Axogen Inc (AXGN) Reports Growth in Revenue and Reduction in Net Loss for Q4 and Full-Year 2023
Revenue Growth: Q4 revenue increased by 18.7% year-over-year to $42.9 million; full-year revenue up 14.7% to $159.0 million.
Net Loss Improvement: Q4 net loss narrowed to $3.9 million from $5.4 million in Q4 2022; full-year net loss reduced to $21.7 million from $28.9 million in 2022.
Gross Margin: Full-year gross margin decreased slightly to 80.4% from 82.6% in 2022.
Adjusted EBITDA: Q4 adjusted EBITDA turned positive at $0.6 million, compared to a loss of $0.7 million in the same quarter last year.
Core Accounts Growth: Core Accounts increased by 13.3% to 376, reflecting continued market penetration.
2024 Financial Guidance: Revenue expected to be between $177 million and $181 million, with gross margin projected at 76% to 79%.
On March 5, 2024, Axogen Inc (NASDAQ:AXGN) released its 8-K filing, detailing the financial results for the fourth quarter and full-year ended December 31, 2023. The company, a global leader in developing and marketing innovative surgical solutions for peripheral nerve injuries, reported an increase in revenue and a reduction in net loss, signaling a positive trajectory in its financial performance.
Axogen Inc is engaged in the science, development, and commercialization of technologies for peripheral nerve regeneration and repair. The company provides clinically and economically effective repair solutions for surgeons and health care providers. Its products include Avance Nerve Graft, Axoguard Nerve Connector, and several others, with a presence in multiple countries including the United States, Canada, Germany, and the United Kingdom.
The company's fourth-quarter revenue saw a significant increase, driven by growth in both emergent trauma procedures and scheduled non-trauma procedures. Despite a slight decrease in gross margin from the previous year, the company managed to reduce its net loss both quarterly and annually. The positive adjusted EBITDA in Q4 indicates improved operational efficiency.
These financial achievements are crucial for Axogen Inc, as they reflect the company's ability to grow its core business in the competitive Medical Devices & Instruments industry. The increase in Core Accounts suggests that the company is successfully expanding its market share and strengthening its position as a leader in nerve repair.
Key financial metrics from the Income Statement and Balance Sheet include:
Financial Metrics | Q4 2023 | Full-Year 2023 |
|---|---|---|
Revenue | $42.9 million | $159.0 million |
Net Loss | $3.9 million | $21.7 million |
Gross Margin | 78.7% | 80.4% |
Adjusted EBITDA | $0.6 million | ($1.1 million) |
Cash, Cash Equivalents, and Investments | $37.0 million | |
These metrics are important as they provide insights into the company's profitability, liquidity, and operational efficiency. The revenue growth indicates strong sales performance, while the reduction in net loss and positive adjusted EBITDA highlight the company's improved cost management and operational effectiveness.
"We are pleased with our solid performance in the fourth quarter, and we are encouraged by the continued momentum weve seen in this first quarter," commented Karen Zaderej, chairman, CEO, and president of Axogen, Inc. "Looking ahead, we remain focused on further penetrating core accounts by leveraging our growing body of clinical evidence and expanding use cases with our innovative new products and applications."
The company's operational and business highlights include the anticipated filing of a BLA in Q3 2024, the launch of new products such as Avive+ Soft Tissue Matrix, and the surpassing of 100,000 Avance nerve graft implants since launch. These developments are expected to contribute to the company's future growth and reinforce its market position.
For the year 2024, Axogen Inc has provided financial guidance with expected revenue growth and a projected gross margin range, indicating management's confidence in the company's continued growth trajectory.
Overall, Axogen Inc's performance in 2023 reflects a company that is advancing in its market, with a strong focus on innovation and market expansion. The company's strategic initiatives and product launches are expected to further solidify its position in the nerve repair market.
Investors and analysts are encouraged to review the full earnings report and listen to the conference call for a more comprehensive understanding of Axogen Inc's financial performance and strategic direction.
Explore the complete 8-K earnings release (here) from Axogen Inc for further details.
This article first appeared on GuruFocus.
