Organogenesis Holdings Inc (NASDAQ:ORGO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 05:00 pm ET


Organogenesis Holdings Inc (NASDAQ:ORGO) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Third Quarter 2019 Earnings Conference Call for Organogenesis Holdings, Inc. [Operator Instructions]

Before we begin, I would like to remind everyone that all remarks today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including the risks and uncertainties described in the company's filings with the Securities and Exchange Commission, including Item 1A, Risk Factors, of the company's Form 10-K for the year ended December 31, 2018.

You are cautioned to not place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by the applicable securities law.

This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website.

I would now like to turn the call over to Mr. Gary Gillheeny Sr., Organogenesis Holdings, President and Chief Executive Officer. Please go ahead, sir.

Gary S. Gillheeney

Thank you and welcome everyone to Organogenesis Holdings' third quarter 2019 earnings conference call. Today I'm joined on the call by Tim Cunningham, our Chief Financial Officer.

So let me start with a brief agenda of what we will cover during the prepared remarks. I'll start with a high level overview of our revenue performance during the third quarter and first nine months of 2019. After my opening remarks, Tim will provide you with a more in-depth review of our quarterly and year-to-date financial results as well as an overview of our financial guidance for 2019 which we updated today in our earnings press release. Following Tim's discussion of our financial results and outlook, I will then share some thoughts on why we believe we are well positioned for continued strong growth in 2019 and solid long-term growth going forward. And then I will open it up for questions.

Our performance during the first nine months of 2019 was very strong and our financial results to-date reflect the solid execution of our commercial strategy this year. Our total revenue increased 44% over the first nine months of 2019. Our gross profit increased 66% and we reported strong improvements in profitability with our operating loss and adjusted EBITDA loss decreasing 41% and 47% respectively year-over-year. We expect our fourth quarter results will reflect the continuation of the strong commercial momentum we've experienced during 2019, a year in which we expect to increase on net revenue by 31% to 34% year-over-year as reflected in our