Cryoport Reports Fourth Quarter and Full Year 2023 Financial Results
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FY 2023 revenue of
$233.3 million , in-line with guidance - Year-over-year, Commercial Cell & Gene Therapy revenue rose 33%; BioStorage/BioServices revenue increased 45%
- Global clinical trials supported reached a record 675
"Notwithstanding these challenges, there were several bright spots. In 2023, our services business, the core driver of our growth, increased to 62% of total revenue. We also experienced year-over-year growth in our revenues from BioStorage/BioServices and from the support of commercial Cell & Gene therapies of 45% and 33%, respectively, demonstrating strong demand for our services offerings. In addition, we ended the year supporting a record 675 clinical trials worldwide, a net increase of 21 clinical trials over last year with 82 of these in phase 3. We believe our clinical trials portfolio constitutes a significant long-term revenue growth opportunity for
"Product revenues were lower than historical levels; however, MVE Biological Solutions' revenue began to stabilize in the latter part of the year. Moreover, MVE continues to be a strong business unit, which has generated considerable free cash flow and maintained margins on its product revenue.
"Throughout 2023, we made targeted investments in our business and formed strategic relationships to further position ourselves for continued growth. Some of our actions included our acquisition of Bluebird Express last November, which is in support of accelerating CRYOPDP's
"As we enter 2024, we are focused on leveraging the strength of our industry-leading brands to serve our clients while capitalizing on the growth of the Cell & Gene therapy industry, as more of these lifesaving therapies receive regulatory approvals globally. By continuing to build out our platform and broaden our scope, we expect to further expand our market leading position in Cell & Gene therapy, arguably one of the most important segments of the life sciences. We believe our solutions, services, and products set industry standards and are critical components to bringing these life-saving treatments to patients globally. We anticipate 2024 as a year of progressive advancement in our business with stronger overall growth in our services business," concluded
In tabular form, revenue by market for Q4 2023 and FY 2023, as compared to the same periods in 2022 was as follows:
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Total revenues by market |
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(unaudited) |
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Three Months Ended |
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Years Ended |
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(in thousands) |
2023 |
2022 |
% Change |
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2023 |
2022 |
% Change |
Biopharma/Pharma |
$ 47,949 |
$ 50,570 |
-5 % |
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$ 192,583 |
$ 193,879 |
-1 % |
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6,759 |
7,480 |
-10 % |
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30,379 |
33,465 |
-9 % |
Reproductive Medicine |
2,552 |
2,308 |
11 % |
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10,293 |
9,933 |
4 % |
Total revenues |
$ 57,260 |
$ 60,358 |
-5 % |
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$ 233,255 |
$ 237,277 |
-2 % |
Revenue from the support of commercial Cell & Gene therapies increased 33% year-over-year with one new therapy approved in the fourth quarter and two new therapies receiving approval subsequent to year end, bringing our current total commercial count to 14. As of
Cryoport Supported Clinical Trials by Phase |
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Clinical Trials |
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2021 |
2022 |
2023 |
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Phase 1 |
255 |
275 |
282 |
Phase 2 |
273 |
300 |
311 |
Phase 3 |
74 |
79 |
82 |
Total |
602 |
654 |
675 |
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Cryoport Supported Clinical Trials by Region |
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Clinical Trials |
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2021 |
2022 |
2023 |
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475 |
502 |
519 |
EMEA |
93 |
110 |
112 |
APAC |
34 |
42 |
44 |
Total |
602 |
654 |
675 |
A total of 17 Cryoport supported Biologic License Applications (BLAs) or Marketing Authorization Applications (MAAs) were filed in 2023, of which 3 were filed during the fourth quarter. During 2024, we anticipate up to an additional 17 application filings, 9 new therapy approvals and an additional 7 label/geographic expansions or moves to earlier lines of treatment approved.
