Organogenesis (ORGO) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 2024 was $130.2 million, an increase of $12.9 million or 11% compared to Q2 2023 revenue of $117.3 million[3] - The company reported a net loss of $17.0 million for Q2 2024, a decrease of $22.4 million compared to net income of $5.3 million in Q2 2023[3] - Adjusted net income for Q2 2024 was $0.2 million, down from $6.1 million in Q2 2023, representing a 97% decrease[8] - For the first half of 2024, net revenue was $240.2 million, a 7% increase from $225.0 million in the first half of 2023[9] - The company expects 2024 net revenue guidance between $445.0 million and $470.0 million, representing a year-over-year increase of approximately 3% to 9%[12] - Net revenue for the three months ended June 30, 2024, was $130,234,000, representing an increase from $117,316,000 in the same period of 2023, a growth of approximately 11.6%[15] - Gross profit for the six months ended June 30, 2024, was $182,316,000, compared to $172,035,000 for the same period in 2023, reflecting a year-over-year increase of about 6.0%[15] - The company reported a net loss of $17,043,000 for the three months ended June 30, 2024, compared to a net income of $5,316,000 in the same period of 2023[15] - Net income for June 2024 was a loss of $19,143 thousand, compared to a profit of $2,347 thousand in June 2023[16] Operating Expenses - Operating expenses for Q2 2024 were $114.9 million, an increase of 41% from $81.3 million in Q2 2023[7] - Total operating expenses for the three months ended June 30, 2024, were $114,928,000, up from $81,255,000 in the prior year, indicating a significant increase of approximately 41.3%[15] - R&D expenses rose to $15.6 million in Q2 2024, a 42% increase from $10.9 million in Q2 2023[7] - Total depreciation and amortization expenses increased to $6,438 thousand in June 2024 from $4,922 thousand in June 2023[16] Cash and Liquidity - The company had $90.5 million in cash and cash equivalents as of June 30, 2024, down from $104.3 million at the end of 2023[9] - Cash and cash equivalents decreased to $89,902,000 as of June 30, 2024, from $103,840,000 at the end of 2023, a decline of about 13.4%[14] - Cash flows from operating activities resulted in a net cash used of $5,424 thousand for June 2024, down from a net cash provided of $3,569 thousand in June 2023[16] - Cash paid for interest was $2,744 thousand in June 2024, compared to $2,608 thousand in June 2023[16] - Cash, cash equivalents, and restricted cash at the end of the period were $90,477 thousand, up from $89,508 thousand at the end of June 2023[16] - The company used $4,102 thousand in investing activities for purchases of property and equipment in June 2024, down from $15,061 thousand in June 2023[16] Assets and Liabilities - Accounts receivable increased to $105,945,000 as of June 30, 2024, compared to $81,999,000 at the end of 2023, representing a rise of approximately 29.2%[14] - Total current liabilities rose to $85,727,000 as of June 30, 2024, compared to $80,509,000 at the end of 2023, an increase of about 6.8%[14] - The accumulated deficit increased to $(60,114,000) as of June 30, 2024, from $(40,971,000) at the end of 2023, indicating a worsening of approximately 46.8%[14] - Total assets decreased to $443,163,000 as of June 30, 2024, from $460,025,000 at the end of 2023, a decline of approximately 3.7%[14] Impairments and Provisions - The company reported a significant impairment of $18,842 thousand related to a purchased building and associated unfinished construction work[19] - The company has incurred impairment charges of $19,000 related to buildings and improvements, and $4,000 for write-downs of capitalized software costs[21] - The company recorded a provision for credit losses of $2,032 thousand in June 2024, compared to $190 thousand in June 2023[16] Future Outlook and Risks - The company faces significant competition and rapid technological changes that could impact its business and financial condition[23] - The company is focused on expanding its product offerings in the advanced wound care and surgical & sports medicine markets[24] - The company has outlined risks related to changes in coverage and reimbursement levels for its products, which could affect future revenue[23] - The company is working on obtaining regulatory approval for new products, including ReNu, which is critical for its commercialization strategy[23] - The company has incurred losses in the current and prior periods and may continue to do so in the future[23] Adjusted Metrics - Adjusted EBITDA for Q2 2024 was $15.6 million, a slight increase of $0.2 million or 1% from $15.4 million in Q2 2023[8] - Adjusted EBITDA for the three months ended June 30, 2024, was $15,649 thousand, compared to $15,403 thousand for the same period in 2023[18] - Non-GAAP operating income for the six months ended June 30, 2024, was $6,792 thousand, compared to $9,985 thousand for the same period in 2023[20] - Adjusted EBITDA for the year is projected to be $16,000, while for the first half of 2024, it is projected at $35,000[21] - The company expects an adjusted net income (loss) of $(8,000) for the year ending December 31, 2024, compared to an adjusted net income of $7,000 for the first half of 2024[22]