Financial Data and Key Metrics Changes - The company reported a revenue growth of 22% year-over-year, reaching $169 million, with surgical revenue growing by 24% to $152 million [4][9] - Adjusted EBITDA for the first quarter was $11 million, marking a 6% margin and an improvement of over 800 basis points compared to the previous year [13][14] - Non-GAAP gross margin was 70%, down 50 basis points year-over-year but up 70 basis points sequentially [11] Business Line Data and Key Metrics Changes - Surgical revenue grew by 24% year-over-year, driven by a 17% increase in procedural volume and an 18% increase in the number of surgeons utilizing ATEC procedures [6][10] - EOS revenue increased by 8% year-over-year, with a record order volume leading to a 28% year-over-year increase in the order book [11][12] Market Data and Key Metrics Changes - Established territories saw a revenue growth of 23%, indicating strong surgeon and territory penetration [6] - Same store sales from sales agents in territories for over a year grew by 23% year-over-year, reflecting significant growth in established markets [12][84] Company Strategy and Development Direction - The company is focused on creating clinical distinction through innovative procedural solutions that improve patient outcomes [24][25] - ATEC aims to expand its sales force and enhance operational efficiency to drive growth and profitability [6][23] - The strategy includes leveraging informatics to reduce surgical variables and improve predictability in spine surgery [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity for the full year 2025, with expectations of continued strong revenue growth [19][17] - The company anticipates a revenue outlook of approximately $734 million for 2025, with surgical revenue growth of 21% [19][21] - Management noted that the spine market remains resilient despite economic uncertainties, with high demand for their products [106][107] Other Important Information - The company successfully refinanced its 2026 convertible note, extending maturity and maintaining a low coupon rate [17] - The first quarter cash burn was at the low end of the expected range, indicating improved cash management [15][16] Q&A Session Summary Question: Market size and competitive dynamics for the new Corpectomy system - Management indicated that they are the only company offering this procedure in the prone position, which provides unique advantages [41][42] Question: Tariff exposure in 2025 - The company expects low single-digit million impacts on cost of goods sold due to tariffs, primarily affecting EOS equipment [54][55] Question: Update on robot launch plan - The robot is in the alpha phase, with plans for an end-of-year launch, and integration with navigation systems is underway [60][61] Question: Cash outlay trends - The company achieved a cash use of $15 million in Q1, with expectations for positive cash flow in subsequent quarters [65][66] Question: Salesforce productivity and opportunities - Same store sales grew by 23%, indicating strong performance from established sales agents [83][84] Question: EOS placements and portfolio pull-through - Most EOS placements are in new accounts, with a focus on expanding into complex procedures [88][90] Question: Overall volumes and ASC growth - The market is healthy, with surgical volumes growing significantly, and ASCs are expected to evolve over time [93][94] Question: International market expansion - The company remains bullish on international markets, particularly Australia and New Zealand, while maintaining a focused approach [110]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $177 million, representing a 28% increase year-over-year and a 17% sequential increase [13] - Full year 2024 total revenue reached $612 million, up 27% compared to the prior year [24] - Adjusted EBITDA for Q4 was $21 million, equating to a 12% margin, with over 1,000 basis points of improvement year-over-year [20] - Non-GAAP gross margin was 70%, flat compared to the previous year [16] - Free cash flow generated in Q4 was $9 million, marking the first cash flow since the transformation [23] Business Line Data and Key Metrics Changes - Surgical revenue for Q4 was $157 million, up 28% year-over-year, with procedural volume growth of 19% and average revenue per procedure growth of 7% [13][14] - EOS revenue for Q4 was $20 million, up 32% year-over-year, driven by robust demand and record order volume [15] - Surgical revenue for the full year was $545 million, a 29% increase compared to 2023 [24] Market Data and Key Metrics Changes - The company holds an 8% market share in the spine market, indicating significant growth potential [6] - Surgeon adoption grew by 19% on a five-year CAGR, with procedural volume growth at 25% [7] Company Strategy and Development Direction - The company aims to revolutionize spine surgery by improving procedural durability and predictability through informatics [40][41] - The focus is on leveraging unique technologies and clinical distinctions to capture market share in a disrupted environment [56][58] - Plans for 2025 include a revenue growth target of approximately $732 million, with surgical revenue growth of 21% [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on financial commitments and translate revenue growth into profit and cash flow [21][34] - The company is optimistic about the growth potential in Japan, having conducted its first surgeries there [11][125] - Management highlighted the importance of operational discipline and efficiency improvements in driving profitability [19][78] Other Important Information - The company is positioned as the largest pure-play spine company, focusing exclusively on spine-related products and technologies [45] - The introduction of EOS Insight software is expected to enhance growth and adoption rates [102][106] Q&A Session Summary Question: Assurance on spending in 2025 amidst industry disruption - Management indicated that previous investments have been made and there are no plans for outsized expenses that could undermine financial goals [50] Question: Potential benefits from a competitor's sale of its spinal implants business - Management sees disruption as an opportunity and believes their informatics platform positions them favorably to attract talent from competitors [56][58] Question: International plans for 2025, particularly in Japan - Management emphasized a disciplined approach to entering the Japanese market, focusing on long-term growth rather than immediate gains [62] Question: Growth potential of PTP and LTP offerings - Management believes they are in the early stages of growth for PTP and LTP, with significant market opportunities ahead [70][72] Question: Efficiencies targeted in SG&A - Management discussed deliberate organizational reductions and improved operational efficiency, which are expected to continue benefiting the bottom line in 2025 [76][78] Question: Strategy for share capture and regional field team upgrades - Management noted ongoing improvements in sales force effectiveness and the need for further expansion in underrepresented geographies [83][86] Question: Competitive positioning with upcoming robotic technology - Management views robotics as part of a broader solution to surgical challenges, emphasizing the importance of systemic variables in surgical outcomes [91][92] Question: Opportunities in pediatric surgery - Management acknowledged being underpenetrated in pediatric surgery but sees potential for growth leveraging existing EOS technology [100][118] Question: Growth expectations for EOS - Management anticipates continued growth for EOS, with expectations for increased adoption and monetization through implant pull-through [102][106]