Artivion’s Earnings Call: Optimism Amid Challenges

Artivion Inc. ((AORT)) has held its Q1 earnings call. Read on for the main highlights of the call.

Artivion’s recent earnings call revealed a generally optimistic sentiment, underscored by strong revenue growth in key product lines and regions. The successful launch of the AMDS product further bolstered confidence, although challenges such as a cybersecurity incident and a decline in North American revenue were acknowledged. Despite these hurdles, the company remains positive, with raised revenue guidance and promising clinical data pointing towards future growth.

Total Revenue and Growth

Artivion reported total revenues of $99 million for the first quarter of 2025, marking a 4% increase compared to the same period in 2024. The company has raised its full-year 2025 revenue guidance, anticipating a constant currency growth of between 11% and 14%.

On-X and Stent Graft Revenue Growth

The On-X product line demonstrated robust performance with an 11% year-over-year growth on a constant currency basis. Similarly, stent graft revenues surged by 19% compared to the previous year, highlighting strong demand for these products.

Successful AMDS Launch

The launch of AMDS in the U.S. has been met with positive reception following its FDA HDE approval. Approximately 150 facilities are actively pursuing IRB and value analysis committee approvals, indicating significant interest from the surgical community.

Geographical Performance

Artivion experienced strong geographical performance, particularly in Latin America and the Asia Pacific, with constant currency revenue growth of 26% and 8%, respectively, during the first quarter.

Positive Clinical Data for On-X

New clinical data revealed a statistically significant improvement in mortality rates with mechanical valves compared to bioprosthetic valves in patients under 60. This opens a substantial $100 million market expansion opportunity in the U.S.

Cybersecurity Incident Impact

The company faced challenges due to a previously disclosed cybersecurity incident, which resulted in extended lead times and a backlog in tissue processing operations. This led to a 23% year-over-year decline in tissue processing revenue.

North America Revenue Decline

Revenue in North America saw a 6% decline compared to the first quarter of 2024, largely attributed to the cybersecurity incident’s impact.

Higher Expenses Due to Cyber Incident

Artivion incurred approximately $4.7 million in expenses related to the cybersecurity incident during the first quarter, with no immediate reimbursement expected.

Forward-Looking Guidance

Artivion provided robust guidance for the year, raising the midpoint of its full-year revenue growth expectations to 11%-14% in constant currency. The company projects reported revenues between $423 million and $435 million, supported by a 4% increase in total constant currency revenue and a 1% growth in adjusted EBITDA in the first quarter. The company is optimistic about its recovery from the cybersecurity incident and anticipates a full return to normalcy by the end of the third quarter. Additionally, Artivion expects sequential sales growth for its AMDS product each quarter of 2025.

In summary, Artivion’s earnings call conveyed a positive outlook despite some challenges. The company demonstrated strong revenue growth, particularly in its On-X and stent graft product lines, and remains optimistic about its future prospects. The successful launch of AMDS and promising clinical data further support the company’s growth trajectory, while the raised revenue guidance underscores confidence in overcoming current challenges.