Avid Bioservices Inc (CDMO) Q3 2024 Earnings Call Transcript Highlights: Navigating Challenges ...

In This Article:

  • Revenue Q3 FY2024: $33.8 million, down 11% year-over-year.

  • Revenue 9M FY2024: $96.9 million, down 11% year-over-year.

  • Gross Margin Q3 FY2024: 7%, down from 26% in Q3 FY2023.

  • Gross Margin 9M FY2024: 2%, down from 21% in 9M FY2023.

  • Operating Loss Q3 FY2024: $4 million, compared to operating income of $2.7 million in Q3 FY2023.

  • Operating Loss 9M FY2024: $17.4 million, compared to operating income of $2.8 million in 9M FY2023.

  • Net Loss Q3 FY2024: $6 million, or $0.09 per share.

  • Net Loss 9M FY2024: $17.6 million, or $0.28 per share.

  • Cash and Cash Equivalents: $30.7 million as of January 31, 2024.

  • Backlog: Reached a record high of $206 million.

Release Date: April 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q & A Highlights

Q: Hey, thanks. Good afternoon, everybody. Nick, so a lot of positive commentary around the funding backdrop and I guess the end markets in general. I guess I'd be curious about some of the other unique dynamics that are going on in the end markets right now, most notably BIOSECURE and the Novo Catalent deal. I'm just curious, are you seeing additional opportunities present themselves after those events which I think largely happened after you concluded the quarter you just reported? A: Yes, Jacob. It's an interesting one. We don't always, at the beginning of the conversation, necessarily understand exactly where the opportunities coming from. So you mentioned two, I guess, tailwinds in terms -- or potential tailwinds in terms of our sector. So a client comes to us with a new opportunity. It's not always obvious that we -- whether it's something to do with BIOSECURE or whether it has to do with Catalent.

Q: Got it. Thanks for that, Nick. And then maybe for Dan, you guys reiterated your FY24 guidance. I think I heard Matt and Nick both talked about a strong 4Q. Just given where we are in the quarter and for those of us who have models, if you want to give us any more specific detail on kind of how the quarters playing out relative to the guidance you have, maybe I give you the opportunity to that. A: Yeah. Jacob, I'll take that one. I mean, we left the guidance at the range that we did because that's what we've done in our pre-release to be frank with you. So we wanted to be consistent with what we've pre-released. I think, again, with consensus out there, we're comfortable with that. And we were just, I think, restating where we were and restating what you guys have been saying. So I wouldn't necessarily change it any differently than where we were last quarter.