Globus Medical Reports Preliminary Record Fourth Quarter and Full Year Sales Results

Rhea-AI Summary

Globus Medical (NYSE: GMED) reported preliminary Q4 2024 sales of $657.0 million, up 6.6% year-over-year, and full-year 2024 sales of $2.52 billion, representing a 60.6% increase from 2023. The company, following its NuVasive merger, achieved strong sales growth, record new product launches, and highest Enabling Technology placements while accelerating merger synergies.

Looking ahead, GMED provided 2025 guidance with revenue projected between $2.66 billion to $2.69 billion and non-GAAP EPS guidance of $3.40 to $3.50. The company plans to announce detailed Q4 and full-year 2024 results on February 20, 2025.

Positive

• Q4 2024 sales increased 6.6% YoY to $657.0 million
• Full-year 2024 sales grew 60.6% to $2.52 billion
• Record number of new product launches achieved
• Highest Enabling Technology placements to date
• Accelerated merger synergies realization

Negative

• None.

Insights

Financial Analyst

The preliminary Q4 and FY2024 results showcase impressive growth metrics with Q4 revenue reaching $657 million (6.6% YoY growth) and full-year sales hitting $2.52 billion (60.6% YoY growth). The substantial yearly growth primarily stems from the NuVasive merger integration.

The 2025 guidance of $2.66-2.69 billion in revenue implies a 5.6-6.7% growth rate, while the EPS guidance of $3.40-3.50 suggests healthy profit margins. The accelerated merger synergies and strong Enabling Technology placements indicate successful operational execution and market penetration.

Breaking it down for everyday investors: Imagine combining two powerful companies - that's what happened with Globus and NuVasive. They're now selling more high-tech spine surgery tools than ever before and they're saving money by combining their operations. Think of it like two successful restaurants merging - they can now serve more customers, share recipes and cut costs on ingredients.

Medical Technology Analyst

The record number of new product launches and highest Enabling Technology placements demonstrate Globus Medical's continued innovation leadership in the spine industry. The strong patent portfolio provides a competitive moat, while the merged sales force creates an unparalleled market reach in the musculoskeletal space.

The focus on broader musculoskeletal market expansion beyond core spine offerings signals strategic diversification. For the average person: Globus isn't just making better tools for spine surgery - they're expanding into other bone and joint treatments. It's like a trusted car manufacturer who made great sedans now successfully branching into SUVs and trucks, using their expertise to capture more of the market.

Market Research Analyst

The post-merger performance exceeds typical industry integration metrics, with sustained growth in a competitive market landscape. The combination of enhanced sales capabilities, expanded product portfolio and accelerated synergy realization positions GMED favorably against key competitors like Medtronic and Stryker in the $50+ billion global spine market.

Think of this like a sports team that not only acquired a star player but is actually performing better than expected because everyone's working together smoothly. The team (Globus) is scoring more points (sales), developing better plays (new products) and saving money on operations (synergies) - all while planning to expand into new leagues (broader musculoskeletal market) in 2025.

AUDUBON, Pa., Jan. 08, 2025 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced preliminary unaudited sales results for the fourth quarter and full year ending December 31, 2024. The company anticipates fourth quarter 2024 sales of approximately $657.0 million, an increase of 6.6 percent over the fourth quarter 2023 on an as-reported basis. Full year 2024 sales are expected to be approximately $2.52 billion, an increase of 60.6 percent over the prior year on an as-reported basis.

“2024 was an exceptional year of execution and achievement for Globus Medical. With the NuVasive merger, we believe we created the strongest sales force and best product offering in the spine industry while maintaining our lead as the most innovative company backed up by a strong patent portfolio. During our first full year post-merger, we had strong sales growth, a record number of new product launches and the highest Enabling Technology placements to date, while accelerating our merger synergies to drive value for our shareholders,” said Dan Scavilla, president and CEO. “We remain focused on delivering product innovation, superior customer service, and operational excellence as we continue to advance patient care. 2025 is expected to be a very exciting year for product launches throughout our portfolio as we position our company for sustained growth in the broader musculoskeletal market. Globus Medical remains well positioned to achieve our vision of becoming the preeminent musculoskeletal technology company in the world by developing products that promote healing in patients."

“Our fourth quarter results demonstrated sustained growth and execution in our first full year post-merger,” commented Keith Pfeil, COO-CFO. “As we begin 2025, we seek to build upon the successes of the past year, further solidifying our foundation which will drive accelerated growth across our portfolio, as we move ahead in a manner that advances patient care while creating value for our shareholders.”

The Company established its full year 2025 revenue guidance range of $2.66 billion to $2.69 billion and fully diluted non-GAAP earnings per share range between $3.40 to $3.50.

These preliminary results are unaudited and are based on management’s initial analysis of operations for the periods ended December 31, 2024, and are therefore subject to change. The company expects to announce its fourth quarter and full year 2024 financial results on February 20, 2025, after the market close.

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. 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 acquisition-related 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. 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.

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.

Non-GAAP net income and non-GAAP diluted earnings per share 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 net income and non-GAAP diluted earnings per share may differ from that of other companies and therefore may not be comparable.

We are unable to present a quantitative reconciliation of our expected fully diluted GAAP earnings per share to non-GAAP earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of provision for litigation, amortization of intangibles, merger and acquisition related costs, restructuring related costs, certain foreign currency acquisition-related 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. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Income.

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 our ability to successfully integrate and achieve anticipated synergies with the integration, 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.

Contact

Brian Kearns
Senior Vice President, Business Development and Investor Relations
Phone: (610) 930-1800
Email: investors@globusmedical.com
www.globusmedical.com

FAQ

What were Globus Medical's (GMED) Q4 2024 sales results?

Globus Medical reported preliminary Q4 2024 sales of $657.0 million, representing a 6.6% increase compared to Q4 2023.

What is GMED's revenue guidance for 2025?

Globus Medical provided 2025 revenue guidance of $2.66 billion to $2.69 billion.

What is Globus Medical's (GMED) earnings guidance for 2025?

GMED provided non-GAAP earnings per share guidance of $3.40 to $3.50 for 2025.

When will GMED release its full Q4 and 2024 financial results?

Globus Medical will announce its Q4 and full-year 2024 financial results on February 20, 2025, after market close.

How much did Globus Medical's (GMED) full-year 2024 sales grow?

GMED's full-year 2024 sales grew 60.6% to approximately $2.52 billion compared to 2023.