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• Full Year Revenue: $2.519 billion, a 61% increase versus the prior year.

• Q4 Revenue: $657 million, a 7% increase versus prior year.

• Non-GAAP EPS (Full Year): $3.04, a 31% increase despite a 20% increase in diluted shares.

• Non-GAAP EPS (Q4): $0.84, a 40% increase versus prior year.

• Free Cash Flow (Full Year): $405 million, a 145% increase versus prior year.

• Free Cash Flow (Q4): $193 million, a 136% increase versus Q4 last year.

• Adjusted EBITDA (Full Year): 29.2%.

• Adjusted EBITDA (Q4): 30%.

• Enabling Technology Sales (Q4): $47 million, a 44% increase versus prior year.

• U.S. Revenue (Q4): $521.9 million, a 6.3% increase versus prior year.

• International Revenue (Q4): $135.4 million, a 7.7% increase as reported.

• Gross Profit (Q4): 57.2% GAAP, 67.1% adjusted.

• R&D Expenses (Full Year): $163.8 million, 6.5% of sales.

• SG&A Expenses (Full Year): $981 million, 38.9% of sales.

• Cash and Equivalents (Year-End): $956.2 million.

• 2025 Revenue Guidance: $2.66 billion to $2.69 billion.

• 2025 Non-GAAP EPS Guidance: $3.40 to $3.50.

• Warning! GuruFocus has detected 7 Warning Signs with GMED.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Globus Medical Inc (NYSE:GMED) achieved record sales in 2024 with revenue reaching $2.519 billion, marking a 61% increase compared to the previous year.

• The company reported a significant increase in non-GAAP EPS, reaching $3.04, which is a 31% rise despite a 20% increase in diluted shares.

• Free cash flow reached an all-time high of $405 million, a 145% increase from the prior year, enabling the company to return to a debt-free status by Q1 2025.

• Globus Medical Inc (NYSE:GMED) launched 18 new products in 2024, showcasing its commitment to innovation and market leadership.

• The company reported strong growth in its enabling technology sales, with a 44% increase in Q4 and a 47% growth in unit placements compared to the prior year.

Negative Points

• The company faced a temporary supply chain disruption in its trauma and NSO business, which is expected to be resolved in Q1 2025.

• There was a $0.10 headwind to non-GAAP EPS and a 0.72% unfavorable impact to adjusted EBITDA due to foreign currency loss.

• Gross profit for the full year 2024 declined to 55.6% from 64.1% in the prior year, primarily due to higher product costs and inventory step-up amortization.

• The acquisition of Nevro Corporation, while expanding market reach, is subject to shareholder and regulatory approval, introducing potential uncertainty.

• The company anticipates a modest improvement in gross margin for 2025, with significant expansion expected only in 2026 as in-sourcing efforts take shape.