AVITA Medical, Inc.

ASX:AVH

AVITA Medical, Inc.

ASX:AVH
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$3.93 (-1%)
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#87
Rank
7
Held by
24
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Reports (4) My Report Forum Investors
Forum Topics AVH AVH Quarterly Results

Pinned straw:
Foolednomore
Added 9 months ago

Fourth Quarter 2023 Financial Highlights

• Commercial revenue increased approximately 50% to $14.1 million compared to the same period in 2022

• Gross profit margin of 87.3% Full-Year 2023 Financial Highlights • Commercial revenue increased approximately 46% to $49.8 million compared to the same period in 2022

• Gross profit margin of 84.5%

• As of December 31, 2023, approximately $89.1 million in cash, cash equivalents, and marketable securities

Full-Year 2023 Financial Results

Our commercial revenue, which excludes BARDA revenue, increased by 46% to $49.8 million in the full-year ended December 31, 2023, compared to $34.1 million in the same period in 2022. Total revenue, which includes BARDA revenue, was $50.1 million compared to $34.4 million in the same period in 2022. Gross profit margin was 84.5% compared to 82.4% in the same period in 2022. Total operating expenses for the year were $86.4 million compared to $59.1 million in the same period in 2022. The increase in operating expenses is largely attributed to an increase of $15.4 million in sales and marketing costs as a result of the expansion of our commercial organization in the first half of 2023. Alongside this expansion, G&A costs increased by $5.0 million due to the increased headcount and related salaries and benefits, stock-based compensation, and recruiting costs. Lastly, R&D costs increased by $6.9 million, primarily driven by the cost of the TONE study, final work and completion of the PMA Supplement to the FDA in June of 2023 for RECELL GO and employee related costs, including stock-based compensation. Net loss for the full-year 2023 was $35.4 million, or a loss of $1.40 per basic and diluted share, compared to a net loss of $26.7 million, or a loss of $1.07 per basic and diluted share, in the same period in 2022. Other income, net for the full-year 2023 was $8.5 million, comprised primarily of $3.1 million in income from our investing activities and a $9.4 million non-cash foreign exchange gain as a result of the foreign entity liquidation for previously deferred unrealized cumulative translation adjustments in equity. This was partially offset by a loss on debt issuance of $1.2 million, debt issuance costs of $0.8 million, the change of fair value for our debt of $1.6 million, and change in fair value of warrants for $0.7 million.


Very positive results on sales, gross margin, guidance, increase in sales staff although net loss increased by $2m. The only reason I can see for the 11% ASX drop is the possibility of a capital raise for expansion. They hope to be self sustaining. i'd be grateful of any 2nd opinion before I buy more. I do like this company
mikebrisy
Added 9 months ago

Hi @Foolednomore, I'm a $PNV holder, so I'll catch up properly with the other sector players I track ($IART, $ARX, $AVH) when I get some time after reporting season. So, please take these comments in the understanding that I haven't looked in detail.

2023 was a big year with key FDA approvals, and so they have been scaling up the sales and marketing team, and all functions for that matter.

Operating expenses expanded by 64% in the final Q (to pcp), compared with 46% for the year, even though revenue grew only 50% in the final Q (to pcp) and 46% for the year. So, I guess there would be some concern about the pathway to profitability.

Also, I haven't heard anything about the progress of the FDA resubmission for the RECELL-GO. Initially, they were expecting a decision in Jan, but at the JPM Conference in January, this I see this was pushed to May. But that info has been in the market for a while.

In October they did the flexible $90m non-dilutive debt raising with Orbimed, and with $22m Cash and $66m Marketable securities, and a cash burn rate for FY23 of just shy of $40m, I don't think they are at immediate risk of a further raise. In fact, at the JPM conference in January they explicitly said they had "sufficient capital to meet goals and reach profitability during 2025".

So, I think the reaction is one of seeing the cost base expanding well ahead of revenue, which maybe put 2025 profitability in doubt. This kind of SP volatility is not uncommon for $AVH.

That's all I can see from a 5 minute look, and I'll be taking a deeper dive in March.

Disc: Not held


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