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Highlights
- Revenue Surge: AVITA Medical reports a 30% increase in Q4 commercial revenue, reaching US$18.4 million, with full-year revenue up 29% to US$64 million.
- Profitability in Sight: Despite a net loss of US$61.8 million, management forecasts free cash flow in the second half of FY 2025 and GAAP profitability by Q4 2025.
- Growth Outlook: Commercial revenue is projected to grow 55%–65% in FY 2025, reaching US$100–106 million.
Shares of AVITA Medical Inc. (ASX:AVH) climbed 10% to $3.05 following the release of its fourth-quarter and full-year financial results. The medical device company showcased revenue growth and an optimistic outlook for the upcoming fiscal year, despite reporting an increased net loss.
Revenue Growth Amid Challenges
AVITA Medical posted a 30% rise in commercial revenue for the fourth quarter, reaching US$18.4 million. This contributed to full-year commercial revenue of US$64 million, marking a 29% increase compared to the previous fiscal year.
The company also reported a robust gross profit margin of 87.6% in Q4, bringing the full-year margin to 85.8%. However, these positive figures were overshadowed by a net loss of US$61.8 million, significantly higher than the US$35.4 million loss in FY 2023. Management attributed this increase to rising operating expenses and reduced other income.
Path to Profitability in FY 2025
Despite the net loss, AVITA Medical remains optimistic about its future financial performance. The company expects commercial revenue to grow substantially in FY 2025, projecting a range of US$100 million to US$106 million—an increase of approximately 55% to 65%.
More importantly, the company anticipates a turnaround in profitability. Management has indicated that AVITA is on track to generate free cash flow in the second half of FY 2025 and achieve GAAP profitability by the fourth quarter of the fiscal year.
Investor Confidence Boosted
Investors responded positively to the earnings report, sending AVITA Medical’s share price up by 10% on the ASX.
