Nuvasive (NUVA) 4 Aug 222022 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the NuVasive Second Quarter 2022 Earnings Conference Call. I would now like to introduce your host for today's call, Ms. Juliet Cunningham, Vice President of Investor Relations at NuVasive. Please go ahead, Ms. Cunningham.

you. Thank everyone. afternoon, Good

as are Financial Chief an Officer. quarter financial and NuVasive's today will highlights. Matt our review overview Officer; Harbaugh, second detailed trends results business Chief Chris XXXX as Chris me innovation Executive Matt Barry, filed results and of the then and well Joining and will we afternoon, this issued And a Form IR of session. website we'll on on our section year been the full outlook. The with question-and-answer has earlier is host XXXX SEC. earnings which X-K posted release, provide

We IR have also posted supplemental financial information on website. our

a As website archive later is recorded our will and reminder, an call this today. on be available being

such to risks could cause we and based which from our you which are that this and other or current factors described as actual forward-looking with Except statements. The law, to speak forward-looking results differ Before as those like by forward-looking periodic comments obligation and update respective expectations statements required uncertainties, expressed which statements, started, implied NuVasive’s we the date. any releases in on get materially information, assumptions involve remind or filings SEC. to by materially their differ call I’d actual cause and to during results no will news assume include of factors that could are

Chris I’d are from introduce of In like include now, the measures non-GAAP today’s to in of measures these Barry. NuVasive’s Reconciliation which most release addition, are the supplemental will website. comparable and measures. IR information, accessible call financial included this financial in to earnings directly GAAP certain And section the

new our resulting America. Latin sales for strong is prior increase innovation over both delivered by and led currency markets. on demand introductions. in and the In by digit Pacific, team. international disc. growth in to led the delivered region, strong for the XAlift by Hardware by demand XXXX CXXX where low-single Japan, Spinal our most by U.S. led driven continue procedure were led COVID-XX a digit and continued international double existing challenges cervical the we business constant in the by we Within strong in the execution of spine second product year. reflected disrupt I This will to share acute, see year-over-year second the reported quarter commentary of growth the how saw XXXX Earlier financial our Matt an period. everyone. for currency and sales details surgery. prior the to net on will quarter vectors on basis on XXXX NuVasive growth quarter delivered call, the quarter, On you, NuVasive Thank spite results. and future provide a And uniquely update provide Juliet. that afternoon, the positions a of roadmap X.X% In challenging million, X.X% our of progress multiple an believe of remainder the compared today, innovation of backdrop we performance we or financial quarter procedural delivering review constant it growth we portfolio basis our continued another today’s and Asia a Europe year simplified on surge of our we our $XXX.X After and basis good additional period volumes year in on where increase market and performance on growth macroeconomic portfolio saw in the of pressures, reported U.S. net and

history most a quarter, with spine as in integrated Support case biologics, and shift sales. second procedurally driven leader business in of performed net comprehensive by in mix by offset the Surgical Pulse well of solutions. supported U.S. decrease the lower proud in platform spine's innovation attachment was We're rates the Our This in quarter. portfolio by our

Pulse, continue we're industry continued our As integrate with procedures leading positioned to we growth. well for

Driving Pulse States, and systems U.S. XXX% in numerous XD Pulse neuromonitoring, through integrating United enabling Europe, the in cases. in planning. the technology over the A key imaging surgeons, spine placement Pulse in accuracy. live a found both Italy, well in and Siemens second with cases going global and clinical term in and Cios utilization the in respect for study Pulse milestones utilized XXX sites, rods sites imaging Spin scoliosis. a technologies be our to Pulse we and into The the with platform OR. Pulse including tools, enhancement with early success Pulse new and navigation recent near on that other software reduction, more Reports first adoption Healthineers, navigation, accurate achieved our systems surgery published alignment to radiation single significantly seamless than Unlike with was Notably, pediatric integrates outperformed as is provides common key as addition long other quarter, first cases efficient Pulse of In case market two Stealth Pulse. patient-specific screw and of Pulse multiple Scientific to from workflow can ecosystem

the for spine architecture We the And care from extensible make of preoperative remain spine not and start surgical will out building of future to with extend software its continue to future integration we care. current Pulse intraoperative allows to of postoperative stop the and to ecosystem and power procedures. progress committed broader innovation. Pulse leveraging The

