Avid Bioservices, Inc. (CDMO) on Q1 2022 Results - Earnings Call Transcript
Operator: Good day, ladies and gentlemen, and welcome to the Avid Bioservices First Quarter Fiscal 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call may be recorded. I would now like to hand the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead. Tim Brons: Thank you. Good afternoon, and thank you for joining us. On today's call, we have Nick Green, President and CEO; and Dan Hart, Chief Financial Officer. Today, we'll be providing an overview of Avid Bioservices' contract development and manufacturing business, including updates on corporate activities and financial results for the quarter ended July 31, 2021. After our prepared remarks, we will welcome your questions. Before we begin, I'd like to caution that comments made during this conference call today, September 8, 2021, will contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, concerning the current belief of the company, which involves a number of assumptions, risks and uncertainties. Actual results could differ from these statements and the company undertakes no obligation to revise or update any statement made today. I encourage you to review all of the company's filings with the Securities and Exchange Commission concerning these and other matters. Our earnings press release and this call will include discussion of certain non-GAAP information. You can find our earnings press release, including relevant non-GAAP reconciliations on our corporate website at avidbio.com. With that, I will turn the call over to Nick Green, Avid's President and CEO. Nick Green: Thank you, Tim, and thank you to everyone who has dialed-in today and for those who are participating via webcast. On the heels of a strong fourth quarter and full fiscal year 2021, we are pleased to announce another robust quarter. During the first quarter of fiscal '22, we recorded an increase in revenues compared to the prior year period, exceeding estimates for both revenues and earnings per share. Our margins are significantly improved during the first quarter, reflecting the efficiencies of our business model and our ability to strategically leverage our existing fixed costs. In business development, we continued to expand and diversify our pipeline with the signing of multiple orders during the period. And as always, our BD team remains highly engaged in the pursuit of multiple new business opportunities. Finally, with respect to operations, both Phase 1 and Phase 2 of our expansion projects remain on-track. I will provide additional details on business development and operations following an overview of our first quarter financial results. And for that, I'll turn the call over to Dan. Dan Hart: Thank you, Nick. Before I begin, in addition to the brief financial overview I'll provide on the call today, additional details on our first quarter financial results are included in our press release issued prior to this call and in our Form 10-Q, which was filed today with the SEC. I'll now provide an overview of our financial results from operations for the quarter ended July 31, 2021. Revenues for the first quarter of fiscal '22 were $30.8 million, representing a 21% increase compared to $25.4 million recorded in the prior year period. The increase in revenues during the first quarter was primarily due to the growth in the number and scope of in-process and completed manufacturing runs, as well as an increase in the number of process development projects during the '22 period. Gross margin for the first quarter of fiscal 2022 was 37% compared to a gross margin of 34% in the first quarter of fiscal 2021. The increase in margin was primarily from higher manufacturing and process development revenues during the period as well as the receipt of a $3.3 million fee for unutilized reserved capacity from a customer during the quarter, similar to the $3.1 million fee from a customer received during the first quarter of fiscal 2021. As such, the gross margin percentages for both the current year and the prior year periods were strengthened by these unused reserve capacity fees. These fees improved margins by approximately 7% and 9% for the first quarter of fiscal 2022 and fiscal 2021 respectively. While we believe the positive trend in our gross margin demonstrates the growing efficiencies of our business model, we do expect to increase hiring in the coming months to support our growing manufacturing capacity, and this may impact margins in future quarters. Total SG&A expenses for the first quarter of fiscal 2022 were $4.5 million, an increase of 17% compared to $3.8 million recorded in the first quarter of fiscal 2021. The increase in SG&A during the quarter was primarily due to increases in stock-based compensation and consulting fees, partially offset by a decrease in payroll and benefit-related expenses. For the first quarter of fiscal 2022, we recorded net income attributable to common stockholders of approximately $6.3 million or $0.10 per basic and diluted share, as compared to a net income attributable to common stockholders of $3.3 million or $0.06 per basic and diluted share for the first quarter