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Jun 30, 2020
Axogen Q2 2020 Earnings Report
Axogen's financial results decreased compared to the second quarter of 2019.
Key Takeaways
Axogen reported a decrease in net revenue by 17% compared to Q2 2019, with a net loss of $8.1 million. The company secured a new financing agreement for up to $75 million and saw an increase in cash, cash equivalents, and investments to $109.9 million.
Net revenue was $22.1 million, a 17% decrease compared to Q2 2019.
Gross margin was 74.7%, compared to 84.1% in Q2 2019.
Net loss was $8.1 million, or $0.20 per share, compared to a net loss of $7.0 million, or $0.18 per share, in Q2 2019.
Cash, cash equivalents, and investments totaled $109.9 million as of June 30, 2020.
Axogen
Axogen
Forward Guidance
Axogen anticipates that most deferred procedures will be scheduled by the end of the summer. The company expects revenue in the third and fourth quarters will continue to trend below prior-year results.
Positive Outlook
- Commercial team performed well.
- Demand for products increased as surgery schedules opened.
- Hospitals quickly moved to complete nerve repair procedures.
- Most deferred nerve repair procedures will be scheduled by the end of the summer.
- Balance sheet strength and cost mitigation initiatives will allow the company to emerge stronger.
Challenges Ahead
- Regional COVID-19 resurgence may continue to negatively impact trauma incidence.
- Regional COVID-19 resurgence may continue to negatively impact surgical procedure volumes in certain geographies.
- Revenue in the third and fourth quarters is expected to continue to trend below prior-year results.
- Suspended the 2020 annual financial guidance.
- Cannot predict the extent or duration of the impact of the COVID-19 pandemic on its financial results