably estimated, or in the case of a favorable settlement, when income is realized. Merger and acquisition related costs represents the change in fair value of business-acquisition-related contingent consideration; costs related to integrating recently acquired businesses, including but not limited to costs to exit or convert contractual obligations, severance, retention bonus, duplicative costs and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. Restructuring related costs include severance, retention bonus, accelerated stock-based compensation expense, and costs associated with consolidating facilities. We also adjusted for certain foreign currency impacts related to the acquisition costs and gains/losses on strategic investments within other assets as we believe these impacts are not a measure of our operating performance.
In addition, for the period ended December 31, 2024 and for other comparative periods, we are presenting non-GAAP net income and non-GAAP Diluted Earnings Per Share, which represent net income and diluted earnings per share excluding the provision for litigation, amortization of intangibles, merger and acquisition related costs, restructuring related costs, certain foreign currency impacts, gains and losses from strategic investments, the impact of dilution attributable to the Convertible Notes, and the tax effects of all of the foregoing adjustments. As of December 31, 2024, we no longer include acquisition of in-process research and development as an adjustment to non-GAAP net income. We also present Non-GAAP gross profit, which excludes the impacts of any inventory acquisition-related costs within cost of goods sold. The tax effect adjustment represents the tax effect of the pre-tax non-GAAP adjustments excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the consolidated effective tax rate on a GAAP basis, applied to the non-GAAP adjustments, unless the underlying item has a materially different tax treatment, in which case the estimated tax rate applicable to the adjustment is used. We believe these non-GAAP measures are also useful indicators of our operating performance, and particularly as additional measures of comparative operating performance from period to period as they remove the effects of the foregoing items, which we believe are not reflective of underlying business trends. Additionally, for the period ended December 31, 2024, and for other comparative periods, we also define the non-GAAP measure of free cash flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Furthermore, the non-GAAP measure of constant currency net sales growth is calculated by translating current year net sales at the same average exchange rates in effect during the applicable prior year period. We believe constant currency net sales growth provides insight to the comparative increase or decrease in period net sales, in dollar and percentage terms, excluding the effects of fluctuations in foreign currency exchange rates..
Non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow and constant currency net sales growth are not calculated in conformity with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow and constant currency net sales growth may differ from that of other companies and therefore may not be comparable.
Safe Harbor Statements
All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with the integration of the NuVasive business and Globus Medical, Inc.’s ability to successfully integrate and achieve anticipated synergies with the NuVasive business, our ability to complete the acquisition of and successfully integrate the Nevro, Inc. business, health epidemics, pandemics and similar outbreaks, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, and other risks. For a discussion of these and other risks, uncertainties and other factors that could affect our results, you should refer to the disclosure contained in our most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, including the sections labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking Statements,” and in our Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission. These documents are available at www.sec.gov. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof.
