Globus Medical: A Strong Q3 and Positive Outlook for the Remainder of 2024

Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, has announced its financial results for the third quarter ended September 30, 2024, and provided guidance for the full year. The company reported strong growth in net sales and earnings, driven by the integration of NuVasive and increased volume of spine product sales and enabling technology products and services.

Worldwide net sales for the third quarter of 2024 were $625.7 million, an as-reported increase of 63.1% over the third quarter of 2023. U.S. net sales for the third quarter of 2024 increased by 60.3% compared to the third quarter of 2023. International net sales increased by 74.8% over the third quarter of 2023 on an as-reported basis, and increased by 76.2% on a constant currency basis. Net Sales increases were driven by the addition of NuVasive, as well as increased volume of spine product sales and enabling technology products and services.

GAAP net income for the third quarter of 2024 was $51.8 million, an increase over the same period in the prior year. Diluted EPS for the third quarter was $0.38, compared to $0.01 for the third quarter of 2023. The GAAP net income increase was primarily driven by strong sales, as well as a decrease in acquisition related costs in the current period as compared to the prior period. Non-GAAP diluted EPS for the third quarter of 2024, which excludes, among other costs, both acquisition-related and restructuring costs, was $0.83, compared to $0.57 in the third quarter of 2023, an increase of 45.2%.

Net cash provided by operating activities was $203.7 million, and non-GAAP free cash flow was $161.7 million for the third quarter of 2024.

As of September 30, 2024, the company no longer includes acquisition of in-process research and development as an adjustment to non-GAAP Adjusted EBITDA or non-GAAP net income.

For the full year 2024, the company raised its guidance for revenue to be in the range of $2.49 to $2.50 billion, and non-GAAP fully diluted earnings per share to be in the range of $2.90 to $3.00. The revised non-GAAP fully diluted earnings per share guidance includes a $0.09 impact of no longer adjusting for the acquisition of in-process research and development.



In summary, Globus Medical's strong third quarter results and positive outlook for the remainder of 2024 reflect the company's successful integration of NuVasive and increased volume of spine product sales and enabling technology products and services. The company's focus on driving sales growth, launching new products, and executing integration plans has contributed to its strong financial performance. As the company continues to execute on its business objectives, investors can expect to see continued growth and innovation in the musculoskeletal solutions market.