NuVasive, Inc. (NASDAQ:NUVA) Q4 2018 Earnings Conference Call - Final Transcript

Feb 20, 2019 • 04:30 pm ET


NuVasive, Inc. (NASDAQ:NUVA) Q4 2018 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the NuVasive Fourth Quarter and Full Year 2018 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I'd now like to turn the conference over to your host, Suzanne Hatcher, Vice President of Internal and External Affairs, thank you. You may begin.

Suzanne Hatcher

Great. Thank you, Matt. Welcome to NuVasive fourth quarter full year 2018 earnings call. The Company's earnings release, which we issued earlier this afternoon, is posted on our website, and has been filed on Form 8-K with the Securities and Exchange Commission. We've also posted supplemental financial information on the IR website to accompany our discussion.

Before we begin, I'd like to remind you, the discussions during today's call will include forward-looking statements, which are based on current expectations and involve risks and uncertainties, assumptions and other factors, which if they do not materialize or prove to be correct, could cause NuVasive's results to differ materially from those expressed or implied by such forward-looking statements. Additional risks and uncertainties that may affect future results are described in NuVasive's news releases and periodic filings with the Securities and Exchange Commission. NuVasive assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

This call will also include a discussion of several financial measures that are not calculated in accordance with the generally accepted accounting principles or GAAP. We generally refer to those as non-GAAP financial measures. These measures included our cost of goods sold, gross margin, sales, marketing and administrative expenses, research and development expenses, operating margin, non-GAAP earnings per share, free cash flow and EBITDA. Reconciliations to the most directly comparable GAAP financial measures may be found in today's news release and the supplementary financial information, which are accessible from the IR section of NuVasive's website.

Joining me on today's call are Chris Barry, Chief Executive Officer; Raj Asarpota, Chief Financial Officer; and Matt Link, President.

With that, I'd like to turn the call over to Chris.

Chris Barry

Thank you, Suzanne, and good afternoon, everyone. Earlier today, we reported fourth quarter and full year 2018 revenue results in line with preliminary revenue results we announced in January. On today's call, I'll provide an overview of full year 2018 results, then turn to 2019 key technology launches, plan investments and a high level commentary on financial guidance. Raj will add some -- then add some color on fourth quarter and full year 2018 performance and share detailed financial guidance and assumptions for 2019.

Let's start with 2018 revenue performance and profitability highlights. In 2018, global revenue grew 7.3% on a reported basis or 7.1% on a constant currency basis to $1102 million, on organic basis, revenue grew 5.1%. I continue to be encouraged by these growth rates against the backdrop of an overall U.S. spine market that has trended relatively flat but remained stable.

These results are primarily driven