Avita Medical jumps on profit, revenue outlook
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More news: Shares in Avita Medical jumped nearly 11% to $3.06 in early trading after the medical technology company said it expects to grow revenue between 55% to 65% in 2025 and will likely achieve GAAP profitability in the fourth quarter.
The stock had tumbled last month after Avita said it would miss 2024 revenue guidance because of slower than expected growth in the December quarter.
Avita Medical eyes revenue jump and profitability in 2025 after guidance miss
The news: Medical technology company Avita expects to achieve a sharp increase in revenue and profitability this year after missing guidance for 2024 revenue following slower-than-expected fourth quarter growth.
The numbers: Revenue for the year to December was up 29% to USD64 million ($101 million) but fell short of the company’s guidance of USD68 million to USD70 million after slower growth in the December quarter.
The company is targeting a 55% to 65% increase in revenue to between USD100 million and USD106 million for 2025.
The context: The Nasdaq and ASX-listed firm had flagged the guidance miss last month, attributing it to a number of factors led by slower-than-expected year-end purchasing by hospitals. It expects normal purchasing activity to resume in early 2025 and is also set to scale up sales of its skin repair products, bolstered by the launch of its Recell Go and Cohealyx products.
CFO David O’Toole said Avita is now working toward generating free cash flow in the second half of the year and achieving GAAP profitability in the fourth quarter.
The source: ASX announcement
