The following is a summary of the Avid Bioservices, Inc. (CDMO) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Avid Bioservices reported Q4 FY2024 revenue of $43 million, an 8% increase year-over-year.

• FY2024 full fiscal year revenue totaled $139.9 million, a decrease of approximately 6% from the previous year.

• Gross margin for Q4 FY2024 was 13%, a significant decline from 21% in Q4 FY2023.

• The company experienced a large net loss of $123.1 million in Q4 FY2024, driven by a $118.5 million valuation allowance against deferred tax assets.

• Adjusted net loss for the fiscal year was $22.3 million, or $0.35 per share.

Business Progress:

• Avid Bioservices signed new project agreements worth $30 million in Q4 FY2024, ending the fiscal year with a strong backlog of $193 million.

• Launched mammalian cell and gene therapy manufacturing facilities, expanding capacity and technical capabilities significantly.

• Focused on diversifying and growing customer base, adding major pharmaceutical customers and anticipating further expansion in FY2025.

Opportunities:

• Anticipating growth through newly completed facilities and expanded capabilities.

• Projected FY2025 full fiscal year revenue guidance is between $160 million and $168 million, indicating an expected growth of around 17%.

• Positive indicators from biotech financial markets and ongoing interest in onshoring of drug manufacturing to the U.S.

Risks:

• Continued recovery from a significant net loss in FY2024 will be challenging.

• Management notes persistent challenges in turning onboarding capacity into revenue due to the lengthy process of regulatory approvals and project ramp-ups.

More details: Avid Bioservices IR

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