of fiscal 2021. The increase in net income during the 2022 period is partially due to the accumulated preferred dividends included in net income attributable to common stockholders for the prior year period. This represents the company's fifth consecutive quarter of operational profitability. And during the quarter, we achieved adjusted EBITDA of approximately $9.7 million or 32% of revenues. Our cash and cash equivalents as of July 31, 2021, were $159.7 million compared to $169.9 million as of the prior fiscal year ended April 30, 2021. We are reiterating our plans to spend approximately $50 million to $60 million during the fiscal year 2022, primarily on our previously discussed facility expansions. This concludes my financial overview. I'll now turn the call back over to Nick for an update on business development and operations activities and achievements for the quarter. Nick Green: Thanks, Dan. I would first like to acknowledge the appointment of Avid's newest Director, Dr. Esther Alegria. During the first quarter, Dr. Alegria joined the Avid Board, bringing nearly 30 years of biopharmaceutical experience. We welcome doctor Alegria to Avid and we are thrilled to have the benefit of her experience and expertise on our Board. I would now like to address another recent appointment. While Avid has not experienced any pandemic-related supply chain delays to-date, it is important to recognize that uncertainty remains in the supply market and we are cognizant of the impact it may have on timing and the pricing of materials in the future. In light of this uncertainty and as we continue to expand our manufacturing capacity, we have recently added a new and important position to Avid's management team. I am pleased to announce that we have recently hired Joseph Scott as the Company's first Vice President of Supply Chain. Joe's experience in supply chain at both Gilead and Biogen will be invaluable as he and his team manage the complexities associated with sourcing and procuring critical materials, as well as managing inventory and supply logistics as the company continues to grow and expand. And we are very pleased to welcome Joe to the Avid team. Addressing another personnel matter. Last month, our Chief Commercial Officer, Tim Compton, left Avid to rejoin an organization that he had been integral in building in the past. We understand that this opportunity was unique and one that he felt he could not pass up. The search for Tim's replacement is ongoing and given the company's continued performance, we believe we are in a position to select from a number of highly talented and industry respected candidates. While Tim will be missed, rest assured that the rest of the company's BD team is continuing to execute in an extremely effective manner. During the first quarter, the company signed new project orders totaling approximately $23 million from new and existing customers, including the previously announced commercial manufacture of the humanized monoclonal antibody portion of ZYNLONTA, a recently approved cancer treatment developed by ADC Therapeutics. Avid has provided clinical manufacturing services to ADC to support development of this product since 2017, and we are excited to see the manufacturing relationship expand to include commercial manufacturing activities for ZYNLONTA. Work for projects signed during the first quarter will spun all areas of the business from process development to commercial manufacturing and the resultant backlog at quarter-end was approximately $110 million. We expect to recognize most of the current backlog over the next 12 months. And on that note, I'd like now to address the operations at Avid. Given the company's significant growth achieved during fiscal '21 in both revenue and number of clients, it became clear last year that the expansion of our activities was required if we were to be able to provide capacity for both new and existing clients. Capacity availability, we feel, is critical, not only to onboard new clients but also to ensure existing clients that their manufacturing partner will not impact their timelines as a result of failing to have adequate capacity. As we stand today, we are more than halfway through Phase 1, and I'm delighted to report that both Phase 1 and Phase 2 remain on-track. We fully expect to have Phase 1 mechanically compete as we enter the annual [technical difficulty] to have the equipment validated and operational at the outset of the New Year in January. Achieving approximately $31 million in revenue also requires seamless execution on behalf of all of our operational teams. The efforts of our facilities, maintenance, supply chain and manufacturing teams along with all those who support them should be applauded for converting a healthy order book into revenue at close to capacity during the quarter. Q2 and Q3 operations include annual shutdowns for the Franklin and Myford facilities. As we speak, I am pleased to say that the Franklin shutdown is already complete and manufacture operations have restarted and we look forward to an efficient and effective shutdown and restart of Myford in fiscal Q3. As we now have the first quarter behind us and