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Jun 30, 2023
Axogen Q2 2023 Earnings Report
Axogen's financial performance reflected revenue growth and efforts to manage net losses.
Key Takeaways
Axogen reported an 11% increase in revenue to $38.2 million for the second quarter of 2023 compared to the same period in 2022. The company experienced a net loss of $6.7 million, an improvement from the $7.7 million net loss in the second quarter of 2022. The company maintains full-year 2023 revenue guidance in the range of $154 million to $159 million.
Revenue increased by approximately 11% to $38.2 million compared to the second quarter of 2022.
Revenues from scheduled non-trauma procedures grew over 20% year-over-year and represented approximately half of total revenues.
Gross margin was 81.1%, slightly lower than 81.8% in the second quarter of 2022.
Net loss improved to $6.7 million, or $0.16 per share, from a net loss of $7.7 million, or $0.18 per share, in the second quarter of 2022.
Axogen
Axogen
Forward Guidance
Management is maintaining full-year 2023 revenue guidance in the range of $154 million to $159 million, which represents annual growth of 11% - 15%. The Company anticipates that gross margin will be reduced with the transition to the new processing facility in the third and fourth quarters and that gross margins for the full year 2023 will be approximately 80%.
Positive Outlook
- Full-year 2023 revenue guidance is maintained in the range of $154 million to $159 million.
- Revenue guidance represents annual growth of 11% - 15%.
- The company expects to begin the BLA submission in the first quarter of 2024 and complete the submission in the second quarter of 2024.
- The company believes this process will support BLA approval in the first half 2025.
- The Company successfully initiated the pilot launch of the Axoguard HA+ Nerve Protector™ in the second quarter and will fully launch this extension of its nerve protection platform later this month.
Challenges Ahead
- Gross margin is anticipated to be reduced with the transition to the new processing facility in the third and fourth quarters.
- Gross margins for the full year 2023 will be approximately 80%.
- Emergent trauma procedures continue to experience headwinds as hospitals prioritize resources and address operating challenges particularly with routine trauma procedures.
- The company experienced a net loss of $6.7 million.
- Construction of the APC and in the second quarter placed into service the warehouse and office spaces, and now expects to begin processing tissue in the new facility later this month.