On May 7, 2024, Alphatec Holdings Inc (ATEC, Financial), a pioneer in spine surgery innovation, disclosed its financial outcomes for the first quarter ended March 31, 2024, through its 8-K filing. The company reported a significant revenue increase and updated its financial guidance for the full year, reflecting a positive trajectory in its operations.
Company Overview
ATEC is at the forefront of the medical technology industry, specializing in the development and advancement of surgical treatments for spinal disorders. The company's innovative product portfolio includes solutions for Posterior Cervical Fusion, Anterior Cervical Discectomy and Fusion, and other advanced surgical techniques aimed at improving patient outcomes in spine surgery.
Financial Performance Insights
For Q1 2024, ATEC reported a total revenue of $138 million, marking a 27% increase year-over-year and surpassing the estimated $134.04 million. This growth was driven notably by a 30% increase in surgical revenue, supported by a 23% rise in surgical volume and a 6% increase in average revenue per procedure. Despite these gains, the company posted a GAAP net loss of $48 million, slightly wider than the anticipated $44.49 million loss.
The adjusted EBITDA for the quarter stood at negative $3 million, with an adjusted EBITDA margin of -2%. However, the company demonstrated operational efficiency improvements, as evidenced by a 450 basis point expansion in the adjusted EBITDA margin. The ending cash balance was robust at $144 million, providing the company with a solid financial footing to support ongoing and future strategic initiatives.
Strategic Developments and Market Expansion
During the quarter, ATEC hosted 150 surgeon training engagements, which contributed to a 21% growth in surgeon adoption. The company also continued to expand its footprint across major U.S. markets, achieving a 28% growth in established territories. Approximately $60 million was invested in revenue-generating assets to capitalize on market opportunities, underscoring ATEC's commitment to growth through strategic asset deployment.
Updated Financial Outlook
Encouraged by the strong first-quarter performance, ATEC has raised its full-year 2024 revenue guidance to $601 million, up from the previous forecast of $595 million. The company also adjusted its full-year non-GAAP adjusted EBITDA expectation to $23 million from an earlier estimate of $22 million. This revised outlook reflects the company's confidence in its continued growth trajectory and operational efficiency.
Executive Commentary
"The time to be spine’s most innovative pure play could not be better," stated Pat Miles, Chairman and Chief Executive Officer of ATEC. "By applying unrivaled spine knowhow to meaningfully advance spine care with innovation, we have a clear line of sight to $1 billion in revenue and beyond. The purposeful foundation that we have established gives us great confidence to deliver profitable and self-funded future growth."
Conclusion
Alphatec Holdings Inc's first-quarter results demonstrate a robust start to 2024, with significant revenue growth and strategic expansions enhancing its market position. The company's raised guidance and ongoing initiatives to increase surgeon engagement and market penetration are poised to support sustained growth and shareholder value in the evolving medical technology landscape.
For further details on ATEC’s financial performance and strategic initiatives, interested parties are encouraged to view the full earnings webcast available through the Investor Relations section of ATEC’s corporate website.
Explore the complete 8-K earnings release (here) from Alphatec Holdings Inc for further details.
