Globus Medical Reports 60.6% Revenue Growth to $2.52 Billion for Fiscal Year 2024

Globus Medical, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total net sales reaching $2.52 billion, a 60.6% increase from $1.57 billion in 2023. This surge was primarily driven by the acquisition of NuVasive, which contributed substantially to both domestic and international sales. U.S. sales alone increased by 56.3% to $2.00 billion, while international sales rose by 79.9% to $519.3 million. The company’s net income for the year was $103.0 million, down from $122.9 million in the previous year, reflecting increased costs associated with the merger and operational expansions.

The NuVasive merger, completed on September 1, 2023, marked a pivotal strategic development for Globus, enhancing its product offerings and expanding its market reach. The merger allowed Globus to integrate NuVasive’s advanced surgical technologies, which are expected to drive future growth. In 2024, Globus launched 18 new products, including the ExcelsiusHub™ and ExcelsiusFlex™ surgical navigation systems, further solidifying its commitment to innovation in musculoskeletal solutions and enabling technologies.

Operationally, Globus Medical expanded its workforce to over 5,300 employees, reflecting a 32% increase in personnel costs, primarily due to the integration of NuVasive's team. The company also reported a significant increase in research and development expenses, which rose by 32% to $163.8 million, underscoring its focus on product development and innovation. The company maintained a direct or distributor sales presence in 66 countries, with international sales accounting for approximately 20.6% of total sales, indicating a strong potential for further geographic expansion.

Despite the positive sales growth, Globus faced challenges, including increased costs of sales, which rose by 88.9% to $1.04 billion, largely due to the merger-related inventory step-up and higher production volumes. The company also reported a notable increase in amortization expenses related to intangible assets acquired through the merger, which rose by 133.9% to $119.4 million. These factors contributed to a decrease in the effective tax rate to 14.7% from 25.7% in the previous year, reflecting the impact of various tax strategies and adjustments.

Looking ahead, Globus Medical expressed optimism about its growth trajectory, particularly with the anticipated benefits from the NuVasive merger and ongoing product innovations. The company plans to continue expanding its sales force and product offerings while managing operational costs effectively. Additionally, the recent announcement of a merger agreement with Nevro Corp. for approximately $250 million indicates Globus's strategy to further enhance its market position and product portfolio in the musculoskeletal device sector.