BioLife Solutions Reports First Quarter 2024 Financial Results
Cell Processing revenue increased 10% sequentially to
GAAP gross margin of
38%
and net loss of
Non-GAAP adjusted gross margin expands from
40%
to
53%
and adjusted EBITDA of
Conference call begins at
"We are off to a solid start to 2024, delivering another quarter of sequential core cell processing revenue platform growth while advancing our strategic realignment to concentrate on our most valuable franchises. In April, we executed a key objective with the divestiture of the
"In the first quarter, our core cell processing platform posted a 10% sequential increase in revenue, affirming our belief that the industry-wide recovery that began at the end of last year is progressing forward," de Greef continued. "With our biopreservation media supporting over 70% of the relevant industry-sponsored CGT trials in the
First Quarter 2024 Business Highlights
- Processed 22 new
U.S. FDAMaster File cross references for our biopreservation media, bringing the cumulative total processed to 716. - Based on two additional regulatory approvals in the first quarter, our biopreservation media is embedded in 15 unique commercial CGTs as of
March 31, 2024 , with an expectation that 11 additional product approvals, geographic expansions, or new indications will occur in the next 12 months. - On
April 17, 2024 we completed the sale of GCI, a previously wholly owned subsidiary. As previously disclosed, a condition to the closing of the sale, required GCI to have$7.0 million in cash on its balance sheet, of which,$4.9 million was funded by the Company, and the Company was required to repay approximately$2.6 million of outstanding GCI indebtedness and assume certain other liabilities of GCI.
First Quarter 2024 Financial Performance
SUMMARY OF KEY FINANCIAL RESULTS
Key operating results presented on the basis of GAAP, as adjusted (non-GAAP), and as adjusted excluding GCI (non-GAAP), are summarized as follows:
(In thousands) |
|
CONSOLIDATED GAAP |
2024 |
Total revenue |
$ 31,727 |
Gross Margin |
38 % |
Adjusted Gross Margin (Non-GAAP) |
40 % |
Net Loss |
$ (10,221) |
Adjusted EBITDA (Non-GAAP) |
$ (1,190) |
Adjusted EBITDA as a % of Revenue (Non-GAAP) |
(4) % |
|
|
EXCLUDING GCI (NON-GAAP) |
|
Total revenue |
$ 26,779 |
Gross Margin |
51 % |
Adjusted Gross Margin |
53 % |
Net Loss |
$ (4,453) |
Adjusted EBITDA |
$ 3,583 |
Adjusted EBITDA as a % of Revenue |
13 % |
REVENUE
- Total revenue for the first quarter of 2024 was
$31.7 million , a decrease of$6.0 million , or 16%, from$37.7 million for the first quarter of 2023 and down$1.0 million , or 3%, sequentially from the fourth quarter of 2023.
-
- Cell Processing platform revenue was
$16.2 million , a decrease of$2.8 million , or 15%, from the same period in 2023 and up$1.4 million , or 10%, sequentially from the fourth quarter of 2023.
- Cell Processing platform revenue was
-
- Biostorage Services platform revenue was
$7.1 million , an increase of$1.4 million , or 25%, from the same period in 2023 and up$0.5 million , or 7%, sequentially from the fourth quarter of 2023.
- Biostorage Services platform revenue was
-
- Freezers and Thaw Systems platform revenue was
$8.4 million , a decrease of$4.6 million , or 35%, from the same period in 2023 and down$2.9 million , or 26%, sequentially from the fourth quarter of 2023. Of the$8.4 million in Freezer and Thaw platform revenue,$0.3 million was from our ThawSTAR product line.
- Freezers and Thaw Systems platform revenue was
GROSS MARGIN
- Gross margin (GAAP) for the first quarter of 2024 was 38% compared with 35% for the first quarter of 2023. Adjusted gross margin (non-GAAP) for the first quarter of 2024 was 40% compared with 37% for the first quarter of 2023.
