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Globus Medical Reports Third Quarter 2023 Results

AUDUBON, Pa., Nov. 07, 2023 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced its financial results for the quarter ended September 30, 2023. The merger with NuVasive, Inc. was completed on September 1, 2023 and results presented within include NuVasive, Inc. results from that closing date.

  • Worldwide net sales were $383.6 million, an increase of 51.0%.
  • GAAP net income for the quarter was $1.0 million
  • GAAP diluted earnings per share (“EPS”) was $0.01 and non-GAAP diluted EPS was $0.57
  • Non-GAAP adjusted EBITDA was $112.9 million, or 29.4% of net sales
  • Stand-alone Globus Medical net sales were $281.2 million, an increase of 10.7%

“The third quarter of 2023 was a defining moment for Globus Medical, as we completed our planned merger with NuVasive to create the most innovative company in the spine industry. The combination of Globus Medical and NuVasive brings together two leading companies with a shared vision to improve the lives of more patients around the globe. We are now focused on executing our integration plan over the next several months to unlock the growth engine associated with a combined culture of unparalleled product development and unsurpassed customer service,” said Dan Scavilla, president and chief executive officer of Globus Medical. “Our long-term business plan remains unchanged as we move forward to help surgeons and healthcare providers deliver better care for patients with musculoskeletal disorders. We are looking forward to the combined organization transforming the future of surgery.”

Worldwide net sales for the third quarter of 2023 were $383.6 million, an as-reported increase of 51.0% over the third quarter of 2022.  U.S. net sales for the third quarter of 2023 increased by 42.5% compared to the third quarter of 2022. International net sales increased by 100.2% over the third quarter of 2022 on an as-reported basis, and an increase of 96.0% on a constant currency basis. Excluding business from the newly acquired NuVasive, worldwide net sales increased by 10.7%, U.S. net sales increased by 8.1% and, and international net sales increased by 25.5%, compared to the third quarter of 2022.

GAAP net income for the third quarter of 2023 was $1.0 million, a decrease of 97.9% over the same period in the prior year. Diluted EPS for the third quarter was $0.01, compared to $0.47 for the third quarter of 2022. The decrease in both GAAP net income and Diluted EPS were primarily driven by the addition of NuVasive results and acquisition related costs incurred in the quarter since the closing date of the merger. Non-GAAP diluted EPS for the third quarter of 2023, which excludes merger-related costs among other costs, was $0.57, compared to $0.50 in the third quarter of 2022 an increase of 14.7%.

Net cash provided by operating activities was $50.5 million, and non-GAAP free cash flow was $29.0 million for the third quarter of 2023.

2023 Annual Guidance

The Company today increased its full year fiscal 2023 revenue guidance to $1.55 billion, up from $1.125 billion, and reaffirmed non-GAAP fully diluted earnings per share guidance of $2.30.

Conference Call Information

Globus Medical will hold a teleconference to discuss its third quarter 2023 results with the investment community at 4:30 p.m. Eastern Time today. Participants may access the conference call live via webcast on the Investors page of Globus Medical’s website at

To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The audio archive will be available after the call on the Investor page of the Globus Medical website.

About Globus Medical, Inc.

Based in Audubon, Pennsylvania, Globus Medical, Inc. was founded in 2003 by an experienced team of professionals with a shared vision to create products that enable surgeons to promote healing in patients with musculoskeletal disorders. Additional information can be accessed at

Non-GAAP Financial Measures

To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), management uses certain non-GAAP financial measures. For example, non-GAAP Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation expense, provision for litigation, acquisition related costs/licensing and acquisition of in-process research and development, merger and acquisition related costs/licensing, certain foreign currency acquisition-related impacts, and gains and losses from strategic investments, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. Our management also uses non-GAAP Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Provision for litigation represents costs incurred for litigation settlements or unfavorable verdicts when the loss is known or considered probable and the amount can be reasonably estimated, or in the case of a favorable settlement, when income is realized. Acquisition related costs/licensing represents the change in fair value of business-acquisition-related contingent consideration; costs related to integrating recently acquired businesses, including but not limited to costs to exit or convert contractual obligations, severance, and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees, as well as one-time licensing fees. Acquisition of in-process research and development represents the expensing of acquired assets with no alternative future use and related fees. We also adjusted for certain foreign currency impacts related to the acquisition costs and gains/losses on strategic investments within other assets as we believe these impacts are not a measure of our operating performance.

