Nuvasive (NUVA) 10 Nov 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the NuVasive Third Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to introduce your host for today's call, Miss. Juliet Cunningham, Vice President of Investor Relations at NuVasive. Please go ahead, Miss. 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, third 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 have also posted supplemental financial information.

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

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

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

leading an sale the growth On marginal international performance call quarter future specialised to innovation We the everyone. of strategy positions the growth and quarter, on specialised afternoon not commentary immune the led and business international quarter On quarter global sales orthopedics year-over-year a double-digit and for In to I were NuVasive increase growth prior by three our growth X% $XXX.X the sales sales financial sales a review of spinal XXXX the driven an reported the spine had Earlier us we hardware will uniquely XXXX the macroeconomic both compared in achieving the will basis. XXXX and and of increase CXXX of year. U.S. strong other delivered details cervical by [Indiscernible] to provide period. every financial Juliet procedure third for pressures; orthopedics. XX/X% million reported in portfolio by you higher and how by net remarks, basis adoption to companies, on After on our year portfolio. region orthopedics. NuVasive currency volume delivered additional Matt a third and $XXX.X Thank the third strategy net and today remainder on my our net deliver discuss spine the company’s fundamentals currency quarter the specialised of million review constant of good today’s grow results. we basis. recovery, led businesses. above quarter another business by from many double-digit net demand our continued performance U.S. higher NuVasive Like in continue market core on however, we’re our strong Led constant

most than key in This importantly, quarter any segment. our runway net this from we cervical quarter, delivered more significant portfolio still we procedural our have sales in And history.

growth NuVasive digit clinical third growth services, volume delivered U.S. surgical and recovery, and driven monitoring the Our quarter support disposables, and by platform neuro interruptive business procedure pulse year-over-year sales. mid-single in

on control can our strategy. cannot currency While foreign in how growth fluctuations we execute control we rates, we

to quarter, this market. performance sales outpace net our the spine by evidenced we As continue global

you, those I procedures. have the are both outside number cases core respective And with growth, extends procedure traditional integrated procedural surgery, an the we three, for spine. cervical continued segment of portfolios and a to within the surgical acuity attractive are to post-operative thoracolumbar in remind within XXX that seen our and segments, volumes, innovation. in higher well as surgeons volume Conversely, momentum Starting fundamental through increase core term approach, which significant recovery. October, represents not we patient. complex aggressively intelligent business number globalization. pathway In rebounded strategy, introducing acuity quickly. lower and target have continue procedurally the meaningful opportunities XXX one, specifically from three our which procedure of runway solutions pursuing positioned for choose pulse growth the comprehensive, care care leading We the in right platform fundamentals the growth, giving the strategies and our To solutions Fundamental outlined to given two, integrated that early fundamental our continues preoperative opportunities at XXXX right delivering day, core number the with our and will to have procedural our from supporting applied market flexibility long investor

strong have $XXX upon. million the foundation leader the remain we Within anterior build a to market segment, and

We procedural offerings well for XXXX our XFixation. to including as see high within core portfolio, continue and demand modulus as XLIF ALIF XALIF

early portfolio our In technology grow we interest will clinical begin We have continued portfolio, Mod-EX to science continued advanced Mod-EX. expect will include market in the to expandable company's material XXXX our XXXX implant bring which XLIF our evaluations, leading best-in-class next-generation portfolio.

$X.X portfolio, from PL segment, began pathology our market the billion PXXX To we tremendous evaluations end Mod-EX providing clinical that with driven month. in U.S. Within have runway solutions comprehensive posterior position. the prone this the

surgeons both NuVasive and the company's and tube today. applications is commercial recent launch decompression TLIF first system surgical less access tubular invasive In for access addition, the provides system the of

$X.X earlier, Turning our in to quarter cervical CXXX as mentioned sales. billion I delivered record segment a portfolio the net

industry's system Reline. addition fixation continue Reline CXXX total NuVasive the recent We each most ACP, Central most cervical industry's to portfolio, the cervical core our Simplify comprehensive with system technology differentiated to have and to enabling effective pulse platform plate extension and strategy is procedure. to on our the with market will take the growth thinnest most the the with with a the Cervical and integrating share we highly clinically Cervical, portfolio displacement the Disc, interior