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands, except per share amounts) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Net sales | $ | 657,293 | $ | 616,534 | $ | 274,498 | $ | 2,519,355 | $ | 1,568,476 | $ | 1,022,843 | |||||||||||
| Cost of Sales and Operating expenses: | |||||||||||||||||||||||
| Cost of Sales (exclusive of amortization of intangibles) | 263,437 | 265,486 | 70,591 | 1,035,479 | 548,174 | 263,725 | |||||||||||||||||
| Research and development | 33,408 | 52,253 | 19,507 | 163,754 | 124,010 | 73,015 | |||||||||||||||||
| Selling, general and administrative | 253,481 | 244,718 | 118,075 | 981,048 | 643,410 | 432,117 | |||||||||||||||||
| Provision for litigation, net | (314 | ) | 250 | — | 314 | 434 | 2,341 | ||||||||||||||||
| Amortization of intangibles | 29,912 | 28,122 | 4,506 | 119,373 | 51,032 | 17,735 | |||||||||||||||||
| Acquisition-related costs | 17,088 | 15,581 | 7,791 | 29,623 | 68,274 | 5,959 | |||||||||||||||||
| Restructuring cost | 6 | — | — | 23,773 | — | — | |||||||||||||||||
| Operating income/(loss) | 60,275 | 10,124 | 54,028 | 165,991 | 133,142 | 227,951 | |||||||||||||||||
| Other income/(expense), net | |||||||||||||||||||||||
| Interest income/(expense), net | 815 | (2,581 | ) | 5,315 | (4,189 | ) | 20,130 | 14,233 | |||||||||||||||
| Foreign currency transaction gain/(loss) | (37,491 | ) | 19,908 | 2,688 | (43,285 | ) | 14,259 | (1,020 | ) | ||||||||||||||
| Other income/(expense) | 1,069 | (2,456 | ) | 85 | 2,205 | (2,138 | ) | 1,855 | |||||||||||||||
| Total other income/(expense), net | (35,607 | ) | 14,872 | 8,088 | (45,269 | ) | 32,251 | 15,068 | |||||||||||||||
| Income/(loss) before income taxes | 24,668 | 24,995 | 62,116 | 120,722 | 165,393 | 243,019 | |||||||||||||||||
| Income tax provision | (1,837 | ) | 9,960 | 12,051 | 17,738 | 42,520 | 52,850 | ||||||||||||||||
| Net income/(loss) | $ | 26,505 | $ | 15,035 | $ | 50,065 | $ | 102,984 | $ | 122,873 | $ | 190,169 | |||||||||||
| Other comprehensive income/(loss), net of tax: | |||||||||||||||||||||||
| Unrealized gain/(loss) on marketable securities | (238 | ) | 8,893 | 4,199 | 1,545 | 13,231 | (14,040 | ) | |||||||||||||||
| Foreign currency translation gain/(loss) | 340 | (18 | ) | 3,397 | 1,786 | 1,207 | (3,818 | ) | |||||||||||||||
| Total other comprehensive income/(loss), net of tax | 102 | 8,875 | 7,596 | 3,331 | 14,438 | (17,858 | ) | ||||||||||||||||
| Comprehensive income/(loss) | $ | 26,607 | $ | 23,910 | $ | 57,661 | $ | 106,315 | $ | 137,311 | $ | 172,311 | |||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.19 | $ | 0.11 | $ | 0.50 | $ | 0.76 | $ | 1.09 | $ | 1.89 | |||||||||||
| Diluted | $ | 0.19 | $ | 0.11 | $ | 0.49 | $ | 0.75 | $ | 1.07 | $ | 1.85 | |||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 136,729 | 137,883 | 99,967 | 135,726 | 113,087 | 100,469 | |||||||||||||||||
| Diluted | 139,711 | 139,021 | 102,209 | 137,863 | 114,630 | 102,643 | |||||||||||||||||
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| December 31, | December 31, | ||||||
| (In thousands, except share and per share values) | 2024 | 2023 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 784,438 | $ | 467,292 | |||
| Short-term marketable securities | 105,619 | 50,497 | |||||
| Accounts receivable, net of allowances of | 557,697 | 503,235 | |||||
| Inventories | 659,233 | 848,135 | |||||
| Prepaid expenses and other current assets | 49,640 | 44,580 | |||||
