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Oct 31, 2022

Avid Bioservices Q2 2023 Earnings Report

Announced financial results for the second quarter, recording revenue of $34.8 million and signing $26 million in net new business orders, resulting in a backlog of $147 million.

Key Takeaways

Avid Bioservices reported strong Q2 results with $34.8 million in revenue and a significant backlog increase. The company is progressing with facility expansions and has increased its revenue guidance for fiscal year 2023 to $145 to $150 million.

Recorded second quarter revenue of $34.8 million.

Signed $26 million in net new business orders, resulting in a backlog of $147 million, a 23% year-over-year increase.

Mammalian cell facilities and cell and gene therapy facility expansions are on schedule.

Increased revenue guidance for fiscal year 2023 to $145 to $150 million.

Total Revenue
$34.8M
Previous year: $26.1M
+33.1%
EPS
-$0.03
Previous year: $0.06
-150.0%
Order Backlog
$147M
Previous year: $120M
+22.5%
Gross Profit
$4.15M
Previous year: $9.19M
-54.9%
Cash and Equivalents
$77.3M
Previous year: $164M
-52.8%
Free Cash Flow
-$38.2M
Previous year: $2.98M
-1384.3%
Total Assets
$443M
Previous year: $302M
+46.8%

Avid Bioservices

Avid Bioservices

Forward Guidance

Avid Bioservices anticipates a strong fiscal year 2023, driven by consistent execution, a strengthened customer base, and ongoing facilities expansions. The company has increased its revenue guidance to between $145 million and $150 million.

Positive Outlook

  • Consistent execution by the team has strengthened the customer base.
  • Topline revenues remain strong.
  • Backlog continues to show strong growth over the prior year.
  • Investment in the business development team is showing positive results.
  • Facilities and capabilities expansions are advancing according to plan.

Challenges Ahead

  • The ongoing COVID-19 pandemic could adversely affect the business and operations.
  • The company may experience delays in engaging new customers.
  • The company may not be successful in executing customer projects.
  • The company may experience technical difficulties in completing customer projects.
  • Expanding into a new biologics manufacturing segment may distract senior management’s focus.