- 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
- A total of 675 global clinical trials supported as of
March 31, 2024
- $242 - $252 million full year 2024 revenue guidance
reiterated
NASHVILLE, Tenn., May 7, 2024
/PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global
leader in supply chain solutions for the life sciences, today
announced financial results for the three months ended March 31 (Q1), 2024. Jerrell Shelton, CEO of Cryoport, commented,
"For the first quarter, we continued to experience a difficult
environment globally. Our quarterly results were disappointing,
particularly for our Life Sciences Products. However, as stated
when we initially provided our annual guidance, we anticipate our
revenue will progressively improve throughout the year and we
maintain our full year revenue guidance of $242 to $252
million.
"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 China. While we
expect MVE's cryogenic system sales to be challenged throughout the
remainder of the year as biotech funding, government budgets, and
academic budgets are constrained, we want to remind investors that
even in this difficult climate, MVE continues to produce positive
cash flow for our company. MVE is the leading manufacturer of
cryogenic systems worldwide and we are confident in the long-term
prospects of our Life Sciences Products business. When demand
normalizes, as we anticipate it will, we believe that we will
benefit from our position as the global leader in this space.
"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 Mr. Shelton.
In tabular form, Q1 2024 revenue compared to Q1 2023 was as
follows:
|
|
|
|
Cryoport, Inc. and Subsidiaries
|
|
|
|
Revenue
|
|
|
|
(unaudited)
|
|
|
|
|
Three Months Ended March 31,
|
|
(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 %
|
|
|
|
|
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 March 31,
2024. Subsequent to quarter-end, in April the United States
Food and Drug Administration (FDA) approved ImmunityBio's Anktiva
for BCG-unresponsive non-muscle invasive bladder cancer, which is a
Cryoport-supported therapy. This brings our number of commercial
therapies supported to fifteen (15) as of May 7, 2024.
As of March 31, 2024, Cryoport
supported a total of 675 global clinical trials, a
net increase of 23 clinical trials over March 31, 2023 with 77 of these clinical trials
in Phase 3 . The number of trials by phase and region are as
follows:
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
- 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
- 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
- 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
- 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
- Cryoport held $448.5 million
in cash, cash equivalents, and short-term investments as of
March 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 $242 - $252
million and continues to expect revenue to improve
progressively throughout the year. The Company's 2024 guidance is
dependent on its current business and expectations, which may be
further impacted by, among other things, factors that are outside
of our control, such as the global macroeconomic and geopolitical
environment, supply chain constraints, inflationary pressures, and
the effects of foreign currency fluctuations, as well as the other
factors described in the Company's filings with the Securities and
Exchange Commission ("SEC"), including in the "Risk Factors"
section of its most recently filed periodic reports on Form 10-K
and Form 10-Q, as well as in its subsequent filings with the
SEC.
Additional Information
Further information on Cryoport's financial results is included
in the attached condensed consolidated balance sheets and
statements of operations, and additional explanations of Cryoport's
financial performance are provided in the Company's Quarterly
Report on Form 10-Q for the three months ended March 31, 2024, which is expected to be filed
with the SEC on May 7, 2024.
Additionally, the full report will be available in the SEC Filings
section of the Investor Relations section of Cryoport's website at
www.cryoportinc.com.
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 Cryoport's financial and operational
performance and a general business update, will be issued at
4:05 p.m. ET on Tuesday, May 7, 2024.
The document is designed to be read in advance of the questions and
answers conference call and will be accessible at
https://ir.cryoportinc.com/news-events/ir-calendar.
Cryoport management will host a conference call at 5:00 p.m. ET on May 7,
2024. The conference call will be in the format of a
questions and answers session and will address any queries
investors have regarding the Company's reported results. A slide
deck will accompany the call.
Conference Call Information
Date:
|
Tuesday, May 7,
2024
|
Time:
|
5:00 p.m.
ET
|
Dial-in
numbers:
|
1-888-886-7786 (U.S.),
1-416-764-8658 (International)
|
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 May 14, 2024. To access the replay, dial
1-844-512-2921 (United States) or
1-412-317-6671 (International) and enter replay entry code:
15315763#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply
chain solutions for cell & gene therapies that enable
manufacturers, contract manufacturers (CDMO's), contract research
organizations (CRO's), developers, and researchers to carry out
their respective business with certainty. We provide a broad
array of supply chain solutions for the life sciences
industry. Through our platform of critical products and
solutions including advanced temperature-controlled packaging,
informatics, specialized bio-logistics services, bio-storage,
bio-services, and cryogenic systems, we are "Enabling the Future
of MedicineTM" worldwide, through our innovative
systems, compliant procedures, and agile approach to superior
supply chain management.
Our corporate headquarters, located in Nashville, Tennessee, is complimented by over
50 global locations in 17 countries, with key sites in the United States, United Kingdom, France, the
Netherlands, Portugal,
Germany, Japan, Australia, India, and China.