we are well into the second quarter, we believe we are on-track to achieve our stated full year '22 revenue guidance of between 115 and $117 million . This represents a year-over-year growth rate of approximately 20% to 22%. Despite the annual shutdowns, numerous factors contribute to our confidence in reaching this milestone, including continued demand from new and existing customers and substantial backlog, which we expect to continue to grow over coming months. With the successful fund raising completed in December of last year, and March of this year, we are very well capitalized with approximately $160 million of cash on hand. These proceeds support our expansion and enhancement efforts and will allow the company to explore value-creating opportunities for organic and inorganic growth in the future. We are fortunate to be able to leverage this position of financial strength and we are grateful to have the support of our investors during this exciting period of growth. Looking ahead, we are focused on the continued expansion and diversification of our client base, successfully executing our Myford shutdown, completing both phases of facility expansion and hiring exceptional talent to support our growing capacity and customer demand. We are making consistent progress with each of these efforts, and we believe we are well-positioned to continue to strengthen and elevate the Avid organization and brand. This concludes my prepared remarks for today. We can now open the call for questions. Operator? Operator: [Operator Instructions] Our first question comes from Sean Dodge with RBC Capital Markets. You may proceed with your question. Operator: Our next question comes from Jacob Johnson with Stephens. You may proceed with your question. Operator: Our next question comes from Matt Hewitt with Craig-Hallum Capital. You may proceed with your question. Operator: Our next question comes from Paul Knight with KeyBanc. You may proceed with your question. Operator: Thank you. At this time, I would like to hand the call back over to Nick Green for any closing remarks. Nick Green: Thank you, operator, and thanks to everybody participating on the call today. In closing, I'd just like to thank Avid's customers, partners and investors for their ongoing collaboration. I would also like to acknowledge Avid's extraordinary employees who together are driving the company's success. Thank you again for participating today and for your continued support of Avid Bioservices. Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Avid Bioservices, Inc. (NASDAQ: CDMO) Under Investigation Amid Proposed Sale
- The proposed sale of Avid Bioservices, Inc. (NASDAQ:CDMO) to GHO Capital Partners LLP and Ampersand Capital Partners at $12.50 per share is being investigated for fairness.
- Recent insider activity includes the sale of 3,843 shares by Chief Operations Officer Richieri Richard A. at $12.22 each, below the current stock price of $12.35.
- CDMO's stock volatility is highlighted by a 52-week range of $12.48 to $5.65, with a current market capitalization of approximately $789.6 million.
Avid Bioservices, Inc. (NASDAQ:CDMO) is under scrutiny as Halper Sadeh LLC investigates the fairness of its proposed sale to GHO Capital Partners LLP and Ampersand Capital Partners. The deal offers $12.50 per share in cash, raising concerns about whether the board has secured the best possible outcome for shareholders. The law firm is known for representing investors affected by securities fraud and corporate misconduct.
The investigation by Halper Sadeh LLC is particularly relevant given recent insider activity. On December 26, 2024, Richieri Richard A., CDMO's Chief Operations Officer, sold 3,843 shares at $12.22 each. This transaction price is slightly below the current stock price of $12.35, which has seen a 0.86% increase. Such insider transactions can influence perceptions of the company's valuation.
CDMO's stock has shown volatility, with a 52-week high of $12.48 and a low of $5.65. The current market capitalization stands at approximately $789.6 million. The stock's fluctuation between $12.29 and $12.35 today highlights the market's response to the ongoing investigation and proposed sale. Investors are closely watching these developments.
The trading volume for CDMO today is 882,025 shares, indicating active investor interest. This activity may be driven by the potential for increased compensation or additional disclosures as sought by Halper Sadeh LLC. The firm's history of recovering millions for defrauded investors adds weight to the investigation's potential impact on CDMO's future.
Avid Bioservices, Inc. (NASDAQ: CDMO) Under Investigation Amid Proposed Sale
- The proposed sale of Avid Bioservices, Inc. (NASDAQ:CDMO) to GHO Capital Partners LLP and Ampersand Capital Partners at $12.50 per share is being investigated for fairness.
- Recent insider activity includes the sale of 3,843 shares by Chief Operations Officer Richieri Richard A. at $12.22 each, below the current stock price of $12.35.
- CDMO's stock volatility is highlighted by a 52-week range of $12.48 to $5.65, with a current market capitalization of approximately $789.6 million.
