NASDAQ$ORGO

Organogenesis Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Organogenesis's financial performance decreased slightly in Q2 2022, with revenue declining marginally but gross profit increasing. Net income and adjusted EBITDA also decreased compared to the same period last year.

Organogenesis reported a slight decrease in net revenue for Q2 2022, with a marginal decline of 1% compared to Q2 2021. Despite the revenue decrease, the company's gross profit increased by 2%. However, net income and adjusted EBITDA experienced significant decreases of 58% and 26%, respectively, compared to the previous year.

  • Net revenue decreased by 1% to $121.4 million compared to Q2 2021.
  • Advanced Wound Care products revenue increased by 2%, while Surgical & Sports Medicine products revenue decreased by 35%.
  • Net income decreased by 58% to $8.7 million compared to Q2 2021.
  • Adjusted EBITDA decreased by 26% to $18.6 million compared to Q2 2021.

Headline financials

Total Revenue

$121M

Previous: $123M-1.5%
EPS (adj)

$0.09

Previous: $0.15-40.0%
Adjusted Net Income (Loss)

$11.3M

No prior period
Capital Expenditures

-$12.8M

Previous: -$9.29M-38.2%
Free Cash Flow

-$4.1M

Previous: $11.4M-135.9%
Net Income

$8.74M

Previous: $20.7M-57.7%
Operating Income

$11.9M

Previous: $23.6M-49.4%
Gross Profit

$94.7M

Previous: $93.3M+1.6%
Cash & Equivalents

$112M

Previous: $89.8M+25.0%
Total Assets

$456M

Previous: $356M+28.3%
Stock-Based Comp

$1.69M

Previous: $1.04M+62.4%

Revenue & EPS history

Organogenesis · Revenue · Quarterly

$121M

Q2 2022-1.5%vs Q2 2021
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Organogenesis · $121M total across 2 segments · Q2 2022

  • Advanced Wound Care
    $114M+2.2%
  • Surgical & Sports Medicine
    $7.6M-35.6%

Forward guidance

For the year ending December 31, 2022, the Company expects net revenue between $465 million and $490 million. Net income is projected to be in the range of $26 million to $36 million, and adjusted net income is expected to be in the range of $33 million to $43 million. EBITDA is anticipated to be between $49 million and $63 million, while Adjusted EBITDA is projected to be between $60 million and $74 million.

Tailwinds

  • Net revenue of between $465 million and $490 million, representing a decrease of approximately 1% to an increase of 5% year-over-year.
  • Net revenue from Advanced Wound Care products of between $435 million and $456 million, representing an increase of approximately 1% to 6% year-over-year.
  • Net revenue from the sale of PuraPly products of between $240 million and $260 million, representing an increase of approximately 21% to 31% year-over-year.
  • Net income in a range of approximately $26 million to $36 million and adjusted net income in a range of approximately $33 million to $43 million.
  • EBITDA in a range of approximately $49 million to $63 million and Adjusted EBITDA in a range of approximately $60 million to $74 million.

Headwinds

  • Net revenue of between $465 million and $490 million, representing a decrease of approximately 1% to an increase of 5% year-over-year.
  • Net revenue from Surgical & Sports Medicine products of between $30 million and $34 million, representing a decrease of approximately 8% to 19% year-over-year.
  • The impact of any changes to the reimbursement levels for the Company’s products.
  • Rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete.
  • The COVID-19 pandemic and its impact, if any, on the Company’s fiscal condition and results of operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+2.8%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+0.5%

Avg return

30 days after

47%

17 / 36 earnings

Positive

+102.3%

Q4 2024

Best reaction

-42.4%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%-6.2%-5.9%
Q4 2025-13.8%-22.4%-38.1%
Q3 2025+44.1%+66.6%+21.9%
Q1 2025-42.4%-43.6%-43.3%
Q4 2024+102.3%+95.8%+46.6%
Q3 2024+26.6%+10.3%+0.9%
Q2 2024+2.0%+6.4%-1.2%
Q1 2024+31.2%+23.2%+19.0%
Q4 2023-16.3%-20.3%-18.6%
Q3 2023+6.8%+22.9%+62.4%
Q2 2023-25.7%-27.0%-31.6%
Q1 2023+29.7%+43.2%+81.1%
Q4 2022+11.0%-2.9%-13.1%
Q3 2022-18.3%-11.5%-17.7%
Q2 2022-25.2%-26.6%-44.0%
Q1 2022+4.6%+9.8%-9.3%
Q4 2021+18.1%+15.6%+2.4%
Q3 2021-6.4%-5.0%-16.1%
Q2 2021+1.9%+2.5%+8.2%
Q1 2021-15.3%-11.3%-28.7%
Q4 2020+3.8%+8.5%+31.4%
Q3 2020+8.2%+5.2%+20.2%
Q2 2020+0.7%+1.5%+3.2%
Q1 2020-9.9%-18.8%+4.2%
Q4 2019-16.2%+11.6%+23.5%
Q3 2019+10.3%+8.8%-36.1%
Q2 2019-4.7%-10.8%+26.5%
Q1 2019-0.4%+1.0%+0.7%
Q4 2018-3.0%-5.3%-16.8%
Q4 2017-3.0%-5.3%-16.8%
Q2 2018+0.3%+0.2%+0.1%
Q1 2018+0.0%+0.4%+0.3%
Q3 2017+0.1%+0.1%-1.0%
Q2 2017+0.0%+0.1%+1.5%
Q1 2017-0.3%-0.3%+0.5%
Q4 2016+0.0%+0.0%+0.0%
Q3 2016
Q2 2016
Q1 2016

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