In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cytek Biosciences Inc (NASDAQ:CTKB) achieved a 4% revenue growth in 2024, reaching $200.5 million, driven by strong service revenue and double-digit growth in international markets.
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The company reported an 8.5% increase in unit volume growth for its full special profiling and imaging instruments, outperforming the broader flow cytometry market.
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Cytek Biosciences Inc (NASDAQ:CTKB) demonstrated a significant improvement in adjusted EBITDA, which increased by more than 77% from the previous year.
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The company successfully repurchased 4 million shares in 2024 and announced a new $50 million repurchase program for 2025, reflecting strong cash flow and shareholder returns.
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Cytek Biosciences Inc (NASDAQ:CTKB) expanded its global footprint with a new manufacturing facility in Singapore, enhancing capacity and supply chain flexibility.
Negative Points
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Total revenue for the fourth quarter of 2024 was flat compared to the previous year, with a 1% decrease due to a decline in product revenue and a strong US dollar.
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US and EEA revenues declined by 10% and 18% respectively, driven by lower instrument sales and foreign exchange effects.
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The company faces potential headwinds from new export controls, tariffs, and NIH funding reductions, which could impact future revenues.
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Research and development expenses decreased by 11% in the fourth quarter, reflecting reduced compensation and engineering expenses, which may impact future innovation.
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The company reported a GAAP net loss of $6 million for the year, primarily due to foreign exchange losses and lower tax benefits.
Q & A Highlights
Q: Can you discuss the 8.5% instrument growth and how it relates to the overall revenue growth of 4%? Are there differences in consumable usage between Northern Lights and Aurora instruments? A: We saw good growth in Northern Lights in 2024, and we expect this momentum to continue. In terms of reagent consumption, there are no significant differences between Northern Lights and other instruments. The overall unit volume growth drives reagent revenues. Unidentified_6, Unidentified_3
Q: How do recent external developments, like tariffs and export controls, impact your 2025 revenue and gross margins? A: We are assessing the potential implications of these factors. Our flexible global manufacturing system, with facilities in the US, Singapore, and China, helps mitigate risks. We haven't seen significant impacts from reciprocal tariffs yet. Unidentified_3, Unidentified_6