AVITA Medical Inc (AVHHL) (Q1 2024) Earnings Call Transcript Highlights: Navigating Challenges ...

GuruFocus Research
4 min read

In This Article:

  • Commercial Revenue: $11.1 million for Q1 2024, a 5.8% increase year-over-year but below expectations.

  • Gross Profit Margin: Increased to 86.4% from 84.2% in Q1 2023.

  • Operating Expenses: Rose to $26.8 million from $19.4 million in Q1 2023.

  • Net Loss: $18.7 million, or $0.73 per share, compared to $9.2 million, or $0.37 per share in Q1 2023.

  • Cash and Equivalents: $68.1 million as of March 31, 2024, down from $89.1 million as of December 31, 2023.

  • Q2 2024 Revenue Guidance: Expected to be between $14.3 million and $15.3 million.

  • Full Year 2024 Revenue Guidance: Reaffirmed at $78.5 million to $84.5 million, indicating a growth of approximately 57% at the lower end.

Release Date: May 13, 2024

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

Positive Points

  • AVITA Medical Inc (AVHHL) has expanded its product portfolio with the launch of PermeaDerm in the US on March 23, aiming to address a broader range of clinical needs in wound care.

  • The company is nearing FDA approval for RECELL GO, expected by May 30, 2024, which could significantly enhance operational efficiency and adoption rates.

  • AVITA Medical Inc (AVHHL) has successfully passed major MDR conformity assessment audits, advancing towards obtaining a CE Mark for RECELL GO in the European Union.

  • The company is actively pursuing international expansion, with plans to execute distributor agreements in major EU countries and Australia within the year.

  • AVITA Medical Inc (AVHHL) has a robust gross profit margin of 86.4% for the quarter, indicating strong profitability in its core operations.

Negative Points

  • AVITA Medical Inc (AVHHL) reported disappointing first-quarter commercial revenue of $11.1 million, falling short of expectations and marking the first time without sequential quarterly growth since the CEO's tenure began.

  • The company experienced a slower-than-expected conversion rate of new accounts for its expanded level of full thickness skin defects, adding only 73 new accounts instead of the expected 135 by the end of the first quarter.

  • A data breach at a major US clearing house disrupted the data feed to AVITA Medical Inc (AVHHL)'s claims data provider, impacting the company's ability to analyze burn wound admissions and device utilization.

  • The company's net loss for the first quarter was $18.7 million, significantly higher than the previous year's loss of $9.2 million.

  • AVITA Medical Inc (AVHHL) experienced a significant use of cash during the quarter, with cash, cash equivalents, and marketable securities decreasing from $89.1 million as of December 31, 2023, to $68.1 million as of March 31, 2024.

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