ATEC Earnings Prediction
The chart below shows how ATEC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ATEC sees a +6.20% change in stock price 10 days leading up to the earnings, and a +0.91% change 10 days following the report. On the earnings day itself, the stock moves by +0.96%. This data can give you a slight idea of what to expect for the next quarter's release.
ATEC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
176.79M
28.14%
17.30%
Gross Margin
66.10%
-0.18%
0.75%
Operating Margin
-11.83%
-53.41%
-41.87%
Net Margin
-18.85%
-47.01%
-28.27%
EPS
-0.23
-37.84%
-17.86%
No Data Available
ATEC Earnings Analysis
Alphatec Holdings Inc Corporation (ATEC.O) Earnings Conference Call
Positive
Strong Q4 Revenue Surge: Total revenue growth of 28% in Q4, significantly outpacing the market growth rate.
Q4 Adjusted EBITDA Growth: Adjusted EBITDA of $21 million in Q4, marking a 12% margin and over 1,000 basis points improvement year-over-year.
Surgical Revenue Surge: Surgical revenue growth of 29% for the full year 2024, driven by a 19% increase in procedural volume and 8% increase in average revenue per procedure.
Strong Gross Margin Improvement: Non-GAAP gross margin remained strong at 70%, with a 40 basis points improvement compared to the prior year.
Positive Cash Flow Trend: Free cash flow of $9 million generated in Q4, indicating a positive cash flow trend since the company's transformation.
EOS Insight Launch Success: Successful launch of EOS Insight software and record EOS order book, indicating strong demand and future growth potential.
Surgeon Adoption and Volume Growth: 18% growth in surgeon adoption and 25% growth in procedural volume over a five-year CAGR, reflecting strong market acceptance.
2025 Revenue Growth Outlook: Positive outlook for 2025 with expected revenue growth of 20% to approximately $732 million, driven by continued surgeon adoption and procedural volume growth.
Negative
Sustainable Revenue Growth Concerns: Total revenue growth of 28% in Q4 2024, while impressive, may not be sustainable in the long term as it is significantly higher than the market average, raising concerns about future growth rates.
Debt Risk Amid Profit Growth: Despite achieving a non-GAAP operating profit for the first time since the organizational remake, the company still has a high debt level of $590 million, which could pose risks to financial stability.
Cash Flow Challenges: The company reported cash used in 2024 was $128 million, indicating ongoing cash flow challenges despite improvements in adjusted EBITDA.
Short-Term Cash Strain: The expectation of cash use of $15 million to $20 million in Q1 2025 suggests continued financial strain in the short term, which may affect operational flexibility.
Revenue Growth Comparison: While surgical revenue grew by 29%, EOS revenue only grew by 13%, indicating potential weaknesses in the EOS segment compared to surgical revenue growth.
Convertible Notes Due 2026: The company has a significant amount of convertible notes due in August 2026, which could create financial pressure if not managed effectively.
ATEC FAQs
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ATEC Earning Call Sentiment
Alphatec Holdings, Inc. (ATEC) Q4 2024 Earnings Call Transcript
ATEC.O
-2.08%Positive
The company reported strong financial performance with 28% revenue growth and improved EBITDA margins. Despite concerns about debt and management's evasive responses, the optimistic guidance and strategic moves, such as international expansion and leveraging disruptions, suggest positive momentum. The market cap indicates moderate sensitivity to news, supporting a positive outlook.