In addition, for the period ended September 30, 2023 and for other comparative periods, we are presenting non-GAAP net income, and non-GAAP Diluted Earnings Per Share, which represent net income and diluted earnings per share excluding the provision for litigation, amortization of intangibles, acquisition related costs/licensing, acquisition of in-process research and development, merger and acquisition related costs/licensing, certain foreign currency impacts, gains and losses from strategic investments, the impact of dilution attributable to the Convertible Notes, and the tax effects of all of the foregoing adjustments. We also present Non-GAAP gross profit, which excludes the impacts of any inventory acquisition-related costs within cost of goods sold. The tax effect adjustment represents the tax effect of the pre-tax non-GAAP adjustments excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the consolidated effective tax rate on a GAAP basis, applied to the non-GAAP adjustments, unless the underlying item has a materially different tax treatment, in which case the estimated tax rate applicable to the adjustment is used. We believe these non-GAAP measures are also useful indicators of our operating performance, and particularly as additional measures of comparative operating performance from period to period as they remove the effects of the foregoing items, which we believe are not reflective of underlying business trends. Additionally, for the period ended September 30, 2023 and for other comparative periods, we also define the non-GAAP measure of free cash flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Furthermore, the non-GAAP measure of constant currency net sales growth is calculated by translating current year net sales at the same average exchange rates in effect during the applicable prior year period. We believe constant currency net sales growth provides insight to the comparative increase or decrease in period net sales, in dollar and percentage terms, excluding the effects of fluctuations in foreign currency exchange rates.

Non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow and constant currency net sales growth are not calculated in conformity with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow and constant currency net sales growth may differ from that of other companies and therefore may not be comparable.

Safe Harbor Statements

All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with the integration of, and our ability to integrate the NuVasive business successfully and to achieve anticipated synergies, health epidemics, pandemics and similar outbreaks, including the COVID-19 pandemic, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, and other risks. For a discussion of these and other risks, uncertainties and other factors that could affect our results, you should refer to the disclosure contained in our most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, including the sections labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking Statements,” and in our Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission. These documents are available at Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof.


 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands, except per share amounts)2023 2022 2023 2022
Net sales$ 383,639  $254,148  $ 951,942  $748,345 
Cost of sales  135,390   65,497    282,688   193,134 
Gross profit  248,249   188,651    669,254   555,211 
Operating expenses:           
Research and development  29,329   18,701    71,758   53,508 
Selling, general and administrative  156,206   106,576    398,691   314,042 
Provision for litigation, net  2,924       184   2,341 
Amortization of intangibles  13,761   4,324    22,909   13,229 
Acquisition related costs  45,625   (652)   52,693   (1,832)
Total operating expenses  247,845   128,949    546,235   381,288 
Operating income/(loss)  404   59,702    123,019   173,923 
Other income/(expense), net           
Interest income/(expense), net  7,920   3,899    22,711   8,918 
Foreign currency transaction gain/(loss)  (5,314)  (2,210)   (5,649)  (3,708)
Other income/(expense)  (475)  74    318   1,770 
Total other income/(expense), net  2,131   1,763    17,380   6,980 
Income/(loss) before income taxes  2,535   61,465    140,399   180,903 
Income tax provision  1,537   14,034    32,560   40,799 
Net income/(loss)$ 998  $47,431  $ 107,839  $140,104 
Other comprehensive income/(loss), net of tax:           
Unrealized gain/(loss) on marketable securities  2,641   (4,380)   6,979   (18,239)
Foreign currency translation gain/(loss)  (2,310)  (2,478)   (1,085)  (7,215)
Total other comprehensive income/(loss), net of tax  331   (6,858)   5,894   (25,454)
Comprehensive income/(loss)$ 1,329  $40,573  $ 113,733  $114,650 
Earnings per share:           
Basic$ 0.01  $0.48  $ 1.03  $1.39 
Diluted$ 0.01  $0.47  $ 0.98  $1.36 
Weighted average shares outstanding:           
Basic  113,537   99,652    104,762   100,638 
Diluted  115,245   101,417    110,058   102,789 