OPERATING LOSS
- Operating loss (GAAP) for the first quarter of 2024 was
$10.1 million compared with$13.6 million for the first quarter of 2023. Adjusted operating loss (non-GAAP) for the first quarter of 2024 was$9.1 million compared with$10.6 million for the first quarter of 2023.
NET LOSS
- Net loss (GAAP) for the first quarter of 2024 was
$10.2 million compared with$13.7 million for the first quarter of 2023. Adjusted net loss (non-GAAP) for the first quarter of 2024 was$9.0 million compared with$10.6 million for the first quarter of 2023.
LOSS PER SHARE
- Loss per share (GAAP) for the first quarter of 2024 was
$0.22 compared with$0.32 for the first quarter of 2023.
ADJUSTED EBITDA
- Adjusted EBITDA, a non-GAAP measure, for the first quarter of 2024 was negative
$1.2 million compared with negative$1.1 million for the first quarter of 2023.
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
- Cash, cash equivalents, and marketable securities as of
March 31, 2024 , were$46.1 million .
(As a result of showing amounts in millions, rounding difference may exist in the percentages above.) |
2024 Revenue Guidance
- Cell Processing platform:
$66.0 million to$68.5 million , an increase of 0% to 4% compared with 2023. Compared with annualizing the second half of 2023 revenue run rate, the growth would be 17% to 22% - Biostorage Services platform:
$29.5 million to$31.5 million , an increase of 5% to 12% compared with 2023. This platform now includes the ThawSTAR automated thawing product line. Without ThawSTAR, the growth rate would be 10% to 16%.
Management expects full year positive adjusted EBITDA and adjusted EBITDA growth in 2024.
Conference Call & Webcast
Management will discuss the Company's financial results, provide a general business update and answer questions during a conference call and live webcast today at
To access the webcast, log onto the Investor Relations page of the
About
Cautions Regarding Forward Looking Statements
Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on our current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings we make with the
Non-GAAP Measures of Financial Performance
To supplement our financial statements, which are presented on the basis of
We believe these non-GAAP financial measures are useful to investors in assessing our operating performance. We use these financial measures internally to evaluate our operating performance and for planning and forecasting of future periods. We also believe it is in the best interests of investors to provide this non-GAAP information.
While we believe these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Media & Investor Relations
At the Company
Chief Financial Officer
(425) 402-1400
twichterman@biolifesolutions.com
Investors
LHA Investor Relations
(310) 691-7100
jcain@lhai.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands, except share and per share amounts) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands, except per share and share data) |
2024 |
|
2023 |
|
|
|
|
Product revenue |
$ 24,803 |
|
$ 31,593 |
Service revenue |
5,088 |
|
4,471 |
Rental revenue |
1,836 |
|
1,639 |
Total product, rental, and service revenue |
31,727 |
|
37,703 |
Costs and operating expenses: |
|
|
|
Cost of product, rental, and service revenue (exclusive of Intangible asset amortization) |
$ 19,166 |
|
$ 23,664 |
General and administrative |
12,934 |
|
14,842 |
Sales and marketing |
5,070 |
|
6,471 |
Research and development |
3,534 |
|
4,152 |
