CryoPort Inc (CYRX) Q3 2024 Earnings Call Highlights: Strong Service Growth Amid Market Challenges

In This Article:

  • Life Sciences Services Revenue Growth: 9% growth for the third quarter.

  • BioStorage and BioServices Revenue Increase: Over 12% compared to last year.

  • Gross Margin for Life Science Services: Improved to 46%.

  • Full Year Revenue Guidance: Maintained at $225 million to $235 million.

  • Adjusted EBITDA and Cash Flow: Positive through the quarter.

  • CRYOPDP New Contracts: Nine high-value contracts with a total value of over $6 million per year.

  • Global Clinical Trials Supported: Total of 691, a net increase of 21 clinical trials over last year.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • CryoPort Inc (NASDAQ:CYRX) reported a 9% growth in its life sciences services business for the third quarter, with BioStorage and BioServices revenue increasing over 12% compared to last year.

  • The company maintained its full-year revenue guidance of $225 million to $235 million, indicating confidence in continued growth despite market challenges.

  • CryoPort Inc (NASDAQ:CYRX) launched its IntegriCell cryopreservation solution, enhancing its end-to-end global temperature-controlled supply chain platform.

  • The company reported improvements in gross margin, adjusted EBITDA, and positive cash flow through the quarter, reflecting successful cost reduction and realignment strategies.

  • CryoPort Inc (NASDAQ:CYRX) supported a total of 691 global clinical trials as of September 30, with a net increase of 21 clinical trials over the previous year, indicating strong engagement in the clinical trial market.

Negative Points

  • The life sciences product business experienced ongoing softness, impacting overall revenue growth.

  • CryoPort Inc (NASDAQ:CYRX) faced weaker cryogenic freezer demand in North America and EMEA, contributing to uneven market recovery in its MVE Biological Solutions business.

  • Biopharma market funding took a sequential step down in the third quarter, potentially affecting future trial activity and revenue.

  • The commercial revenue was down slightly sequentially, reflecting uneven performance among commercial customers.

  • The company acknowledged that macro and sector-specific challenges impacting the life sciences tools industry are expected to continue in the near future.

Q & A Highlights

Q: Can you discuss the timeline for label expansions in the clinical trial service business? A: Jerrell Shelton, CEO: It takes about 6 to 12 months for label expansions to impact operations. Mark Sawicki, CSO, added that early treatment lines are already benefiting the company, with projects from J&J, Legend, Gilead, and Bristol-Myers Squibb contributing. Newer products like CRISPR and Vertex will start contributing revenue in 2025.