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 SEC reports, including in the "Risk Factors" section of
its most recently filed periodic reports on Form 10-K and Form
10-Q, as well as in its subsequent filings with the SEC. The
forward-looking statements contained in this press release speak
only as of the date hereof and the Company cautions investors not
to place undue reliance on these forward-looking statements. Except
as required by law, the Company disclaims any obligation, and does
not undertake to update or revise any forward-looking statements in
this press release.
|
|
|
Cryoport, Inc. and Subsidiaries
|
|
|
Condensed Consolidated Statements of
Operations
|
|
|
|
Three Months Ended
March 31,
(unaudited)
|
(in thousands, except share and per share
data)
|
2024
|
2023
|
Revenue:
|
|
|
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:
|
|
|
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:
|
|
|
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):
|
|
|
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
|
|
|
|
|
|
|
Cryoport, Inc. and Subsidiaries
|
|
|
Condensed Consolidated Balance
Sheets
|
|
|
|
March 31,
|
December 31,
|
|
2024
|
2023
|
(in thousands)
|
(unaudited)
|
|
Current assets:
|
|
|
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
|
Goodwill
|
107,588
|
108,403
|
Deposits
|
1,674
|
1,680
|
Deferred tax
assets
|
758
|
656
|
Total assets
|
$
942,849
|
$
957,744
|
|
|
|
Current liabilities:
|
|
|
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
|
|
|
|
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on
the basis of U.S. generally accepted accounting principles (GAAP),
the following non-GAAP measures of financial performance as defined
in Regulation G of the Securities Exchange Act of 1934 are included
in this release: revenue at constant currency, revenue growth rate
at constant currency and adjusted EBITDA. Non-GAAP financial
measures are not calculated in accordance with GAAP, are not based
on any comprehensive set of accounting rules or principles and may
be different from non-GAAP financial measures presented by other
companies. Non-GAAP financial measures, including revenue at
constant currency, revenue growth rate at constant currency and
adjusted EBITDA, should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP.
We believe that revenue growth is a key indicator of how
Cryoport is progressing from period to period and we believe that
the non-GAAP financial measures, revenue at constant currency and
revenue growth rate at constant currency, are useful to investors
in analyzing the underlying trends in revenue. Under GAAP, revenue
received in local (non-U.S. dollar) currency is translated into
U.S. dollars at the average exchange rate for the period presented.
As a result, fluctuations in foreign currency exchange rates affect
the results of our operations and the value of our foreign assets
and liabilities, which in turn may adversely affect results of
operations and cash flows and the comparability of period-to-period
results of operations. When we use the term "constant currency," it
means that we have translated local currency revenue for the
current reporting period into U.S. dollars using the same average
foreign currency exchange rates for the conversion of revenue into
U.S. dollars that we used to translate local currency revenue for
the comparable reporting period of the prior year. Revenue growth
rate at constant currency refers to the measure of comparing the
current reporting period revenue at constant currency with the
reported GAAP revenue for the comparable reporting period of the
prior year.
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 U.S.
dollars. We do not evaluate our results and performance without
considering both period-over-period changes in non-GAAP constant
currency revenue on the one hand and changes in revenue prepared in
accordance with GAAP on the other. We caution the readers of this
press release to follow a similar approach by considering revenue
on constant currency period-over-period changes only in addition
to, and not as a substitute for, or superior to, changes in revenue
prepared in accordance with GAAP.
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 Cryoport's operating results, a meaningful comparison
with historical results and with the results of other companies,
and insight into Cryoport's ongoing operating performance. Further,
management and the Company's board of directors utilize adjusted
EBITDA to gain a better understanding of Cryoport's comparative
operating performance from period to period and as a basis for
planning and forecasting future periods. Adjusted EBITDA is also a
significant performance measure used by Cryoport in connection with
its incentive compensation programs. Management believes adjusted
EBITDA, when read in conjunction with Cryoport's GAAP financials,
is useful to investors because it provides a basis for meaningful
period-to-period comparisons of Cryoport's ongoing operating
results, including results of operations, against investor and
analyst financial models, helps identify trends in Cryoport's
underlying business and in performing related trend analyses, and
it provides a better understanding of how management plans and
measures Cryoport's underlying business.
|
|
|
Cryoport, Inc. and
Subsidiaries
|
|
|
Reconciliation of
GAAP net loss to adjusted EBITDA
|
|
(unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
2024
|
2023
|
(in
thousands)
|
|
|
GAAP net
loss
|
$
(18,895)
|
$
(5,574)
|
Non-GAAP adjustments
to net loss:
|
|
|
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
|
|
|
|
|
|
|
|
Cryoport, Inc. and Subsidiaries
|
|
|
|
Total revenue by type for the three months ended
March 31, 2024
|
|
(unaudited)
|
|
|
|
|
Life Sciences Services
|
Life Sciences Products
|
Total
|
(in thousands)
|
|
|
|
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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SOURCE Cryoport, Inc.