AxoGen(US:AXGN)2024-05-05 05:21Financial Data and Key Metrics Changes - Revenue for Q1 2024 increased by 12.9% to $41.4 million compared to the same period last year, with a gross profit of $32.6 million and a gross margin of 78.8% [8][22] - Total operating expenses rose by 3.8% to $37.2 million, while net loss decreased to $6.6 million or $0.15 per share, compared to a net loss of $7.1 million or $0.17 per share in Q1 2023 [23][24] - Adjusted EBITDA improved to $1 million from an adjusted EBITDA loss of $3.8 million in the previous year, indicating enhanced operational efficiency [24] Business Line Data and Key Metrics Changes - The growth was broad-based across products and applications, with a 4.9% increase in unit volume, a 5.3% mix favorability, and a 2.6% increase in price contributing to revenue growth [22] - Core accounts, defined as those generating over $100,000 in revenue, represented approximately 65% of total revenue, with the largest core accounts exceeding $1 million annually [10] Market Data and Key Metrics Changes - The company noted a shift in the timing of elective outpatient procedures, with a strong performance in January and February, followed by a volume uptick in April instead of March [7][27] - The company continues to see growth in the trauma and breast neurotization segments, with increasing demand for the Resensation technique [45] Company Strategy and Development Direction - The growth strategy focuses on deepening relationships with existing core accounts and expanding into new clinical applications [10][11] - The company is on track for the BLA filing for Avance nerve grafts in Q3 2024, which could lead to market exclusivity for 12 years upon approval [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2024 revenue guidance, maintaining a range of $177 million to $181 million, representing an annual growth rate of approximately 11% to 14% [24] - The management highlighted the importance of innovation and expanding the nerve protection portfolio as key growth drivers [12][13] Other Important Information - The company has made strategic changes to its financial reporting, including the removal of revenue breakdowns between scheduled and emergent trauma applications, to better align with its commercial strategy [9][21] - The company is focused on optimizing resource allocation and achieving profitability while continuing to invest in innovation [24] Q&A Session Summary Question: Can you provide color on performance through the quarter, particularly in March? - Management noted that the typical step-up in volume occurred in April instead of March, possibly due to the timing of Easter holidays, but overall growth across products was maintained [27][29] Question: What is the status of the CEO search? - The CEO search is ongoing, led by independent directors with an outside search firm, and an announcement will be made once finalized [31] Question: Can you elaborate on the decision to remove the scheduled versus emerging breakdown? - The decision was based on the conclusion that the previous disclosure did not provide the best insights into the business model and commercial strategy, which focuses on increasing penetration into high potential accounts [34] Question: What is the expected contribution from new product launches in 2024? - New products are included in the guidance, with expectations for modest revenue impact in the second half of the year as they go through value analysis committees [38] Question: How is procedure growth looking in the quarter? - Management reported good procedure growth across segments, particularly in trauma and breast neurotization, with continued interest from surgeons [44]