The company reported a 10.3 percent rise in second-quarter revenue and 10 percent increase in gross profit.
"NuVasive delivered better than expected operating profitability and earnings per share results in the second quarter 2017, along with continued strength across our International business, growing at more than 20 percent for the third quarter in a row," said Gregory T. Lucier, chairman and CEO of NuVasive. "In addition, several of our industry-disrupting technologies completed alpha and beta testing this quarter and will commercially launch over the next few months, giving surgeons and patients access to some of the most innovative technologies to address spine and trauma conditions, as well as radiation reduction in the operating room."
Revenue reached $260.6 million, or 10.7 percent on a constant currency basis; gross profit swelled to $194.1 million, from $176.4 million in the second quarter of 2016. GAAP operating profit margin was 11.4 percent and non-GAAP operating profit margin was up 40 basis points from the prior year to 16.3 percent. GAAP diluted earnings per share amounted to 22 cents; non-GAAP diluted earnings per share jumped 15 percent from Q2 2016 to reach 46 cents.
For the second quarter of 2017 (ended June 30), both GAAP and non-GAAP gross margin was 74.5 percent, compared with GAAP and non-GAAP gross margin of 74.7 percent and 77.8 percent respectively, for the second quarter 2016. Total GAAP and non-GAAP operating expenses were $164.4 million and $151.7 million, respectively, for the second quarter 2017. These results compared to GAAP and non-GAAP operating expenses of $116.4 million and $146.4 million, respectively, for the second quarter 2016.
NuVasive reported a GAAP net income of $12.7 million, or 22 cents per share, for the second quarter 2017 compared to $30.2 million, or 57 cents per share, for the second quarter 2016.
On a non-GAAP basis, the company reported net income of $24.1 million, or 46 cents per share for Q2 compared to $20.6 million, or 40 cents per share for Q2 2016.
Cash, cash equivalents and short and long-term marketable securities were approximately $130.9 million.
The company reiterated full year 2017 financial guidance in line with prior expectations, with the exception of the impact of updated foreign exchange rates. Executives forecast total revenue of $1.065 billion this year despite approximately $4 million in year-over-year currency headwinds. The increase reflects 10.7 percent growth on a reported basis and 11.1 percent growth on a constant currency basis compared to revenue of $962.1 million for 2016.
Non-GAAP diluted earnings per share are expected to end 2017 at $2, an increase of 20 percent compared to non-GAAP diluted earnings per share of $1.66 for 2016. Non-GAAP operating profit margin is forecast to be 17.1 percent, an increase of 100 basis points compared to 16.1 percent for 2016; and adjusted EBITDA margin of 26.7 percent, an increase of 150 basis points compared to 25.2 percent for 2016.
NuVasive Inc. develops minimally invasive, procedurally-integrated solutions designed to deliver reproducible and clinically-proven surgical outcomes. The company's portfolio includes access instruments, implantable hardware, biologics, software systems for surgical planning, navigation and imaging solutions, magnetically adjustable implant systems for spine and orthopedics, and intraoperative monitoring service offerings. With $962 million in revenues (2016), NuVasive has an approximate 2,300 person workforce in more than 40 countries serving surgeons, hospitals and patients.