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 $66 million in net new agreements and a backlog of $219 million.

• Investments in infrastructure and capabilities have enhanced the ability to attract large pharma clients and diversify the customer base, with continued momentum post-expansion.

• Gross profit increased to $5.7 million (14% margin) from $4.1 million (11% margin) in the prior year, reflecting higher revenues and lower material costs.

• Net loss widened to $5.5 million ($0.09 per share) from $2.1 million ($0.03 per share) year-over-year, mainly due to higher SG&A expenses.

• Ended the quarter with a robust and diversified backlog, supporting both near- and long-term growth opportunities.

Financial highlights

• Q1 FY2025 revenues were $40.2 million (+6% YoY), 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) YoY.

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

• Net loss for the quarter was $5.5 million ($0.09 per share), compared to $2.1 million ($0.03 per share) in the prior year.

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

Outlook and guidance

• Fiscal 2025 revenue guidance maintained at $160 million to $168 million, with significant backlog revenue recognition anticipated over the next five fiscal quarters.

• Focus remains on filling remaining capacity to drive higher revenues, capacity utilization, and stronger margins.

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

• Capital expenditures for FY2025 expected to be approximately $5 million.

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