| Income taxes receivable | 20,633 | 1,635 | |||||
| Total current assets | 2,177,260 | 1,915,374 | |||||
| Property and equipment, net of accumulated depreciation of | 561,909 | 586,932 | |||||
| Operating lease right of use assets | 49,647 | 59,931 | |||||
| Long-term marketable securities | 66,134 | 75,428 | |||||
| Intangible assets, net | 795,117 | 924,603 | |||||
| Goodwill | 1,432,387 | 1,434,540 | |||||
| Other assets | 75,096 | 78,590 | |||||
| Deferred income taxes | 94,200 | 10,685 | |||||
| Total assets | $ | 5,251,750 | $ | 5,086,083 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 75,118 | $ | 56,671 | |||
| Accrued expenses | 260,591 | 240,460 | |||||
| Operating lease liabilities | 10,249 | 11,967 | |||||
| Income taxes payable | 10,725 | 3,845 | |||||
| Senior convertible notes | 443,351 | — | |||||
| Business acquisition liabilities | 33,739 | 61,035 | |||||
| Deferred revenue | 22,140 | 18,369 | |||||
| Total current liabilities | 855,913 | 392,347 | |||||
| Business acquisition liabilities, net of current portion | 89,496 | 78,323 | |||||
| Operating lease liabilities | 83,588 | 91,037 | |||||
| Senior convertible notes | — | 417,400 | |||||
| Deferred income taxes and other tax liabilities | 23,889 | 84,421 | |||||
| Other liabilities | 21,531 | 24,596 | |||||
| Total liabilities | 1,074,417 | 1,088,124 | |||||
| Equity: | |||||||
| Class A common stock; | 115 | 114 | |||||
| Class B common stock; | 22 | 22 | |||||
| Additional paid-in capital | 3,031,244 | 2,870,749 | |||||
| Accumulated other comprehensive income/(loss) | (6,861 | ) | (10,192 | ) | |||
| Retained earnings | 1,152,813 | 1,137,266 | |||||
| Total equity | 4,177,333 | 3,997,959 | |||||
| Total liabilities and equity | $ | 5,251,750 | $ | 5,086,083 | |||
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||||||
| Year Ended | |||||||||||
| December 31, | |||||||||||
| (In thousands) | 2024 | 2023 | 2022 | ||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 102,984 | $ | 122,873 | $ | 190,169 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Acquired in-process research and development | 12,613 | — | 150 | ||||||||
| Depreciation and amortization | 254,024 | 144,733 | 68,252 | ||||||||
| Amortization of premiums on marketable securities | (635 | ) | 793 | 5,389 | |||||||
| Provision for excess and obsolete inventory | 23,359 | 10,959 | 6,400 | ||||||||
| Amortization of inventory fair value step-up | 215,420 | 71,656 | — | ||||||||
| Amortization of 2025 Notes fair value step-up | 26,630 | 8,176 | — | ||||||||
| Stock-based compensation expense | 54,191 | 52,742 | 32,810 | ||||||||
| Allowance for expected credit losses | 16,986 | 3,658 | (1 | ) | |||||||
| Change in fair value of business acquisition liabilities | 26,521 | 17,434 | 5,132 | ||||||||
| Change in deferred income taxes | (125,902 | ) | (57,789 | ) | (22,223 | ) | |||||
| (Gain)/loss on disposal of assets, net | 5,552 | 1,541 | 299 | ||||||||
| Payment of business acquisition-related liabilities | (18,763 | ) | (3,005 | ) | (2,647 | ) | |||||
| Net (gain)/loss from foreign currency adjustment | 25,212 | (13,674 | ) | — | |||||||
| (Increase) decrease in: | |||||||||||
| Accounts receivable | (78,062 | ) | (49,914 | ) | (50,843 | ) | |||||
| Inventories | (29,860 | ) | (70,328 | ) | (61,745 | ) | |||||
| Prepaid expenses and other assets | 1,059 | 1,148 | (10,292 | ) | |||||||
| Increase (decrease) in: | |||||||||||
| Accounts payable | 17,663 | (14,223 | ) | 14,418 | |||||||
| Accrued expenses and other liabilities | 5,023 | 17,127 | 6,087 | ||||||||
| Income taxes payable/receivable | (13,377 | ) | (408 | ) | (2,887 | ) | |||||
| Net cash provided by/(used in) operating activities | 520,638 | 243,499 | 178,468 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of marketable securities | (113,504 | ) | (100,643 | ) | (419,534 | ) | |||||
