Artivion Inc. Reports Strong 2024 Earnings Amid Challenges

Artivion Inc. ((AORT)) has held its Q4 earnings call. Read on for the main highlights of the call.

Artivion Inc. recently held its earnings call, revealing a strong financial performance for 2024. The company reported impressive revenue and EBITDA growth, alongside successful product approvals. Despite facing challenges due to a cybersecurity incident that impacted Q4 results, Artivion remains optimistic about 2025, buoyed by positive developments in product approvals and international growth.

Strong Constant Currency Revenue Growth

Artivion achieved a notable constant currency revenue growth of 10%, excluding PerClot, with an expansion in EBITDA margins by 310 basis points. This resulted in an adjusted EBITDA growth of 32% year-over-year, showcasing the company’s robust financial health.

On-X Revenue Growth

The On-X product line saw a 10% increase in revenue year-over-year on a constant-currency basis. This growth was driven by global market share gains and positive feedback from the field, highlighting the product’s strong market position.

AMDS HDE Approval and Impact

The AMDS received a Humanitarian Device Exemption (HDE), allowing for its commercial distribution in the U.S. before PMA approval. The device has shown significant clinical benefits, including a 72% reduction in mortality and a 54% reduction in major adverse events compared to standard care.

Stent Graft Revenue Growth

Stent graft revenues grew by 8% on a constant currency basis in Q4. Artivion sees significant opportunities in Europe and plans to expand into the U.S. and Japanese markets, indicating a strategic focus on international growth.

BioGlue Approval in China

BioGlue has received regulatory approval in China, with commercialization expected in the second half of 2025. This product is anticipated to benefit approximately 12,000 patients annually in China, marking a significant milestone for Artivion’s expansion in Asia.

Strong International Revenue Performance

Artivion reported strong international revenue performance, with Latin America and Asia-Pacific delivering constant-currency revenue growth of 26% and 11% for the full year, respectively. This underscores the company’s successful global expansion strategy.

Cybersecurity Incident Impact

A cybersecurity incident in November 2024 negatively impacted Q4 revenue by approximately $4.5 million and adjusted EBITDA by $2 million. The incident primarily affected tissue processing and stent grafts, highlighting the challenges of maintaining cybersecurity.

Tissue Processing Decline

Tissue processing saw an 8% decline year-over-year on a constant currency basis in Q4, heavily impacted by the cyber incident. This decline underscores the operational challenges faced by Artivion in the wake of the incident.

Delayed AMDS PMA Approval

The PMA approval for AMDS has been delayed to mid-2026 due to additional non-clinical benchtop testing required by the FDA. This delay represents a hurdle in Artivion’s regulatory timeline.

Extended Lead Times for Tissue and On-X

Lead times for tissue and On-X products were extended due to the cyber incident, affecting the timing of revenue recognition in early 2025. This extension highlights the operational disruptions caused by the incident.

Forward-Looking Guidance

Artivion provided guidance for 2025, projecting constant currency revenue growth between 10% and 14%, translating to a reported revenue range of $420 million to $435 million. The company expects adjusted EBITDA to grow by 18% to 28%, with a 200 basis point expansion in adjusted EBITDA margin at the midpoint. Despite the recent cybersecurity incident, Artivion remains confident in achieving sustained double-digit revenue growth and growing EBITDA at least twice the rate of constant currency revenue growth.

In summary, Artivion’s earnings call highlighted a strong financial performance for 2024, with impressive revenue and EBITDA growth. Despite challenges from a cybersecurity incident, the company remains optimistic about 2025, driven by successful product approvals and international expansion. Artivion’s forward-looking guidance reflects confidence in overcoming short-term disruptions and achieving sustained growth.