Cytek Biosciences Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Outlook
- Strong Q4 and full year 2023 financial results with revenue growth
- Introduction of Cytek Orion reagent cocktail preparation system
- Strategic agreement with CRG and UPF for technological innovation
- Share repurchase program and positive net income outlook for 2024
- Increased headcount and personnel expenses impacting operating costs
- Decrease in gross profit margin for Q4 and full year 2023
- Significant increase in operating expenses for the year ended December 31, 2023
- Loss from operations and net loss reported for the year ended December 31, 2023
Insights
The reported financial results by Cytek Biosciences indicate a robust 21% increase in total revenue for Q4 2023 and an 18% increase for the full year, compared to the previous year. These figures, particularly the revenue growth from the product lines acquired from Luminex, suggest strong performance and successful integration of the new product lines. The revenue growth is slightly lower on a constant currency basis, which could imply the effect of foreign exchange rates on reported revenue.
The gross profit margin shows a decline from 61% to 57% in Q4 and from 62% to 57% for the full year, which may raise concerns about cost management or pricing pressures. The increase in operating expenses, primarily due to the Luminex acquisition, aligns with the company's expansion but warrants monitoring to ensure it does not erode profitability in the long term. The share repurchase program reflects management's confidence in the company's valuation and future prospects.
Looking ahead, the projected revenue growth of 5% to 10% for 2024 is modest, suggesting a cautious outlook possibly due to market saturation or increased competition. The expectation of positive net income for 2024 is a reversal from the net loss reported in 2023, indicating management's focus on cost control and operational efficiency.
Cytek's expansion of its organic installed base and the introduction of the Cytek Orion reagent cocktail preparation system demonstrate the company's commitment to innovation and market leadership. The strategic agreement with the Centre for Genomic Regulation (CRG) and the Pompeu Fabra University (UPF) could enhance Cytek's research capabilities and lead to future product developments, strengthening its market position.
The stock repurchase indicates a potential undervaluation by the market, which could be an attractive signal to investors. However, the decline in gross profit margin and the increase in operating expenses may concern investors seeking long-term profitability. The company's forward-looking statements about revenue growth and profitability for 2024 should be weighed against the backdrop of the competitive landscape in the cell analysis solutions industry.
The financial results of Cytek Biosciences reflect the impact of strategic acquisitions and product innovation within the biotechnology and cell analysis sector. The acquisition of Luminex's product lines has contributed significantly to Cytek's revenue, underscoring the importance of mergers and acquisitions in driving growth in this industry. The fully automated antibody cocktail preparation instrument for flow cytometry represents a technological advancement that may increase efficiency for researchers and could be a differentiator in the market.
However, the reported decline in gross profit margins suggests that the costs associated with integrating acquisitions and developing new technologies are substantial. It is crucial for Cytek to balance innovation with cost management to maintain profitability. The repurchase of shares could be a strategic move to invest in the company's own growth potential, reflecting confidence in its future performance within the biotech industry.
FREMONT, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Cytek® Biosciences, Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq: CTKB), a leading cell analysis solutions company, today reported financial results for the fourth quarter and year ended December 31, 2023.
Recent Highlights
- Total revenue was
$58.6 million , or$58.2 million on a non-GAAP constant currency basis, for the fourth quarter of 2023, representing21% and14% increases, respectively, over the corresponding period of 2022- Organic revenue was
$48.8 million , representing an increase of1% compared to the fourth quarter of 2022. Fourth quarter revenue from the product lines acquired from Luminex Corporation (“Luminex”) on February 28, 2023 was$9.8 million
- Organic revenue was
- Total revenue was
$193.4 million , or$194.1 million on a non-GAAP constant currency basis, for the full year 2023, representing18% and13% increases, respectively, over the full year 2022- Organic revenue was
$164.7 million , which was flat compared to 2022. Full year revenue from the product lines acquired from Luminex was$28.7 million
- Organic revenue was
- Expanded total Cytek organic installed base to 2,148 instruments, with 152 instrument placements during the fourth quarter of 2023 and 478 placements during the full year 2023 (excluding product lines acquired from Luminex)
- Introduced the Cytek Orion reagent cocktail preparation system, the first-of-its-kind fully automated antibody cocktail preparation instrument for flow cytometry
- Executed agreement with the Centre for Genomic Regulation (CRG) and the Pompeu Fabra University (UPF) to drive technological innovation and accelerate discoveries for the scientific community
- Repurchased 5,332,769 shares of common stock during the fourth quarter at an aggregate cost of
$34.7 million , and a total of 6,613,780 shares of common stock at an aggregate cost of approximately$44.2 million since the stock repurchase program was announced in May 2023
“We delivered strong fourth quarter performance amidst a challenging macro-economic environment. Our teams navigated well while executing our business strategy, and we took actions to ensure that we remain an agile organization,” said Dr. Wenbin Jiang, CEO of Cytek Bioscience. “As we look ahead to 2024, we remain laser focused on effectively driving strategic growth and delivering long-term profitability. Cytek remains on the forefront of innovation and industry leadership, and we are excited for the large opportunities ahead.”
