Globus Medical, Inc. (NYSE:GMED) Q1 2018 Earnings Conference Call - Final Transcript
May 02, 2018 • 04:30 pm ET
(Operator Instructions) And your first question comes from the line of Kaila Krum with William Blair.
Hey guys, thanks for taking our questions. So I mean, first, can you just talk through the training efforts you guys are putting into place? How many surgeons specifically have trained on the robotic system thus far? And then any anecdotal commentary around the stickiness of the implant revenue once the surgeon has converted to Globus implant?
David M. Demski
Hey, thanks, Kaila. We don't really share the number of surgeons we've trained. We have trained multiple surgeons at each location, I can share that with you. And then in terms of stickiness, I'm not aware of anybody utilizing the technology regularly that doesn't utilize Globus' screws on it. It works with other systems if you use K-wires, but the workflow is much better with the Globus screws, so that's what we're seeing in every situation.
Okay, that's helpful. Great. And then on trauma, I mean, clearly, robotics is driving the Emerging Tech contribution at least at this point. But trauma will be an increasingly important part of the story, I think, particularly as you launch the robotic application in that area. So can you talk us through sort of how you're thinking about timing of that launch? And perhaps just compare, contrast the potential opportunity with Robotics in Trauma versus spine.
David M. Demski
Sure. We really don't have a great idea of the impact of Robotics in Trauma because it's really on unproven ground. So our opportunity in trauma is really on the implant side, and that's where we are focusing our efforts in terms of hiring salespeople and building out the trauma portfolio. We think robotics or potentially navigation of some other types of technology could enhance that procedure or those procedures, but, that's not a key part of our strategy. It's really focused on making better implants and providing better service. And in terms of the impact, it's likely to have some impact the last half of this year, but it's really 2019 story from our perspective.
Okay, perfect. Thanks you.
David M. Demski
And your next question comes from Jonathan Demchick with Morgan Stanley.
Just wanted to start off on the guidance raise on the top line. I mean, I guess, it's really on both. I mean, the top and bottom line. You view the top line at least kind of what consensus was expecting and the bottom by really, I guess, more than what the EV raises were. So I mean as we kind of look forward over the next couple of quarters, is there anything that you thought happened, I guess, in this quarter that might not happen in the future? Are you investing more, which is driving away some of the upside than you would have planned going in initially? I mean, obviously, on the top line, it seems like there could be some lumpiness in robotic placements that's driving that delta. But any details there would be helpful.
Daniel T. Scavilla
Hey, Jon. Thanks for asking. So