On August 8, 2024, AVITA Medical Inc (RCEL, Financial) released its 8-K filing for the second quarter ended June 30, 2024. AVITA Medical, a commercial-stage regenerative medicine company, focuses on innovative devices for wound care management and skin restoration. The company's flagship product, the RECELL System, is a transformative burn treatment device that creates Spray-on Skin from a small skin sample within 30 minutes, reducing the need for skin grafts. AVITA Medical is primarily focused on the US market, with plans to expand into Japan in the second half of fiscal 2022.
Performance Overview
AVITA Medical Inc (RCEL, Financial) reported commercial revenue of $15.1 million for Q2 2024, a 29% increase compared to the same period in 2023. This revenue exceeded analyst estimates of $14.73 million. However, the company reported a net loss of $15.4 million, or $0.60 per share, missing the analyst estimate of -$0.48 per share. The gross profit margin improved to 86.2%, up from 81.2% in the prior year, driven by increased revenues and production volumes.
Key Financial Achievements
AVITA Medical's financial achievements in Q2 2024 include:
- Commercial revenue of $15.1 million, up 29% year-over-year
- Gross profit margin of 86.2%, up from 81.2% in Q2 2023
- Approval of RECELL GOâ„¢ premarket approval (PMA) supplement by the FDA
- Submission of PMA supplement for RECELL GO miniâ„¢, designed for smaller wounds
- Exclusive development and distribution agreement with Regenity Biosciences for a collagen-based dermal matrix
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $15.2 million | $11.8 million |
| Gross Profit | $13.1 million | $9.5 million |
| Operating Expenses | $28.7 million | $21.2 million |
| Net Loss | $15.4 million | $10.4 million |
| EPS | -$0.60 | -$0.41 |
Balance Sheet and Cash Flow
As of June 30, 2024, AVITA Medical had $54.1 million in cash, cash equivalents, and marketable securities. The company's total assets stood at $87.8 million, with total liabilities of $63.5 million. The increase in operating expenses to $28.7 million from $21.2 million in Q2 2023 was primarily due to higher sales and marketing expenses, reflecting the expansion of the commercial organization.
Commentary and Future Outlook
"Our second-quarter commercial revenue reached a record $15.1 million, reflecting the effectiveness of our enhanced focus on commercial execution," said Jim Corbett, Chief Executive Officer of AVITA Medical. "The FDA approval of RECELL GO and our recent submission of RECELL GO mini highlight our progress in expanding treatment capabilities for burn and full-thickness skin defects."
Looking ahead, AVITA Medical expects commercial revenue for Q3 2024 to be in the range of $19.0 to $20.0 million, reflecting growth of approximately 40% to 48% over the same period in 2023. The company also anticipates achieving cash flow break-even and GAAP profitability by the end of Q3 2025.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from AVITA Medical Inc for further details.