 September 30, December 31,
(In thousands, except share and per share values)2023 2022
Current assets:     
Cash and cash equivalents$ 279,620  $150,466 
Short-term marketable securities  189,314   295,592 
Accounts receivable, net of allowances of $9,242 and $4,724, respectively  494,112   213,247 
Inventories  904,977   298,981 
Prepaid expenses and other current assets  47,574   20,997 
Income taxes receivable  1,740   4,061 
Total current assets  1,917,337   983,344 
Property and equipment, net of accumulated depreciation of $387,816 and $343,036, respectively  606,911   243,729 
Operating lease right of use assets  94,831   5,988 
Long-term marketable securities  275,958   495,852 
Intangible assets, net  1,261,617   63,574 
Goodwill  1,122,428   197,471 
Other assets  69,478   37,323 
Deferred income taxes  7,315   48,845 
Total assets$ 5,355,875  $2,076,126 
Current liabilities:     
Accounts payable$ 86,934  $36,101 
Accrued expenses  221,670   92,169 
Operating lease liabilities  13,385   2,536 
Income taxes payable  34,402   990 
Business acquisition liabilities  54,339   13,308 
Deferred revenue  17,992   14,100 
Total current liabilities  428,722   159,204 
Business acquisition liabilities, net of current portion  75,627   54,950 
Operating lease liabilities  99,927   3,475 
Senior convertible notes  409,723    
Deferred income taxes  132,191   1,779 
Other liabilities  22,400   10,345 
Total liabilities  1,168,590   229,753 
Class A common stock; $0.001 par value. Authorized 500,000,000 shares; issued and outstanding 118,169,712 and 77,762,282 shares at September 30, 2023 and December 31, 2022, respectively  118   78 
Class B common stock; $0.001 par value. Authorized 275,000,000 shares; issued and outstanding 22,430,097 and 22,430,097 shares at September 30, 2023 and December 31, 2022, respectively  22   22 
Additional paid-in capital  2,858,091   630,952 
Accumulated other comprehensive income/(loss)  (18,736)  (24,630)
Retained earnings  1,347,790   1,239,951 
Total equity  4,187,285   1,846,373 
Total liabilities and equity$ 5,355,875  $2,076,126 


 Nine Months Ended
 September 30,
(In thousands)2023 2022
Cash flows from operating activities:     
Net income$ 107,839  $140,104 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization  73,571   51,342 
Amortization of premium (discount) on marketable securities  730   4,446 
Write-down for excess and obsolete inventories, net  6,700   5,890 
Amortization of inventory fair value step up  19,065    
Stock-based compensation expense  40,297   24,303 
Allowance for doubtful accounts  4,284   (396)
Change in fair value of business acquisition liabilities  4,431   (2,043)
Change in deferred income taxes  (45,990)  (17,014)
(Gain)/loss on disposal of assets, net  1,466   241 
Payment of business acquisition related liabilities  (2,370)  (2,021)
(Increase)/decrease in:     
Accounts receivable  (36,953)  (46,200)
Inventories  (58,978)  (48,650)
Prepaid expenses and other assets  (1,280)  (6,866)
Increase/(decrease) in:     
Accounts payable  (7,952)  10,407 
Accrued expenses and other liabilities  20,579   1,660 
Income taxes payable/receivable  13,386   (710)
Net cash provided by/(used in) operating activities  138,825   114,493 
Cash flows from investing activities:     
Purchases of marketable securities  (100,643)  (322,100)
Maturities of marketable securities  214,430   239,126 
Sales of marketable securities  219,987   89,978 
Purchases of property and equipment  (55,393)  (55,707)
Acquisition of businesses, net of cash acquired and purchases of intangible and other assets  (296,028)  (1,175)
Net cash provided by/(used in) investing activities  (17,647)  (49,878)
Cash flows from financing activities:     
Payment of business acquisition liabilities  (5,908)  (5,288)
Proceeds from exercise of stock options  11,357   26,228 
Repurchase of common stock    (144,493)
Net cash provided by/(used in) financing activities  5,449   (123,553)
Effect of foreign exchange rates on cash  2,527   92 
Net increase/(decrease) in cash and cash equivalents  129,154   (58,846)
Cash and cash equivalents at beginning of period  150,466   193,069 
Cash and cash equivalents at end of period$ 279,620  $134,223 
Supplemental disclosures of cash flow information:     
Income taxes paid, net$ 65,171  $58,301 
Non-cash investing and financing activities:     
Equity issued in conjunction with the NuVasive merger$ 2,153,860  $ 
Accrued purchases of property and equipment$ 5,971  $5,341 

Supplemental Financial Information

Net Sales by Product Category:

 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands)2023 2022 2023 2022
Musculoskeletal Solutions$347,460  $230,060  $855,922  $681,704 
Enabling Technologies 27,661   24,088   87,502   66,641 
Neuromonitoring Services 8,518      8,518    
Total net sales$383,639  $254,148  $951,942  $748,345 

Liquidity and Capital Resources:

 September 30, December 31,
(In thousands)2023 2022
Cash and cash equivalents$279,620  $150,466 
Short-term marketable securities 189,314   295,592 
Long-term marketable securities 275,958   495,852 
Total cash, cash equivalents and marketable securities$744,892  $941,910 

The following tables reconcile GAAP to Non-GAAP financial measures.