Financial Highlights
Revenue
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Total revenue for Q4 2023 was
$57.3 million compared to$60.4 million for Q4 2022, a year-over-year decrease of 5% or$3.1 million . By source, services revenue for Q4 2023 was$37.0 million , up 12% year-over-year, including BioStorage/BioServices revenue of$3.6 million , up 29% year-over-year. Product revenue for Q4 2023 was$20.2 million , down 26% year-over-year while flat sequentially.-
Biopharma/Pharma revenue was
$47.9 million , down 5% or$2.7 million for Q4 2023 compared to$50.6 million for Q4 2022. Revenue from the support of commercial Cell and Gene therapies increased by$1.5 million , or 36%, to$5.7 million for Q4 2023. -
Animal Health revenue was$6.8 million for Q4 2023, down 10% or$0.7 million compared to$7.5 million for Q4 2022. -
Reproductive Medicine revenue was
$2.6 million for Q4 2023, up 11% compared to$2.3 million for Q4 2022.
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Biopharma/Pharma revenue was
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Total revenue for FY 2023 was
$233.3 million , compared to$237.3 million for FY 2022, a year-over-year decrease of 2%. By source, services revenue for FY 2023 was$144.1 million , up 8% year-over-year, including BioStorage/BioServices revenue of$13.6 million , up 45% year-over-year. Product revenue for FY 2023 was$89.2 million , down 14% year-over-year.-
Biopharma/Pharma revenue was
$192.6 million , down 1% or$1.3 million for FY 2023, compared to$193.9 million in 2022. Revenue from the support of commercial Cell and Gene therapies increased to$21.6 million , a gain of 33% or$5.3 million for FY 2023. -
Animal Health revenue was$30.4 million , a decrease of 9% or$3.1 million for FY 2023, compared to$33.5 million for FY 2022. -
Reproductive Medicine revenue increased to
$10.3 million , up 4% for FY 2023, compared to$9.9 million for FY 2022.
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Biopharma/Pharma revenue was
Gross Margin
- Gross margin was 40.6% for Q4 2023 compared to 43.5% for the same period in 2022. Gross margin was 42.6% for FY 2023 compared to 43.8% for FY 2022.
Operating Costs and Expenses
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Operating costs and expenses increased to
$93.1 million for Q4 2023, which includes a non-cash impairment charge to goodwill of$49.6 million related to the MVE Biological Solutions reporting unit, compared to operating costs and expenses of$37.3 million for Q4 2022. Operating costs and expenses increased to$214.5 million for FY 2023, compared to$135.8 million for the same period in the prior year.
Net Loss
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Net loss for Q4 2023 and FY 2023 was
$62.4 million and$99.6 million , respectively, compared to a net loss of$9.4 million and$37.3 million for the same periods in 2022, respectively. -
Net loss attributable to common stockholders was
$64.4 million , or$1.31 per share, and$107.6 million , or$2.21 per share, for Q4 2023 and FY 2023, respectively. This compares to a net loss attributable to common stockholders of$11.4 million , or$0.24 per share, and$45.3 million , or$0.93 per share, for Q4 2022 and FY 2022, respectively.
Adjusted EBITDA
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Adjusted EBITDA was a negative
$6.6 million for Q4 2023, compared to$0.7 million for Q4 2022. Adjusted EBITDA for FY 2023 was a negative$8.3 million , compared to$13.9 million for FY 2022.
Cash, Cash equivalents, and Short-Term Investments
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Cryoport held$456.8 million in cash, cash equivalents, and short-term investments as ofDecember 31, 2023 .
Share Repurchase Update
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On
March 11, 2022 , the Company announced that its board of directors authorized a repurchase program throughDecember 31, 2025 , authorizing the repurchase of common stock and/or convertible senior notes in the amount of up to$100.0 million . During FY 2023, the Company purchased 1.6 million shares of its common stock and repurchased$31.3 million in aggregate principal amount of its Convertible Senior Notes due in 2026 for an aggregate repurchase price of$25.1 million There is currently$36.0 million remaining available under the repurchase program.