taking CXXX cervical, cervical quarter. our Another with our total enhance is The U.S. cervical our with thoracolumbar will multiple quarter. recently, the key and posterior the ACP portfolio, system Science disc new simplified CXXX the simplified disc XX% comprehensive to which milestones in a achieved including creates driver introduction in product disc, This compatible industry's high. We're effective the segment. replacement. in company disc to cervical and Cervical to specifically is Advanced interest the in portfolio Cervical, target sub strategic Surgeon do UK, seamlessly next-generation portfolio. integrates schedule currently cases features fixation yet in second Switzerland, most CXXX and than and greater pelvis. the which growth Reline interbodies so simplified the third most treat quarter, with fixation Reline cervical system, joining delivered and first on to from continue cervical Reline we for clinically NuVasive Austria, remains the system pathology Material To further share share introduce the for growth Pulse the take and consecutive the we single continue portfolio, the another with billion With $X.X remain occiput cervical the to this down the fully Australia. posterior

the interbodies significant that spine markets sub commercially remains in Modulus segment nearly science ALIF of new quarter, markets. our around to-date. on leading material market the advanced have growth high Japan Australia leader basis XXXX million introduce have surgeon the vectors surgery, As portfolio. and we market. the in third quarter cases product $XXX remain the for anterior support we we demand continue key the Modulus XLIF growth launched to focused our in our commercially international In in multiple liaison of XXX And globe. in portfolio, seen in of second performed Within in in launched in we XXXX. and introductions

received for lateral procedures. next in we for expandable FDA QX our addition, Modulus interbody XXLIF In clearance generation

we modulus continues Our procedures. launch invasive to our technology system interbodies the remain later this R&D proprietary, on expandable porous team And tube to XD-printed schedule to year. leverage and other

program, and of platform, support hands-on addition the first a Experience our virtual return live procedural to professional educational cutting procedures. Late invasive to site we will benefit in a NuVasive our the ribbon year, be tube to capabilities high. Specialized for rooms demand, the welcomed from of support products leading the And precise growth training technology a streaming held new continuing as new Center In look cameras markets, key and Our from rotunda and our international of of a industry return to The global we demonstrations provide for virtual with to precise retractor June. titanium ability key XXXX. dedicated offerings. of we center Orthopedics pulse our company's with to we advanced further Singapore and the system, and solutions anticipate demonstration new comprehensive for portfolio for back remains posterior learning experience and less in half surgeon patient with features last the system clinical tubular interest development products

bold, we're not globe surgery, and our and patient's purpose a transform the care to around change to minute companies remains advanced unchanged, is macro to the life pressures. many immune vision economic every change market Our challenging lives. Like and

surgery. on selection, share inoperative our our patient appropriate Taking and postoperative creating making of right However, our specific enabling invasive utilizing sub-segments future growth we for progress provider. patient, position share, underrepresented selecting vectors driving continued with by procedure. historically where extending surgical the on solved It will in technology or multiple be defined patient a market execution the not surgical through be management leadership our improving international will enabling spine and interbody outcomes roadmap had commitments The we the less and and procedure surgeon in and business. are delivering new setting, technology for a in surgery plan, enabling most to the deliver growth,

financial will and receive focus. value change upon In over to the clinically more every tools know-how patients I'll support spine integrated the to solutions make deep company, unlock against future surgeons. more to intelligent. us a fundamentally As vision Matt our industry, smarter redesign and discuss quality of opportunity that this turn and minute. our and company's more the before This the We're of detail. this to care believe validated by turn progress closing, is will the Simultaneously, excited now care. providing in life patient's will change building about call in results surgery we're to our NuVasive our procedurally leading the

quarter full-year Chris Today, overview well on our outlook. as financial you, will provide and XXXX of second and update as an you our I drivers, good results Thank afternoon. XXXX

Our detailed today's have in financial provided release. results press been

with GAAP will measures both to I During remarks, for to worldwide be discussing release GAAP and reconciliations. non-GAAP our begin you sales. my refer press non-GAAP I'll net and

Our pressured volatility strong ongoing our line period, inflationary we the of detail costs, reflect sales on second including impact said these of quarter the year foreign and well exchange rates into by I environmental dive were macro bottom challenges provide sequentially, deeper to chain that results. our compared growth as greater issues, as net as will delays, supply prior results COVID. results

introductions. product on new we continue Importantly, procedural volume strong remains well execute to our and