Fourth Quarter 2023 Financial Results
Total revenue for the fourth quarter of 2023 was
Gross profit was
Operating expenses were
Research and development expenses were
Sales and marketing expenses were
General and administrative expenses were
Income from operations in the fourth quarter of 2023 was
Adjusted EBITDA in the fourth quarter of 2023 was
Full Year 2023 Financial Results
Total revenue for the year ended December 31, 2023 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 year ended December 31, 2023 was
Adjusted EBITDA in the year ended December 31, 2023 was
Cash, cash equivalents, restricted cash and short-term investments in marketable securities were approximately
2024 Outlook
Cytek Biosciences expects total revenue for the year ended December 31, 2024 to be in the range of
Webcast Information
Cytek will host a conference call to discuss the fourth quarter and year end 2023 financial results on Wednesday, February 28, 2024, at 2:00 p.m. Pacific Time / 5:00 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 and twelve-month periods ended December 31, 2023. Management believes that non-GAAP financial measures, including “Adjusted gross profit margin,” “Adjusted EBITDA” and revenue on a “constant currency basis” 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. Cytek calculates constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results. Cytek presents constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. 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 to effectively drive strategic growth and deliver long-term profitability; Cytek business opportunities; 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 Income (Loss) (unaudited) | ||||||||
| Year ended December 31, | ||||||||
| (In thousands) | 2023 | 2022 | ||||||
| Revenue, net: | ||||||||
| Product | $ | 157,089 | $ | 148,600 | ||||
| Service | 36,298 | 15,436 | ||||||
| Total revenue, net | 193,387 | 164,036 | ||||||
| Cost of sales: | ||||||||
| Product | 65,056 | 49,955 | ||||||
| Service | 18,262 | 13,107 | ||||||
| Total cost of sales | 83,318 | 63,062 | ||||||
| Gross profit | 110,069 | 100,974 | ||||||
| Operating expenses: | ||||||||
| Research and development | 44,151 | 34,858 | ||||||
| Sales and marketing | 49,148 | 33,230 | ||||||
| General and administrative | 43,546 | 34,690 | ||||||
| Total operating expenses | 136,845 | 102,778 | ||||||
| Loss from operations | (26,776 | ) | (1,804 | ) | ||||
| Other income, net | ||||||||
| Interest expense | (2,071 | ) | (2,573 | ) | ||||
| Interest income | 6,413 | 4,619 | ||||||
| Other income, net | 7,794 | 1,018 | ||||||
| Total other income, net | 12,136 | 3,064 | ||||||
| (Loss) income before income taxes | (14,640 | ) | 1,260 | |||||
| Benefit from income taxes | (3,311 | ) | (1,224 | ) | ||||
| Net (loss) income | (11,329 | ) | 2,484 | |||||
| Foreign currency translation adjustment, net of tax | (549 | ) | (1,611 | ) | ||||
| Unrealized (loss) gain on marketable securities | (29 | ) | 17 | |||||
| Net comprehensive (loss) income | $ | (11,907 | ) | $ | 890 | |||
| Cytek Biosciences, Inc. Consolidated Balance Sheets (unaudited) | ||||||||
| (In thousands, except share and per share data) | December 31, 2023 | December 31, 2022 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 167,299 | $ | 296,601 | ||||
| Restricted cash | 331 | 2,899 | ||||||
| Marketable securities | 95,111 | 44,548 | ||||||
| Trade accounts receivable, net | 56,636 | 48,864 | ||||||
| Inventories | 61,148 | 48,154 | ||||||
| Prepaid expenses and other current assets | 11,694 | 12,954 | ||||||
| Total current assets | 392,219 | 454,020 | ||||||
| Deferred income tax assets, noncurrent | 30,487 | 20,459 | ||||||
| Property and equipment, net | 18,405 | 13,682 | ||||||
| Operating lease right-of-use assets | 10,853 | 13,883 | ||||||
| Goodwill | 16,753 | 10,144 | ||||||
| Intangible assets, net | 23,084 | 4,331 | ||||||
| Other noncurrent assets | 3,386 | 2,957 | ||||||
