Cryoport Reports Fourth Quarter and Full Year 2023 Financial Results
- None.
- Revenue decreased by 2% YoY.
- Net loss increased significantly in Q4 2023 and FY 2023 compared to the same periods in 2022.
- Operating costs and expenses saw a significant increase in FY 2023, including a non-cash impairment charge to goodwill of $49.6 million.
- Adjusted EBITDA was negative for both Q4 2023 and FY 2023.
- Product revenue decreased for FY 2023.
- Cash, cash equivalents, and short-term investments totaled $456.8 million as of December 31, 2023.
Insights
Revenue Trends and Market Performance: The reported year-over-year decrease in total revenue of 2% for FY 2023, coupled with the decline in Biopharma/Pharma and Animal Health revenues, indicates a contraction in certain key market segments for Cryoport. This contraction could be attributed to broader industry challenges or increased competition. However, the substantial growth in BioStorage/BioServices and support for commercial Cell & Gene therapies, which saw a 45% and 33% increase respectively, suggests a strategic pivot or stronger demand in these emerging sectors. The 8% increase in services revenue for FY 2023 emphasizes a potential shift towards a more service-oriented business model, which may offer more stable recurring revenue streams compared to product sales.
Investment and Strategic Acquisitions: Cryoport's strategic investments and acquisitions, such as Bluebird Express and Tec4med, signal an aggressive expansion strategy, aimed at enhancing their service offerings and geographical reach. These moves could position Cryoport favorably within the Cell & Gene therapy supply chain, potentially capturing more market share as the industry grows. However, investors should be mindful of the integration risks and the impact of these investments on the company's short-term financials.
Stock Repurchase Program: The repurchase of common stock and convertible senior notes suggests management's confidence in the company's intrinsic value. This could be a positive signal to investors, indicating a perceived undervaluation or a strategic move to reduce dilution. Nevertheless, the efficacy of this program should be evaluated in the context of the company's overall capital allocation strategy and its long-term growth prospects.
Industry Growth and Competitive Positioning: The growth in Cell & Gene therapy support and clinical trials indicates Cryoport's strong positioning within a high-growth industry. With 675 global clinical trials supported, a net increase from the previous year and the anticipation of new therapy approvals, Cryoport appears to be capitalizing on the expansion of this niche market. The company's focus on this segment could offer competitive advantages as more therapies move towards commercial approval. However, the need to continuously innovate and maintain high-quality standards is critical in this highly regulated space.
Economic and Geopolitical Factors: The outlook for 2024, with revenue guidance of $242 - $252 million, suggests moderate optimism. However, the company's performance may be influenced by external factors such as supply chain constraints, inflationary pressures and geopolitical events. Cryoport's ability to navigate these challenges will be crucial in achieving its revenue targets and sustaining growth.
Operational Efficiency and Margin Pressures: The decrease in gross margin from 43.8% for FY 2022 to 42.6% for FY 2023, along with increased operating costs and expenses, raises concerns about margin pressures and operational efficiency. As Cryoport expands its service offerings and scales its operations, maintaining cost control and improving margins will be essential for profitability and investor confidence.
Regulatory Landscape and Compliance: The Cell & Gene therapy industry is subject to stringent regulatory requirements. Cryoport's support for a growing number of clinical trials and commercial therapies indicates its compliance with regulatory standards, which is pivotal for its continued operation and expansion. The company's strategic relationships, such as with NMDP BioTherapies and Cell & Gene Therapy Catapult, may enhance its regulatory expertise and compliance infrastructure. However, any changes in regulatory policies or non-compliance issues could have significant implications for Cryoport's business operations and financial performance.
- FY 2023 revenue of
$233.3 million - Year-over-year, Commercial Cell & Gene Therapy revenue rose
33% ; BioStorage/BioServices revenue increased45% - Global clinical trials supported reached a record 675
"Notwithstanding these challenges, there were several bright spots. In 2023, our services business, the core driver of our growth, increased to
"Product revenues were lower than historical levels; however, MVE Biological Solutions' revenue began to stabilize in the latter part of the year. Moreover, MVE continues to be a strong business unit, which has generated considerable free cash flow and maintained margins on its product revenue.
"Throughout 2023, we made targeted investments in our business and formed strategic relationships to further position ourselves for continued growth. Some of our actions included our acquisition of Bluebird Express last November, which is in support of accelerating CRYOPDP's
"As we enter 2024, we are focused on leveraging the strength of our industry-leading brands to serve our clients while capitalizing on the growth of the Cell & Gene therapy industry, as more of these lifesaving therapies receive regulatory approvals globally. By continuing to build out our platform and broaden our scope, we expect to further expand our market leading position in Cell & Gene therapy, arguably one of the most important segments of the life sciences. We believe our solutions, services, and products set industry standards and are critical components to bringing these life-saving treatments to patients globally. We anticipate 2024 as a year of progressive advancement in our business with stronger overall growth in our services business," concluded Mr. Shelton.