Latin of volume quarter America million, increase This Cervical growth compared strength the International platform by sales positive in prior Simplify portfolio to continued higher double precise return the or momentum worldwide procedure an strong period. Pulse and year to and currency driven product products, constant $XX.X constant net digit on were X.X% our NuVasive NSO late to by prior including driven by Asia was as reported demonstrated led new market were growth XXXX. results, demand continued with contributed Europe, particularly a and quarter, period. the the driven CXXX sales introductions, for second million results year Second our Disc. and basis also Orthopedics the in X.X% $XXX.X of to currency our which Specialized Pacific, by These Japan. titanium in compared international from

driven quarter. demand. million X.X% U.S. X.X% year support increase Disc over which spinal Turning the net to performance net were consecutive in now strong more the CXXX by the for in Cervical product sales quarter, our grew Pulse portfolio, XXXX, second $XX.X line, quarter was This the the million surgeon prior hardware net were sales experience Cervical second Simplify U.S. led increase a sales. by $XXX.X period. specifically by surgical of an of than to U.S. XX% third continues sales representing

Moving by increase in compared million year-over-year $XXX.X was prior was profit million year the The gross driven in higher second $XXX.X quarter to Non-GAAP procedure results. volume. to operating primarily the period.

gross driven As primarily of decline was sales, points a a XXX by pressure in year-over-year prior margin net of decrease in a the to digits, the offset period. compared year that pricing XX.X% quarter. partially charges XX.X% decrease in once percent again The inventory non-GAAP basis by was low-single the was in

driven of and inflation technologies and expense year-over-year income $X.X travel surcharges year primarily unrealized the net freight compared to The $XXX.X million, impacted fuel enabling the compensation higher prior million shipments, to Non-GAAP expense our our costs driven by expense in foreign higher of areas second increased an of other freight sales, million to cost quarter negatively was continued in were $XXX.X variable primarily compared including on XXXX increase million currency on portfolios. quarter R&D and expenses costs. The was by losses of the prior operating further year non-GAAP XXXX. and due costs was period. X.X% investment increase product expense Increased several in in $X.X expenses to period. core increase Second spine

the a U.S. foreign currencies of against quarter, weakened dollar. the number During

Second the XX%, tax compared by decrease XXXX prior points margin, inflation. higher year-over-year lower due of of in to costs non-GAAP The year a quarter R&D basis period. gross operating XX driven million and in period. quarter the expense was investments the prior $X.X was to was XXXX year primarily margin decline from second million continued $X.X Non-GAAP

the per was tax primarily loss of diluted impact net the per $X.XX million year the diluted $X.XX primarily accounted the prior we earnings earnings XXXX, share $XX.X loss Our share Notably period. The XX.X%. year-over-year decrease net period. $X.XX FX or year On with was GAAP per against per rate period. net to XXXX. increased of the or second Medical. diluted of our of compared versus during unfavorable in U.S. or and Included second continued reported $X.XX quarter by currency we in principally capital second increase non-GAAP in exchange was of earnings flow of $X.X currency cash impacts quarter for effective prior of net fluctuations. product income quarter basis a our approximately in EPS year of million compared fluctuations in acquisition Free of diluted foreign million prior driven basis of or related to rate to approximately Australian per $X.XX the was unfavorable of associated negative our for $XX to share of earnings non-GAAP dollar quarter in share million the quarter the of in our growth $XX by GAAP reported income second share second expenditures of XXXX flow results due quarter dollar $XXX,XXX The operating offset million income second million of XXXX the XXXX of support weakening to a net a investments $XX.X Simplify On exchange for new cash sales $XX.X the launches. were

cash million, June XX, credit cash and of or equivalents undrawn. As of XXXX remains facility revolving had we $XXX million $XXX

back late the business given to in shared geopolitical the of XXXX. XXXX supply our we environment, Now range chain, including issued the full would've was guidance than perspective state provided on inflation, I'd year minute historically the Stepping that we for half many current financial uncertainties of wider our provide second for like a our surrounding fluctuations, and February issues. a what macro we currency COVID when

