Avid Bioservices (CDMO) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of $43.0 million in Q4 FY2024, meeting annual revenue expectations and marking the highest in company history, with a robust backlog of $193 million as of April 30, 2024.

• Completed a three-year expansion program, bringing new mammalian and cell and gene therapy (CGT) facilities fully online, increasing annual revenue-generating capacity to over $400 million.

• Ended FY2024 with positive revenue momentum, margin improvement in Q4, and expectations for continued commercial momentum and positive cash flow in FY2025.

• Signed multiple new project agreements and expanded customer base, including another large pharma client.

Financial highlights

• Q4 FY2024 revenue was $43.0 million, up 8% year-over-year; full-year revenue was $139.9 million, down 6% from prior year due to fewer manufacturing runs and reduced process development services.

• Q4 gross profit was $5.5 million (13% margin), down from $8.4 million (21%) in Q4 FY2023; full-year gross profit was $7.3 million (5% margin), down from $31.5 million (21%).

• Q4 net loss was $123.1 million ($1.94 per share), mainly due to a $118.5 million deferred tax asset valuation allowance; adjusted Q4 net loss was $4.6 million ($0.07 per share).

• FY2024 net loss was $140.8 million ($2.23 per share); adjusted net loss was $22.3 million ($0.35 per share).

• Cash and cash equivalents at year-end were $38.1 million, nearly unchanged from the prior year.

Outlook and guidance

• FY2025 revenue guidance set at $160–$168 million, representing 17% year-over-year growth at the midpoint.

• Margin improvement expected as capacity utilization increases, especially with ongoing late-phase PPQ campaigns.

• Anticipates significant backlog conversion to revenue over the next five fiscal quarters and expects to generate positive cash flow during FY2025.

• Optimism for continued backlog growth and new business wins, supported by improving biotech funding and onshoring trends.