MiMedx Group, Inc. (NASDAQ:MDXG) Q1 2024 Earnings Call Transcript

John Vandermosten: And your new platform to your new sales platform that you announced a few weeks ago; is that going to — do you think that’ll help accelerate the penetration of the product to your customers?

Joe Capper: Hard to say that that will drive it. I think we’re excited about that just because from a practice workflow standpoint, it’s a much improved tool. And so when I talk about driving higher levels of customer intimacy, using technology is one good way to do it. So we’re pretty excited about that. Just from an overall process improvement standpoint, I don’t know that it drives a new product like this. So I think they’re probably a little bit different.

Doug Rice: Yeah, I would say MiMedx connect is certainly a terrific tool that puts our customers hands on, but it’s mostly focused in wound care center and private office environments versus hospital environments.

John Vandermosten: Got it. And when you look forward to, I guess, incremental unit sales, do you think that that’ll come from better sales productivity per sales salesperson or you think additional headcount will drive that incremental unit sale?

Joe Capper: Even though when you scale an organization sales organization, it’s both. You’re looking for improved productivity. We talked about this, I think on our last call, the productivity per sales FPA is up dramatically year-over-year. We talked in 2023, revenue grew by about 20%, which was 100% volume driven. And if you look at Salesforce productivity, that was up probably nearly double that because we were doing it with less FTEs.

Doug Rice: So, as you scale, you should get improved productivity. And then obviously you’re going to look to continue to resource the organization opportunistically. Where does opportunity will continue to invest?

John Vandermosten: Got it. And regarding the EPIEFFECT trial and the costs related to that, are those already baked into the previous guidance that you provided on the R&D side for cost?

Doug Rice: They are. John, it’s a really good question, but while we had a modest spend in Q1 at 3% of top line, we would expect for the full year for that to pick up to mid-single digits. So rolling north of 3% in Q2 and certainly in the back half of the year as that trial and other activities get underway.

Operator: Thank you. At this time, I will turn the floor back to management for closing remarks.

Matt Notarianni: Thanks, operator. Appreciate it. Appreciate all the questions today, guys, and appreciate the support for the company. We’re going to go ahead and wrap up the call and we’ll talk to you next quarter. Thank you.

Operator: This will conclude today’s call. Thank you for your participation. You may now disconnect your lines at this time.