Alphatec (US:ATEC)2021-03-05 05:22Financial Data and Key Metrics Changes - Average revenue growth over the past 8 quarters has been 30% [5] - U.S. revenue growth year-over-year in Q4 was 38% [7] - Year-over-year growth in revenue per surgeon was 15% [7] - Gross margins are running in the high 70% range on a non-GAAP basis, and in the low 70% on a GAAP basis [19] - The company expects $176 million in U.S. revenue for 2021, representing 25% growth [23] Business Line Data and Key Metrics Changes - 75% of revenue is coming from new products [7] - Average revenue per case increased by 13%, marking the ninth consecutive double-digit year-over-year growth [7][14] - The average product categories sold per case increased to 1.9 [14] Market Data and Key Metrics Changes - The company is experiencing significant growth in the U.S. market, with a 47% revenue growth from its strategic distribution group [17] - The international supply agreement for legacy products is winding down and will expire in mid-2021 [18] Company Strategy and Development Direction - The company aims to revolutionize spine surgery through innovative products and clinical distinction [5][25] - The acquisition of EOS is expected to enhance cross-selling opportunities and expand the product portfolio [24] - The company is focused on increasing clinical sophistication and expanding its sales force capabilities [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery from COVID-19 impacts and the potential for continued growth [18][49] - The company is focused on maintaining a strong balance sheet and investing in product development and sales channels [21][20] - Management believes there is significant runway for growth, with a focus on understanding the requirements of the surgical environment [64] Other Important Information - The company has secured $250 million in new capital to fund continued investments and acquisitions [22] - The company is committed to maintaining high levels of R&D investment as a percentage of revenue [20] Q&A Session All Questions and Answers Question: Assessment of overall journey and milestones for 2021 - Management believes they are still early in their journey and emphasizes the importance of informatics in surgery [28][30] Question: Distinction between their approach and robotic surgery - Management prioritizes patient positioning and neurophysiology over robotic solutions, emphasizing the importance of understanding procedural requirements [32] Question: Evolution of the SafeOp platform - Management sees significant opportunities for SafeOp technology in various surgical applications and plans to continue its development [34][35] Question: Metrics on PTP rollout and surgeon adoption - The rollout has been well-received, particularly among surgeons experienced in lateral surgery, and management is optimistic about expanding adoption [58] Question: Growth drivers for 2021 - Management indicates that growth drivers remain similar to 2020, with a focus on expanding product categories and geographic reach [60][62] Question: Sustainable growth rate for 2022 and beyond - Management believes there is significant runway for growth and is focused on maintaining a steady course without overextending [64] Question: Impact of COVID-19 on business - Management acknowledges some lumpiness due to COVID-19 but feels confident about recovery and growth moving forward [66]