AxoGen, Inc. (NASDAQ:AXGN) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 04:30 pm ET
[Operator Instructions]. The first question is from Richard Newitter of SVB Leerink. Please go ahead.
Hi, Pete, hi, Karen. This is Jaime on for Rich.
Peter J. Mariani
Just wanted to start on potentially, how we should be thinking about 2020 growth for the business, considering it in the context of a fast growing company like yourself. I was just wondering, if you could maybe provide some color, level set on expectations on how we should be thinking about the business? Is it the right way to be thinking about it potentially, as an at least 20% growth business? Or perhaps, something more in the 20% to 25% range. Just looking to get your thoughts, based on some of the rebalancing that you're doing within the sales organization?
As you might remember, we mentioned that we'd be giving our guidance for 2020 in Q1 and the early part of the Q1 time period. So we haven't given guidance for next year, but I can tell you that we look confidently that we continue to see AxoGen as a high growth company, that we've been building this foundation of reps who will continue to expand in their experience, as well as the efficiency measures that we're putting in place to allow productivity to continue to improve. And we think those will continue to help play out next year, allowing us to continue to show strong growth.
Okay, great. And if I could just follow up on the rebalancing sales efforts, with lowering anticipated rep count in 2019 here, I was just curious how we should be thinking about rep productivity ramp into 2020, and potentially on new account openings in that? Should people will be thinking about dialing back sort of their expectations into 2020, considering how you've kind of change course a little bit within 2019 with the rebalancing efforts?
So our growth historically has been in two dimensions. It's been both in adding new active accounts and driving penetration within our existing active accounts. And through this year, we've really been addressing and focusing how do we drive more penetration within the active accounts. That's a part of what our rebalancing effort is focused on, is seeing that we have tremendous opportunities in the accounts that are already active. And we will continue to have that as a focus through ***10***
through next year. So we will still add new active accounts that will be an important part of our overall growth. We will still add some new reps next year as well. But we will see an increasing focus on driving penetration within the existing active accounts and that's where we expect to see some of the productivity gains.
Got it, thanks for taking my questions.
The next question is from Raj Denhoy of Jefferies. Please go ahead.
Hi, good afternoon. Maybe I could follow up a little bit on that last question, just in terms of the idea of rep productivity increasing. Perhaps you could maybe kind