On July 2, 2024, Avid Bioservices Inc (CDMO, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ended April 30, 2024. Avid Bioservices Inc is a clinical-stage biopharmaceutical company focused on the development and Current Good Manufacturing Practices (CGMP) of biopharmaceutical products derived from mammalian cell culture. The company provides a comprehensive range of process development and high-quality CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries.
Performance Overview
Avid Bioservices Inc (CDMO, Financial) reported record quarterly revenue of $43.0 million for the fourth quarter of fiscal 2024, surpassing the analyst estimate of $42.14 million. This represents an 8% increase compared to $39.8 million in the same period last year. However, the company faced challenges with a net loss of $123.1 million for the quarter, significantly higher than the $0.3 million loss in the fourth quarter of fiscal 2023.
Financial Achievements and Challenges
The company achieved several milestones, including the completion of new mammalian and cell and gene therapy facilities, which are now fully operational. These expansions have increased Avid's annual revenue-generating capacity from approximately $120 million in fiscal 2021 to over $400 million. Despite these advancements, the company faced a decrease in full fiscal year revenue to $139.9 million, down 6% from $149.3 million in the previous year, primarily due to fewer manufacturing runs and a reduction in process development services.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue | $43.0 million | $39.8 million | $139.9 million | $149.3 million |
| Gross Profit | $5.5 million | $8.4 million | $7.3 million | $31.5 million |
| Net Income (Loss) | $(123.1) million | $(0.3) million | $(140.8) million | $0.3 million |
Balance Sheet and Cash Flow
As of April 30, 2024, Avid Bioservices Inc (CDMO, Financial) reported cash and cash equivalents of $38.1 million, slightly down from $38.5 million on April 30, 2023. The company's total assets stood at $336.6 million, compared to $451.6 million in the previous year. The decrease in assets is attributed to the significant investments in expanding the company's manufacturing capabilities.
CEO Commentary
"The fourth quarter of fiscal 2024 was a high point for the company. We generated the highest quarterly revenues in Avid’s history, meeting our current revenue expectations for the year. During the period we signed multiple new project agreements, and we continue to see positive signs for business development in the year ahead." - Nick Green, President and CEO of Avid Bioservices.
Future Outlook
Avid Bioservices Inc (CDMO, Financial) has provided revenue guidance for fiscal 2025, projecting between $160 million and $168 million, representing a 17% growth year-over-year at the midpoint. The company anticipates positive cash flow during fiscal 2025, driven by increased capacity utilization and a strong backlog of $193 million.
For more detailed financial information and analysis, please refer to Avid Bioservices’ Annual Report on Form 10-K, available on the SEC website.
Explore the complete 8-K earnings release (here) from Avid Bioservices Inc for further details.
