Organogenesis (ORGO) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue was $130.2 million, up 11% year-over-year, driven by 12% growth in Advanced Wound Care, partially offset by a 3% decline in Surgical & Sports Medicine.

• Net loss for Q2 2024 was $17.0 million, compared to net income of $5.3 million in Q2 2023, primarily due to $18.8 million building impairment and $4.0 million software write-down.

• Adjusted EBITDA for Q2 2024 was $15.6 million, nearly flat year-over-year.

• Significant progress in the ReNu program, including positive phase III results, completion of enrollment in a second phase III trial, and a clear BLA submission timeline by end of Q4 2025.

• Management highlighted strong commercial execution, clinical milestones, and ongoing momentum despite competitive pricing pressures and market disruption.

Financial highlights

• Q2 2024 net revenue: $130.2 million, up from $117.3 million in Q2 2023.

• Gross profit for Q2 2024 was $101.0 million (77.6%–78% margin), unchanged year-over-year.

• Operating loss for Q2 2024 was $13.9 million, compared to $9.7 million operating income in Q2 2023, mainly due to impairment and write-downs.

• Net loss per share: $(0.13) basic and diluted, versus $0.04 in Q2 2023.

• Operating expenses increased to $114.9 million, up from $81.3 million in Q2 2023, due to impairment and higher R&D.

Outlook and guidance

• FY 2024 net revenue guidance reaffirmed at $445–$470 million, a 3–9% increase year-over-year.

• Advanced Wound Care revenue expected at $415–$435 million (2–7% growth); Surgical & Sports Medicine at $30–$35 million (9–27% growth).

• Q3 2024 revenue expected between $105–$113 million.

• FY 2024 net loss projected between $27.0 million and $12.0 million; adjusted net income (loss) between $(8.0) million and $7.0 million.

• Adjusted EBITDA guidance for FY 2024 is $16.0–$35.0 million.