| Maturities of marketable securities | 58,666 | 240,190 | 312,221 | ||||||||
| Sales of marketable securities | 11,851 | 537,723 | 102,433 | ||||||||
| Purchases of property and equipment | (115,429 | ) | (78,274 | ) | (74,047 | ) | |||||
| Acquisition of businesses, net of cash acquired and purchases of intangible and other assets | (17,635 | ) | (296,028 | ) | (31,435 | ) | |||||
| Net cash provided by/(used in) investing activities | (176,051 | ) | 302,968 | (110,362 | ) | ||||||
| Cash flows from financing activities: | |||||||||||
| Payment of business acquisition-related liabilities | (45,619 | ) | (8,039 | ) | (7,185 | ) | |||||
| Net proceeds from exercise of stock options | 110,439 | 12,397 | 41,716 | ||||||||
| Payments related to tax withholdings for share-based compensation | (6,729 | ) | (10,617 | ) | — | ||||||
| Repurchase of common stock | (85,787 | ) | (225,562 | ) | (144,493 | ) | |||||
| Net cash provided by/(used in) financing activities | (27,696 | ) | (231,821 | ) | (109,962 | ) | |||||
| Effect of foreign exchange rates on cash | 255 | 2,180 | (747 | ) | |||||||
| Net increase/(decrease) in cash and cash equivalents | 317,146 | 316,826 | (42,603 | ) | |||||||
| Cash and cash equivalents at beginning of period | 467,292 | 150,466 | 193,069 | ||||||||
| Cash and cash equivalents at end of period | $ | 784,438 | $ | 467,292 | $ | 150,466 | |||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Income taxes paid, net | $ | 158,508 | $ | 100,593 | $ | 77,823 | |||||
| Non-cash investing and financing activities: | |||||||||||
| Equity issued in conjunction with the NuVasive Merger | $ | — | $ | 2,153,860 | $ | — | |||||
| Accrued purchases of property and equipment | $ | 9,281 | $ | 7,100 | $ | 7,423 | |||||
| Supplemental Financial Information | |||||||||||||||||||||||
| Net Sales by Product Category: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Musculoskeletal Solutions | $ | 610,341 | $ | 583,820 | $ | 244,999 | $ | 2,365,352 | $ | 1,448,260 | $ | 926,703 | |||||||||||
| Enabling Technologies | 46,952 | 32,714 | 29,499 | 154,003 | 120,216 | 96,140 | |||||||||||||||||
| Total net sales | $ | 657,293 | $ | 616,534 | $ | 274,498 | $ | 2,519,355 | $ | 1,568,476 | $ | 1,022,843 | |||||||||||
| Liquidity and Capital Resources: | |||||||
| December 31, | December 31, | ||||||
| (In thousands) | 2024 | 2023 | |||||
| Cash and cash equivalents | $ | 784,438 | $ | 467,292 | |||
| Short-term marketable securities | 105,619 | 50,497 | |||||
| Long-term marketable securities | 66,134 | 75,428 | |||||
| Total cash, cash equivalents and marketable securities | $ | 956,191 | $ | 593,217 | |||
The following tables reconcile GAAP to Non-GAAP financial measures.
As of September 30, 2024, we no longer include Acquisition of in-process research and development as an adjustment to the non-GAAP financial measures. As previously disclosed, the Company incurred
| Non-GAAP Adjusted EBITDA Reconciliation Table: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands, except percentages) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Net income/(loss) | $ | 26,505 | $ | 15,035 | $ | 50,065 | $ | 102,984 | $ | 122,873 | $ | 190,169 | |||||||||||
| Interest (income)/expense, net | (815 | ) | 2,581 | (5,315 | ) | 4,189 | (20,130 | ) | (14,233 | ) | |||||||||||||
| Provision for income taxes | (1,838 | ) | 9,960 | 12,051 | 17,738 | 42,520 | 52,850 | ||||||||||||||||
| Depreciation and amortization | 68,228 | 71,162 | 16,911 | 254,024 | 144,733 | 68,252 | |||||||||||||||||
| EBITDA | 92,080 | 98,737 | 73,712 | 378,935 | 289,996 | 297,038 | |||||||||||||||||
| Stock-based compensation expense | 11,756 | 11,577 | 8,507 | 48,286 | 38,995 | 32,810 | |||||||||||||||||
| Provision for litigation, net | (314 | ) | 250 | — | 314 | 434 | 2,341 | ||||||||||||||||