Intangible asset amortization |
914 |
|
1,459 |
Acquisition costs |
237 |
|
— |
Change in fair value of contingent consideration |
— |
|
720 |
Total operating expenses |
41,855 |
|
51,308 |
Operating loss |
(10,128) |
|
(13,605) |
|
|
|
|
Other income (expense): |
|
|
|
Interest expense, net |
(207) |
|
(411) |
Other income |
245 |
|
394 |
Total other income (expense), net |
38 |
|
(17) |
|
|
|
|
Loss before income tax expense |
(10,090) |
|
(13,622) |
Income tax expense |
(131) |
|
(92) |
Net loss |
$ (10,221) |
|
$ (13,714) |
|
|
|
|
Net loss attributable to common shareholders: |
|
|
|
Basic and Diluted |
$ (10,221) |
|
$ (13,714) |
Net loss per share attributable to common shareholders: |
|
|
|
Basic and Diluted |
$ (0.22) |
|
$ (0.32) |
Weighted average shares used to compute loss per share attributable to common shareholders: |
|
|
|
Basic and Diluted |
45,432,426 |
|
43,027,612 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
Net loss |
$ (10,221) |
|
$ (13,714) |
Other comprehensive (loss) income |
(221) |
|
145 |
Comprehensive loss |
$ (10,442) |
|
$ (13,569) |
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited, amounts in thousands) |
|||
|
|||
|
|
|
(Unaudited) |
|
|
|
|
(In thousands) |
2024 |
|
2023 |
Cash, cash equivalents, and marketable securities |
$ 46,126 |
|
$ 52,274 |
Working capital |
73,042 |
|
78,426 |
Current assets |
111,700 |
|
120,604 |
Current liabilities |
38,658 |
|
42,178 |
Total assets |
401,602 |
|
412,714 |
|
|
|
|
Long-term obligations |
29,539 |
|
32,873 |
Accumulated deficit(1) |
(325,138) |
|
(314,917) |
Total shareholders' equity |
333,405 |
|
337,663 |
|
|
(1)
During the three months ended |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
Net cash used in operating activities |
$ (4,475) |
|
$ (2,712) |
Net cash provided by (used in) investing activities |
(221) |
|
2,926 |
Net cash used in financing activities |
(952) |
|
(562) |
Effects of currency translation |
(65) |
|
11 |
Net decrease in cash, cash equivalents, and restricted cash |
$ (5,713) |
|
$ (337) |
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP ADJUSTED GROSS MARGIN (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
Total revenues |
$ 31,727 |
|
$ 37,703 |
Cost of revenues |
(19,166) |
|
(23,664) |
COGS intangible asset amortization |
(582) |
|
(733) |
GROSS PROFIT |
$ 11,979 |
|
$ 13,306 |
GROSS MARGIN |
38 % |
|
35 % |
|
|
|
|
ADJUSTMENTS TO GROSS PROFIT: |
|
|
|
Gain on disposal of assets |
(24) |
|
— |
Intangible asset amortization |
582 |
|
733 |
ADJUSTED GROSS PROFIT |
$ 12,537 |
|
$ 14,039 |
ADJUSTED GROSS MARGIN |
40 % |
|
37 % |
RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING EXPENSES (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
OPERATING EXPENSES |
$ 41,855 |
|
$ 51,308 |
|
|
|
|
ADJUSTMENTS TO OPERATING EXPENSES: |
|
|
|
Cost of product, rental, and service revenues |
(19,166) |
|
(23,664) |
Acquisition and divestiture costs(1) |
(237) |
|
(833) |
Intangible asset amortization |
(914) |
|
(1,459) |
Gain (loss) on disposal of assets |
75 |
|
(9) |
Change in fair value of contingent consideration |
— |
|
(720) |
ADJUSTED OPERATING EXPENSES |
$ 21,613 |
|
$ 24,623 |
|
|
(1)
We have corrected our non-GAAP measures for the three months ended |
RECONCILIATION OF GAAP OPERATING LOSS TO NON-GAAP ADJUSTED OPERATING LOSS (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
OPERATING LOSS |
$ (10,128) |
|
$ (13,605) |
|
|
|
|
ADJUSTMENTS TO OPERATING LOSS |
|
|
|