While utility, procedures. that other pulse in deliver in spine in used clinical differentiates XXX% itself of can it technologies enabling limited market be

the customers the Our global experiencing this in and integration achieved our and benefits platform. and XXXX an center, pulse first surgery increased We've first are multiple case markets. with of our Australia pulse new including pulse case milestones ambulatory quarter,

monitoring, be global to the with neuro alignment posterior with philosophy Cervical. not plates, art planning, solutions procedurally the our pulse, Combining are giving on integrated comprehensive focused and and for customers neck imaging reflected importantly, And we with help and of cases the with portfolios reduction cervical designed just surgeons, and our was commercial solution bending. Surgeons enhancement, focus intelligently solutions. of XXX our platform. launch most surgeons navigation our That Reline Pulse the the Cervical optimal fusion delivers state the designed integrated laser deformity systems. Rod on of for implants Our From pulse need navigation standalone patients. patient and of technology remain to providers in complex ability Reline more in focused onset, is screws, radiation the furthering for recent support specific an

drive Outcomes better a that subjective, whether intended are orthopedic clinical lead when the the achieved fact To improve what patient, we outcome, second so, an provide patient of smart this industry need track identify challenged is inter for deliver surgery. strategy, procedure growth, make planning is desired standardization to preoperatively. intelligent whether Unlike data fundamental and will the clinical the been do real we other the based As and devices surgical candidate, our to variability has time To intelligent outcomes, to not for segments, to outcomes postoperatively. to outcome? technology enabling that pulse key the of is advanced right operatively technology unlocking foundation surgeons help spine enabling due will tools appropriate that information and the achieve surgeon it our patient's Integrate our in support outcomes. must and decisions effort. and focused vision available

a delivering change define the of to to pre-op post-op. surgery, next from intelligent every vision standard-of-patient our the help Our our will surgery life and care advanced minute, lives, on to guides care phase promise patient's By innovation. and change transform purpose of

to We in meaningful and to invest are innovation will continue drive spine surgery. investing of the future

aggressively growth. aligned journey market including outside traditional with of will spine, which pursuing for be growth opportunities, fundamental Our those our third is

current markets. team many Our our into market scaling technology specialized a actively this clinical data presence, company and companies that is of preoperative to of use the spine global Like with a specializes further immune example orthopedic is An and we're SMAIO, identifying and our planning. challenges. in partnership portfolios adjacent not recent other French-based that with novel expand technologies

across to positioned now However, financial call we procedural our short pulse deliver in through how market three continued transform global strategy, people and of in of our all and will Integrating deliver markets. and the back the are of key and helping Matt also we're commitments growth do of our around and of make durability surgery, the the discuss turn our company's solutions long to above to business, our segments. fundamentals future suffering results the technology of the growth, will in vectors world to strategy change I'll our supporting the more in continued the making extending with confident but driving term. surgeons, lives progress I'm from detail. multiple growth more intelligent, pain. surgery the over enabling XXX on we as millions NuVasive strategically

cover you well year drivers Thank to you XXXX our financial as update afternoon. I'm outlook. quarter full and our on and going third XXXX Chris good results as

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

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

compared reflect prior sales results Our quarter strong net year third period. the to

due compared million, increase XX.X% increase fluctuations. net year net currency period. Third third reported On net at X.X% to a $XXX.X the to momentum continued representing our XX.X% growth of prior the as a basis constant negative International year were to strong and quarter quarter prior impact X% sales showed period. million, on compared sales a $XX.X This the were compared sales constant reported year as an for a to quarter on of period. currency currency net foreign $XXX.X prior million, million $XX.X sales third includes the basis, worldwide

total sales, basis. approximately constant percentage XX% on As a international was a currency of net

business quarter of Our the growth third XXXX. double-digit demonstrated U.S. during

net Hardware were XX.X% over prior sales a the Turning now line. year U.S. our representing Spinal U.S. $XXX.X by period. million, increase to product net sales

