Aroa Biosurgery (ASX:ARX) says improved performance expectations and significant movement in the US and NZ exchange rate has prompted a revised revenue guidance for FY23.

The company is a soft-tissue regeneration company and its biomaterial improves healing in complex wounds using a novel extracellular matrix derived from sheep stomach.

Aroa says its total revenue guidance for FY23 of NZ$62-64M, is up from its previous product revenue guidance of NZ$51 - 55M.

It also reported it ended the Q2 FY23 quarter with a cash balance of NZ$50.1M.