Axonics Inc. (NASDAQ:AXNX) reported robust third-quarter results in 2023, with revenues rising 32% year-over-year to $93.1 million. The increase was primarily due to higher utilization and market share expansion at existing accounts, supplemented by the addition of new competitive accounts. The company's sacral neuromodulation (SNM) revenue was a significant contributor, growing 30% to $73.9 million. Sales of SNM systems internationally saw a nearly 40% increase, driven by the deployment of a direct sales force in Australia. The company's net income for the quarter was $3.9 million, a substantial turnaround from a net loss of $16.3 million in the previous year.
Key takeaways from the earnings call include:
- Axonics' CEO Raymond Cohen outlined strategies to increase market share and revenue growth, such as implementing patient questionnaires, improving care pathways, and raising awareness among physicians about the company's technology.
- Cohen expressed confidence in achieving 25% growth in SNM revenue and a 15% growth in the overall market.
- The company expects gross margins to improve through process optimization and higher volumes.
- Axonics is awaiting approval for its non-rechargeable SNM product to effectively compete and grow the business internationally.
- The company plans to file a new external trialing system with the FDA in mid-2024 and is open to potential acquisitions, primarily in the continence field.
- The company has launched Direct-to-Consumer (DTC) campaigns, targeting specific symptoms of incontinence, with television as the primary medium due to the demographic of the target audience.
During the call, Cohen highlighted the company's product portfolio, particularly Bulkamid, which saw a 42% increase in revenue to $19.2 million. The company's gross margin rose to 74.2% from 72.8% the previous year, with Q4 projections ranging between 74% to 75%. Axonics has increased its full-year guidance to $362 million, representing a 32% growth compared to the previous year.
Cohen also addressed the company's international operations, emphasizing the need for approval of its non-rechargeable SNM product to compete and grow its business internationally. The company is engaged with regulatory bodies and expects to receive approval in the coming months.
On the topic of potential acquisitions, Cohen stated that while the company is continuously evaluating strategic opportunities, their primary focus remains on the continence field. They do not anticipate entering adjacent businesses utilizing neurostimulation.
Regarding the company's marketing strategies, Axonics is running commercials targeting stress urinary incontinence (SUI) and fecal incontinence. The company expects their average sales productivity per representative to exceed $2.5 million in 2023, with further increases in 2024. Cohen clarified that while DTC efforts and television commercials are beneficial, they are not the main drivers of their business.
In conclusion, Axonics' strong Q3 performance and strategic initiatives suggest a promising growth trajectory, particularly in the incontinence market. With the anticipated approval of its non-rechargeable SNM product and continued focus on the continence field, the company is well-positioned for future expansion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.