NuVasive Announces Updated Non-GAAP Definition

SAN DIEGO, CA--(Marketwired - February 24, 2015) - NuVasive, Inc. (NASDAQ: NUVA) ("NuVasive" or the "Company"), a medical device company focused on developing minimally disruptive surgical products and procedures for the spine, today announced that it will implement an updated non-GAAP definition in the first quarter 2015. NuVasive will redefine its non-GAAP cost of goods sold, gross margin, operating expenses, operating margin and earnings per share financial measures from its existing non-GAAP definition to include the impact of non-cash stock-based compensation and certain intellectual property related litigation expenses, both of which had previously been excluded in the Company's calculation of these non-GAAP financial measures. In addition to GAAP results, these non-GAAP measures are intended to provide additional information to enable investors to assess the Company's operations in the same way management assesses operations. Management uses non-GAAP measures to budget, evaluate and measure the Company's performance and sees these results as an indicator of the Company's ongoing business performance. The Company believes these changes in non-GAAP reporting increase transparency and better reflect the underlying financial performance of the business.

"As NuVasive accelerates to drive beyond $1 billion in revenue with increasing scale and profitability, our business has reached a state of maturity where we believe it is appropriate to shift our non-GAAP reporting to reflect the impact of ongoing stock-based compensation, as well as certain IP-related litigation expenses as we work to enhance shareholder value," said Quentin Blackford, NuVasive's Executive Vice President and Chief Financial Officer. "Most recently, in the fourth quarter 2014, we demonstrated the ability to achieve our goal of delivering a 20% non-GAAP operating margin, and believe that it is the right time to update our non-GAAP definition to be inclusive of these ongoing expenses."

Blackford continued, "This update allows us to provide investors with a meaningful non-GAAP measurement that represents the performance of our core business on a more inclusive, comprehensive basis. Importantly, this change does not impact NuVasive's plan to deliver at least 100 basis points of operating margin expansion each year, as well as improved EBITDA margins for the next several years as we rapidly scale the business in the U.S. and internationally and capture well-identified opportunities to drive profitability."