Q2 2024 Globus Medical Inc Earnings Call Transcript
Key Points
- Globus Medical Inc (GMED) reported robust Q2 2024 sales of $630 million, a 116% increase year-over-year.
- Non-GAAP EPS increased by 20% to $0.75 despite a 35% increase in outstanding shares due to the merger.
- The company launched four new products in Q2, reaching nine product launches year-to-date, setting the stage for a record number of launches in the coming months.
- US spine segment grew 100% in Q2, driven by gains across various product portfolios and increased implant usage through robotic pull-through.
- International spinal implant business delivered record sales in Q2, growing 200% on a constant currency basis compared to the prior year.
- GAAP gross profit margin declined to 58.7% in Q2 2024 from 73.8% in the prior year quarter, primarily due to the NuVasive merger.
- Net interest expense increased to $2.3 million in Q2 2024 from net interest income of $8.3 million in the prior year quarter.
- The GAAP tax rate for Q2 2024 was 33.2%, up from 22.7% in the prior year quarter, driven by higher valuation allowances on foreign losses.
- Free cash flow was $26.5 million, which, while positive, indicates a temporary impact due to higher accounts receivable balances driven by systems integration.
- The company expects a sequential step-down in revenue for Q3, which could create a headwind on EBITDA.
Welcome to Globus Medical's second-quarter 2024 earnings call. (Operator Instructions)
I'll now turn the call over to Brian Kearns, Senior Vice President of Business Development and Investor Relations. Mr. Kearns, please go ahead.
Thank you, Steven, and thank you, everyone, for being with us today. Joining today's call from Globus Medical will be Dan Scavilla, President and Chief Executive Officer; and Keith Pfeil, Chief Operating Officer and Chief Financial Officer. This review is being made available via webcast accessible through the Investor Relations section of the Globus Medical website at www.globusmedical.com.
Before we begin, let me remind you that some of the statements made during this review are or may be considered forward-looking statements. Our Form 10-K for the 2023 fiscal year and our subsequent filings with the Securities and Exchange Commission identify certain factors that could cause our actual
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