the surgeon strong demand achieved experience Our net due portfolio record cervical by and its sales Simplify continues features. CXXX Cervical a the to to which in quarter led portfolio differentiated Disc,

due well as U.S. as portfolio growth In ALIF prior X.X% thoracolumbar sales million, net increase $XX year growth in business procedure Services a of period. Support was addition, by as for our were Growth XLIF. Biologics, biologics. procedural in an the was a by shifts our continued cervical towards fueled demand to in was cases, utilize decline which Modulus proportion of compared fewer stocking Pulse to which orders Surgical offset in as and well lower partially volume

to operating the Non-GAAP in million period. higher the gross was increase million third year-over-year for Moving $XXX.X profit with quarter largely volume. net sales The $XXX prior driven results. associated by year was to procedure compared

net in year margin was a compared non-GAAP XX.X%, As to gross XX.X% percentage period. flat essentially of prior the sales,

year was travel compared non-GAAP increase net costs sets from in higher increase period. prior as of quarter driven an depreciation in million, X.X% and in expenses XXXX areas expenses operating were the year-over-year The to inflationary by freight $XXX.X investments and impacts variable such instrument surgical on sales primarily costs. $XXX.X million Third

million was of the operating year basis of XXX quarter a of XXX $X.X and the third margin foreign and a net increased increase XX% million a of exchange expense sales, reported prior and XX.X%, of to exchange margin margin was unrealized operating would the foreign decrease from rates by of $X.X rates. quarter compared quarter. in increase non-GAAP for Fluctuations results. fluctuations expense for foreign margin expenditures operating Non-GAAP operating also in million losses $X.X on third XXXX sales improvement The in as currency in compared to exchange in mainly $X.X other material of period. yielded have point quarter third from prior Third rates efficiencies. R&D XX.X% currency was the non-GAAP primarily million tax year Current had the by quarter period. approximately using expense prior during lower the Non-GAAP due higher impact income our XXXX compared non-GAAP was non-GAAP negative commercial year-over-year was basis driven period. XXXX to an points currency expense The year to driven the net percentage quarter

loss of third of Our year quarter foreign rate against year ago percent fluctuations XX.X% effective the primarily we of continue the On dollar in U.S. XXXX compared On million, in basis, to $XX we or period, was Medical. exchange period. share XX.X% third non-GAAP operating weakening XXXX low net basis, share full XXXX and XXs were the income $X.XX expect to prior in approximately currency tax a loss rate quarter GAAP increase Australian diluted per unfavorable Simplify per year-over-year dollar prior the profit The $XX.X or associated $X.XX our of to the earnings effective growth. net non-GAAP third share reported of the range. quarter $XX.X to Included compared net by loss earnings of million the the a was per net for primarily the tax year $X million $XX.X with loss period. a share share per per or to diluted of compared non-GAAP $X.XX our of in $X.XX in earnings of year quarter of a related diluted million or reported the third of of GAAP million acquisition impacts results driven XXXX in income in we of diluted

balance with sheet. quarter the $XXX.X to ended Turning of cash the cash equivalents We third and million.

quarter sales $XX.X growth product to as an have $XX.X total launches. in flow prior primarily net leverage cash sales facility, in compared million we is as net We The collections and X.X. during well due within and addition, free surgical year the the and the in $XXX generated decrease was timing In of million debt our credit instrument sets to revolving investments undrawn quarter support period. continued new net to million

year full XXXX to on Moving guidance.

year-to-date along Our takes performance quarter fourth into our account with quarter, through updated third outlook the expectations.

experience macroeconomic impact updating date are We to of and of year to considered XXXX range outlook, we also to guidance expect updating year business net X.X%. similar and growth sales are have We our remainder net on through the X.X% follows: reported our Based on as full year. to pressures sales be experienced profit operating levels the full current our between

We of constant operating September XX. which this on share to now rates narrowing perspective, end expect year a expect ranges, currency basis we as are X.X% has to diluted top XXX per $X.XX from on noting we points impacting negatively a It that assumed currency operating is foreign our to net XX%, expectations basis. $X X.X% worsened a based the From basis XX.X% our guidance our be expected a non-GAAP between in sales growth share. earnings non-GAAP and approximately exchange exchange range constant XX.X% impact margin prior expect now foreign materially worth from the non-GAAP now per previously growth by are margin reduction currency of of XX% rates on of to guided. and full to We range to

navigate long-term work challenging our and diligently confident and near- we in remain to growth manage environment portfolio face. our position product the continue macro competitive business, in opportunities. We We our to and

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

Instructions] first question The Miksic Please from [Operator Barclays. comes ahead. go with Matt

Thanks so question. evening. the good much taking Hey for

on EPS one top line, on impacts some the of one So the of if and I on sort could, on margins.