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
Outlook
The Company is expecting revenue to grow progressively and is providing full year 2024 revenue guidance of
Additional Information
Further information on
Earnings Conference Call Information
IMPORTANT INFORMATION: In addition to the earnings release, a document titled "Cryoport Fourth Quarter and Full Year 2023 in Review", providing a review of
Conference Call Information
Date: |
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Time: |
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Dial-in numbers: |
1-888-886-7786 ( |
Confirmation code: |
Request the "Cryoport Call" or Conference ID: 33425097 |
Live webcast: |
'Investor Relations' section at www.cryoportinc.com or click here . Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software. |
The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company's website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until
About
Our corporate headquarters, located in
For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.twitter.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding the Company's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to the Company's industry, business, long-term growth prospects, including the Company's belief that its clinical trials portfolio constitutes a significant long-term revenue growth opportunity, plans, strategies, acquisitions, future financial results and financial condition, such as the Company's outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Company operates, the Company's plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, the Company's expectations about future benefits of its acquisitions, the Company's anticipation about 2024 as a year of progressive recovery in its business with stronger overall growth in the Company's services business, the Company's expectations of the continuing stabilization of MVE Biological Solutions revenue into 2024, the Company's plans to continue to build out its platform and broaden its scope with the expectation to further expand its market leading position in cell & gene therapy, and anticipated regulatory filings or approvals with respect to the products of the Company's clients. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in the Company's cash flow, market acceptance risks, and technical development risks. The Company's business could be affected by other factors discussed in the Company's
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Condensed Consolidated Statements of Operations |
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Three Months Ended |
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Years Ended |
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(in thousands, except share and per share data) |
2023 |
2022 |
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2023 |
2022 |
Revenues: |
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Service revenues |
$ 37,025 |
$ 33,088 |
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$ 144,087 |
$ 133,879 |
Product revenues |
20,235 |
27,270 |
|
89,168 |
103,398 |
Total revenues |
57,260 |
60,358 |
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233,255 |
237,277 |
Cost of revenues: |
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Cost of service revenues |
21,933 |
18,445 |
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81,820 |
75,187 |
Cost of product revenues |
12,066 |
15,636 |
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52,103 |
58,217 |
Total cost of revenues |
33,999 |
34,081 |
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133,923 |
133,404 |
Gross margin |
23,261 |
26,277 |
|
99,332 |
103,873 |
Operating costs and expenses: |
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Selling, general and administrative |
38,814 |
32,635 |
|
146,880 |
120,055 |
Engineering and development |
4,749 |
4,677 |
|
18,040 |
15,722 |
|
49,569 |
- |
|
49,569 |
- |
Total operating costs and expenses: |
93,132 |
37,312 |
|
214,489 |
135,777 |
Loss from operations |
(69,871) |
(11,035) |
|
(115,157) |
(31,904) |
Other income (expense): |
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Investment income |
2,615 |
2,677 |
|
10,577 |
8,474 |
Interest expense |
(1,306) |
(1,456) |
|
(5,503) |
(6,142) |
Gain on debt extinguishment |
- |
- |
|
5,679 |
- |
Other income (expense), net |
4,814 |
1,855 |
|
5,056 |
(5,522) |
Loss before provision for income taxes |
(63,748) |
(7,959) |
|
(99,348) |
(35,094) |
(Provision for) benefit from income taxes |
1,359 |
(1,477) |
|
(239) |
(2,239) |
Net loss |
$ (62,389) |
$ (9,436) |
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$ (99,587) |
$ (37,333) |
Paid-in-kind dividend on Series C convertible preferred stock |
(2,000) |
(2,000) |
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(8,000) |
(8,000) |
Net loss attributable to common stockholders |
$ (64,389) |
$ (11,436) |
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$ (107,587) |
$ (45,333) |
Net loss per share attributable to common stockholders - basic and diluted |
$ (1.31) |
$ (0.24) |
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$ (2.21) |
$ (0.93) |
Weighted average common shares outstanding - basic and diluted |