| Merger and acquisition-related costs(1) | 64,561 | 76,431 | 7,791 | 249,721 | 148,498 | 6,854 | |||||||||||||||||
| Acquisition of in-process research and development | — | — | 150 | — | — | 150 | |||||||||||||||||
| Net (gain) loss from strategic investments | 1,098 | (460 | ) | — | 831 | (192 | ) | — | |||||||||||||||
| Non-cash acquisition-related foreign currency impacts | 27,566 | (16,572 | ) | — | 25,212 | (13,674 | ) | — | |||||||||||||||
| Restructuring costs | 132 | — | — | 31,674 | — | — | |||||||||||||||||
| Adjusted EBITDA | $ | 196,879 | $ | 169,963 | $ | 90,160 | $ | 734,973 | $ | 464,057 | $ | 339,193 | |||||||||||
| Net income/(loss) as a percentage of net sales | 4.0 | % | 2.4 | % | 18.2 | % | 4.1 | % | 7.8 | % | 18.6 | % | |||||||||||
| Adjusted EBITDA as a percentage of net sales | 30.0 | % | 27.6 | % | 32.8 | % | 29.2 | % | 29.6 | % | 33.2 | % | |||||||||||
| (1) Merger and acquisition-related costs represent certain costs associated with acquisitions. These costs, presented on a before-tax effect basis, include the following: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (In thousands) | |||||||||||||||
| Amortization of inventory fair value step up | $ | 47,323 | $ | 52,591 | $ | 215,420 | $ | 71,656 | |||||||
| Change in fair value of business acquisition liabilities | 16,966 | 12,684 | 25,575 | 17,259 | |||||||||||
| Employee-related costs | — | 8,545 | 5,031 | 42,857 | |||||||||||
| Other acquisition-related costs(a) | 272 | 2,612 | 3,695 | 16,725 | |||||||||||
| Merger and acquisition-related costs | $ | 64,561 | $ | 76,432 | $ | 249,721 | $ | 148,498 | |||||||
| (a) Primarily comprised of legal fees, investment banking and consulting fees. | |||||||||||||||
| Non-GAAP Net Income Reconciliation Table: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Net income/(loss) | $ | 26,505 | $ | 15,034 | $ | 50,065 | $ | 102,984 | $ | 122,873 | $ | 190,169 | |||||||||||
| Provision for litigation, net | (314 | ) | 250 | — | 314 | 434 | 2,341 | ||||||||||||||||
| Amortization of intangibles | 29,912 | 28,123 | 4,506 | 119,373 | 51,032 | 17,735 | |||||||||||||||||
| Merger and acquisition -related costs(1) | 64,561 | 76,431 | 7,791 | 249,721 | 148,498 | 6,854 | |||||||||||||||||
| Acquisition of in-process research and development | — | — | 150 | — | — | 150 | |||||||||||||||||
| Non-cash acquisition-related foreign currency impacts | 27,566 | (16,572 | ) | — | 25,212 | (13,674 | ) | — | |||||||||||||||
| Restructuring Costs | 132 | — | 31,674 | — | |||||||||||||||||||
| Net gain/(loss) on strategic investments | 1,098 | (460 | ) | — | 831 | (192 | ) | — | |||||||||||||||
| Tax effect of adjusting items | (32,042 | ) | (19,310 | ) | (2,415 | ) | (110,496 | ) | (42,570 | ) | (5,695 | ) | |||||||||||
| Non-GAAP net income/(loss) | $ | 117,418 | $ | 83,496 | $ | 60,097 | $ | 419,613 | $ | 266,401 | $ | 211,554 | |||||||||||
| (1) see footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs. | |||||||||||||||||||||||
| Non-GAAP Gross Profit Reconciliation Table: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Net Sales | $ | 657,293 | $ | 616,534 | $ | 274,498 | $ | 2,519,355 | $ | 1,568,476 | $ | 1,022,843 | |||||||||||
| Cost of Sales (exclusive of amortization of intangibles) | 263,437 | 265,486 | — | 70,591 | 1,035,479 | 548,174 | 263,725 | ||||||||||||||||
| Amortization of Intangibles | 17,585 | 9,526 | 4,506 | 84,079 | 15,408 | 17,735 | |||||||||||||||||
| Gross Profit | 376,271 | 341,522 | 188,225 | 1,399,797 | 1,004,893 | 718,879 | |||||||||||||||||
| Amortization of inventory fair value step up | 47,323 | 52,591 | — | 215,420 | 71,656 | — | |||||||||||||||||
| Amortization of Intangibles | 17,585 | 9,526 | 4,506 | 84,079 | 15,408 | 17,735 | |||||||||||||||||
| Adjusted Gross Profit | $ | 441,179 | $ | 403,639 | $ | 192,731 | $ | 1,699,296 | $ | 1,091,957 | $ | 736,614 | |||||||||||
