Alphatec Holdings, Inc. · NASDAQ:ATEC
Alphatec — Q4 2024 Earnings Presentation
22 slides from Alphatec's earnings presentation, Feb 26, 2025
Slide 1: Q4 2024 Financial Results
Q4 2024 FINANCIAL RESULTS PAT MILES, CHAIRMAN & CEO | TODD KONING, EVP & CFO | FEBRUARY 26, 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management's current expectations and are subject to a number of risks and un
Slide 3: Q4 2024 Financial Highlights
Q4 2024 FINANCIAL HIGHLIGHTS GROWTH LEADERSHIP PROFITABILITY EXPANDING CASH FLOW INFLECTING 28% Total revenue growth; $21M Adjusted EBITDA^, $9M Free cash flow; ~4X market growth* up 1,050 bps YoY First + quarter since transformation PROFITABLE, REVENUE-GROWTH LEADERSHIP 3 | *Management estimate. ^R
Slide 4: The Long View: Spine-Focused Momentum
THE LONG VIEW: SPINE-FOCUSED MOMENTUM C LI NI C A L D I ST I NC T I ON E ST A BLI SH E D 8 % M A RK E T SH A RE * - 92% TO GO $700 40% 19% 25% 10% $600 $500 TOTAL REVENUE SURGEON ADOPTION PROCEDURAL VOLUME REVENUE / CASE $400 5-YR CAGR 5-YR CAGR^ 5-YR CAGR^ 5-YR CAGR^ $300 REVENUE ($M) $200 $100 $0
Slide 5: Driving Powerful Leverage by Design
DRIVING POWERFUL LEVERAGE BY DESIGN SPINE FOCUSED MOMENTUM $25 25% $20 20% $15 15% $10 10% $5 5% $0 0% Q1'23 Q3'23 Q1'22 Q2'22 Q3'22 Q4'22 Q2'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 -$5 -5% -$10 -10% -$15 -15% AEB I T DA $ M AEB I T DA % 5 | Reference non-GAAP reconciliation in Appendix
Slide 6: Profitable Growth: Full Year 2024 Highlights
PROFITABLE $612M 29% 25% GROWTH Total revenue; Surgical revenue Revenue growth in 27% growth growth established territories FULL YEAR 2024 HIGHLIGHTS 18% Surgeon user $31M Adjusted FIRST Quarter of cash flow growth EBITDA since transformation EOS INSIGHT JAPAN DEFORMITY Launching - First cases Hoste
Slide 7: Q4'24 Non-GAAP P&L Highlights
Q4’24 NON-GAAP P&L HIGHLIGHTS CONTINUED STRONG REVENUE GROWTH IS LEVERAGING INFRASTRUCTURE INVESTMENTS 19% 7% Q4 2024 YOY Surgical Revenue $157M 28% Surgical volume Avg revenue / EOS Revenue $20M 32% growth case growth TOTAL REVENUE $177M 28% Gross margin % 70% 0 bps • R&D reflects continuing innova
Slide 8: Q4'24 Non-GAAP AEBITDA
Q4’24 NON-GAAP AEBITDA STRONGEST AEBITDA MARGIN SINCE TRANSFORMATION BEGAN AEB I T DA $ M AEB I T DA % Q4 2024 YOY $25 25% Adjusted EBITDA $21M +$19M $20 20% % OF SALES 12% +1,050 bps $15 15% $10 10% AEBITDA leverage driven by: • 850 bps of SG&A leverage (ex depreciation) $5 5% • 200 bps of R&D leve
Slide 9: Balance Sheet
BALANCE SHEET $9M OF FREE CASH FLOW FREE CASH FLOW / USE ($M) BALANCE SHEET Q4 2024 $20 Cash $139M 1 Debt (at face value) $590M $- Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 $(20) CASH FLOW $(40) FREE CASH FLOW2 $9M Deliberate $(60) acceleration in Evaluating alternatives for August ‘26 convert
Slide 10: FY'24 Financial Overview
FY’24 FINANCIAL OVERVIEW PROFITABLE, FULL YEAR GROWTH 19% 8% FY 2024 YOY Surgical Revenue $545M 29% EOS Revenue $67M 13% Surgical volume Avg revenue / growth case growth TOTAL REVENUE $612M 27% Gross margin % 70% +40 bps R&D % 9% (190) bps 31% SG&A % 67% (290) bps drop through of YoY $ revenue growt
