In This Article:
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Net Revenue: $115.2 million, up 6% year-over-year.
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Advanced Wound Care Revenue: $108 million, up 7% year-over-year.
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Surgical and Sports Medicine Revenue: $7 million, up 1% year-over-year.
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Gross Profit: $88 million, representing 76.7% of net revenue.
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Operating Expenses: $82.1 million, an increase of 10% year-over-year.
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Operating Income: $6.2 million, a decrease of 22% year-over-year.
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Net Income: $12.3 million, compared to $13.2 million last year.
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Adjusted Net Income: $12.9 million, up from $5.3 million last year.
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Adjusted EBITDA: $13.4 million, representing 12% of net revenue.
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Cash and Cash Equivalents: $94.9 million as of September 30, 2024.
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Net Debt Obligations: $62.1 million as of September 30, 2024.
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2024 Revenue Guidance: $455 million to $480 million, representing a 5% to 11% increase year-over-year.
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2024 Advanced Wound Care Revenue Guidance: $429 million to $452 million, representing a 6% to 11% increase year-over-year.
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2024 Surgical and Sports Medicine Revenue Guidance: $26 million to $28 million, representing a change of -6% to +1% year-over-year.
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2024 Adjusted EBITDA Guidance: $31.7 million to $47.4 million.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Organogenesis Holdings Inc (NASDAQ:ORGO) delivered sales results above the high end of the guidance range for Q3, indicating strong execution and better-than-expected productivity.
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The company reported a 6% increase in net revenue for the third quarter, with advanced wound care net revenue up 7%.
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Organogenesis Holdings Inc (NASDAQ:ORGO) completed enrollment for its second phase three clinical trial ahead of schedule, exceeding the required number of patients.
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The company received a favorable outcome from the interim analysis of its second phase three trial, with the Data Monitoring Committee recommending the trial proceed without modification.
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Organogenesis Holdings Inc (NASDAQ:ORGO) secured a $100 million investment from Avista Healthcare Partners, enhancing its balance sheet and financial flexibility for strategic growth initiatives.
Negative Points
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Operating expenses increased by 10% year-over-year, driven by a 12% rise in selling, general, and administrative expenses.
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Operating income for the third quarter decreased by 22% compared to the previous year.
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The company anticipates potential near-term disruption in the market due to expected changes in Medicare coverage for skin substitutes.
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Despite strong revenue growth, the company reported a decrease in adjusted EBITDA margin from 14.7% last year to 12% this year.
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Organogenesis Holdings Inc (NASDAQ:ORGO) faces uncertainty regarding the final ruling from Medicare Administrative Contractors, which could impact future revenue.