Inventory reserve costs |
— |
|
— |
Acquisition and divestiture costs(1) |
237 |
|
833 |
Intangible asset amortization |
914 |
|
1,459 |
(Gain) loss on disposal of assets |
(75) |
|
9 |
Change in fair value of contingent consideration |
— |
|
720 |
ADJUSTED OPERATING LOSS |
$ (9,052) |
|
$ (10,584) |
|
|
(1)
We have corrected our non-GAAP measures for the three months ended |
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED NET LOSS (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
NET LOSS |
$ (10,221) |
|
$ (13,714) |
|
|
|
|
ADJUSTMENTS TO NET LOSS |
|
|
|
Inventory reserve costs |
— |
|
— |
Acquisition and divestiture costs(1) |
237 |
|
833 |
Intangible asset amortization |
914 |
|
1,459 |
(Gain) loss on disposal of assets |
(75) |
|
9 |
Change in fair value of contingent consideration |
— |
|
720 |
Income tax expense |
131 |
|
92 |
ADJUSTED NET LOSS |
$ (9,014) |
|
$ (10,601) |
|
|
(1)
We have corrected our non-GAAP measures for the three months ended |
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (Unaudited, amounts in thousands) |
|||
|
|||
|
Three Months Ended
|
||
(In thousands) |
2024 |
|
2023 |
NET LOSS |
$ (10,221) |
|
$ (13,714) |
|
|
|
|
ADJUSTMENTS: |
|
|
|
Interest expense, net |
207 |
|
411 |
Income tax expense |
131 |
|
92 |
Depreciation |
1,434 |
|
1,731 |
Intangible asset amortization |
914 |
|
1,459 |
EBITDA |
$ (7,535) |
|
$ (10,021) |
|
|
|
|
OTHER ADJUSTMENTS: |
|
|
|
Share-based compensation (non-cash) |
6,183 |
|
7,363 |
Acquisition and divestiture costs(1) |
237 |
|
833 |
(Gain) loss on disposal of assets |
(75) |
|
9 |
Change in fair value of contingent consideration |
— |
|
720 |
ADJUSTED EBITDA |
$ (1,190) |
|
$ (1,096) |
(1) We have corrected our non-GAAP measures for the three months ended |
RECONCILIATION OF GROSS PROFIT TO NON-GAAP ADJUSTED GROSS MARGIN EXCLUDING GLOBAL COOLING) (Unaudited, amounts in thousands) |
|
|
|
|
|
(In thousands) |
2024 |
Total revenue |
$ 31,727 |
Less: Total revenue of Global Cooling |
(4,948) |
Revenue as adjusted for Global Cooling |
$ 26,779 |
|
|
Cost of revenue excluding Global Cooling |
(12,566) |
COGS intangible asset amortization excluding Global Cooling |
(582) |
GROSS PROFIT AS ADJUSTED FOR GLOBAL COOLING |
13,631 |
GROSS MARGIN AS ADJUSTED FOR GLOBAL COOLING |
51 % |
|
|
ADJUSTMENTS TO GROSS PROFIT EXCLUDING GLOBAL COOLING: |
|
Inventory reserve costs |
— |
(Gain) loss on disposal of assets |
(24) |
Intangible asset amortization |
582 |
ADJUSTED GROSS PROFIT EXCLUDING GLOBAL COOLING |
$ 14,189 |
ADJUSTED GROSS MARGIN EXCLUDING GLOBAL COOLING |
53 % |
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA EXCLUDING GLOBAL COOLING (Unaudited, amounts in thousands) |
|
|
|
|
|
(In thousands) |
2024 |
NET LOSS |
$ (10,221) |
Less: Net loss from Global Cooling, net |
(5,768) |
NET LOSS AS ADJUSTED FOR GLOBAL COOLING |
(4,453) |
|
|
ADJUSTMENTS EXCLUDING GLOBAL COOLING: |
|
Interest expense |
168 |
Income tax expense (benefit) |
121 |
Depreciation |
1,434 |
Intangible asset amortization |
914 |
EBITDA Excluding Global Cooling |
(1,816) |
|
|
OTHER ADJUSTMENTS EXCLUDING GLOBAL COOLING: |
|
Share-based compensation (non-cash) |
5,237 |
Acquisition and divestiture costs |
237 |
Severance costs |
— |
(Gain) loss on disposal of assets |
(75) |
Change in fair value of contingent consideration |
— |
Inventory reserve costs |
— |
ADJUSTED EBITDA Excluding Global Cooling |
$ 3,583 |
% of Revenue |
13 % |
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