
Alphatec Holdings Preliminary 3Q23 Revenue; Strong Beat Driven by Continued Adoption of Lateral Access Techniques Leads to Full-Year Guidance Raise
Alphatec Holdings, Inc. (Nasdaq: ATEC) has announced preliminary financial results for the third quarter ending September 30, 2023, alongside an upward revision of their full-year 2023 revenue guidance. These developments were revealed in anticipation of investor meetings during the 2023 North American Spine Society (NASS) Annual Meeting where the company is hosting an innovation summit on October 18th.
The company announced that their surgical revenue for the quarter is expected to fall within the range of $103.3 million to $103.9 million and EOS revenue is projected to range from $14.3 million to $14.5 million. This translates to total revenue for the third quarter that is expected to be in the impressive range of $117.7 million to $118.5 million, representing total revenue growth of 31% to 32%. Analysts had been expecting total revenue of $111.8 million in the third quarter.
Alphatec management cited continued momentum and physician adoption with its lateral access technique for spine surgery as the driver of the results in the quarter. Traditionally, surgeons have accessed patient’s spines from an anterior position with the patient facing downward. performing circumferential spinal procedures, often necessitating repositioning and draping the patient multiple times, relying on posterior-only approaches with limited anterior correction capabilities, or adopting lateral-only techniques, which can complicate standard posterior surgical procedures. Alphatec sells surgical tools that allow for spine surgery from a “lateral,” prone transpsoas (PTP) approach which offers several surgical advantages in terms of patient positioning. In the second quarter of 2023, the company had seen 32% procedure growth and a 25% increase in physicians utilizing their technology. The company also saw a 7% increase in revenue per case in the second quarter as doctors were utilizing more devices per procedure.
Alphatec also raised its full-year 2023 revenue guidance. While the previous expectation stood at $462 million, the updated guidance now calls for total revenue of $472 million for the year. This implies a fourth quarter of approximately $126 million at the middle of the new guidance range which was slightly above the current consensus forecast for the fourth quarter of $124.8 million.