In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Service revenue worldwide increased by 24% year-over-year, driven by the expansion of the instrument installed base and active usage across various disciplines.
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Cytek Biosciences Inc (NASDAQ:CTKB) experienced strong demand in the Asia Pacific and other international markets, with revenue in these regions growing by 35.6% year-over-year.
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The company launched a new microcell analyzer, expanding its capabilities and targeting emerging markets such as cell and gene therapy.
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Recurring revenue, including reagents and service revenue, grew to represent 31% of total revenue, up from 26% a year ago.
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Cytek Biosciences Inc (NASDAQ:CTKB) maintains a strong balance sheet, allowing for continued investment in growth and innovation.
Negative Points
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First quarter revenue decreased by 7.6% compared to the first quarter of 2024, primarily due to weakness in instrument sales in the US and Europe.
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Product revenue, including instruments and reagents, decreased by 18% year-over-year, impacted by academic funding uncertainties and cautious capital spending in the biotech and pharma industries.
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Gross profit decreased by 12% compared to the previous year, with a decline in both GAAP and non-GAAP gross margins.
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The company revised its full-year 2025 revenue outlook downward due to significant changes in the market environment, including uncertainties in academic funding and government budgets.
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Operating expenses increased, leading to a larger loss from operations compared to the prior year quarter.
Q & A Highlights
Q: Should we expect any gross margin impact due to recent tariff policies, and how is Cytek managing these tariffs? A: Cytek has established manufacturing facilities in the US, Singapore, and China to mitigate tariff impacts through region-for-region manufacturing. This strategy helps minimize tariff liabilities. The gross margin impact is expected to be limited, ranging from 1% to 3%. Cytek also recovers some costs through customer surcharges. (Respondent: Unidentified_6)
Q: How are uncertainties in US academic funding affecting Cytek's 2025 guidance? A: The uncertainties in US university funding are factored into Cytek's revised guidance. More than 50% of Cytek's revenue is from outside the US, which is not affected by US funding issues. The company continues to sell instruments to US universities despite these challenges. (Respondent: Unidentified_6)