Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Hey, thanks. Good afternoon, everybody. Nick, so a lot of positive commentary around the funding backdrop and I guess the end markets in general. I guess I'd be curious about some of the other unique dynamics that are going on in the end markets right now, most notably BIOSECURE and the Novo Catalent deal. I'm just curious, are you seeing additional opportunities present themselves after those events which I think largely happened after you concluded the quarter you just reported?
A: Yes, Jacob. It's an interesting one. We don't always, at the beginning of the conversation, necessarily understand exactly where the opportunities coming from. So you mentioned two, I guess, tailwinds in terms -- or potential tailwinds in terms of our sector. So a client comes to us with a new opportunity. It's not always obvious that we -- whether it's something to do with BIOSECURE or whether it has to do with Catalent.
Q: Got it. Thanks for that, Nick. And then maybe for Dan, you guys reiterated your FY24 guidance. I think I heard Matt and Nick both talked about a strong 4Q. Just given where we are in the quarter and for those of us who have models, if you want to give us any more specific detail on kind of how the quarters playing out relative to the guidance you have, maybe I give you the opportunity to that.
A: Yeah. Jacob, I'll take that one. I mean, we left the guidance at the range that we did because that's what we've done in our pre-release to be frank with you. So we wanted to be consistent with what we've pre-released. I think, again, with consensus out there, we're comfortable with that. And we were just, I think, restating where we were and restating what you guys have been saying. So I wouldn't necessarily change it any differently than where we were last quarter.
Q: Yeah, thanks. Maybe just following Jacob's line of questioning there and more specifically on the bookings, you had $41 million in new business you signed last quarter. We're a day away from wrapping this quarter up. I guess when it comes to bookings, can you give us some sense of how those have trended here recently, or maybe some direction on how to think about where that will land this quarter?
A: Yeah. I can't go on the quarter four, Sean, it's a quarter-three call, I know albeit late. But again, I think we've kind of highlighted quarter-four revenues being meeting consensus will be a really a nice uplift on quarter three, which was a good lift upon quarter four in terms of revenues, in terms of bookings.
Q: Good afternoon. Thanks for taking the questions. Maybe to dig in a little bit more on the Catalent BIOSECURE opportunity, you've had a couple large pharma companies come out here over the past week or so talking about it. They're having the conversations now. But maybe walk us through that process, and have you seen any change in maybe the sense of urgency from last quarter to where we sit today? Not asking for specific numbers, but are you hearing those conversations changing as more and more companies are looking to possibly use a new provider?
A: Yeah. I mean, I think Matt, as you look at somebody who's maybe looking at that, facing that problem of do I want to switch a supplier, it can be very varied from one to another. Somebody may have been considering to place an order there. So I guess depending on their timeline, they may already be committed to that in terms of meeting clinical. So that could be one scenario.
Q: Hey, good afternoon, guys. Thanks for taking our questions. We're going to ask one on overcapacity in the small-scale mammalian drug substance space. Over the last months or so here, we've seen Lonza and Fuji both divest some assets there, move away from smaller-scale bioreactors. We also heard Sartorius last week say that this is really where there's overcapacity or weak demand currently.
A: It's really difficult for me to comment on what they're seeing. So if they're seeing that as overcapacity, again, I would say it contradicts a little bit of what I've just been saying. So we're seeing good demands for Avid's services and capabilities. I'm not going to suggest for a minute that Avid is a bellwether for the whole industry.
Q: Hi, Dan. Hi, Nick. Thanks for the time. Dan, where are we with CapEx? I think that's more, frankly, the most common question from clients right now. Where was what -- about [4.7] in the January quarter. What should we think about in the current quarter and years upcoming?
A: Sure, Paul. Great question. The expansion CapEx is done. So going forward, any CapEx that comes through will be more software or what have you and maintenance. Though maintenance, because most of our equipment is brand new, will start fairly light and grow over the next couple of years. But I think the main question is as far as the growth in the expansion CapEx, that's now complete. And I still think that this fiscal year, we're going to end at roughly around $32 million of CapEx.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
