Cryoport Reports First Quarter 2024 Financial Results
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Q1 2024 revenue of
$54.6 million - 9% year-over-year increase in Commercial Cell & Gene Therapy revenue
- 9% year-over-year increase in BioStorage/BioServices revenue
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A total of 675 global clinical trials supported as of
March 31, 2024 -
$242 -$252 million full year 2024 revenue guidance reiterated
"Our Life Sciences Services revenue growth for the first quarter was softer than anticipated, increasing 3% year-over-year. We believe there is a bright spot however, as the Cell & Gene Therapy market seems to be gaining some momentum again: three (3) new therapies have been approved this year to date; three (3) existing commercial therapies were approved to move to an earlier line of treatment; and two (2) therapies were approved to expand their label or geographic territory. With the expected revenue ramps of existing and new commercial therapies, we should see revenue acceleration from our Cell & Gene Therapy clients over the remainder of the year. Our outlook regarding regulatory approvals for the rest of the year is positive as we believe there are potentially five (5) new therapy approvals and three (3) additional label or geographic expansions for other currently approved therapies.
"First quarter Life Sciences Products revenue was lower than in prior years, largely due to decreased demand for MVE Biological Solutions' (MVE) cryogenic systems. This was attributable to a continued slowdown in capital equipment investment that began last year. Although global in nature, the most severe pullback in demand continues to be in
"Based on our clients' forecasts and fueled by the aforementioned industry indicators for Cell & Gene Therapies, we continue to invest to expand our support of these life-saving treatments at scale. However, in light of the current macroeconomic challenges and the impact on our financial results, we are implementing a number of initiatives to drive toward positive adjusted EBITDA and cash flow in the near term. These include improved alignment of our global organization, reduction in our work force, leveraging lower cost shared services centers, refining and reprioritizing planned initiatives, and delays in capital spending as a result of reprioritization, all of which we expect should positively impact our results of operations for the second half of 2024," concluded
In tabular form, Q1 2024 revenue compared to Q1 2023 was as follows:
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Revenue |
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(unaudited) |
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Three Months Ended |
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(in thousands) |
2024 |
2023 |
% Change |
Life Sciences Services |
$ 36,786 |
$ 35,836 |
3 % |
BioLogistics Solutions |
33,258 |
32,604 |
2 % |
BioStorage/BioServices |
3,528 |
3,232 |
9 % |
Life Sciences Products |
$ 17,806 |
$ 26,981 |
-34 % |
Total Revenue |
$ 54,592 |
$ 62,817 |
-13 % |
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Revenue from the support of commercial Cell & Gene Therapies increased 9% year-over-year with two new therapies receiving approval during Q1 2024, bringing our current total commercial count to fourteen (14) as of
As of
During the remainder of 2024, we anticipate up to an additional sixteen (16) application filings, and as stated earlier, five (5) new therapy approvals and an additional three (3) label/geographic expansions.
Financial Highlights
Revenue
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Total revenue for Q1 2024 was
$54.6 million compared to$62.8 million for Q1 2023, a year-over-year decrease of 13% or$8.2 million . Life Sciences Services revenue for Q1 2024 was$36.8 million , up 3% year-over-year, including BioStorage/BioServices revenue of$3.5 million , up 9% year-over-year. Life Sciences Products revenue for Q1 2024 was$17.8 million , down 34% year-over-year.
Gross Margin
- Total gross margin was 39.9% for Q1 2024 compared to 43.1% for Q1 2023. Gross margin for Life Sciences Services was 41.3% for Q1 2024 compared to 46.8% for Q1 2023. Gross margin for Life Sciences Products was 37.0% for Q1 2024 compared to 38.2% for Q1 2023.
Operating Costs and Expenses
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Operating costs and expenses were
$43.1 million for Q1 2024 compared to operating costs and expenses of$37.1 million for Q1 2023. The increase is primarily attributable to personnel and other expenses related to our recent acquisitions and investment in growth initiatives, including our Integricell™ cryo-processing platform and BioServices offerings.
Net Loss
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Net loss for Q1 2024 was
$18.9 million compared to a net loss of$5.6 million for Q1 2023. -
Net loss attributable to common stockholders was
$20.9 million , or$0.43 per share for Q1 2024. This compares to a net loss attributable to common stockholders of$7.6 million , or$0.16 per share for Q1 2023.
Adjusted EBITDA
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Adjusted EBITDA was a negative
$7.7 million for Q1 2024, compared to$2.9 million for Q1 2023.
Cash, Cash equivalents, and Short-Term Investments
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Cryoport held$448.5 million in cash, cash equivalents, and short-term investments as ofMarch 31, 2024 .