-- hear I So the It's all think progress it and love it sounds to long winning impressive, finally. you're we're to cervical. I battle, on like a happy

I just, if between contribution on side follow-up Pulse. the or cervical you maybe of about have you And mentioned, I side, implant talk then little expectations thought could bit could. a what one and as were the versus I the for where P&L, If maybe difference sort the

me can now? Matt, you hear

We can, yes. Thank you.

is Listen, a was good your but I get really -- question for me I answer had first off. time,

to results. So great it. has us. pleased our engine try with very a I'll we're repeat Listen, Cervical for been growth

growth the to strong continues key sales That quarter with of for the for than consecutive quarters together put net a we now So deal more be we've model highest on growth. We're We Simplify. growth. had talked about very being led. this track

Now I'll kind of just up. backing

core you talked we would actually Pulse. think of are about in XXXX, about say, really and CXXX, the in talked really Investor grow cervical, growing across really, those our And all XXXX contributing. at of If we our strategies, core PXXX complex Day, about things I franchise growth with surgery ALIF, board.

efforts invest really more in have globalization Our just of PXXX is to then and our to do as continued work produce well the and introduction Pulse. started as to complex, getting

the few profile and pleased across we growth durability a talked board the it's So what ago. the we're run feel got and like with the weeks about

an Appreciate turn at had think into XXXX EPS. I if on could, the think margins, we FX sort worsening, and margins of sort Can your help that, all moment. had might FX the have weigh fact corner about on be impact this you what next how on we if should about to then just as of could about that's FX thinking you continue that. And for And margin for and year? Matt, start us underlying that to here expectations that assumptions at the in

talking me a to Yes, XXXX, perspective. but a bit XXXX let kind of this It's for be Matt. from you early frame about

us has much I fluctuations the top $X had hit a think we material quarter, line least more the in we've currency second And have in happened million currency. than seen from what the for prior is been on what at quarters.

was for go. currencies of worse predict of to we since gotten as the it August. out call hard came to where that They've going earnings And were so second kind quarter,

million $XX than worse a be looking about at couple think forecast. impact saw it the fourth thinking You we quarter. little as will million of based the currencies, And current out that in up probably and it we're on our actually a can third quarter over calculate we

So a for clearing, EPS the on strong come But despite as top was line, quarter the you it's on in the weighing the very operating bottom we and if us, headwind. mentioned, margin through line unfortunately. did and currency this above see consensus Chris

kind were impact of more quarter, to currency. and coming able fourth offset more So we as But it. material we're from seeing we're into the

provided. the the to on And Okay. hope appreciate you you Well again color on topline catch I congrats later. and

Thanks Matt.

The Jennings of Cowen. next go Please Josh question from ahead. comes

Cervical XXXX sounds understand Hi, better steps to good It making to integration performance questions. on this follow-up just essential there, there's U.S. on that business your Pulse. just in with there versus crossing want wanted you or obese side surgical mid-single-digit progress. to the or sequentially. there's I U.S. more aggressive in lot. if Thanks for some Thanks seasonality a understand finish we and Wanted a evening. the It's Support in anything just but XQ think changed anything the and assumption, just line wanted guys and training? thinking with about then the I taking XQ Chris, are the just an other integration. to just a ask, mis-modeled Is hardware base in getting software And seasonality just customer support quick on sequentially this understand better that business? I other the that like just

and there the to that as there's relationship I'll enhance applications sort Pulse, make we in second Matt there. or right. we navigation and take the integration with the the some continue handle cases. one, software if the the first I'll are both anomaly really integration, navigation one But Thanks, let instrumentation seasonality system All use Josh. of far of those lot a XXXX today, with as with the

upgrading inclusive doing just enhance you a to to ecosystem. we're of but iteration not applying the entire XXXX, not we're continue instrumentation And portfolio time. but Pulse that will, the the over our across be So our software if to only lot of with software implants proceduralization, overtime now and the rep the to

move Pulse. hopefully, of So system think we natural that add that increases And make investment the value with we've around sense? moving forward a the part I pays the Does of strategy had customers that over value forward our as time. clearly,

Definitely. Thanks.

