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Sep 30, 2020
Organogenesis Q3 2020 Earnings Report
Reported a strong third quarter with significant revenue growth and improved profitability.
Key Takeaways
Organogenesis Holdings Inc. reported a 57% increase in net revenue for Q3 2020, reaching $100.8 million compared to $64.3 million in Q3 2019. The company also saw a net income of $20.9 million, a significant turnaround from the net loss of $10.7 million in the same quarter of the previous year. The growth was driven by strong performance in both Advanced Wound Care and Surgical & Sports Medicine product categories.
Net revenue increased by 57% year-over-year, exceeding expectations.
Net income improved significantly, reaching $20.9 million compared to a net loss in the previous year.
Advanced Wound Care products saw a 66% increase in revenue, while Surgical & Sports Medicine products increased by 9%.
The acquisition of CPN Biosciences is expected to enhance growth in the office channel.
Revenue by Segment
Forward Guidance
The company reaffirmed its financial guidance for the full year 2020, expecting net revenue between $311 million and $314 million.
Positive Outlook
- Net revenue is expected to grow by approximately 19% to 20% year-over-year.
- Advanced Wound Care products are projected to grow by approximately 24% to 25% year-over-year.
- Company anticipates reporting positive GAAP net income for the three months ending December 31, 2020.
- Company expects to report positive Adjusted EBITDA for the three months ending December 31, 2020.
- Company expects to report positive GAAP net income and positive Adjusted EBITDA for the full fiscal year 2020 period.
Challenges Ahead
- Surgical & Sports Medicine products are expected to decrease by approximately 3% to 6% year-over-year.
- Net revenue from PuraPly products is expected to decrease by approximately 5% to 6% year-over-year.
- The company has incurred significant losses since inception and anticipates that it will incur substantial losses for the foreseeable future
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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