Cytek Biosciences Reports First Quarter 2024 Financial Results
Cytek Biosciences reported strong financial results for the first quarter of 2024, with total revenue reaching $44.9 million, a 21% increase from the previous year. The company's organic revenue saw a significant 11% growth, driven by the acquisition of product lines from Luminex Cytek also expanded its operations by opening a new facility in China and received approval for a TBNK panel. Despite a decrease in gross profit margin, the company remains focused on sustainable growth and profitability. Cytek reaffirmed its revenue guidance for 2024, expecting a positive net income for the year.
Total revenue for the first quarter of 2024 was $44.9 million, a 21% increase over the first quarter of 2023.
Organic revenue grew by 11% compared to the previous year, driven by the acquisition of product lines from Luminex
Cytek expanded its operations by opening a new facility in China to meet growing demand for cell analysis solutions.
The company received approval for a single-laser 6-color TBNK panel from the China National Medical Products Association.
Cytek reaffirmed its 2024 revenue guidance, expecting full year revenue in the range of $203 million to $213 million.
Gross profit margin decreased from 57% in the first quarter of 2023 to 51% in the first quarter of 2024.
Operating expenses increased by 2% in the first quarter of 2024, primarily due to higher headcount and personnel-related expenses.
Loss from operations in the first quarter of 2024 was $10.7 million, compared to a loss of $12.2 million in the same period of 2023.
Net loss for the first quarter of 2024 was $6.2 million, compared to a net loss of $6.8 million in the first quarter of 2023.
Adjusted EBITDA in the first quarter of 2024 was a loss of $0.7 million, an improvement from a loss of $2.5 million in the first quarter of 2023.
Insights
The 21% increase in total revenue for Cytek Biosciences in the first quarter of 2024 is a noteworthy figure, indicating robust growth, particularly considering the organic revenue growth of 11%. This suggests that the company's core business is expanding independently of recent acquisitions. The acquisition of product lines from Luminex appears to be contributing positively to the revenue stream, adding $7.6 million. However, a decline in gross profit margin from 57% to 51% year-over-year could point to an increase in costs associated with the integration of these new product lines or other operational expenses. This dip, albeit moderated when adjusted for stock-based compensation and amortization, should be watched closely as it might signal a trend that could impact profitability.
In terms of expenses, while operating expenses have only seen a minor increase, the detailed expense categories reveal a realignment of resources, with R&D expenses slightly down and sales and marketing expenses up, suggesting a strategic shift towards market expansion. Notably, the reduction in loss from operations and net loss alongside an improved adjusted EBITDA indicates that Cytek is becoming more efficient in its operations, even though it's still operating at a loss. The cash position is strong, with an increase in cash, restricted cash and marketable securities, offering a cushion for future investments or to weather any unforeseen challenges.
Finally, the reaffirmed revenue guidance for 2024, with an expected 5% to 10% growth, is an optimistic sign, particularly with the anticipation of positive net income by year-end. This could imply that the company's strategy may begin to pay off in terms of becoming profitable, a critical milestone for investors.
The expansion of Cytek Biosciences with a new facility in Wuxi, China, addresses the growing global demand for cell analysis solutions and can be seen as a strategic move to strengthen its presence in a key market. Coupled with the NMPA approval for several reagents and a TBNK panel, the company is solidifying its regulatory footing and product offering in a market that values such endorsements. This can potentially lead to an increased market share and revenue from China, which is a strategically important market for life science companies.
Moreover, examining the industry context, Cytek’s commitment to not just maintaining but growing its services business is a strategic approach to ensure a recurring revenue stream. This is critical for life sciences companies, where the installed base of instruments can create a long-term customer relationship. The emphasis on services also provides insights into the company's approach to customer retention and lifecycle management, which can be a significant driver for stable future cash flows.
From an investor's perspective, the confidence expressed by the management in the ability to drive sustainable growth and profitability, along with the positive outlook for the full year, can be perceived as a reinforcement of the company's strategic direction.
FREMONT, Calif., May 08, 2024 (GLOBE NEWSWIRE) -- Cytek® Biosciences, Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq: CTKB), a leading cell analysis solutions company, today reported financial results for the first quarter ended March 31, 2024.
Recent Highlights
- Total revenue was
$44.9 million , representing a21% increase over the corresponding period of 2023- Organic revenue was
$37.3 million , representing an increase of11% compared to the first quarter of 2023 - First quarter revenue from the product lines acquired from Luminex Corporation (“Luminex”) on February 28, 2023 was
$7.6 million
- Organic revenue was
- Opened a new 50,000-square-foot facility in Wuxi, China to meet growing global demand for cutting-edge cell analysis solutions and to drive operational performance
- Received China National Medical Products Association (NMPA) approval for single-laser 6-color TBNK panel
- Registered 18 single-color reagents for IVD use with China NMPA for clinical applications
- William McCombe appointed Chief Financial Officer
“We are encouraged with our positive start to 2024, highlighted by increased organic revenue growth over the fourth quarter and continued improvement in customer spending patterns. We were also pleased to deliver strong growth in our services business, driven by our increasing installed base of instruments,” said Dr. Wenbin Jiang, CEO of Cytek Biosciences. “We continue to focus on executing a balanced business strategy to drive sustainable growth and profitability, and we are confident in our path forward to deliver on our objectives.”
