In This Article:
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Total Revenue (Q4 2024): $177 million, up 28% year-over-year and 17% sequentially.
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Surgical Revenue (Q4 2024): $157 million, up 28% year-over-year.
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EOS Revenue (Q4 2024): $20 million, up 32% year-over-year.
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Non-GAAP Gross Margin (Q4 2024): 70%, flat year-over-year.
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Non-GAAP R&D (Q4 2024): $13 million, approximately 8% of sales.
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Non-GAAP SG&A (Q4 2024): $105 million, approximately 60% of sales.
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Adjusted EBITDA (Q4 2024): $21 million, 12% margin, over 1,000 basis points improvement year-over-year.
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Free Cash Flow (Q4 2024): $9 million.
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Cash (End of Q4 2024): $139 million.
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Debt (End of Q4 2024): $590 million at face value.
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Total Revenue (Full Year 2024): $612 million, up 27% year-over-year.
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Surgical Revenue (Full Year 2024): $545 million, up 29% year-over-year.
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EOS Revenue (Full Year 2024): $67 million, up 13% year-over-year.
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Non-GAAP Gross Margin (Full Year 2024): 70%, up 40 basis points year-over-year.
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Adjusted EBITDA (Full Year 2024): $31 million, approximately 5% of sales, $40 million improvement year-over-year.
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Cash Use (Full Year 2024): $128 million, $31 million improvement compared to 2023.
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2025 Revenue Outlook: Approximately $732 million, 20% growth expected.
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2025 Adjusted EBITDA Outlook: $75 million.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alphatec Holdings Inc (NASDAQ:ATEC) reported a 28% total revenue growth in Q4 2024, significantly outperforming the market.
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The company achieved a positive cash flow of $9 million for the first time since its transformation.
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Surgeon adoption and procedural volume have shown strong growth, with a 19% increase in surgeon adoption and a 25% increase in procedural volume over a five-year CAGR.
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The company launched the EOS Insight software and reported a record EOS order book, indicating strong demand and future growth potential.
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Alphatec Holdings Inc (NASDAQ:ATEC) is expanding its international presence, having completed its first surgeries in Japan, the second largest market in the world.
Negative Points
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Despite strong revenue growth, the company still faces significant debt, with $590 million in debt at face value.
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Non-GAAP gross margin remained flat at 70% compared to the previous year, indicating challenges in improving profitability margins.
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The company is still in the early stages of penetrating the lateral surgery market, with only a 15% market share in a $1 billion market.
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Alphatec Holdings Inc (NASDAQ:ATEC) is underpenetrated in the pediatric surgery market, despite having foundational tools like EOS in pediatric hospitals.
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The company faces challenges in expanding its influence in academic centers and certain geographies, indicating room for growth but also highlighting current limitations.