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Jun 30, 2020
Organogenesis Q2 2020 Earnings Report
Reported financial results with revenue growth driven by advanced wound care products and strategic execution amidst pandemic challenges.
Key Takeaways
Organogenesis Holdings Inc. reported a 6% increase in net revenue for Q2 2020, reaching $69.0 million, driven by strong performance in Advanced Wound Care products. The company also reduced its net loss to $5.2 million and achieved positive Adjusted EBITDA of $274 thousand.
Net revenue increased by 6% to $69.0 million compared to Q2 2019.
Advanced Wound Care product revenue grew by 8% to $59.7 million.
Net loss decreased by 46% to $5.2 million.
Adjusted EBITDA improved to $274 thousand from a loss of $4.8 million in Q2 2019.
Organogenesis
Organogenesis
Organogenesis Revenue by Segment
Revenue by Segment
Advanced Wound Care Revenue
CapyFin.com Forward Guidance
The company is reinstating its fiscal year 2020 revenue guidance, originally issued on March 9, 2020 and now expects net revenue of between $273 million and $277 million, representing growth of approximately 5% to 6% year-over-year.
Positive Outlook
- Reinstating formal financial guidance.
- Expected total revenue growth of 5% to 6% in 2020.
- Advanced Wound Care products revenue growth of approximately 7% to 8% year-over-year.
- Strong operating and financial performance expected over the balance of 2020.
- Guidance consistent with projections made in early March before the COVID-19 pandemic.
Challenges Ahead
- Surgical & Sports Medicine products revenue decrease of approximately 3% to 8% year-over-year.
- Net revenue from the sale of PuraPly products decrease of approximately 13% to 15% year-over-year.
- Potential impact of COVID-19 pandemic on the company’s fiscal condition and results of operations.
- Risk of changes to reimbursement levels for the company’s products.
- Uncertainties related to economic, business, and competitive factors.