Artivion Reports Strong Q2 2024 Growth and Raises Guidance

Artivion, Inc. (ticker: AORT), a medical device company, announced a 10% year-over-year (YoY) growth in constant currency revenue, reaching $98 million for the second quarter of 2024. Additionally, the company’s adjusted EBITDA experienced a substantial increase of 35% compared to the previous year, driven by strong performance in key product categories such as On-X, stent grafts, BioGlue, and tissue processing.

The company also revealed an expansion of regulatory approvals and its commercial operations in Latin America and Asia-Pacific, as well as updates to its credit facility and acquisition terms with Endospan.

### Key Highlights
– Artivion’s Q2 2024 revenue totaled $98 million, marking a 10% increase in constant currency from the previous year.
– Adjusted EBITDA saw a growth of 35%.
– Strong contributions from On-X, stent grafts, BioGlue, and tissue processing boosted overall revenue.
– The company’s regulatory footprint expanded in Latin America and Asia-Pacific.
– Amended agreements with Endospan improved acquisition terms and provided additional funding.
– Artivion raised its revenue guidance for 2024 to expect 10%-12% growth in constant currency, with adjusted EBITDA projected between $69 million and $72 million.

### Company Outlook
– Artivion expects continued growth throughout 2024.
– The focus will be on expanding the product portfolio and global presence.
– Revenue and adjusted EBITDA guidance for the full year has been increased.

### Challenges
– Gross margins slightly decreased to 64.6% due to fluctuations in geographic and product mix.
– A minor decline in sales resulted from inventory management by another company.

### Positive Indicators
– The company’s robust market presence, leveraging expenses, and EBITDA margin expansion are anticipated to fuel growth.
– The underlying business grew by 11% YoY across all regions:
– Latin America: +25%
– Asia-Pacific: +15%
– EMEA: +13%
– North America: +5%

### Other Considerations
– Interest expenses rose to $8 million.
– During the earnings call, the CEO highlighted the advantages of mechanical valves, progress in the NEXUS trial, and the strength of the sales team. Discussions included the potential acquisition of Endospan and growth opportunities for BioGlue and the aortic stent graft portfolio.

Artivion’s underlying business marked an 11% growth compared to the same quarter last year, with revenues rising across all regions. Although gross margins saw a slight decline, the company significantly reduced general, administrative, and marketing expenses, from $57.2 million in Q2 2023 to $49.3 million in Q2 2024.

Research and development expenses remained consistent, and the company reported a positive free cash flow of $3.6 million. As of June 30, 2024, Artivion’s balance sheet showed $55 million in cash and $313.6 million in debt.

In summary, Artivion’s robust Q2 performance, driven by key product growth and international expansion, positions the company favorably in the medical device sector, with strong potential for continued success.