AxoGen, Inc. (NASDAQ:AXGN) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 04:30 pm ET
Welcome to the AxoGen Inc. Third Quarter 2019 Fiscal Results Conference Call. [Operator Instructions]. Please note this conference is being recorded.
I will now turn the conference over to your host, Pete Mariani, Chief Financial Officer. Please go ahead.
Peter J. Mariani
Thank you, Sachi, and good afternoon everyone. Welcome to AxoGen's third quarter 2019 financial results conference call. We appreciate you joining us. Joining me today on the call as Karen Zaderej, our Chairman, Chief Executive Officer and President. The format for today's call will be as follows; Karen will discuss the 2019 third quarter financial and operating highlights; and then I will provide details on the financial results outlined in today's press release. We will then open the call for your questions. Today's call is being broadcast via webcast, which is available on the AxoGen website. Within an hour following the end of the live call, a replay will be available in the Investor's section of the company's website at www.axogeninc.com.
Before we get started, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including without limitation, the company's Forms 10-K and 10-Q, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors may include, without limitation, statements regarding product acquisition ***2***
regarding product acquisition and/or development, product potential, the regulatory environment, sales and marketing strategies, capital resources or operating performance.
And with that, I'd like to turn the call over to Karen.
Thanks Pete, and good afternoon everyone. I'm pleased with the company's solid growth and financial performance in the third quarter. Total revenue grew 26% to $28.6 million, driven by our strength in our core trauma business and growth in our number of active accounts, which increased 16% year-over-year, to 791. We ended the quarter with 105 direct sales representatives, and 19 independent sales agencies. By splitting sales territories and strategically converting agency territories to direct reps during the year, we've expanded our commercial footprint, providing our direct reps with smaller geographic territory, allowing them to spend more time developing surgeons and accounts.
However, as we've discussed in prior quarters, the rapid growth of our commercial organization over the past two years, including our pursuit of new nerve repair market opportunities, has created challenges. It has been an ongoing priority of ours to address these challenges and improve our commercial execution. I'm encouraged with the progress we've made identifying and implementing improvement, and like to spend a few minutes reviewing them.
First, we are rebalancing our commercial efforts of sales resources back toward extremity trauma, as this remains our largest market opportunity and the most efficient and effective path to sustainable growth. At the same time, we will continue to invest and grow in the breast reconstruction neurotization and oral and maxillofacial market, as these nascent markets develop.