The following is a summary of the Avid Bioservices, Inc. (CDMO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Avid Bioservices saw a significant increase in revenues by over 30% in Q3 2024 compared to Q2 2024, culminating in earnings of $33.8 million.

• Gross margin for Q3 was relatively low at 7% compared to 26% in Q3 2023.

• The net loss for Q3 2024 was $6 million, considerably higher than the $0.2 million of the same period the previous year.

• The company maintained cash and cash equivalents of $30.7 million as of January 31, 2024.

Business Progress:

• Business growth was supported by new project agreements, resulting in a backlog of over $200 million.

• The Q3 2024 saw the successful opening of their cell and gene therapy facility and completion of the three-year expansion program.

• The company refinance of convertible notes extended the debt maturity to 2029, improving its financial flexibility.

• With the operational CGT facility, Avid is now able to engage customers with a complete product offering, expected to improve cash flow and margins.

• An increase in early-stage project bookings indicates an improving financing environment for biotechs.

• Future capital expenditure is planned for maintenance and software, following the completion of the current expansion.

• The company looks forward to closing the fiscal year with a CapEx of around $32 million.

More details: Avid Bioservices IR

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