NCS the year. quarter did Pull for question. year. quarter which in time It rough had thanks for Josh, last is stood Yes, better quarter for a us, surgical have the this support.

variability So go and much all, that some that's in did through. surgical notable put to But U.S. very not there. support all in

All Matt. it. right, thanks Appreciate

Thanks Josh.

Wells The Fargo. next Vik Thank from from Please question you. go comes Chopra ahead.

for Hey good the and me. questions. taking afternoon thanks for Two

appreciate And M&A. Chris. on of the for thinking all you've you First, margin, as pace margin second at more Matt, goals. think comments my is how But spoke Analyst are your about getting question right. about on you I guess, Day, your made about the I Chris, you expansion, aggressive the especially LRP

wanted you're Thank follow areas. if up that to you. what Just looking if actively M&A and and on for so,

out the plan. feel to in X. transient, hope whether progress On on We it's particular. good at on year look currency line plan cylinders. are. is, we what bottom your on trends, those firing in right? do see about try rolled international without margin cervical, the currency I is committed when math We're to about our The and the you that all next we're question, the at situation October look performance good So growth, to And that it's we underlying see fully really thing delivering trends

CXXX, XXXX, great job. Ryan XLIF, did of MOD-EX growth next with MOD-EX, and even a phenomenal to translation MOD-EX year A couple produce and you're progression our of We've that the and we'll is accelerated R&D and It's a PXXX bit that that core and beyond. of strategy. We've M&A the natural Yes, over the the got translating whole lot TL. seeing a technology today that into And lot complement product coming investment has Vik, to say lot little team would a our through kind I quarters XXXX, extend our of just the pandemic R&D a really out continue focus. talk into launches XXXX this of continue I growth about strategy. of done the

coming system out. We RELICE-C also the [ph] have

products the out. a seeing great in Simplify. lot of So recognize we're like we But also that coming power technologies

a complement things core strategy, continue capital to to it's also surgery whole So our intelligent we'll at technology like add out add NSO, a portfolio. like deploy building material to near into it. bit more but only the and look near explore about this not try NSO, talk driver continuing adjacencies other within build accelerate those strapline. and talked it, adjacency to a SMAIO to on us growth to consider to the And I we'll about to the We've for continue over little we'll that portfolio. continue

So really growing, have acquisitions on. really, those areas see opportunities. are been that three we fruitful, there I want excited, the to as Chopra? like support areas we're and focus But the continue done we is to a Mr. said, the simplifying capital we'll Is core follow-up we've

it. was that you. Thank No

Please question Thank Citibank. you. The go with Joanne comes from ahead. next Wuensch

evening. Good of bit what's going basis international to market because much little we so currency quite spend question. time Can in the on me. on on taking thank a for constant And you looked a the that strong

little at constant a was around X.X% It was believe reported, risk as XX%. currency I -- Joanne. it Thanks, over --

market recently we but Experience in of try example and markets. specific product Singapore. the Center We've lot our areas And the So strong before, would in that average around sort done brand if deployed we've diversification these I've a X years we've is the of Japan, like of net will, talked in just ago, work launches. not well. X, very shifted to really A working had that performance. expand you opened up where sort export about really we to say just good as gears presence is I strategy,

and to I out to execute. teams We the of teams those will believe, out in job the technologies continue going a great in do really our continue and commercial marketing right markets -- building

double quarter were all the cylinders hitting over with all growing really above So we last on markets digits.