Slide 11: 2025 Revenue Outlook
2025 REVENUE OUTLOOK ADOPTION OF OUR UNIQUE PROCEDURAL APPROACH FUELS DURABLE REVENUE GROWTH $732M Total revenue Surgical Revenue FY’25E $657M YOY 21% mid-teens % Surgical volume growth msd % EOS Revenue $75M 12% TOTAL REVENUE $732M 20% Avg revenue / case growth 11
Slide 12: 2025 Surgical Revenue Drivers
2025 SURGICAL REVENUE DRIVERS MID-TEENS VOLUME GROWTH SURGEON ADOPTION SURGEON UTILIZATION VOLUME 50,500 AVG CASES/ SURGEON 42,300 SURGEON USERS 32,300 25,800 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 2021 2022 2023 2024 MID-SINGLE-DIGIT AVG REVENUE / CASE GROWTH DRIVERS REVENUE /
Slide 13: 2025 AEBITDA Outlook
2025 AEBITDA OUTLOOK DRIVING POWERFUL LEVERAGE BY DESIGN $75M AEBITDA $M AEBITDA % $75 25% 20% Adjusted EBITDA $50 15% 10% 37% drop through of YoY $ $25 revenue growth to $ AEBITDA 5% $0 0% 2021 2022 2023 2024 2025E -5% -$25 -10% -$50 -15% 13 | Reference non-GAAP reconciliation in appendix.
Slide 14: Robust Outlook for 2025
ROBUST OUTLOOK FOR 2025 CONTINUED CLINICAL DISTINCTION-DRIVEN REVENUE & PROFIT GROWTH $732M Total revenue $75M Adjusted EBITDA positive Free cash flow 14 | Reference non-GAAP reconciliation in appendix.
Slide 15: Our Strategy Is Clearly Working
OUR STRATEGY IS CLEARLY WORKING T H E LONG V I E W OF C ONSI ST E NT F OC U S ON OU R OBJ E C T I V E S 1 CREATE CLINICAL DISTINCTION 2 COMPEL SURGEON ADOPTION 3 EXPAND & ELEVATE SALES FORCE 40% Total revenue 5-year CAGR 19% Surgeon adoption 5-year CAGR 25% Established territory growth in 2024 15
Slide 16: The Standard Bearer in Spine
OUR VISION THE STANDARD BEARER IN SPINE RE V OLU T I ONI Z E SU RG E RY BY I M P ROV I NG P ROC E D U RA L D U RA BI LI T Y & P RE D I C T A BI LI T Y % OF SURGERIES THAT REQUIRE REVISION* What plagues the durability & 25-30% predictability of spine surgery? INTRAOPERATIVE & SYSTEMIC VARIABLES 10-15
Slide 17: Informatics That Fuel Durability Make Our Growth Leadership Sustainable
INFORMATICS THAT FUEL DURABILITY MAKE OUR GROWTH LEADERSHIP SUSTAINABLE WHERE WE’RE GOING ADVANCING SPINE Data-driven decision making via WHERE WE’VE BEEN a perpetuating feedback loop ADVANCING PROCEDURES C LI NI C A LLY | OP E RA T I ONA LLY Establish leadership Become influential in lateral surger
Slide 18: Largest, Best Positioned
100% Spine focus LARGEST Spine pure-play BEST POSITIONED To mitigate the variables in spine 18
Slide 19: Appendix
APPENDIX
Slide 20: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION Access this file at https://investors.alphatecspine.com/quarterly-results/default.aspx
Slide 21: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION Access this file at https://investors.alphatecspine.com/quarterly-results/default.aspx
Slide 22: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION Access this file at https://investors.alphatecspine.com/quarterly-results/default.aspx