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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