May based reminder X% from constant a non-GAAP raise our end a on strong growth our range to basis. sales As X.X% on X.X% first quarter the X% net in currency to we results of lower to

we has our these continue. of purposefully and macro to did expect range uncertainties. operating we environmental remained uncertain guidance not the to XX% margin to However, change pressures XX.X% macro environment due can Unfortunately, these reasonably non-GAAP

product both with executing the Simplify well On the vectors positive Disc our seeing Pulse. and success are we We're new continued sign healthy and are strategy. Cervical multiple especially introductions, growth of on procedure volumes our with

maintained $X.XX to low- growth range mid-double expectations. follows. our year to updated in $X.XX earnings X, prior our we conditions our accordingly May into per from We macro reiterated digit sales to our of that provided a finally, range reported expect range guidance a for $X.XX share our as full And Taking of GAAP diluted reflecting account per updated international earnings $X.X diluted currency foreign $X.XX XXXX. on $X.XX year to share of we we to XXXX. of guidance to non-GAAP markets. full current We current we compared net have financial X% XXXX to addition, X% growth In guidance

challenges the We macro face. in environmental confident working ahead. to lie we that our health cadence navigate diligently are opportunities underlying the remain the continued strong and many and our introductions of business, of product manage that We new

Now to operator for to questions. the the I'd please call like ask open

first from Our Instructions] [Operator Cowen. Jennings with your comes question. with proceed question Please Josh

wanted is are I on Pulse the mean, module my question the hardware and the program? Thanks. I'm development with spinal pull but and still initial sorry, is taking for and about utilization Pulse in through increased you your parts. trending robotic Thank you its two of afternoon. good seeing early note curious and one accounts NuVa realizing ask I Hi, on on this Pulse updates how that questions. – to primarily days, any

for Josh. the question. Thanks Thanks

So and at those yes, we we we're base to early days pull the some on goal sites, through obviously limited compared Pulse. sites got is We've number utilization. The seeing sites. of getting encouragingly broad business are of other look but

a we is magnitude probably hoping the and seems So looking are now for But it pull be technology. as really that fact talk of is placements that the technology. part initial early. remarks. a talked about in that, is about technologies fact it we some always Robotics point wanted – the a Robotic to the on of through to simple answer little I we've all of prepared least will putting it Pulse, this stickiness the at a we've a Obviously seeing a we mentioned for that different a at incorporates been is, the suite that. of be be

good as point with robotic updates robotic the the equipping on to timelines, make and to progress progress near but future. technologies in continue No well look We module we many at as pulse the this forward really development. on other

Thank you. Understood.

Josh. Thanks

question. Wells Our next Vik question proceed with Fargo. from your comes Please Chopra with

the Hey, good thanks taking for questions. afternoon and

quarter inflationary ability how was price I was then So – about pricing. follow had this pricing in take one I I you one in guess up. Can the And your and just environment? to first had talk question Thanks. what's

was we've is digits, for with us, very was kind Pricing Thanks it is of this it what Yes. the normal. Vik, but before. Obviously Matt. headwind which questions. in low-single seen in the a is for line

to price, as it on to more products have as do new it be already aggressive to bring marketplace difficult we the whether taking that thinking introduced, but been we need obviously we're As pricing. far about technologies on

up. just Great. follow And then one

Just volume hospital what Thanks from staffing you talk on QX you've procedure can in impact shortages? just so much. seen about

staffing still tests question could see We canceled we're Vik. and it and Thanks could it. related, Yes. thing we from for patient or procedures then interesting somebody The be schedule time-to-time that see positive. is procedures be seeing related

we with So in really cervical. business very any of that We to and do choppy lot but have that didn't good still that very, lumpy. we there's volume, share still entered had – really fact low in saw the a markets really like

So even with good saw volume also bit the we of saw a some mixed pressure but as pressure downward growth, well. of we there

where So cervical, thoracolumbar of little some still really like share, flattish of we're pressured, think cases taking little those high where were a pressure a we saw lot share, of pressured the we the in we complex have area some there, high. but volumes

we mixed in felt saw about So we but the quarter. overall bag, that the volume good

Yes. mid-double-digit add We've with our And globally were that I growth and in would the to we international really pleased they said businesses along results just squarely all low- were zone. well. in as

another well. as team international good for So our quarter

Joanne with next Citi. comes proceed question Wuensch Please Our from question. with your

Hey, FX it, will think questions. versus be thank you did old? you your my year headwind new miss you I quantify so but for taking much Do what

Yes.

year full in include We on our But haven't quantified we around a did guidance it range. reiterating our thinking it basis.

