ATEC - Alphatec Holdings Inc. (ATEC) Q1 2024 Earnings Call Transcript
2024-05-07 23:47:06 ET
Alphatec Holdings, Inc. (ATEC)
Q1 2024 Earnings Conference Call
May 07, 2024, 16:30 PM ET
Company Participants
Patrick Miles - Chairman and CEO
Todd Koning - CFO
Conference Call Participants
Joshua Jennings - TD Cowen
David Saxon - Needham
Vik Chopra - Wells Fargo
Sean Lee - H.C. Wainwright
Young Li - Jefferies
Presentation
Operator
Good afternoon everyone and welcome to the webcast of ATEC’s First 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 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. Please go ahead.
Patrick Miles
Thanks much Desiree and welcome everybody to the Q1 2024 Financial Results Call. We will be making some forward-looking statements and so I would ask you to review that at your leisure. A quick review of the Q1 2024 highlights.
We are establishing a foundation to deliver profitable long-term growth. Pretty clear. $138 million in total revenue, which is a 27% revenue growth. 450 basis points of adjusted EBITDA expansion. 30% surgical revenue growth. 23% surgical volume growth. 6% growth in average surgical revenue per case. And so from an adoption perspective, 150 surgeons trained in the quarter. That drove a 21% increase in surgeon adoption. From an investment in revenue generating assets, we continue to invest in a market that is either apathetic or disrupted. Without an expanded asset volume, you cannot support a market that clearly demands ATEC. So we deployed $60 million to enable a growing sales team to serve an expanded surgical volume.
So speaking of the sales team, we are confident in the robustness of the growth as we continue to see outsized growth in especially our established territories, which was 28% growth of same-store sales. So we think that's a great statistic. We often around here talk about how the spine market needs ATEC and that ATEC is different. One of the key drivers of what makes us different is that we are 100% spine focused. Imagine that. Much like our surgeons, all we concentrate is spine.
So being spine-only focused ultimately gets reflected in know-how. When we talk about know-how, we mean sophistication and we mean unmatched mechanical imaging, navigation, and neuromonitoring expertise. When you have know-how, ultimately what you do is you create clinical distinction, which ultimately compels adoption. It compels adoption from surgeons as well as attracts salespeople that ultimately are interested in being aligned with your efforts. So what we know to be true is that surgeon’s desire architecture of procedures, not widgets. So what we do is we assemble fully contemplated spine procedures from the ground up. The spine world is -- the spine surgery is a world where there requires management of many, many variables....
Alphatec Holdings, Inc. (ATEC) Q1 2024 Earnings Call Transcript