AVITA Medical (ASX:AVH) Updates Q4 and FY2024 Revenue Guidance
Revised Revenue Expectations
AVITA Medical, Inc. (ASX: AVH), a leader in regenerative medicine, has updated its revenue guidance for the fourth quarter and full year of 2024. The company anticipates approximately $18.4 million in commercial revenue for Q4 2024, marking a growth of around 30% from the previous year. This revision follows an earlier estimate which ranged from $22.3 million to $24.3 million.
Full-year projections have also been adjusted, with anticipated revenue expected to reach around $64.3 million, reflecting a growth of 29% compared to 2023, down from previous estimates of up to $70 million. The company’s performance was impacted by slower purchasing activity at year-end from several hospital accounts, though AVITA expects normal purchasing patterns to resume in the first quarter of 2025.
Growth Initiatives and Future Outlook
In 2024, AVITA Medical launched several pivotal products, including the biosynthetic PermeaDerm® and received FDA approvals for the next-generation RECELL GO™ and the RECELL GO mini. These innovations, along with the clearance for Cohealyx™, a collagen-based dermal matrix, are integral to the company’s strategy for scalable growth.
“We grew our revenue in 2024 by approximately 29% over the prior year. We achieved this growth despite lower-than-expected fourth-quarter revenue,” stated Jim Corbett, CEO of AVITA Medical. “Our strategic investments in our people and new products position us to continue to drive significant growth and sustainable success.”
Looking ahead, AVITA Medical forecasts 2025 commercial revenue to be between $100 million and $106 million, indicating a potential growth of 55% to 65% over 2024 projections. The company also plans to achieve cash flow break-even and GAAP profitability by Q4 2025.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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