Alphatec Holdings, Inc. (NASDAQ:ATEC) Q2 2023 Earnings Conference Call August 3, 2023 4:30 PM ET

Company Participants

Pat Miles - Chairman and CEO

Todd Koning - CFO

Conference Call Participants

Matt Blackman - Stifel

Josh Jennings - TD Cowen

Andrew Ranieri - Morgan Stanley

David Saxon - Needham & Co.

Aaron Wukmir - Lake Street Capital Markets

Sean Lee - H.C. Wainwright

Operator

Good afternoon, everyone. And welcome to the webcast of ATEC’s Second Quarter Financial Results. We would like to remind everyone that participants on the call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC.

During this call, you may hear the company refer to non-GAAP, pro forma or adjusted measures. Reconciliations of non-GAAP measures to U.S. GAAP can be found in the supplemental financial tables included in today’s press release, which identify and quantify all excluded items and provide management’s view of why this information is useful to investors.

Leading today’s call will be ATEC’s Chairman and CEO, Pat Miles; and CFO, Todd Koning. All lines have been placed on mute to prevent any background noise. [Operator Instructions].

Thank you. Now I will turn the call over to Pat Miles.

Pat Miles

Thanks so much Danica and welcome everybody to Q2 2023 financial results call. I would ask you to review the forward-looking statements at your leisure. I got to tell you, this has been a very good quarter. So our growth has been fueled by our spine focus. So if you look, we had $117 million in Q2 ‘23 revenues, which was a 39% growth, 41% surgical revenue growth that would exclude EOS and a positive $1.5 million adjusted EBITDA.

The highlights are that we extended the lateral momentum, really the strongest contributor to our Q2 growth, launched ALIF access to proceduralise LTP and midline ALIF approach for L3 to S1. We acquired navigation enabled robotics platform, which we'll talk a little bit about. We drove $50 million in EOS revenue, which was a 24% growth, we achieve 32% volume growth and 7% growth in revenue per procedure, and expanded adjusted EBITDA margin by 1100 basis points.

Our commitments, really, since ATEC recreation have not changed, but kind of under the auspices of spine focus, we've been able to continue to create authentic clinical distinction. And so the commitment of clinical distinction continues. There's nothing better than being aligned with your customer. And, spine surgeons commit their career, their vocation to spine surgery. So being aligned with them in terms of being spine focus is big. And so we continue to compel surgeon adoption.