non-GAAP Xth from as it on to we So change said relates numbers. we May didn't what anything

impact say in did our to We had a EPS. that included we've So we call the $X.XX on thinking. that

that. calculate the Euro. were Japan fluctuation currencies now volatile. give an you because the – greatest and operational back to viewpoint can you hard from we number The saw a Hard So that it's right

time across fluctuations a been lot fluctuation pronounced more international as it's creates But business, us. watching obviously it have the So industry. obviously growing for our we those spent of we and

on in guidance? quarter impact the revenue and And in your the

it We at exactly can much didn't on the you but revenue our Yes. obviously calculation out what is. on constant basis disclose a figure impact currency you can not, and the look versus pretty

to this. aspect on the I'm it, of guidance push sorry And

Yes.

give the at and that it'll your look all the you Just provided in table release answers. we

were quantify Okay. in how specific it? quantify a qualify simplify sales if ask the more Could quarter or you can't Then product I'll one. you

results had from first We what were Simplify. with We did really nice and Yes. the in jump we pleased the a quarter.

it get So we're talking We really CXXX, new Simplify just because and really so third about we want Simplify, you way the about later don't this yourself, are think really being row quarter notable the our are pleased products about XX%, we portfolio successful that to very we cervical? coming in with results. This cervical year. is if it's into results. out The it's greater grew ask about where in is a than

question Singh Capital Please comes with Shagun from Markets. RBC proceed next with your question. Our

much so for you taking the Thank question.

So just guidance. a on question

despite sales, to momentum. and on outlook higher maintained reported your So this pressure. I'm just growth FX trying what's ex-FX underlying you've driving raised understand

products, just but You I'm did some into call seeing out what curious QX. of trends the you're

maybe maybe on So gets know, of contribution maintained or you QX talk your I half? for and about of that can from August, questions. doing the and Thank so myth, what in expenses two you've EPS, the you any timing then FX days and July in backlog? the don't you the second then R&D And despite inflation, in just factoring projects, better are supply, outlook

one the Thanks question. and first I'll take Shagun. of I'll second part let Matt the cover the

talked quarters and of Matt of talked across to about as different continuing underlying this that shifted made. the idea seeing many in several focus key singular market. just our over I've growth we're investments we international focus across last in and to broadening about see from momentum we've – really the also sort [indiscernible] So our some that sub-segments,

really cervical. those products, focus the Pulse things are in factors, like new So have two we obviously the contributing

situations macroeconomic I international the those to all continue lot things growth, top even can we give that line. in think to on us continue deliver of Our a challenging confidence

that turn the second Marr part. with to on I'll So

Yes.

going there prepared us in talk guidance earnings costs. of travel the compensation remarks and we you freight same your charges, non-GAAP heard on Look about regard basis. incremental our to with keeping margin per and increased call So a operating range charges, that the were last factors on question maintaining a swing said on the around lot share the

into all as know operating taken both we have We this did these margin on can still well headwinds. and right earnings everything but perspective, as it's range per wide we that the we're that comfortable reason navigate consideration diluted based now why as gave we we share from an

we and We that expenses the But right looking guidance deliver this about didn't of find May where offset we're Xth. where have the looked we to need our hard from change was we can thinking at our good on on guidance. fact to feel

is David Our [indiscernible]. next question from Please proceed with your question.

Chris the the and for for down quarter. Matt. congrats around Hi one year last had on of Yes. Thanks kind just taking looks X%. half. I questions revenue back third the sequentially and the quarter on was cadence It like like through

So quarter see just XXXX Simplify have you third something ramp, with and benefit saw the to what better should then think with line continuing third a sequentially? than in that, larger Pulse the of you NSO And be or quarter. we in thinking could wondering, I in we

sure, quarters you highest we quarter. quarter see was the Delta the on came of two in in at second the fourth know. volumes in million, results, quarter last our And we Last I'm typically putting which that the Yes, last didn't to quarter. year, year are third pressure got variant you and remember procedural $XXX.X year’s that

then historically, – the announced fourth we would just highest So we for has And say comparison. yes, the they the quarter, it's will I we had quarter not question what being the third ramp quarter. the to on quarter apple-to-apple below still today, good your strong well. been And NSO, although traditionally, quarter up. posted quarter results second very third a the second as see a back today we answer in

any Thanks kind seeing of like portfolio? pull halo it then broader you quantify the taking for my strength it's And portfolio, cervical questions. are simplified, second on Okay. the through That's it helpful. driving mean, but across to the one effect seems also just the I having. way its across spine

thanks Yes, David.