Non-GAAP Adjusted EBITDA Reconciliation Table:

 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands, except percentages)2023 2022 2023 2022
Net income/(loss)$998  $47,431  $107,839  $140,104 
Interest (income)/expense, net (7,920)  (3,899)  (22,711)  (8,918)
Provision for income taxes 1,537   14,034   32,560   40,799 
Depreciation and amortization 37,388   17,578   73,571   51,342 
EBITDA 32,003   75,144   191,259   223,327 
Stock-based compensation expense 9,877   8,314   27,418   24,303 
Provision for litigation, net 2,924      184   2,341 
Acquisition related costs/licensing 64,883   (652)  72,067   (938)
Net (gain) loss from strategic investments 268      268    
Non-cash acquisition-related foreign currency impacts 2,898      2,898    
Adjusted EBITDA$112,852  $82,806  $294,094  $249,033 
Net income/(loss) as a percentage of net sales 0.3%  18.7%  11.3%  18.7%
Adjusted EBITDA as a percentage of net sales 29.4%  32.6%  30.9%  33.3%

Non-GAAP Net Income Reconciliation Table:

 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands)2023 2022 2023 2022
Net income/(loss)$998  $47,431  $107,839  $140,104 
Provision for litigation, net 2,924      184   2,341 
Amortization of intangibles 13,761   4,324   22,909   13,229 
Acquisition related costs/licensing 64,883   (652)  72,067   (938)
Non-cash acquisition-related foreign currency impacts 2,898      2,898    
Net gain/(loss) on strategic investments 268      268    
Tax effect of adjusting items (20,201)  (839)  (23,260)  (3,280)
Non-GAAP net income/(loss)$65,531  $50,264  $182,905  $151,456 

Non-GAAP Gross Profit Reconciliation Table:

 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands)2023 2022 2023 2022
Cost of goods sold$135,390  $65,497  $282,688  $193,134 
Acquisition related inventory amortization in COGS (19,065)     (19,065)   
Adjusted COGS$116,325  $65,497  $263,623  $193,134 
Adjusted gross profit 267,314   188,651   688,319   555,211 
Adjusted gross profit as a percentage 69.7%  74.2%  72.3%  74.2%

Non-GAAP Diluted Earnings Per Share Reconciliation Table:

 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands)2023 2022 2023 2022
Diluted earnings per share, as reported$0.01  $0.47  $0.98  $1.36 
Dilution attributable to Convertible Notes       0.03    
Provision for litigation, net 0.03         0.02 
Amortization of intangibles 0.12   0.04   0.22   0.13 
Acquisition related costs/licensing 0.56   (0.01)  0.68   (0.01)
Net (gain) loss from strategic investments 0.00      0.00    
Non-cash acquisition-related foreign currency impacts 0.03      0.03    
Tax effect of adjusting items (0.18)  (0.01)  (0.22)  (0.03)
Non-GAAP diluted earnings per share$0.57  $0.50  $1.72  $1.47 

*amounts might not add due to rounding

Non-GAAP Free Cash Flow Reconciliation Table:

 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands)2023 2022 2023 2022
Net cash provided by operating activities$50,484  $32,920  $138,825  $114,493 
Purchases of property and equipment (21,534)  (11,983)  (55,393)  (55,707)
Free cash flow$28,950  $20,937  $83,432  $58,786 

Non-GAAP Net Sales on a Constant Currency Basis Comparative Table:

 Three Months Ended Reported Currency
Impact on 
 September 30, Net Sales Current Net Sales
(In thousands, except percentages)2023 2022 Growth Period Net Sales   Growth
United States$309,315  $217,024   42.5% $   42.5%
International 74,324   37,124   100.2%  1,565   96.0%
Total net sales$383,639  $254,148   51.0% $1,565   50.3%

 Nine Months Ended Reported Currency
Impact on 
 September 30, Net Sales Current Net Sales
(In thousands, except percentages)2023 2022 Growth Period Net Sales   Growth
United States$788,924  $638,707   23.5% $   23.5%
International 163,018   109,638   48.7%  (1,471)  50.0%
Total net sales$951,942  $748,345   27.2% $(1,471)  27.4%

Brian Kearns
Senior Vice President, Business Development and Investor Relations
Phone: (610) 930-1800

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