ORGO - Organogenesis surges ~30% as Wound Care drives Q1 revenue; raises FY23 outlook

2023-05-11 12:30:08 ET

Organogenesis ( NASDAQ: ORGO ) stock rose ~33% on Thursday after Q1 results prompted the company to raise its FY23 revenue outlook.

Net loss widened to -$2.97M, compared to $0.9M in Q1 2022. Adjusted net loss was -$0.7M, compared to adjusted net income of $1M in Q1 2022.

Net revenue grew +10.8% Y/Y to $107.64M.

"Sales of Advanced Wound Care products drove the majority of the upside in the quarter, exceeding the high-end of our expectations in both the hospital outpatient and physician office settings. As expected, we leveraged our diversified portfolio and leadership position in Wound Care Centers and physician offices across the U.S. to deliver strong growth in Q1," said Gary Gillheeney Sr., president, CEO and chair of the board, Organogenesis.

Revenue from Advanced Wound Care increased +12% to ~$100.92M. Meanwhile, Surgical & Sports Medicine revenue fell -4.3% Y/Y to ~$6.73M.

Outlook :

The company expects 2023 net revenue between $454M and $466M, representing growth about 1% to 3% Y/Y. During Q4 results the company had provided a net revenue range of $450M and $462M.

Net revenue from Advanced Wound Care products anticipated between $424M and $432M, an increase of 0% to 2% Y/Y. Net revenue from Surgical & Sports Medicine products expected between $30M and $34M, growing about 5% to 19% Y/Y.

Organogenesis expects net income between $3M and $11M  and adjusted net income between $8M and $16M.

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