| Total assets | $ | 495,187 | $ | 519,476 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 2,918 | $ | 4,805 | ||||
| Legal settlement liability, current | 2,561 | 2,163 | ||||||
| Accrued expenses | 19,862 | 21,126 | ||||||
| Other current liabilities | 8,013 | 7,960 | ||||||
| Deferred revenue, current | 22,783 | 12,986 | ||||||
| Total current liabilities | 56,137 | 49,040 | ||||||
| Legal settlement liability, noncurrent | 16,477 | 15,596 | ||||||
| Deferred revenue, noncurrent | 15,132 | 13,124 | ||||||
| Operating lease liability, noncurrent | 9,479 | 12,312 | ||||||
| Long term debt | 1,648 | 2,271 | ||||||
| Other noncurrent liabilities | 2,431 | 1,587 | ||||||
| Total liabilities | $ | 101,304 | $ | 93,930 | ||||
| Commitments and contingencies (Note 19) | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, | 131 | 135 | ||||||
| Additional paid-in capital | 423,386 | 442,887 | ||||||
| Accumulated deficit | (28,359 | ) | (17,030 | ) | ||||
| Accumulated other comprehensive loss | (1,275 | ) | (697 | ) | ||||
| Noncontrolling interest in consolidated subsidiary | — | 251 | ||||||
| Total stockholders’ equity | 393,883 | 425,546 | ||||||
| Total liabilities and stockholders’ equity | $ | 495,187 | $ | 519,476 | ||||
| Cytek Biosciences, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | ||||||
| Three months ended | ||||||
| December 31, | December 31, | |||||
| 2023 | 2022 | |||||
| (In thousands) | ||||||
| GAAP gross profit | $ | 33,692 | $ | 29,374 | ||
| Stock-based compensation | 824 | 641 | ||||
| Amortization of acquisition-related intangible assets | 501 | 64 | ||||
| Non-GAAP Gross Profit | $ | 35,017 | $ | 30,079 | ||
| GAAP gross profit % | 57 | % | 61 | % | ||
| Non-GAAP gross profit % | 60 | % | 62 | % | ||
| GAAP Net (loss) income | $ | 6,322 | $ | 3,718 | ||
| Depreciation and amortization | 2,423 | 1,465 | ||||
| Provision (Benefit) for Tax | (1,142 | ) | 396 | |||
| Interest Income | (1,447 | ) | (2,626 | ) | ||
| Interest Expense | 393 | 687 | ||||
| Foreign Currency exchange loss | (1,255 | ) | (1,748 | ) | ||
| Stock-based compensation | 5,669 | 4,465 | ||||
| Acquisition-related expenses | - | 218 | ||||
| Adjusted EBITDA | $ | 10,963 | $ | 6,575 | ||
| Cytek Biosciences, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | ||||||
| Year ended | ||||||
| December 31, | December 31, | |||||
| 2023 | 2022 | |||||
| (In thousands) | ||||||
| GAAP gross profit | $ | 110,070 | $ | 100,974 | ||
| Stock-based compensation | 3,213 | 2,855 | ||||
| Amortization of acquisition-related intangible assets | 1,721 | 250 | ||||
| Non-GAAP Gross Profit | $ | 115,004 | $ | 104,079 | ||
| GAAP gross profit % | 57 | % | 62 | % | ||
| Non-GAAP gross profit % | 59 | % | 63 | % | ||
| GAAP Net (loss) income | $ | (11,329 | ) | $ | 2,484 | |
| Depreciation and amortization | 9,230 | 5,566 | ||||
| Provision (Benefit) for Tax | (3,311 | ) | (1,224 | ) | ||
| Interest Income | (6,413 | ) | (4,619 | ) | ||
| Interest Expense | 2,070 | 2,573 | ||||
| Foreign Currency exchange loss | (108 | ) | (425 | ) | ||
| Stock Based Compensation | 22,048 | 16,595 | ||||
| Acquisition-related expenses | 1,512 | 218 | ||||
| Adjusted EBITDA | 13,699 | 21,167 | ||||
| Revenue | Three months ended December 31, 2023 | Three months ended December 31, 2022 | ||
| As reported | 58,605 | 48,336 | ||
| Non-GAAP constant currency | 58,166 | 51,184 | ||
| FX Impact [$] | (439 | ) | 2,848 | |
| FX Impact [%] | (0.7 | )% | 5.9 | % |
| Revenue | Year ended December 31, 2023 | Year ended December 31, 2022 | |||
| As reported | 193,387 | 164,036 | |||
| Non-GAAP constant currency | 194,069 | 171,793 | |||
| FX Impact [$] | 682 | 7,757 | |||
| FX Impact [%] | 0.4 | % | 4.7 | % | |
FAQ
What was Cytek Biosciences' total revenue for the fourth quarter of 2023?
How much was the increase in total revenue for the full year 2023 compared to 2022?
What new product did Cytek Biosciences introduce in Q4 2023?
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What is Cytek Biosciences' revenue growth outlook for 2024?
