• Q4 Net Sales: $93 million, a 7% year-over-year growth.
• Full-Year Sales: $349 million, up 9% over the prior year.
• Gross Profit Margin: 82% in Q4.
• Adjusted EBITDA: $20 million or 21% of sales in Q4; $76 million or 22% of sales for the full year.
• Cash Balance: Ended the year with $104 million, an increase of $16 million during the quarter.
• Wound Sales: $61 million in Q4, a 10% increase year-over-year.
• Surgical Sales: $32 million in Q4, up 2% as reported; 6% increase excluding certain impacts.
• SG&A Expenses: $61 million in Q4, up from $54 million in the prior year.
• R&D Expenses: $3 million in Q4, representing 4% of net sales, up 38% year-over-year.
• GAAP Net Income: $7 million or $0.05 per share in Q4.
• Adjusted Net Income: $11 million or $0.07 per share in Q4.
• Free Cash Flow: $19 million in Q4, a $9 million increase over the same period in 2023.
• 2025 Guidance: Net sales growth expected in high-single digits; adjusted EBITDA margin above 20%.

• Warning! GuruFocus has detected 6 Warning Signs with MDXG.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MiMedx Group Inc (NASDAQ:MDXG) reported a 9% increase in full-year revenue for 2024, with Q4 net sales growing by 7% to $93 million.
• The company maintained a strong gross profit margin of 82% in Q4 and achieved an adjusted EBITDA of $20 million, representing 21% of sales.
• MiMedx Group Inc (NASDAQ:MDXG) ended the year with $104 million in cash, an increase of $16 million during the quarter, highlighting strong cash flow generation.
• The company continued the market release of HELIOGEN, its first xenograft, and began enrollment for a randomized controlled trial for EPIEFFECT.
• MiMedx Group Inc (NASDAQ:MDXG) experienced significant growth in its EPIFIX business in Japan, with sales nearly tripling in 2024.

Negative Points

• The company faced challenges due to Medicare reimbursement issues and above-average sales force turnover in select markets.
• Gross margin slightly decreased from 84% in the previous year to 82% in Q4 2024, partly due to acquisition-related amortization expenses.
• Selling, general, and administrative expenses increased to $61 million in Q4, up from $54 million in the prior year, primarily due to higher commissions and adjusted commission rates.
• Research and development expenses rose by 38% compared to the prior year, driven by increased costs associated with ongoing trials and future product development.
• The implementation of new Medicare reimbursement guidelines (LCDs) could lead to short-term market disruption and uncertainty in physician ordering patterns.

Q & A Highlights

Q: What were the specific drivers for the wound segment's performance in Q4? A: Douglas Rice, CFO, mentioned that Q4 was the highest quarter since 2018, with significant contributions from international markets and the effects products, AMNIOEFFECT and EPIEFFECT, being key growth factors.

Q: Can you provide guidance on wound and surgical growth for 2025? A: Joseph Capper, CEO, stated that they expect at least high-single-digit growth across the board. The implementation of LCDs in April could lead to market disruption, but MiMedx is well-positioned to benefit from it.

Q: What is the expected impact of the LCD implementation on the business? A: Joseph Capper, CEO, expressed confidence that the LCDs will be implemented without further delay. Douglas Rice, CFO, noted that the biggest financial impact will be on gross margins due to sales mix changes, but higher volumes are expected to offset some costs.

Q: What is the revenue opportunity for HELIOGEN, and how does it contribute to growth? A: Joseph Capper, CEO, explained that HELIOGEN is in the early stages of launch, and while its current contribution is nominal, it is expected to be a significant contributor in 2025.

Q: How is MiMedx addressing legal matters such as AXIOFILL and Surgenex? A: Joseph Capper, CEO, stated that MiMedx is playing offense in these cases to protect its business. The AXIOFILL case is moving forward with a new judge, and the Surgenex case is in the evidence collection phase.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.