XX We that We've are, didn't not have than really simplified lot product, CXXX. also us to the do they have that confidence. up seen this, things of started greater one only the anything a surgeons with of gives picking plus broader but that's the

surgeons a We see of of that also that introduced other our have than of coming been parts portfolio we XXX kind into. greater have the

that want It indicators about, simple us effect. will It talked the continue a is opener for would be, broader it as there think exposure. say quantification see is time, we yes, around So answer we is put giving a to some over but NuVasive we better door to early the halo portfolio.

here, encouraging far. So early days thus but results

Yes, thing is would add on I remarks cases prepared that the talked first the in other the around globally. also we

now and UK, Austria. we're Australia, and so in in and simplified introducing Switzerland, So on

times So set now really because it's to exciting a internationally. starting chip and we've the U.S. we're got market strong base up in away

that Did I on could or And that basis reported currency? And you I ask constant Matt, right? Thanks. a Okay. internationally. growth if Thanks. the said low- is question, clarifying a just I think, for back half to hear digit mid-double

low- reported And fluctuating, JPMorgan January XXXX. give that's sense doing. to we're business of is we currency you of Yes, a the what of Obviously digits is, introduced underlying like in the to mid-double basis. with to it a on trying guidance

in saying in were should quarter, we range. any the international business, XX% expect that XX% what kind of currency you constant So given to

Thank it. Got you.

bet. You

Please Our next question with with from is Allen Gong proceed your JPMorgan. question.

Hi, we and obviously the in saw margins, I'll put prepared from just remarks when both them gross highlighted your look at you pressure as But inflation. some together. we pricing

have that assuming some hopefully costs get about we on continue XXXX? to we should bit through improving XXXX, more pressured in of of balance your sheet? as a you we So get trends the that cadence line of think staying then think how that leverage capitalized balance into And through how or about should better, can either the the kind work been

Yes.

strongest quarter year, would expected quarter, which sales I net is, what because the for said to earlier, this be I for of the is us. what say fourth So is

number operating there. You'll margin a stronger get

continue does quarter, we'll margin, see and in pressure because are our fourth sales for and have that operating third impact So basically still net quarters the on to I the margin. top as the quarter second said,

love calculated and I'd costs, travel see component do look, the of up is inflation XXXX, at big far to As come very we as a travel are significantly what as NuVasive. we down,

down our freight, has last travel So in that quarter come could again, gave this been factors hard a margin Also some like freight of seen see why to we wide that these guidance operating we but is range with the year. cost. continue we've will from the of And that because reduce second comfortable, challenge through a so quarter. this to accommodate for predict. we But that the that are feel starting

Newitter please is question Securities, with your question. next proceed Rich Truist with from Our

Thanks Hi, question. appreciate range that off guidance earnings, on thanks a large to first guide keeping your I the for was the you It are the Wanted taking just start unchanged. range. with guys.

out second that And to do through kind rate Is you You rest impact you kind are run the of the if $X.XX feel year? a of just like called the of reasonable guess, of more in you or quarter. of with or so, currency lower guide less Thanks. comfortable or the to the the rev likely enough with end that perhaps midpoint offsets, whether that towards towards range? still midpoint especially the range, increased feel be midpoint the to of I

earlier today little to currencies out And any Predicting numbers. the where model and in to anticipate be we it predict they little our all just balance impact fourth favorable has place. Europe the net-net to continue year. now, back the see to gotten this are to in We is of where Japan if as good And in very quarter amount it year. change unfavourable. was gotten the not your will right the a that was the at the I there currencies a back of to It's were think falling volatility, $X.XX in very impact has go of Hard is quarter not we challenging. looked use. the Yes. about in biggest same do previous material. to years of kind unwise a But half would number volatility maybe unlikely some because With the include

of you and on were to the are guess constant that, follow-up, mean, the thinking it right, range to remain range I rates assume parts of midpoint Well is Okay. pulled currency the with to kind on I safe and are about the all just still? table if

June the saw impact. release. can we year-to-date of second our on first we the and the that if that continues, took that pretty you quarter Yes, said, quarter based be end at would calculate and And our much impact

if just Any one what of a know I on territory June vacations, an are here squeeze kind if unchartered trends through fluid, August? you of you And Okay, in. more its of can saw post July we're great. and into it in even kind kind pandemic period. there can I comments and

you So, to you Thanks. to power your trends are through you're but seeing, there. able you what curious, I'd so might talk just can be Obviously, seeing whatever the guide, be raised month-to-month?