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 reiterating its 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 First Quarter 2024 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: 15315763 |
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, 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, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of the Company's clients. Forward-looking statements also include those related to the Company's anticipation that its revenue will progressively improve throughout the year, including anticipated acceleration of revenue from the Company's Cell & Gene Therapy clients, the Company's expectations that MVE's cryogenic system sales will be challenged throughout the remainder of the year, the Company's expectations of the long-term prospects of its Life Sciences Products business, including the anticipation of demand normalizing, which would allow the Company to benefit from its position as the global leader in this space, and the Company's planned initiatives to drive toward positive adjusted EBITDA and cash flow in the near term, which it expects should positively impact its results of operations for the second half of 2024. 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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(in thousands, except share and per share data) |
2024 |
2023 |
Revenue: |
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Life Sciences Services revenue |
$ 36,786 |
$ 35,836 |
Life Sciences Products revenue |
17,806 |
26,981 |
Total revenue |
54,592 |
62,817 |
Cost of revenue: |
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Cost of services revenue |
21,602 |
19,076 |
Cost of products revenue |
11,215 |
16,669 |
Total cost of revenue |
32,817 |
35,745 |
Gross margin |
21,775 |
27,072 |
Operating costs and expenses: |
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Selling, general and administrative |
38,304 |
33,241 |
Engineering and development |
4,752 |
3,876 |
Total operating costs and expenses: |
43,056 |
37,117 |
Loss from operations |
(21,281) |
(10,045) |
Other income (expense): |
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Investment income |
2,600 |
2,467 |
Interest expense |
(1,338) |
(1,509) |
Other income, net |
1,339 |
4,005 |
Loss before provision for income taxes |
(18,680) |
(5,082) |
Provision for income taxes |
(215) |
(492) |
Net loss |
$ (18,895) |
$ (5,574) |
Paid-in-kind dividend on Series C convertible preferred stock |
(2,000) |
(2,000) |
Net loss attributable to common stockholders |
$ (20,895) |
$ (7,574) |
Net loss per share attributable to common stockholders - basic and diluted |
$ (0.43) |
$ (0.16) |
Weighted average common shares outstanding - basic and diluted |
49,019,964 |
48,362,501 |
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Condensed Consolidated Balance Sheets |
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2024 |
2023 |
(in thousands) |
(unaudited) |
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Current assets: |
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Cash and cash equivalents |
$ 49,663 |
$ 46,346 |
Short-term investments |
398,881 |
410,409 |
Accounts receivable, net |
41,253 |
42,074 |
Inventories |
25,020 |
26,206 |
Prepaid expenses and other current assets |
10,887 |
10,077 |
Total current assets |
525,704 |
535,112 |
Property and equipment, net |
86,008 |
84,858 |
Operating lease right-of-use assets |
31,029 |
32,653 |
Intangible assets, net |
190,088 |
194,382 |
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107,588 |
108,403 |
Deposits |
1,674 |
1,680 |
Deferred tax assets |
758 |
656 |
Total assets |
$ 942,849 |
$ 957,744 |
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Current liabilities: |
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Accounts payable and other accrued expenses |
$ 27,376 |
$ 26,995 |
Accrued compensation and related expenses |
14,062 |
11,409 |
Deferred revenue |
1,777 |
1,308 |
Current portion of operating lease liabilities |
5,356 |
5,371 |
Current portion of finance lease liabilities |
301 |
286 |
Current portion of notes payable |
110 |
149 |
Current portion of contingent consideration |
- |
92 |
Total current liabilities |
48,982 |
45,610 |
Convertible senior notes, net |
379,153 |
378,553 |
Notes payable, net |
1,305 |
1,335 |
Operating lease liabilities, net |
27,798 |
29,355 |
Finance lease liabilities, net |
916 |
954 |
Deferred tax liabilities |
2,414 |
2,816 |
Other long-term liabilities |
312 |
601 |
Contingent consideration, net |
9,779 |
9,497 |
Total liabilities |
470,659 |
468,721 |
Total stockholders' equity |
472,190 |
489,023 |
Total liabilities and stockholders' equity |
$ 942,849 |
$ 957,744 |
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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, 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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2024 |
2023 |
(in thousands) |
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GAAP net loss |
$ (18,895) |
$ (5,574) |
Non-GAAP adjustments to net loss: |
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Depreciation and amortization expense |
7,469 |
6,404 |
Acquisition and integration costs |
114 |
1,257 |
Investment income |
(2,600) |
(2,467) |
Unrealized loss on investments |
(1,737) |
(1,424) |
Gain on insurance claim |
- |
(2,642) |
Foreign currency (gain)/loss |
661 |
157 |
Interest expense, net |
1,338 |
1,509 |
Stock-based compensation expense |
5,456 |
5,184 |
Change in fair value of contingent consideration |
293 |
46 |
Income taxes |
215 |
492 |
Adjusted EBITDA |
$ (7,686) |
$ 2,942 |
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Total revenue by type for the three months ended |
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(unaudited) |
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Life Sciences Services |
Life Sciences Products |
Total |
(in thousands) |
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Non US-GAAP Constant Currency |
$ 36,781 |
$ 17,809 |
$ 54,590 |
As Reported |
36,786 |
17,806 |
54,592 |
FX Impact [$] |
5 |
(3) |
2 |
FX Impact [%] |
0.0 % |
(0.0 %) |
0.0 % |
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