On July 31, 2024, Alphatec Holdings Inc (ATEC, Financial) released its 8-K filing for the second quarter of 2024, showcasing significant growth and an optimistic outlook for the remainder of the year. Alphatec Holdings Inc is a medical technology company focused on designing, developing, and advancing products for the surgical treatment of spinal disorders.
Q2 2024 Financial Performance
Alphatec Holdings Inc reported total revenue of $146 million for the quarter ended June 30, 2024, surpassing the analyst estimate of $144.49 million. This represents a 25% increase compared to the same period last year. The company also reported a GAAP gross margin of 71% and a non-GAAP gross margin of 71%.
Despite the impressive revenue growth, Alphatec Holdings Inc reported a GAAP net loss of $41 million. However, the company achieved an adjusted EBITDA of $5.6 million, with an adjusted EBITDA margin of 4%. The ending cash balance stood at $100 million, indicating a strong liquidity position.
Key Metrics and Achievements
| Metric | Value |
|---|---|
| Total Revenue | $146 million |
| GAAP Gross Margin | 71% |
| Non-GAAP Gross Margin | 71% |
| GAAP Operating Expenses | $138 million |
| Non-GAAP Operating Expenses | $114 million |
| GAAP Net Loss | ($41) million |
| Adjusted EBITDA | $5.6 million |
| Adjusted EBITDA Margin | 4% |
| Ending Cash Balance | $100 million |
Corporate Highlights and Strategic Initiatives
Alphatec Holdings Inc launched EOS InsightTM, integrating EOS imaging, automation, and AI into spine operating rooms. The company also expanded its U.S. footprint, reflected in a record 244 surgeon training engagements and a 20% growth in new surgeon adoption. Over $50 million of revenue-generating assets were deployed to capitalize on new surgeon adoption and market disruption.
“In the second quarter, ATEC’s procedural thesis perpetuated best-in-class top line growth and fueled the accomplishment of several milestones,” said Pat Miles, Chairman and Chief Executive Officer.
Financial Outlook for Full-Year 2024
For the fiscal year ending December 31, 2024, Alphatec Holdings Inc has raised its revenue guidance to $602 million, up from the previous expectation of $601 million. This includes surgical revenue of $537 million and EOS revenue of $65 million. The company also expects non-GAAP adjusted EBITDA of approximately $25.5 million, compared to the previous expectation of $23.0 million.
Analysis and Conclusion
Alphatec Holdings Inc's strong revenue growth and raised full-year guidance indicate a positive trajectory for the company. The launch of innovative products like EOS InsightTM and the expansion of its U.S. footprint are likely to drive future growth. However, the company must address its GAAP net loss to ensure long-term profitability. Overall, Alphatec Holdings Inc's performance in Q2 2024 demonstrates its potential in the medical devices and instruments industry.
Explore the complete 8-K earnings release (here) from Alphatec Holdings Inc for further details.