mean, Yes, just I'll that overview I an you tell mean, week-to-week just of Rich. I give been I'll choppy. choppy. It’s you it's

So it's out. really hard to trend

back which the the expect summer, and be appear normal in we of specifically where international to seasonality U.S. in Some just half numbers, see in in the increased we the of travel. markets some level

on a out. and distill hard sort good still down. still contributing But little say of to what's month-to-month it's basis a On pretty to or an to we're up the choppiness average, seeing volume. So week-to-week I basis clearly would is

levels the simple volumes underlying word So choppy. is pre-pandemic that that choppiness would exceed say line that I pre-pandemic levels. at trend least shows But or a right is

potentially So floor. a good we think that's

want next kind see Just over few predicted to more hopefully months. to the start trend of a form

proceed Ranieri question Drew Our Morgan Stanley. with is with from question. next your Please

you're in the kind Hi, your questions, what market but seeing you bit where in expecting go thanks a little thinking market taking you the there, growth in just questions. just into terms question if could Maybe just what second Thank general, in talked type to you. terms you taking wondering a for of underlying follow-up Chris, cervical, share add should maybe confidence Day? of And was, Rich's are on upcoming about the on and then in to preview broader can give Investor we spine of in you be what of the any us of more

taking from would mean, good with really, about if just volume ALF negative fairly comparatively, areas some but I Yes, portfolio think strength in and we where were underlying share. of perspective, segment I'll pressure not you it in growth posterior of flattish our down areas, downward had the have that sharply. procedures, still where that's we try glean we're growth saw more some out. anterior where again, thoracolumbar is down not We expected to

We we sluggish market Some with of show and think cases NCS the all so in lot best of made growth. get to then would even saw that of data were complex the that cervical, and kind that it's out at that at because a the down in like some the look areas we pressure, were I have, to we've it we investment the was taking hard share downward strength quarter. underlying just glean

feel about in we our So pretty general. performance good

we've far it. let talking and much Investor to the of very for filling know forward everybody the narrative, everyone. As in blanks that kind anything some to some I on reshaping We're as of else looking Day of don't

think it to than we any other other but that committed point. I we're So at updates scheduling, don't in this have

I do fair. would product found the add have and The to What to technology get on talk Chris below know the forward, strong is manifesting the products actually on we is that doing only in thing itself we technologies more fully the intend in Yeah. and other see that posted folks that when is a people which appreciate out, that today. growth obviously bringing I, and people we've we're that

product will at we So level. a the to a introducing do look fair forward products and deeper

Please your proceed from comes with Capital. Loop with question Wittes next Jason Our question.

taking thanks the Hi, for questions.

off with estimates housekeeping the between first guidance? or rate guidance lower difference non-GAAP that the see in the the charges? was just thing. Is is I two a terms that of Just one-time GAAP

into GAAP on reconciliations just focus GAAP reconfirming the occurred in and are the you really that going are It's fluctuations taking non-GAAP. be Jason because should the between that came that and out release. non-GAAP, can table charges The in that, to consideration on all we're basically Yeah. there see numbers you in

Simplify on of wanted it lot the in real I coming a like sounds at terms Okay. I growth of, you question the the least some so. Pulse of was I and new thought then about to ask assume from commentary And accounts. Simplify, is at made from least displacing primarily had users then And some And your you think territories? the base those you're if customer same competing are disc extending or this about the using discs? accounts already is at also own new that that into Pulse. or and for point, that the is customer been

has market that And may that, be our our the and On simplify, some to a again, we think would Simplify the cTDR bit. is from trend feel there but say I and out cTDR primarily the would this are the would see I got say disc users I that that, accelerated also are that and there companies performance it of introducing it market. other into several moving companies, it's

in is the users So the using disc But say competitive there I likely is this definitely some majority interest space. point. would our of at in artificial from new cervical our, growth

certain our it's systems As been clearly, far tricky us using hardware, or as our from situations maybe enabling not they than tech have may to in Pulse a potentially they're say, clearly anything navigation little anything of neuro-monitoring or some that but using Lessray. other

some picking at So a a point. up predicate that we Pulse employed that's from is think now anybody system moving that likely, they've right

us. in new the the new for new technology for cases, specifically market in technology us some technology in but market, not So

have one that a earlier those in. Pulse in see accounts. we're the seeing increase through We we out we'll pull trend little business material some as the getting account I see said So overall good are that's that But further. installed a that we

with Miksic next proceed with question. Matt Our from question Barclays. Please your comes

where and thanks have relationships follow-up has surgeons may them the taking where you much that? Simplify. another who of to Yeah, drivers, that just in One you fact with and good do Simplify, sense have along one how sense of for sort Chris, had You the trying taking of about Simplify? talking you important to much nature a get of, using to that's I growth of were of disc then and in part for a in is, on how get the follow-up. Wanted are share growth pathway gains. question. just of be one so said runway to this converting that and centers you And

