Alphatec Holdings, Inc. (NASDAQ:ATEC) Q3 2023 Earnings Conference Call November 6, 2023 4:30 PM ET
Company Participants
Pat Miles - Chairman and Chief Executive Officer
Todd Koning - Chief Financial Officer
Conference Call Participants
Brooks O’Neil - Lake Street Capital Markets
Matt Blackman - Stifel
Matthew O’Brien - Piper Sandler
Joshua Jennings - TD Cowen
Drew Ranieri - Morgan Stanley
Sean Lee - H.C. Wainwright
Jason Wittes - ROTH
Operator
Good afternoon, everyone and welcome to the webcast of ATEC’s Third 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. Now, I will turn the call over to Pat Miles.
Pat Miles
Thanks, Regina and welcome everybody to the Q3 2023 financial results. There is going to be some forward-looking statements. So, if you would read that at your leisure that would be greatly appreciated. And so our spine-focused momentum continues.
So, revenue for the quarter was $118 million, 32% revenue growth. The surgical revenue growth was also 32% and a positive adjusted EBITDA of $2 million. So just a few highlights. We achieved 24% volume growth and 6% growth in revenue per procedure, drove $14 million in EOS revenue that’s a growth rate of 30%, launched Calibrate LTX, an expandable implant for lateral procedures, so nice to be in the disposable game, delivered second consecutive quarter of positive adjusted EBITDA with 860 basis points of margin expansion, raised $150 million to accelerate investment in revenue-generating assets while executing to profitability and cash flow commitments, and enhanced our Board of Directors with deep spine prowess. So, super excited about adding Keith and Dave to the team from a BOD perspective.
So, our commitments haven’t changed. We are still applying our 100% spine focus, which we think is super important to create clinical distinctions. That means we are going to continue to do better and deeper work. We are going to continue to compel surgeon adoptions. We loved it to continue to do better, more distinctive work. And clearly, the surgeons would apply that to their patients for improved care and just a great opportunity from a market disruption perspective. So we want to continue to elevate distribution and continue to deliver better solutions. And so I think many C-spine has commoditized. And usually, when markets are commoditized, the results are predictable. When you think about spine, you see a revision rate in adult deformity of 25% and in degenerative, a 10% to 15% revision rate that is not in anyway predictable nor commoditized.