MiMedx Group, Inc., the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts and patent-protected processes for multiple sectors of healthcare, announced its preliminary revenue results for the third quarter of 2017.

Third Quarter 2017 Revenue Highlights 

• Q3 2017 revenue of $84.6 million exceeded MiMedx guidance range of $79 to $80 million 

• Q3 2017 revenue grew 31% over Q3 2016 revenue

• First nine months of 2017 revenue grew 33% over first nine months of 2016

• Distributor and OEM revenue was below 5%

• Accounts receivable DSO down to mid-60s

The Company recorded record revenue for the 2017 third quarter of $84.6 million, a $20.2 million or 31% increase over 2016 third quarter revenue of $64.4 million. Revenue for the nine months ended September 30, 2017 was $233.6 million, a $58.5 million or 33% increase over revenue for the nine months ended September 30, 2016 of $175.1 million.

Parker H. "Pete" Petit, Chairman and CEO stated, "Our third quarter revenue performance was very strong, and we are very pleased with the robust momentum that our sales organization is building. It became evident to us in early September that this momentum would produce third quarter revenue in excess of our earlier expectations. Despite the disruption from Hurricane Harvey and Hurricane Irma, we were confident that our strong performance throughout the country would more than make up for the impact of these natural disasters. We are particularly pleased with the exceptionally strong revenue performance from our commercial accounts. Over the years, we have concentrated on developing a customer base with a very wide breadth, both geographically and functionally. We are extremely pleased with the span of the customer base that we have built now in 'secondary markets'. Revenue from our commercial accounts is leading our robust growth. Revenue from our direct sales force is currently in excess of 95% of our total revenue with revenue from distributors and Original Equipment Manufacturer accounts below 5% of our total revenue."

Speaking to other aspects of third quarter performance, Petit added, "We had very strong cash flow from operations and expect to report continued progress in our Days Sales Outstanding (DSO). We anticipate that our DSO as of the end of the third quarter will be improved into the mid-60s. I would have to state that our other operations are also working quite efficiently. These financial metrics indicate that our shipped products are being utilized by our customers at an efficient rate."

Bill Taylor, President and COO, said, "Our revenue performance for the third quarter marks 27 consecutive quarters of sequential revenue growth and 26 of the last 27 quarters of meeting or exceeding our revenue guidance. We are gratified to have exceeded our guidance by more than $4 million. The asset base we have built in our sales force and other critical functions of our organization are performing very effectively. Throughout the organization, the enthusiasm for our excellent potential in the biopharma market is very high, and this is being reflected in the momentum our sales force is building in the market place. We could not be more pleased with the results our organization is producing and the respect we have garnered in the market." 

Taylor continued, "During the quarter, we announced the results of a number of clinical studies that should be important catalysts in driving revenue performance in various applications. With the momentum our sales force has built and these types of compelling study results, we are looking forward to continuing our robust sales growth. It is also important to mention that we had a number of our sales force and their customers heavily impacted by the natural disasters that occurred during the quarter. I am especially proud of how the members of the sales team in the affected areas, who endured the impact of these disasters, and yet gave so much support to their customers to get their patients the care they needed."

Petit noted, "Adding to the effectiveness and results our sales force is generating are the many sales efficiencies we have implemented. Our Sales Management System and advanced territory analytics have made solid contributions to our growth capabilities. We have been highly successful in our market expansion initiatives, one of which is our strategy to dedicate resources in 'secondary markets'. Our sales force has now grown to the size that we are working very efficiently in the 'secondary markets'. Utilizing our SMS and territory management capabilities, we have been pleased with our success in opening these secondary markets and gaining incremental revenue." 

"We are going through the natural maturation processes that well-run businesses achieve at various stages in their growth. Combined with our exceptional product offerings, this maturation should continue to produce an impressive growth trajectory," added Taylor.

"We believe our sales organization will continue to produce robust revenue growth, and we should continue our trend of exceeding expectations. We look forward to discussing with our shareholders later this month many other positive details along with our full third quarter results," concluded Petit.