NuVasive, Inc.

Good day, ladies and gentlemen, and welcome to NuVasive's second quarter 2022 earnings conference call. I would now like to introduce your host for today's conference call, Ms. Juliette Cunningham, Vice President of Investor Relations at NuVasive. Please go ahead, Ms. Cunningham.

Thank you. Good afternoon, everyone. Joining me today are Chris Berry, Chief Executive Officer, and Matt Harbaugh, Chief Financial Officer. Chris will provide an overview of NewBase's second quarter 2022 business results and trends, as well as innovation highlights. Matt will review our detailed financial results and full year 2022 outlook, and then we'll host a question and answer session. The earnings release, which we issued earlier this afternoon, is posted on the IR section of our website and has been filed on Form 8K with the SEC. We have also posted supplemental financial information on our IR website. As a reminder, this call is being recorded and an archive will be available on our website later today. Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements, which are based on current expectations and involve risks and uncertainties, assumptions and other factors, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. The factors that could cause actual results to differ materially are described in evasive news releases and periodic filings with the SEC. Except as required by law, we assume no obligation to update any forward-looking statements or information which speak as of their respective date. In addition, this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included in today's earnings release and the supplemental financial information, which are accessible from the IR section of Nuvasiv's website. And now I'd like to introduce Chris Berry.

Thank you, Juliette, and good afternoon, everyone. Earlier today, we reported second quarter 2022 financial results. On today's call, I will review our performance for the quarter, share our progress on delivering multiple vectors of growth, and provide an update on our innovation roadmap and how we believe it uniquely positions NuVasive to disrupt the future of spine surgery. After that, Matt will provide additional financial details on the quarter and commentary on the remainder of the year. Nuvasa delivered second quarter 2022 net sales of $310.5 million, an increase of 5.3% on a reported basis or 7.8% on a constant currency basis compared to the prior year period. In spite of a challenging backdrop of macroeconomic and market pressures, we saw procedural volumes increase over the prior year period and continued surge in demand for existing innovation and new product introductions. This is reflected in our performance in both the US and international markets. Within our international business, we delivered another strong quarter of net sales, resulting in double-digit growth on a constant currency basis led by Europe and Latin America. In Asia Pacific, where COVID-19 challenges were most acute, we saw growth in the region led by Japan, where we continue to see strong execution by our team. U.S. spinal hardware delivered low single-digit year-over-year growth, driven by continued growth in the X360 portfolio, led by the X-ALIF procedure, and strong demand for the C360 portfolio, led by the simplified cervical disc. Our U.S. surgical support business performed well in the second quarter, supported by pulse platform net sales. This was offset by a decrease in biologics, driven by a shift in case mix and lower attachment rates in the quarter. We're proud of our history as the leader in spine innovation, with Spine's most comprehensive portfolio of procedurally integrated solutions. As we continue to integrate our industry-leading procedures with Pulse, we're well-positioned for continued growth. In addition to new Pulse sites going live in the United States, we achieved numerous key milestones with Pulse in the second quarter, including over 100 Pulse cases in early sites both in the US and Europe, Our first Pulse case is in Italy, as well as our first Pulse case for pediatric scoliosis. Driving clinical utilization and adoption is key to the near and long-term success of Pulse. The Pulse software ecosystem integrates multiple technologies into a single platform and can be utilized in 100% of spine surgery cases. Unlike other enabling technology systems on the market, Pulse provides surgeons a seamless and efficient workflow through integrating 3D navigation, neuromonitoring, radiation reduction, imaging enhancement tools, patient-specific rods, and global alignment planning. A recent study published in Scientific Reports found that PULSE outperformed two other common imaging and navigation systems with respect to screw placement accuracy. Notably, PULSE with CO-SPIN from Siemens Healthineers was significantly more accurate than Stealth with ORM. We continue to make progress building out the broader Pulse ecosystem, and its extensible software architecture allows for the integration of current and future innovation. The future of spine care will not start and stop with intraoperative surgical procedures, and we remain committed to leveraging the power of Pulse to extend from preoperative to postoperative spine care. Another key strategic growth driver for our company is cervical. which delivered greater than 20% growth in the US for the third consecutive quarter. Surge in interest in the C360 portfolio, and specifically the simplified cervical disc, remains high. The simplified cervical disc achieved multiple milestones in the second quarter, including first cases in Switzerland, Austria, the UK, and most recently, Australia. We're taking share and will continue to do so with the industry's most clinically effective cervical total disc replacement. To further enhance the C360 portfolio, which currently features an invasive ACP system with advanced material science interbodies and the simplified cervical disc, we remain on schedule to introduce Reliant Cervical Discorder. Reliant Cervical, our next generation posterior cervical fixation system, is fully compatible with PULSE, and integrates with our Thoracolumbar Relined Portfolio. This creates a single, comprehensive, posterior fixation system to seamlessly treat pathology from the occiput down to the pelvis. With yet another new product introduction joining the C360 portfolio, we continue to target and take share in the $2.6 billion cervical subsegment. As the leader in less invasive spine surgery and in support of our multiple vectors of growth, we remain focused on new product introductions in international markets. In the $900 million anterior subsegment, surge in demand remains high for the X360 portfolio. Within our advanced material science portfolio, we continue to introduce our market-leading inner bodies in key markets around the globe. Modulus ALIF commercially launched in Australia in the third quarter of 2021. and we've seen significant growth in that market. Modulus XLIFT commercially launched in Japan in the second quarter, and we have performed nearly 500 cases to date. In addition, we received FDA clearance in Q2 for MODX XLIFT, our next generation expandable interbody for lateral procedures. Our R&D team continues to leverage our proprietary 3D printed porous modulus technology to other expandable inner bodies and procedures. And we remain on schedule to launch the new invasive tube system later this year. Our new tubular attractor system will be the company's first tube system and a key addition to our comprehensive portfolio of solutions to support less invasive posterior procedures. Late last year, we welcomed the return of Precise titanium products from Nuvasys specialized orthopedics in key global markets. Surge in demand and patient interest for Precise remains high, and we anticipate continuing to benefit from the product's return as we look to the back half of 2022. In support of international growth and to further our industry-leading clinical professional development program, we held a ribbon cutting for our new Singapore Experience Center in June. The new center features a dedicated pulse demonstration site to provide hands-on experience with the platform, educational training rooms with advanced cameras and streaming capabilities for virtual learning, and a technology rotunda with the ability for live and virtual demonstrations of our procedural offerings. Our vision is bold, to change a patient's life every minute, and our purpose remains unchanged, to transform surgery, advance care, and change lives. Like many companies around the globe, we're not immune to the challenging macroeconomic and market pressures. However, we are making progress on our commitment to deliver multiple vectors of growth through extending our leadership position in less invasive surgery, taking share in subsegments where we historically had underrepresented market share, delivering on our enabling technology roadmap, and driving continued growth in our international business. The future of spine surgery will not be solved with a new inner body or procedure. It will be defined by improving patient selection, selecting the right procedure in the most appropriate surgical setting, creating a patient-specific surgical plan, utilizing enabling technology for interoperative execution, and enabling postoperative outcomes management for the patient, the surgeon, and provider. As a company, this is our focus. We're building upon our industry leading procedurally integrated solutions and deep know-how to redesign the future of spine care. In closing, we're excited about the opportunity before us and believe that Nuvasiv will make surgery more intelligent. This in turn will fundamentally change the quality of care patients receive by providing smarter and more clinically validated tools to surgeons. Simultaneously, This will unlock value and support our progress against our vision to change a patient's life every minute. I'll now turn the call over to Matt to discuss the company's financial results in more detail.