Axogen Inc, a leading global provider of innovative surgical solutions for peripheral nerve injuries, announced its financial results for the third quarter (Q3) ending September 30, 2023. The disclosure led to a significant surge in the trading of Axogen’s stock.
At the time of this publication, AxoGen Inc stock (AXGN) has witnessed a surge.
AXGN
AxoGen Inc
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During this period, the company recorded a remarkable 12% surge in revenue, totaling $41.3 million, as compared to the corresponding period in 2022. Despite this robust growth, Axogen Inc reported a net loss of $4.1 million for the quarter, a slight improvement from the net loss of $4.3 million in Q3 2022.
Axogen Inc Q3 2023 Financial Results
In terms of financial performance, the company’s gross margin for the quarter was 80.5%, reflecting a marginal decrease from 83.3% in the third quarter of 2022. The adjusted net income stood at $0.7 million or $0.01 per share, a stark contrast from the adjusted net loss of $0.4 million, or $0.01 per share, reported in the same period last year. Furthermore, the adjusted EBITDA witnessed a substantial increase, soaring to $2.4 million from $0.4 million in the corresponding period of the previous year.
As of September 30, 2023, Axogen Inc (NASDAQ:AXGN) boasted a balance of $38.6 million in cash and cash equivalents, in addition to investments, in comparison to $40.8 million as of June 30, 2023. This net change of $2.2 million includes interest and other charges capitalized into the company’s new processing facility.
Operational achievements for Axogen Inc in the third quarter included the initiation of tissue processing in its advanced APC facility in August. This cutting-edge facility offers up to three times the existing capacity and is engineered for sustained long-term growth and expansion. Moreover, the company successfully introduced Axoguard HA+ Nerve Protector on a national scale in August and has plans to unveil the Avive+ Soft Tissue Matrix in the first quarter of 2024.
Axogen Inc surpassed its initial target of training 20 additional surgical teams in implant-based Resensation techniques. The company now expects to have over 30 teams trained by the conclusion of this year. The number of Core Accounts also demonstrated substantial growth, totaling 372, an upswing of 12% from the previous year’s 331, and a sequential increase of 7%. Additionally, revenue generated from Core Accounts now constitutes approximately 65% of the total revenue, an improvement from around 60% in preceding quarters.
Looking ahead, management remains steadfast in its full-year 2023 revenue projection, with expectations in the range of $154 million to $159 million, signifying an annual growth rate between 11% and 15%. The company foresees a potential reduction in gross margin due to the ongoing transition to the new processing facility in the fourth quarter. It continues to anticipate that the gross margin for the entirety of 2023 will hover around 80%.