| Gross Profit % of Net Sales | 57.2 | % | 55.4 | % | 68.6 | % | 55.6 | % | 64.1 | % | 70.3 | % | |||||||||||
| Adjusted Gross Profit % of Net Sales | 67.1 | % | 65.5 | % | 70.2 | % | 67.4 | % | 69.6 | % | 72.0 | % | |||||||||||
| Non-GAAP Diluted Earnings Per Share Reconciliation Table: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Diluted earnings per share, as reported | $ | 0.19 | $ | 0.11 | $ | 0.49 | $ | 0.75 | $ | 1.07 | $ | 1.85 | |||||||||||
| Dilution attributable to Convertible Notes | — | — | — | — | — | — | |||||||||||||||||
| Provision for litigation, net | (0.00 | ) | — | — | — | — | 0.02 | ||||||||||||||||
| Amortization of intangibles | 0.21 | 0.20 | 0.04 | 0.87 | 0.45 | 0.17 | |||||||||||||||||
| Merger and acquisition -related costs(1) | 0.46 | 0.55 | 0.08 | 1.81 | 1.30 | 0.07 | |||||||||||||||||
| Acquisition of in-process research and development | — | — | — | — | — | — | |||||||||||||||||
| Net (gain) loss from strategic investments | 0.01 | — | — | 0.01 | (0.00 | ) | — | ||||||||||||||||
| Non-cash acquisition-related foreign currency impacts | 0.20 | (0.12 | ) | — | 0.18 | (0.12 | ) | — | |||||||||||||||
| Tax reform impact | — | — | — | — | — | — | |||||||||||||||||
| Restructuring costs | 0.00 | — | — | 0.23 | — | — | |||||||||||||||||
| Tax effect of adjusting items | (0.23 | ) | (0.14 | ) | (0.02 | ) | (0.80 | ) | (0.37 | ) | (0.06 | ) | |||||||||||
| Non-GAAP diluted earnings per share | $ | 0.84 | $ | 0.60 | $ | 0.59 | $ | 3.04 | $ | 2.32 | $ | 2.06 | |||||||||||
| (1) see footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs. | |||||||||||||||||||||||
| * amounts may not add due to rounding. | |||||||||||||||||||||||
| Non-GAAP Free Cash Flow Reconciliation Table: | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |||||||||||||||||
| Net cash provided by operating activities | $ | 210,338 | $ | 104,674 | $ | 63,975 | $ | 520,638 | $ | 243,499 | $ | 178,468 | |||||||||||
| Purchases of property and equipment | (17,111 | ) | (22,881 | ) | (18,340 | ) | (115,429 | ) | (78,274 | ) | (74,047 | ) | |||||||||||
| Free cash flow | $ | 193,227 | $ | 81,793 | $ | 45,635 | $ | 405,209 | $ | 165,225 | $ | 104,421 | |||||||||||
| Non-GAAP Net Sales on a Constant Currency Basis Comparative Table: | |||||||||||||||||||
| Three Months Ended | Reported | Currency Impact on | Constant Currency | ||||||||||||||||
| December 31, | Net Sales | Current | Net Sales | ||||||||||||||||
| (In thousands, except percentages) | 2024 | 2023 | Growth | Period Net Sales | Growth | ||||||||||||||
| United States | $ | 521,892 | $ | 490,841 | 6.3 | % | $ | — | 6.3 | % | |||||||||
| International | 135,401 | 125,693 | 7.7 | % | (1,490 | ) | 8.9 | % | |||||||||||
| Total net sales | $ | 657,293 | $ | 616,534 | 6.6 | % | $ | (1,490 | ) | 6.9 | % | ||||||||
| Year Ended | Reported | Currency Impact on | Constant Currency | ||||||||||||||||
| December 31, | Net Sales | Current | Net Sales | ||||||||||||||||
| (In thousands, except percentages) | 2024 | 2023 | Growth | Period Net Sales | Growth | ||||||||||||||
| United States | $ | 2,000,067 | $ | 1,279,765 | 56.3 | % | $ | — | 56.3 | % | |||||||||
| International | 519,288 | 288,711 | 79.9 | % | (8,090 | ) | 82.7 | % | |||||||||||
| Total net sales | $ | 2,519,355 | $ | 1,568,476 | 60.6 | % | $ | (8,090 | ) | 61.1 | % | ||||||||
Contact:
Brian Kearns
Senior Vice President, Business Development and Investor Relations
Phone: (610) 930-1800
Email: investors@globusmedical.com
www.globusmedical.com
FAQ
What was Globus Medical's (GMED) revenue growth in Q4 2024?
How much did GMED's earnings per share (EPS) grow in Q4 2024?
What is GMED's revenue guidance for 2025?
How much operating cash flow did GMED generate in 2024?
What was GMED's international sales growth in 2024?