Avid Bioservices, Inc. (NASDAQ:CDMO) is under scrutiny as Halper Sadeh LLC investigates the fairness of its proposed sale to GHO Capital Partners LLP and Ampersand Capital Partners. The deal offers $12.50 per share in cash, raising concerns about whether the board has secured the best possible outcome for shareholders. The law firm is known for representing investors affected by securities fraud and corporate misconduct.
The investigation by Halper Sadeh LLC is particularly relevant given recent insider activity. On December 26, 2024, Richieri Richard A., CDMO's Chief Operations Officer, sold 3,843 shares at $12.22 each. This transaction price is slightly below the current stock price of $12.35, which has seen a 0.86% increase. Such insider transactions can influence perceptions of the company's valuation.
CDMO's stock has shown volatility, with a 52-week high of $12.48 and a low of $5.65. The current market capitalization stands at approximately $789.6 million. The stock's fluctuation between $12.29 and $12.35 today highlights the market's response to the ongoing investigation and proposed sale. Investors are closely watching these developments.
The trading volume for CDMO today is 882,025 shares, indicating active investor interest. This activity may be driven by the potential for increased compensation or additional disclosures as sought by Halper Sadeh LLC. The firm's history of recovering millions for defrauded investors adds weight to the investigation's potential impact on CDMO's future.
Avid Bioservices, Inc. (NASDAQ:CDMO) Achieves Record Financial Milestones
- Record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, highlights Avid Bioservices' strong market position and operational efficiency.
- The company has signed $30 million in net new business, contributing to a backlog of $193 million, demonstrating its ability to attract and retain clients.
- A price target of $8 set by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory within the biologics CDMO sector.
Avid Bioservices, Inc. (NASDAQ:CDMO) has been making significant strides in the biopharmaceutical sector as a contract development and manufacturing organization. Since its rebranding from Peregrine Pharmaceuticals, Inc. in January 2018, CDMO has focused on producing biopharmaceutical drug substances, leveraging mammalian cell culture technology. This specialization places Avid Bioservices in a unique position within the biotechnology and biopharmaceutical industries, catering to a growing demand for contract development and manufacturing services. The company's comprehensive service offerings, including CGMP clinical and commercial manufacturing, process development, and regulatory support, underscore its commitment to supporting the lifecycle of biopharmaceutical products.
The recent financial milestones achieved by Avid Bioservices highlight the company's robust performance and potential for future growth. For instance, the record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, as reported by GlobeNewswire, marks the highest in the company's history. This achievement, coupled with the signing of $30 million in net new business, contributing to a backlog of $193 million, demonstrates Avid Bioservices' strong market position and operational efficiency. These financial results are a testament to the company's ability to attract and retain clients, thereby ensuring a steady stream of revenue.
Furthermore, the setting of a price target of $8 by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory and strategic positioning within the biologics CDMO sector. This price target, informed by the company's recent financial achievements and market dynamics, suggests a positive outlook on CDMO's stock potential. The analyst's perspective is likely influenced by Avid Bioservices' record revenue figures, backlog growth, and the broader industry trends favoring biologics production outsourcing.
The biopharmaceutical sector's volatility, driven by regulatory approvals, clinical trial outcomes, and partnership announcements, plays a significant role in shaping analyst target prices and market perceptions. Avid Bioservices' ability to navigate this complex landscape, as evidenced by its financial results and strategic initiatives, positions the company favorably among investors and analysts alike.
In conclusion, Avid Bioservices' financial performance and the strategic moves it has made underscore the company's resilience and adaptability in a competitive and rapidly evolving industry. The record revenues and backlog, along with the positive price target from RBC Capital, signal strong confidence in CDMO's growth potential and market position. As the biopharmaceutical industry continues to evolve, Avid Bioservices' role as a key player in contract development and manufacturing is expected to remain critical, offering promising opportunities for the company and its stakeholders.
Avid Bioservices, Inc. (NASDAQ:CDMO) Achieves Record Financial Milestones
- Record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, highlights Avid Bioservices' strong market position and operational efficiency.
- The company has signed $30 million in net new business, contributing to a backlog of $193 million, demonstrating its ability to attract and retain clients.