First Quarter 2024 Financial Results
Total revenue for the first quarter of 2024 was
Gross profit was
Operating expenses were
Research and development expenses were
Sales and marketing expenses were
General and administrative expenses were
Loss from operations in the first quarter of 2024 was
Adjusted EBITDA in the first quarter of 2024 was a loss of
Cash, restricted cash, and marketable securities were approximately
2024 Outlook
Cytek Biosciences reaffirms its 2024 revenue guidance, expecting full year 2024 revenue in the range of
Webcast Information
Cytek will host a conference call to discuss the first quarter 2024 financial results on Wednesday, May 8, 2024, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. A webcast of the conference call can be accessed at investors.cytekbio.com.
About Cytek Biosciences, Inc.
Cytek Biosciences (Nasdaq: CTKB) is a leading cell analysis solutions company advancing the next generation of cell analysis tools by delivering high-resolution, high-content and high-sensitivity cell analysis utilizing its patented Full Spectrum Profiling™ (FSP™) technology. Cytek’s novel approach harnesses the power of information within the entire spectrum of a fluorescent signal to achieve a higher level of multiplexing with precision and sensitivity. Cytek’s FSP platform includes its core instruments, the Cytek Aurora™ and Northern Lights™ systems; its cell sorter, the Cytek Aurora™ CS; the Cytek Orion™ reagent cocktail preparation system; the flow cytometer and imaging products under the Amnis® and Guava® brands; and reagents, software and services to provide a comprehensive and integrated suite of solutions for its customers. Cytek is headquartered in Fremont, California with offices and distribution channels across the globe. More information about the company and its products is available at www.cytekbio.com.
Cytek’s products are for research use only and not for use in diagnostic procedures (other than Cytek’s Northern Lights-CLC system and certain reagents, which are available for clinical use in China and the European Union).
Cytek, Full Spectrum Profiling, FSP, Cytek Aurora, Northern Lights, Cytek Orion, Amnis and Guava are trademarks of Cytek Biosciences, Inc.
In addition to filings with the Securities and Exchange Commission (SEC), press releases, public conference calls and webcasts, Cytek uses its website (www.cytekbio.com), LinkedIn page and X (formerly Twitter) account as channels of distribution of information about its company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters. Such information may be deemed material information and Cytek may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor Cytek’s website, LinkedIn page, and X account in addition to following its SEC filings, news releases, public conference calls and webcasts.
Statement Regarding Use of Non-GAAP Financial Information
Cytek has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three-month periods ended March 31, 2024 and March 31, 2023. Management believes that non-GAAP financial measures, including “Adjusted gross profit margin” and “Adjusted EBITDA” referenced above, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the company’s core operating results. Management uses non-GAAP measures to compare the company’s performance relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company’s operating results as reported under U.S. GAAP. Cytek encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might," "will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding Cytek’s plans and strategies to effectively drive sustainable growth and deliver profitability; Cytek’s business opportunities and market demand for advanced cell analysis solutions; and Cytek’s expectations that total revenue for the full year ended December 31, 2024 will be in the range of
Media Contact:
Stephanie Olsen
Lages & Associates
(949) 453-8080
stephanie@lages.com
Investor Relations Contact:
Paul D. Goodson
Head of Investor Relations
pgoodson@cytekbio.com
| Cytek Biosciences, Inc. Consolidated Statements of Operations and Comprehensive Loss (unaudited) | ||||||||
| Three months ended March 31, | ||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | ||||||
| Revenue, net: | ||||||||
| Product | $ | 34,122 | $ | 31,172 | ||||
| Service | 10,738 | 5,916 | ||||||
| Total revenue, net | 44,860 | 37,088 | ||||||
| Cost of sales: | ||||||||
| Product | 16,746 | 12,677 | ||||||
| Service | 5,101 | 3,373 | ||||||
| Total cost of sales | 21,847 | 16,050 | ||||||
| Gross profit | 23,013 | 21,038 | ||||||
| Operating expenses: | ||||||||
| Research and development | 9,796 | 9,974 | ||||||
