Overview:
Alphatec Holdings reported $177 million in sales and an operating loss of $33 million in the 4Q2024.
Alphatec Holdings Inc. reported $177 million in sales and an operating loss of $33 million in the final quarter of 2024, just beating Wall Street’s estimate, which had risen throughout the year. The full year 2024 revenue was $612 million, a remarkable 27% increase over year earlier sales—which means that ATEC is growing at 4x the industry pace.
ATEC Growing at 4x the Spine Industry Rate
ATEC chairman and CEO Patrick Miles reported in the company’s fourth quarter earnings call that the company achieved an industry leading 28% total revenue growth in Q4, which is four times the market.
He added the company finished the full year 2024 at $612 million, 27% higher than 2023.
J. Todd Koning, chief financial officer, told Wall Street analysts that total revenue for the fourth quarter of 2024 was $177 million, up 28% compared to the prior year. The $177 million in revenue was comprised of $157 million in surgical revenue and $20 million of EOS revenue.
Looking ahead to 2025, Koning said that he expects ATEC’s unique procedural approach to drive a 20% rate of revenue growth to approximately $732 million. This includes a surgical revenue growth of 21%.
“Our procedural solutions earn surgeon confidence. That creates loyalty and encourages surgeons to partner with us in more cases, including increasingly complex cases. Each new surgeon relationship that we develop typically unlocks a multiyear utilization growth opportunity as our penetration of their business grows,” he explained.
Additions to their portfolio include expandable and corpectomy implants, which, Konig said, are expected to contribute significantly to 2025 sales growth.
Analysts Ask About the Potential of Japanese Market
Vikramjeet Chopra with Wells Fargo asked about their international plans for 2025 now that they have had their first surgery in Japan.
Miles said that Japan is a market really open to progressive techniques like lateral and that they have the right team on the ground to capitalize on that.
Eric Anderson at TD Cowen asked for more details on Prone Transpsoas (PTP) and Lateral Transpsoas (LTP).
Miles said that they are still in early innings and while they are growing at a high rate, there are still a lot of opportunities for growth.
Koning added, “To give you a sense for the size of that market and how we see that, we have talked about the lateral market being about $1 billion in the U.S. and us having about 15% market share here in 2024.”
“And so that tells you that we’re not very penetrated in that market. And the opportunity here, as we’ve talked about as well, is there’s $2 billion of traditional posterior approach surgery in PLIF and TLIF that can ultimately be addressed through a lateral approach. And so we think that market today at $1 billion can ultimately be $3 billion as we expand the utilization and broaden the adoption of lateral surgery.”