- A price target of $8 set by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory within the biologics CDMO sector.
Avid Bioservices, Inc. (NASDAQ:CDMO) has been making significant strides in the biopharmaceutical sector as a contract development and manufacturing organization. Since its rebranding from Peregrine Pharmaceuticals, Inc. in January 2018, CDMO has focused on producing biopharmaceutical drug substances, leveraging mammalian cell culture technology. This specialization places Avid Bioservices in a unique position within the biotechnology and biopharmaceutical industries, catering to a growing demand for contract development and manufacturing services. The company's comprehensive service offerings, including CGMP clinical and commercial manufacturing, process development, and regulatory support, underscore its commitment to supporting the lifecycle of biopharmaceutical products.
The recent financial milestones achieved by Avid Bioservices highlight the company's robust performance and potential for future growth. For instance, the record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, as reported by GlobeNewswire, marks the highest in the company's history. This achievement, coupled with the signing of $30 million in net new business, contributing to a backlog of $193 million, demonstrates Avid Bioservices' strong market position and operational efficiency. These financial results are a testament to the company's ability to attract and retain clients, thereby ensuring a steady stream of revenue.
Furthermore, the setting of a price target of $8 by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory and strategic positioning within the biologics CDMO sector. This price target, informed by the company's recent financial achievements and market dynamics, suggests a positive outlook on CDMO's stock potential. The analyst's perspective is likely influenced by Avid Bioservices' record revenue figures, backlog growth, and the broader industry trends favoring biologics production outsourcing.
The biopharmaceutical sector's volatility, driven by regulatory approvals, clinical trial outcomes, and partnership announcements, plays a significant role in shaping analyst target prices and market perceptions. Avid Bioservices' ability to navigate this complex landscape, as evidenced by its financial results and strategic initiatives, positions the company favorably among investors and analysts alike.
In conclusion, Avid Bioservices' financial performance and the strategic moves it has made underscore the company's resilience and adaptability in a competitive and rapidly evolving industry. The record revenues and backlog, along with the positive price target from RBC Capital, signal strong confidence in CDMO's growth potential and market position. As the biopharmaceutical industry continues to evolve, Avid Bioservices' role as a key player in contract development and manufacturing is expected to remain critical, offering promising opportunities for the company and its stakeholders.
Avid Bioservices, Inc. Reports Mixed Financial Results for Q4 Fiscal Year 2024
- Avid Bioservices reported an EPS of -1.94, significantly below the anticipated -0.038, indicating a larger-than-expected loss.
- The company's revenue for the fourth quarter was $42.98 million, slightly exceeding forecasts and marking a record-breaking figure for the period.
- Despite the disappointing EPS, Avid Bioservices has set ambitious revenue guidance for fiscal year 2025, projecting earnings between $160 million and $168 million.
On Wednesday, July 3, 2024, Avid Bioservices, Inc. (NASDAQ:CDMO) reported its earnings per share (EPS) for the fourth quarter of the fiscal year 2024, revealing a figure of -1.94. This result was significantly below the anticipated -0.038, indicating a larger-than-expected loss for the period. However, the company's revenue for the same period was $42.98 million, which slightly exceeded the forecast of $42.14 million. This mixed financial outcome highlights the challenges and opportunities facing the company in terms of its operational and financial performance.
Avid Bioservices, a key player in the biotechnology and pharmaceutical sectors, specializes in development and manufacturing services. Under the guidance of its leadership team, including President & CEO Nick Green, the company has recently completed a significant expansion program. This initiative has led to the full operational status of new facilities dedicated to mammalian, cell, and gene therapy, setting the stage for future growth. The company's successful execution of this expansion is a testament to its strategic planning and operational capabilities.
Despite the disappointing EPS, Avid Bioservices achieved a record-breaking fourth-quarter revenue of $43 million, the highest in its history. This achievement is particularly noteworthy as it comes at a time when the company has signed $30 million in net new business, contributing to a robust backlog of $193 million. Such financial milestones underscore the company's ability to attract and retain business, even in a challenging economic environment.
