Ortho community, I need your help to make sense of this paradox.
There is a financial trend going on that defies all logic. Public orthopedic companies, despite reporting record-breaking revenue growth, are ruthlessly laying off employees in staggering numbers.
How can this be happening simultaneously?
Let's examine the jaw-dropping Q1 2023 growth numbers (Q/Q gross sales figures):
54% growth - Alphatec Spine
45% growth - Treace Medical Concepts
26% growth - Paragon 28
38% growth - Xtant
25% growth - OrthoPediatrics
22% growth - Centinel Spine
20% growth - Globus Medical
17% growth - Conformis
12% growth - Stryker
9% growth - J&J
But hold on a second. Something doesn't add up. How can these companies be achieving unprecedented revenue growth while simultaneously letting go of employees? This isn't just a coincidence or a matter of timing. The sales growth trend is happening well before any financial impact from these layoffs.
If this trend continues at its current pace, the profitable orthopedic companies are poised to rake in record-breaking earnings in the coming quarters. But here's the burning question: What exactly is going on here?
Could it be a delayed post-Covid ...