48,965,068 |
48,508,766 |
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48,737,377 |
48,987,295 |
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Condensed Consolidated Balance Sheets |
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2023 |
2022 |
(in thousands) |
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Current assets: |
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Cash and cash equivalents |
$ 46,346 |
$ 36,595 |
Short-term investments |
410,409 |
486,728 |
Accounts receivable, net |
42,074 |
43,858 |
Inventories |
26,206 |
27,678 |
Prepaid expenses and other current assets |
10,077 |
9,317 |
Total current assets |
535,112 |
604,176 |
Property and equipment, net |
84,858 |
63,603 |
Operating lease right-of-use assets |
32,653 |
26,877 |
Intangible assets, net |
194,382 |
191,009 |
|
108,403 |
151,117 |
Deposits |
1,680 |
1,017 |
Deferred tax assets |
656 |
947 |
Total assets |
$ 957,744 |
$ 1,038,746 |
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Current liabilities: |
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Accounts payable and other accrued expenses |
$ 26,995 |
$ 30,855 |
Accrued compensation and related expenses |
11,409 |
5,649 |
Deferred revenue |
1,308 |
439 |
Current portion of operating lease liabilities |
5,371 |
3,720 |
Current portion of finance lease liabilities |
286 |
60 |
Current portion of notes payable |
149 |
128 |
Current portion of contingent consideration |
92 |
- |
Total current liabilities |
45,610 |
40,851 |
Convertible senior notes, net |
378,553 |
406,708 |
Notes payable, net |
1,335 |
355 |
Operating lease liabilities, net |
29,355 |
24,721 |
Finance lease liabilities, net |
954 |
216 |
Deferred tax liabilities |
2,816 |
4,929 |
Other long-term liabilities |
601 |
451 |
Contingent consideration |
9,497 |
4,677 |
Total liabilities |
468,721 |
482,908 |
Total stockholders' equity |
489,023 |
555,838 |
Total liabilities and stockholders' equity |
$ 957,744 |
$ 1,038,746 |
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on the basis of
We believe that revenue growth is a key indicator of how
However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into
Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, gain on extinguishment of debt, goodwill impairment, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events.
Management believes that adjusted EBITDA provides a useful measure of
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Reconciliation of GAAP net loss to adjusted EBITDA |
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(unaudited) |
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Three Months Ended |
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Years Ended |
||
|
2023 |
2022 |
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2023 |
2022 |
(in thousands) |
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GAAP net loss |
$ (62,389) |
$ (9,436) |
|
$ (99,587) |
$ (37,333) |
Non-GAAP adjustments to net loss: |
|
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Depreciation and amortization expense |
7,449 |
6,134 |
|
27,487 |
22,765 |
Acquisition and integration costs |
641 |
621 |
|
6,945 |
2,165 |
Investment income |
(2,615) |
(2,677) |
|
(10,577) |
(8,474) |
Unrealized (gain) loss on investments |
(3,542) |
(1,042) |
|
(1,242) |
11,508 |
Gain on insurance claim |
- |
- |
|
(2,642) |
(4,815) |
Foreign currency gain |
(1,078) |
(1,212) |
|
(964) |
(584) |
Interest expense, net |
1,306 |
1,456 |
|
5,503 |
6,142 |
Stock-based compensation expense |
5,848 |
5,333 |
|
22,808 |
20,082 |
Gain on extinguishment of debt, net |
- |
- |
|
(5,679) |
- |
|
49,569 |
- |
|
49,569 |
- |
Change in fair value of contingent consideration |
(665) |
63 |
|
(601) |
213 |
Other non-recurring costs |
187 |
- |
|
437 |
- |
Income taxes |
(1,359) |
1,477 |
|
239 |
2,239 |
Adjusted EBITDA |
$ (6,648) |
$ 717 |
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$ (8,304) |
$ 13,908 |
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Total revenues by market for the three months ended |
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(unaudited) |
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Biopharma/ |
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Reproductive |
Total |
(in thousands) |
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Non US-GAAP Constant Currency |
$ 47,370 |
$ 6,661 |
$ 2,547 |
$ 56,577 |
As Reported |
47,949 |
6,759 |
2,552 |
57,260 |
FX Impact [$] |
579 |
98 |
5 |
683 |
FX Impact [%] |
1.2 % |
1.5 % |
0.2 % |
1.2 % |
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Total revenues by market for the year ended |
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(unaudited) |
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Biopharma/ |
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Reproductive |
Total |
(in thousands) |
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Non US-GAAP Constant Currency |
$ 192,781 |
$ 30,654 |
$ 10,288 |
$ 233,723 |
As Reported |
192,583 |
30,379 |
10,293 |
233,255 |
FX Impact [$] |
(198) |
(275) |
5 |
(468) |
FX Impact [%] |
(0.1 %) |
(0.9 %) |
0.0 % |
(0.2 %) |
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