quarters, might key where all two across have growth due consistent we the we or market situation others. for a up saw whack have particular hole one This a would markets. some quarter, the bit pretty factor had external in So or the say, made better to by a I you of might a covet other in like term,

globalization So with happy runway. for like And engine we the we're some very driving. good teams think We the growth lot. pretty is about success with us durable we are a think talked a that's

As product Or driving it this? a just is follow-up, is that's a broad-based? particular there

It's in like mind. to comes that's way a fairly portfolio think just about these meaningful broad-based. drive way. but XLIF We're There's But this. work our yet some to of generationally, only in probably the it really markets. that introducing cervical We've

So grow but the confidence we we're market to of not on get lag. introduce that I the opportunity have continue that's a only where can to bit technology because today, to new a

one So that's -- not it's specific.

I growing. Complex of some in Pulse growing. surgery into just we think like speak. markets is interior getting our being portfolio likely markets certain areas We're likely as in is cervical. these is introduced

generating So technology runway company a it's think with we're of I just general good to momentum a follow-up. as

Next question.

next Richard The question from Please comes Newitter of Truist. go ahead.

for Richard. Hi, thanks for Sam taking the is on question. This

as there can grow that how well. versus NSO international you the sort and any can one and contribution of qualify it U.S. break Just XQ? way the in core Is to more portfolio of sort down on

we then by driven From and rest perspective, the mid-double-digit NSO X an been would international business that our I in business it. Chris over years, last was zone the have and growth consistently very said Yes. answer low Spine recovery. X, to the underlying would core

The with next question comes RBC. Singh from go Shagun Please ahead.

Thank you much so taking for question. the

if us guidance with bit. I a you Just the can little guess, help

I'm about the is other $X.XX. So in the there majority you've assuming factors? EPS or at supply anything XX% any midpoint just like inflation else Is it lowered by export.

seen that to and freight the absorb third we the related to through have Shagun, oil we've impact been quarter oil costs. Yes. from able

okay done in We measures to we've some there. So we put contain costs could. where

well we and and the guidance from to difficult the to today but currency a quarter. earlier, third been challenge poised the why we're find through significant And and is adjusted currency has ourselves we set The successful so line that's challenge in we business impact the bottom for is said itself XXXX. up very But as and strong, ourselves overcome, us. been for yes, is

question David ahead. with comes from Company. Please Needham go next & The Saxon

a a Hi, questions. the for taking good question. thanks follow-up afternoon Maybe on previous and

M&A, ask just you're any over how imagine I'll for dilutive wondering $XXX we Matt, rate. you're higher that's other? a One, then thinking Just And difficult update margin make in how my coming more I'd due to million about June? appetite it about the maybe second maybe on operating upfront, to LRP your the have refi target? your would at you prioritizing should think achieve or

So full about million. thinking much. down you're any versus paying the thoughts portion a so on refinancing Thanks how $XXX

dilution Thanks into Having I how never the committed actually in take question. are that I'll one. growth expansion op margin company. for to believe on of to and the the fits hard we fast said we first a to David, rule the the try margin story. Listen, make that, do relation innovation

So technology and about, type weeks non-dilutive XXXX. but period. talked that XX create committed, talked few synergize disruption Could scenario some it range to up to definitely in over that we're can term, least at some a the short ago strapline the neutrality have favor we we as get that to XX of in or we drive the a about ultimately we

talked. as So contemplating that we I'm

I it earlier that talk I game comes a thinking But about it. mentioned think that's and we're come is in changer. question. those Now I'll today the categories something clearly, in about about back how

you're see you where getting return always deal Yes. We nice like X acquisition. a the within year don't of a simplify

notes. convertible the on question your to Turning

We continue to monitor the market.

talking we're hopeful to hand. clearly But cash with thinking as you And development and time that $XXX to cover about imagine, $XXX transaction, business that through navigate million. that I from we'll the time solve spend Chris the debt. joke a how and looking a if doing million we'll said be to I the we while can transaction be time, might As I'm be we'll of need on sensible be, lot We’ve a revolver bankers. with

The Baird. go ahead. Jeff next Please from comes Johnson question of

just I maybe to again. two follow-ups, the guidance on So want Matt, just understand.

