On November 7, 2023, Axogen Inc (AXGN, Financial), a global leader in developing and marketing innovative surgical solutions for peripheral nerve injuries, released its financial results for the third quarter ended September 30, 2023. The company reported a 12% increase in revenue, reaching $41.3 million, compared to the same period in 2022. Despite this growth, Axogen Inc (AXGN) reported a net loss of $4.1 million for the quarter, albeit slightly lower than the net loss of $4.3 million in Q3 2022.
Financial Performance
The company's gross margin for the quarter was 80.5%, a decrease from 83.3% in Q3 2022. The adjusted net income was $0.7 million or $0.01 per share, compared to an adjusted net loss of $0.4 million, or $0.01 per share, in the third quarter of 2022. The adjusted EBITDA was $2.4 million, a significant increase from $0.4 million in the same period last year.
As of September 30, 2023, Axogen Inc (AXGN, Financial) had a balance of $38.6 million in cash and cash equivalents and investments, compared to $40.8 million on June 30, 2023. The net change of $2.2 million includes interest and other charges capitalized into the company's new processing facility.
Operational Highlights
In August, Axogen Inc (AXGN, Financial) began processing tissue in its new, state-of-the-art APC facility, which provides up to three times the current capacity and is designed for long-term growth and expansion. The company also launched Axoguard HA+ Nerve Protector™ nationally in August and expects to launch Avive+ Soft Tissue Matrix™ in Q1 2024.
The company has exceeded its initial goal of training 20 additional surgical teams on techniques in implant-based Resensation® and now expects to have more than 30 teams trained by the end of this year. Core Accounts totaled 372, an increase of 12% over the prior-year level of 331, and an increase of 7% sequentially. Revenue from Core Accounts now represents approximately 65% of revenue, up from approximately 60% in prior quarters.
Looking Ahead
Management is maintaining full-year 2023 revenue guidance in the range of $154 million to $159 million, representing annual growth of 11% - 15%. The company anticipates that gross margin will be reduced with the continued transition to the new processing facility in the fourth quarter and continues to expect that gross margin for the full year 2023 will be approximately 80%.
Despite the challenges, Axogen Inc (AXGN, Financial) remains focused on executing its strategic initiatives anchored in the strength of its clinical data, innovation, market development, and commercial execution to continue to drive surgeon adoption and growth.
Explore the complete 8-K earnings release (here) from Axogen Inc for further details.