| Sales and marketing | 12,543 | 11,145 | ||||||
| General and administrative | 11,408 | 12,081 | ||||||
| Total operating expenses | 33,747 | 33,200 | ||||||
| Loss from operations | (10,734 | ) | (12,162 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (441 | ) | (673 | ) | ||||
| Interest income | 1,359 | 2,143 | ||||||
| Other income, net | 823 | 1,652 | ||||||
| Total other income, net | 1,741 | 3,122 | ||||||
| Loss before income taxes | (8,993 | ) | (9,040 | ) | ||||
| Benefit from income taxes | (2,824 | ) | (2,233 | ) | ||||
| Net loss | (6,169 | ) | (6,807 | ) | ||||
| Net loss, basic and diluted | $ | (6,169 | ) | $ | (6,807 | ) | ||
| Net loss per share, basic | $ | (0.05 | ) | $ | (0.05 | ) | ||
| Net loss per share, diluted | $ | (0.05 | ) | $ | (0.05 | ) | ||
| Weighted-average shares used in calculating net loss per share, basic | 130,920,971 | 135,489,194 | ||||||
| Weighted-average shares used in calculating net loss per share, diluted | 130,920,971 | 135,489,194 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (6,169 | ) | $ | (6,807 | ) | ||
| Foreign currency translation adjustment, net of tax | (244 | ) | (42 | ) | ||||
| Unrealized (loss) gain on marketable securities | (35 | ) | 152 | |||||
| Net comprehensive loss | $ | (6,448 | ) | $ | (6,697 | ) | ||
| Cytek Biosciences, Inc. Consolidated Balance Sheets | ||||||||
| (In thousands, except share and per share data) | March 31, 2024 | December 31, 2023 | ||||||
| (unaudited) | (audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 168,788 | $ | 167,299 | ||||
| Restricted cash | 353 | 331 | ||||||
| Marketable securities | 101,298 | 95,111 | ||||||
| Trade accounts receivable, net | 50,306 | 55,928 | ||||||
| Inventories | 54,742 | 60,877 | ||||||
| Prepaid expenses and other current assets | 13,160 | 12,514 | ||||||
| Total current assets | 388,647 | 392,060 | ||||||
| Deferred income tax assets, noncurrent | 32,708 | 30,487 | ||||||
| Property and equipment, net | 18,247 | 18,405 | ||||||
| Operating lease right-of-use assets | 9,949 | 10,853 | ||||||
| Goodwill | 16,183 | 16,183 | ||||||
| Intangible assets, net | 22,252 | 23,084 | ||||||
| Other noncurrent assets | 4,081 | 3,385 | ||||||
| Total assets | $ | 492,067 | $ | 494,457 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 3,725 | $ | 3,032 | ||||
| Legal settlement liability, current | 2,550 | 2,561 | ||||||
| Accrued expenses | 18,054 | 20,035 | ||||||
| Other current liabilities | 8,228 | 7,903 | ||||||
| Deferred revenue, current | 23,009 | 22,695 | ||||||
| Total current liabilities | 55,566 | 56,226 | ||||||
| Legal settlement liability, noncurrent | 16,722 | 16,477 | ||||||
| Deferred revenue, noncurrent | 15,164 | 15,132 | ||||||
| Operating lease liability, noncurrent | 8,697 | 9,479 | ||||||
| Long term debt | 1,477 | 1,648 | ||||||
| Other noncurrent liabilities | 1,827 | 2,431 | ||||||
| Total liabilities | 99,453 | 101,393 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, | 131 | 131 | ||||||
| Additional paid-in capital | 429,384 | 423,386 | ||||||
| Accumulated deficit | (35,347 | ) | (29,178 | ) | ||||
| Accumulated other comprehensive loss | (1,554 | ) | (1,275 | ) | ||||
| Total stockholders’ equity | 392,614 | 393,064 | ||||||
| Total liabilities and stockholders’ equity | $ | 492,067 | $ | 494,457 | ||||
| Cytek Biosciences, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | |||||||
| Three Months Ended | |||||||
| March 31, | March 31, | ||||||
| 2024 | 2023 | ||||||
| (In thousands) | |||||||
| GAAP gross profit | $ | 23,013 | $ | 21,038 | |||
| Stock Based Compensation | 945 | 692 | |||||
| Amortization of acquisition-related Intangible assets | 503 | 223 | |||||
| Non-GAAP Gross Profit | $ | 24,461 | $ | 21,953 | |||
| Non-GAAP gross profit % | 55 | % | 59 | % | |||
| GAAP Net Loss | $ | (6,169 | ) | $ | (6,807 | ) | |
| Depreciation and Amortization | 2,461 | 1,801 | |||||
| Benefit from income taxes | (2,824 | ) | (2,233 | ) | |||
| Interest Income | (1,359 | ) | (2,143 | ) | |||
| Interest Expense | 441 | 673 | |||||
| Foreign Currency exchange loss | 1,131 | 1 | |||||
| Stock Based Compensation | 5,640 | 4,699 | |||||
| Acquisition related expenses | - | 1,485 | |||||
| Adjusted EBITDA | $ | (679 | ) | $ | (2,524 | ) | |
FAQ
What was Cytek Biosciences' total revenue for the first quarter of 2024?
What was the organic revenue growth for Cytek Biosciences in the first quarter of 2024?
What revenue was generated from the product lines acquired from Luminex in the first quarter of 2024?
What was Cytek Biosciences' gross profit margin in the first quarter of 2024?
What is Cytek Biosciences' revenue guidance for the full year 2024?