X maybe there your sounds on model, is top of to the bit? to FX that little flown EPS, And the quarter the of range all the and FX. through answer the a it reduction $X.XX then takedown. like has my $X.XX of $X.XX In point guidance the So guidance that the adjustment the you end what just between year, constant second midpoint third quarter changed currency tighten for made

just reduction the is math yours. to my of guidance FX to all the trying else compare that guys. there Was Thanks to EPS it in besides $X.XX FX? midpoint or So anything

Yes, you bet.

of to the as November So above to We of wanted closer the the to getting end fourth likely million from see on we're calculated it's based quarter, we the currency kind be of impact as the and ranges and to obviously, end the year, $XX X. we're October. clear narrow in

a key So that for of some the EPS and number that macroeconomic just the the matter. is have Thanks there adjustment the for There certainly, out a have. currency uncertainties operating income room from driver it's the there But question. perspective. we is we in precious for

The next Jefferies. Taylor question comes with Please from ahead. go Matt

I for the you on market guess I which to bit the just comes the looking ask questions. remarks. want prepared in thank Hi, my it's question a about you taking you're at touched you dynamics, wide. QX from range,

do QX you QX? I over lower could wondering seeing put that range. any And in give the what you variables what main early you if in think would the and are So was us higher you're on update

we've -- Yes, in early. that shot at seen August in volumes into mean saw sluggish I'll October. I kind of we July, improves a better improving a take the September, little

last along for out show the to couple I've want some of normal all see As years, trend something and we seasonality. said

down. of grow an growth pick to lot and also are allows of back of now actually higher higher us cases the you're These normal but slowed to generate not QX, that lower in dynamics strong cases seeing really think to And take flattish positioned lot a only acuity governing cases. clearly if but revenue. this. to really up volume, the has I away, positions seeing be some in well potential were much to but is of the If be the I'm lower that there's those hope cases us generally translates a digit into back acuity seasonality, -- going we're opportunity to power clear where upswing some cases. of we'll acuity those a I'd as lower come duty more our A the versus then seeing upside. very acuity in we kind And into market, double consider sorry, we We're aren't acuity in very So differentiation types complex transitions. take what velocity what also get --

months being position influencing. months times last lower all things more some those about complex up mix, And QX, reasons are talked patients differential still can likely the improved about. block the I There probably but couple take considered, These about into first just in get lot dynamics But feel of very the you about, our to of are some through. of that talking more more seeing the for that volume time. are of that be could better, point we're of scenario couple cases, the I some used or do good talking I a acuity of as over would I'm in patient cases, cases daylong what cases

I'd typically to thing other be it strongest towards one and remind only quarters fourth The weighted you, December. of tends quarter our is our

December gets kind bigger. October the gets bigger is of month, So November smallest and then

So we're counting on good volume throughout.

you Thank guys.

ahead. comes question go JPMorgan. with next Allen from The Gong Please

I Hi, for team of the question. the top a taking one guidance. side the line organic just thanks had quick on

biologics You lowered apologies equation. seems really you of the it asked on side half shortfall bottom the quarter the of that the this was like if already. and But to the have this main range

there. main lower related again in should of think that once the biologics utilization as you So and we being essentially And of the on reliance cervical the to quarter? growing of fourth driver shortfall that

going of more think forward? should you'll that a challenge we facing So be this durable as

Cervical, the spine I we're market. growth that with market growth rates, the is, a say pretty Pulse other some businesses, biologics and Look, growing significantly above would goes whereas of much rates

the line huge we've probably driver significant fourth adjusted of is yes, more bottom on in in and earlier, I'd so we're talked a needle a but saw conservative currency from why say net part the perspective. we what the quarter, quarter third biologics guidance. sales we the not a And really about

question. Next

O'Brien question Matthew of Piper comes Please ahead. next go Sandler. The from

Thanks right. for my question. Al taking

U.S. hardware business. about want spinal to talk So the I

of quarter, a business at of any cervical charge clearly, You pure-play age. grew there good can a is leading had harder faster comps but some you I think, of out have the did spine comps. The and them much have than the the companies couple you easiest

the would you as on lumber important competitors? some there and exposed of we're think getting still seeing Thanks. maybe a and based lumbar the to then you that business don't is bit market somewhat So guys little dynamics that your doing launch for tube but people XXXX, imply the I business far PXXX it better stabilizing from which realize product, talk back fine, about that's what you growth and even as an

