Avid Bioservices (CDMO) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue reached $40.2 million, up 6% year-over-year, driven by increased process development revenues and strong new business signings, resulting in a record $219 million backlog.

• Investments in infrastructure and capabilities have attracted a broader customer base, including large pharma clients and both early- and late-stage programs.

• The company remains focused on filling remaining capacity to further increase revenues and margins throughout the year.

• Operating loss widened to $2.5 million from $2.2 million year-over-year due to higher SG&A expenses.

Financial highlights

• Q1 FY2025 revenues were $40.2 million, up 6% year-over-year, with manufacturing contributing $34.0 million and process development $6.2 million.

• Gross profit was $5.7 million (14% margin), up from $4.1 million (11% margin) in Q1 FY2024, reflecting higher revenues and lower material costs.

• SG&A expenses rose 30% to $8.2 million, mainly due to higher compensation, benefits, and professional fees.

• Net loss was $5.5 million ($0.09 per share), compared to a net loss of $2.1 million ($0.03 per share) in the prior year period.

• Cash and cash equivalents stood at $33.4 million at quarter-end, down from $38.1 million sequentially.

Outlook and guidance

• Fiscal 2025 revenue guidance maintained at $160 million to $168 million.

• Management expects existing cash and anticipated operating cash flows to fund operations for at least the next 12 months.

• Backlog of $219 million anticipated to be recognized over the next five fiscal quarters, subject to risks of cancellation or delay.

• Focus remains on signing new business, executing backlog, and filling capacity to drive higher revenues and margins.

• Management anticipates EBITDA growth, though quarterly results may be lumpy.