Looking forward, Avid Bioservices has set ambitious revenue guidance for the fiscal year 2025, projecting earnings between $160 million and $168 million. This forecast reflects the company's confidence in its enhanced operational capabilities and its commitment to making a positive impact on patient lives through its services. The company's strategic investments in expanding its facilities and its focus on high-quality development and manufacturing services are expected to drive its growth in the coming years.
Financial metrics such as the price-to-sales ratio (TTM) of approximately 3.49 and the enterprise value-to-sales ratio (TTM) of about 4.70 provide further insight into how investors value Avid Bioservices. Despite a negative price-to-earnings ratio (TTM) of -3.47, indicating current unprofitability, the company maintains a stable financial position with a current ratio (TTM) of 1.47. This balance between assets and liabilities, along with the company's strategic initiatives and operational achievements, positions Avid Bioservices for potential future success in the biotechnology and pharmaceutical sectors.
Avid Bioservices, Inc. Reports Mixed Financial Results for Q4 Fiscal Year 2024
- Avid Bioservices reported an EPS of -1.94, significantly below the anticipated -0.038, indicating a larger-than-expected loss.
- The company's revenue for the fourth quarter was $42.98 million, slightly exceeding forecasts and marking a record-breaking figure for the period.
- Despite the disappointing EPS, Avid Bioservices has set ambitious revenue guidance for fiscal year 2025, projecting earnings between $160 million and $168 million.
On Wednesday, July 3, 2024, Avid Bioservices, Inc. (NASDAQ:CDMO) reported its earnings per share (EPS) for the fourth quarter of the fiscal year 2024, revealing a figure of -1.94. This result was significantly below the anticipated -0.038, indicating a larger-than-expected loss for the period. However, the company's revenue for the same period was $42.98 million, which slightly exceeded the forecast of $42.14 million. This mixed financial outcome highlights the challenges and opportunities facing the company in terms of its operational and financial performance.
Avid Bioservices, a key player in the biotechnology and pharmaceutical sectors, specializes in development and manufacturing services. Under the guidance of its leadership team, including President & CEO Nick Green, the company has recently completed a significant expansion program. This initiative has led to the full operational status of new facilities dedicated to mammalian, cell, and gene therapy, setting the stage for future growth. The company's successful execution of this expansion is a testament to its strategic planning and operational capabilities.
Despite the disappointing EPS, Avid Bioservices achieved a record-breaking fourth-quarter revenue of $43 million, the highest in its history. This achievement is particularly noteworthy as it comes at a time when the company has signed $30 million in net new business, contributing to a robust backlog of $193 million. Such financial milestones underscore the company's ability to attract and retain business, even in a challenging economic environment.
Looking forward, Avid Bioservices has set ambitious revenue guidance for the fiscal year 2025, projecting earnings between $160 million and $168 million. This forecast reflects the company's confidence in its enhanced operational capabilities and its commitment to making a positive impact on patient lives through its services. The company's strategic investments in expanding its facilities and its focus on high-quality development and manufacturing services are expected to drive its growth in the coming years.
Financial metrics such as the price-to-sales ratio (TTM) of approximately 3.49 and the enterprise value-to-sales ratio (TTM) of about 4.70 provide further insight into how investors value Avid Bioservices. Despite a negative price-to-earnings ratio (TTM) of -3.47, indicating current unprofitability, the company maintains a stable financial position with a current ratio (TTM) of 1.47. This balance between assets and liabilities, along with the company's strategic initiatives and operational achievements, positions Avid Bioservices for potential future success in the biotechnology and pharmaceutical sectors.
Avid Bioservices Reports Q2 EPS Miss, While Revenues Beat Estimates
Avid Bioservices (NASDAQ:CDMO) reported its Q2 results, with EPS coming in at $0.02, worse than the Street estimate of $0.04. Revenue was $36.7 million, compared to the Street estimate of $33.44 million.
Q2 was another strong quarter of bookings ($41 million, up 78% year-over-year) that helped contribute to the fourth consecutive increase in the company's backlog, which now stands at $157 million.
The company still expects the majority of this to convert to revenue within 12 months; notably, this is ahead of the 2023 revenue guidance of $140-145 million (vs. Street’s $143 million).