Investor let to our clarify. consistently Matt, just comps one, in if But say, last you the Yes, all me we of companies the other look we're and of about reminder I this in what growth. the XLIF. continue our quarters, the majority competitive interior including leadership and ourselves several peers. the is there. strong I we've We're outboard compare we've I'll That's of can't out markets And over now segment. area seeing a in. in market XXXX the got leader ALIF, is the done that what talked complementing But in Day there probably generate a protect is we to

in still further getting growing general, PXXX clearly you really over we because pressures the in started. if that market really we TLIF the us and system the in taking that's think at are the market look and market segment growth in likely. to next will A just lot a surgery. of MOD-EX That's we're shot so, put TL. tractor months or give take the the XX launching go side, down that midline and a posterior a share technology segment the the tubular to If we're the entire So we that are flat Cervical growth in leading on in of outpacing market. interior declining we're or share,

diversified in board spine market we up. launches segments -- the key and today our coming So the we with growth from across key U.S. are feel seeing within the perspective,

coming So or cervical, to we're of up hard it. posting what at but in There's of But only of to launches now next kind the XX%, growth well characterize take look We the segment. continue market. I about other. X of the we're in Clearly, way XX or share. entirety a the not the key look positioned the in like you in well feel year, very two the maybe fruition at the growth can flares, And lot numbers you posterior years it's today good XX%. to positioned one to interior, kind make and the if spine feel

Stifel. go with ahead. The next question comes Blackman from Please Matthew

simplified for few fire just upfront afternoon got I'll questions. here. a them everybody. taking Hi, good my questions. 've Thanks I rapid

the two, CXXX demand now? an The do meet are is strength You wondering able question. first, full have are Simplify portfolio through. then that pull-through? product, Number supply? pulling the if broadly to to you you seeing fully And talked anchor you in So last obviously

I visible or on from Can and think in just opportunities XXXX you Analyst these be timing geographies? could XXXX magnitude Day, Thanks. us new new Simplify. at contributors the and mentioned remind whether for they geographies you of

me job. has just thanks but demand, yes, done meat kind great Matt, yes the for let the And it's a on as all, Yes, team of of sort as questions. unpack far on

Coast West a does team in Our [ph] job. great

done great chain leaders have a job. Our supply

demand We're grow. a other areas through. aspects So we some the to pull-through are well seeing over perspective, bleed and to seeing we introduce and introduction meeting connectivity From to having our like now as as portfolio pull and thoracolumbar. cervical are continues simplify of demand and

So taking it's a there still, that's but days, halo effect early like I said, is there shape.

geographies key new set of key as as some is delayed. demand, function market been meeting We're as getting go far side, As out not has those European some and a been the talked chain fast Australia sets into instrumentation the of likely we've as all supply about the well geographies. it's gone markets. to of all as set we're we'd like we've to a as going on but in of

the growth our year. it about would be is coming the material most U.S. conferences they're CPDR I markets say, are information hearing on surgeons are contributor But next market overly growth the of clamoring, to not the So same will Simplify. year, the these clearly, in a attending excited and this

its advantage just stool in cervical just said I the to your portfolio of to the positioned yes would well reinforce. now terra the we're in of cTDR, RELINE-C, kind ACP much And of this opportunity take I simplified excited before, the third the we disk now like play, the entirety, of is We're pretty also to the about leg market. the launching So see which questions. post all continue fixation, also

Thank you Chris.

would our like concludes closing remarks. to over question-and-answer any for back session. to Barry I This the Chris turn conference

the Thank deliver around call today. create Thank continued surgeon surgery our providers, speaking look to and you forward drive that next continue our patients growth earnings thanks on to all, in for strategy for importantly, our core care market I partners, you Guided participating we'll and Intelligent all to by quarter. growth. with again fundamentals you. world. health value the most and opportunity

The conference presentation. has now concluded. Thank attending today's for you

disconnect. may You now