I've now quarter. that days the earlier, using sort maybe that few and to plus that quoted adopted cervical Thanks, I even XX said Matt. number that me cervical along a launching of the tells Simplify portfolio, at plus XX Yeah, seen the which interior other we're started out XX Reline I that, late this plate, ago it's surgeons bringing parts of have may C

with capacity. still got ramping the we're powder releasing. entering just We're and getting I up, up So out ramping dry Simplify. the now we've got sets still mentioned geographies as really our earlier. – of We're think still still of gate we've that up pent new Matt lot a number we're We're of

grow think which I disc the So And but got think we've faster space general growth. is cervical in than runway. a flattish good large, in relative fairly market, I will the to artificial continue fairly

is the know, $XXX probably I think is number million antiquated. $XXX million market, disc to $XXX billion cervical million we $X.X probably think the you space So

near of in grow pandemic. a the grow the we growing, double all million fact $XXX share, think But have the to we cervical really estimate We things quantify the got the to runway more that market. to lot considering we those X% out coming at less look we still So of we've so digit. think we've now cervical that got than

technologies sort sort that implant you being, really appreciate guessing That's around you have change great. outcomes the quality opposed sort revised surgery know the to then of to sense made I the new a interbody as of implants, wanted answer systemic the that. a to but amount I'm think supporting this, I patient that fair going I follow maybe. technology things pipeline. forward of to systems follow-up I in a the comment And and and up new get going just of and are of, spine of

I of systems how as implant of is get, of to understand past, to But that. love designed up that support the with for door steady Just your opened know which which Pulse and well? spend to well you're flow R&D, continue significant in on kind kind is back a to particularly been also the it known things NuVasive has balancing out

has think there. done talked there's kind we've instrumentation, that and been always implant as still And one are X, no about, portfolio. By the Phase question. means, of a when and come I refresh lot fantastic think of great to continue sort great in, a finished to that's technology, Yeah, for I've known be we'll about work NuVasive you we

patient to the they opportunities, innovation a that But pathology what that are with patient unlimited pre-surgery the overall said does having that right I pursue. just and what and that see we happens the right post-surgery there's with R&D As And options parcel choosing and happens success there. the for phenomenal a part patient. job team believe presents procedure,

an I pain? we Are that the of you reported more which think outcomes, patient we the surgery you we can got post-surgery, on of patient a think there's was pathway and So not can is of that pain? clear as there's driven. the what happens, And a longer-term. ensure can't incorporate. There's in we still things can industry And measure. data can is what that and then its what of So we do. impact technology measure? there's clearly smarter A the lot get And its are to lot things that measure, there lot we we out in

in about measuring hone the So we our value really looking we to today. support us for. really add create up think that specifically, increase is patient. more shareholders. unmeasurable proceduralization something necessarily continuum. uniquely, and don't think – And sets doing that on for our system the outcome where us in providing broadly We're strategy things said what's looking focus areas and we continue for our those we the will we overall we're as And care in whole that's truly believe start like a as And Pulse patient we to to

That’s great. you. Thank

turn questions Barry Chris to the time. for further floor like closing to over at now would this no are comments. back There I

we're this invasive just really the surgery, with happy the in drive a Thanks, segments, of us I reiterate surgery. ultimately growth, that our on intelligent less leadership mentioned starting thanks underrepresented innovation growth. And here everyone roadmap quarter, just Maria. continue excited, to joining fact create And the to of our And our in continue point then taking technology want the Pulse. for international on delivering Matt, idea performance to with vectors those focus extending in share extending obviously more just multiple spine is today. I and parameters enable to as

you thank the for speaking And quarter. I forward in with that, look we your with all next again participation. So to you

This today's concludes conference.

may your You your time. for lines at disconnect participation. this Thank you