ATEC Reports Third Quarter 2023 Financial Results and Raises Full Year 2023 Adjusted EBITDA Guidance

Alphatec Holdings, Inc. (Nasdaq: ATEC), a provider of innovative solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter ended September 30, 2023, and recent corporate highlights.

Third Quarter 2023 Financial Results

 Quarter Ended
September 30, 2023
Total revenue$118 million
GAAP gross margin68%
Non-GAAP gross margin72%
GAAP operating expenses$118 million
Non-GAAP operating expenses$94 million
GAAP operating loss($38) million
Adjusted EBITDA$2 million
Ending cash balance$123 million

Recent Highlights

  • Advanced ATEC lateral procedures PTPTM (Prone TransPsoas) and LTPTM (Lateral TransPsoas) with the launch of Calibrate LTXTM, a lateral expandable implant system;
  • Drove 24% increase in surgical volume and 6% increase in average revenue per procedure;
  • Delivered second quarter of positive adjusted EBITDA with 860 basis points of margin expansion;
  • Secured $150 million in capital to accelerate investment in revenue-generating assets (implants and instrument sets) while executing to profitability and free cash flow commitments;
  • Enhanced Board of Directors with deep spine expertise.

“We’re pleased with our achievements in the third quarter, and even more excited about what’s ahead for ATEC,” said Pat Miles, Chairman and Chief Executive Officer. “The field’s most discerning talent recognizes that only ATEC has the procedural sophistication, spine focus and spine knowhow to create and continually elevate an end-to-end ecosystem of technologies that will set the standards in spine care. Our recent capital raise positions us exceptionally well to exploit the momentum that unprecedented industry disruption is unleashing. We are boldly leaning into the opportunity ahead, accelerating investment to equip our new teams of tenured sales professionals to serve surgeries with the operational excellence that ATEC is renowned for. Our best is yet to come.”

Financial Outlook for the Full Year 2023

The Company continues to expect total revenue to grow 35% to $472 million for the fiscal year ended December 31, 2023, in line with the expectations previewed in conjunction with the release of preliminary third quarter financial results. This includes surgical revenue of $414 million and EOS revenue of $58 million. The Company now expects non-GAAP adjusted EBITDA of approximately $3 million for the full year 2023.

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