Avita shares plunge despite Q1 revenue lift
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More news: Avita Medical's sharp revenue lift in the first quarter has failed to cheer investors, with shares in the medical technology company slumping nearly 20% to $2.40 in early trading on the ASX.
Revenue for the March quarter jumped 67% from a year ago to US$18.5 million, while gross profit margin eased to 84.7%, and its net loss narrowed to US$13.9 million ($21.7 million) from US$18.7 million a year ago. The company reaffirmed its full-year revenue and cashflow guidance.
Avita Medical lifts Q1 revenue, reaffirms guidance
The news: Medical technology company Avita has lifted first-quarter revenue and reaffirmed its full-year guidance after launching two products in the period.
The numbers: Net loss for the three months to March narrowed to USD13.9 million ($21.7 million), from USD18.7 million a year ago. Revenue was up 67% to USD18.5 million, while gross profit margin was 84.7% compared with 86.4% a year ago.
The company reaffirmed guidance for full-year revenue to increase 55% to 65% to between USD100 million and USD106 million, and that it expects to generate free cash flow in the second half of the year.
The context: The Nasdaq and ASX-listed firm said it launched a mini-version of its Recell Go skin repair treatment during the quarter, along with the Cohealyx collagen-based dermal matrix, helping the company shift from a service-oriented structure to a selling-oriented model.
“With the February rollout of Recell Go mini and the nationwide rollout of Cohealyx on April 1, our portfolio now addresses a US market opportunity that has expanded USD455 million to more than USD3.5 billion,” CEO Jim Corbett said.
The source: ASX