In tabular form, revenue by market for Q4 2023 and FY 2023, as compared to the same periods in 2022 was as follows:
Cryoport, Inc. and Subsidiaries | |||||||
Total revenues by market | |||||||
(unaudited) | |||||||
Three Months Ended | Years Ended | ||||||
(in thousands) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |
Biopharma/Pharma | $ 47,949 | $ 50,570 | -5 % | $ 192,583 | $ 193,879 | -1 % | |
Animal Health | 6,759 | 7,480 | -10 % | 30,379 | 33,465 | -9 % | |
Reproductive Medicine | 2,552 | 2,308 | 11 % | 10,293 | 9,933 | 4 % | |
Total revenues | $ 57,260 | $ 60,358 | -5 % | $ 233,255 | $ 237,277 | -2 % | |
Revenue from the support of commercial Cell & Gene therapies increased
Cryoport Supported Clinical Trials by Phase | |||
Clinical Trials | December 31, | ||
2021 | 2022 | 2023 | |
Phase 1 | 255 | 275 | 282 |
Phase 2 | 273 | 300 | 311 |
Phase 3 | 74 | 79 | 82 |
Total | 602 | 654 | 675 |
Cryoport Supported Clinical Trials by Region | |||
Clinical Trials | December 31, | ||
2021 | 2022 | 2023 | |
475 | 502 | 519 | |
EMEA | 93 | 110 | 112 |
APAC | 34 | 42 | 44 |
Total | 602 | 654 | 675 |
A total of 17 Cryoport supported Biologic License Applications (BLAs) or Marketing Authorization Applications (MAAs) were filed in 2023, of which 3 were filed during the fourth quarter. During 2024, we anticipate up to an additional 17 application filings, 9 new therapy approvals and an additional 7 label/geographic expansions or moves to earlier lines of treatment approved.
Financial Highlights
Revenue
- Total revenue for Q4 2023 was
$57.3 million $60.4 million 5% or$3.1 million $37.0 million 12% year-over-year, including BioStorage/BioServices revenue of$3.6 million 29% year-over-year. Product revenue for Q4 2023 was$20.2 million 26% year-over-year while flat sequentially.- Biopharma/Pharma revenue was
$47.9 million 5% or$2.7 million $50.6 million $1.5 million 36% , to$5.7 million - Animal Health revenue was
$6.8 million 10% or$0.7 million $7.5 million - Reproductive Medicine revenue was
$2.6 million 11% compared to$2.3 million
- Biopharma/Pharma revenue was
- Total revenue for FY 2023 was
$233.3 million $237.3 million 2% . By source, services revenue for FY 2023 was$144.1 million 8% year-over-year, including BioStorage/BioServices revenue of$13.6 million 45% year-over-year. Product revenue for FY 2023 was$89.2 million 14% year-over-year.- Biopharma/Pharma revenue was
$192.6 million 1% or$1.3 million $193.9 million $21.6 million 33% or$5.3 million - Animal Health revenue was
$30.4 million 9% or$3.1 million $33.5 million - Reproductive Medicine revenue increased to
$10.3 million 4% for FY 2023, compared to$9.9 million
- Biopharma/Pharma revenue was
Gross Margin
- Gross margin was
40.6% for Q4 2023 compared to43.5% for the same period in 2022. Gross margin was42.6% for FY 2023 compared to43.8% for FY 2022.
Operating Costs and Expenses
- Operating costs and expenses increased to
$93.1 million $49.6 million $37.3 million $214.5 million $135.8 million
Net Loss
- Net loss for Q4 2023 and FY 2023 was
$62.4 million $99.6 million $9.4 million $37.3 million - Net loss attributable to common stockholders was
$64.4 million $1.31 $107.6 million $2.21 $11.4 million $0.24 $45.3 million $0.93
Adjusted EBITDA
- Adjusted EBITDA was a negative
$6.6 million $0.7 million $8.3 million $13.9 million
Cash, Cash equivalents, and Short-Term Investments
- Cryoport held
$456.8 million
Share Repurchase Update
- On March 11, 2022, the Company announced that its board of directors authorized a repurchase program through December 31, 2025, authorizing the repurchase of common stock and/or convertible senior notes in the amount of up to
$100.0 million $31.3 million $25.1 million $36.0 million
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
Outlook
The Company is expecting revenue to grow progressively and is providing full year 2024 revenue guidance of
Additional Information
Further information on Cryoport's financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport's financial performance are provided in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, which is expected to be filed with the SEC on March 12, 2024. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport's website at www.cryoportinc.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: In addition to the earnings release, a document titled "Cryoport Fourth Quarter and Full Year 2023 in Review", providing a review of Cryoport's financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Tuesday, March 12, 2024. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.
Cryoport management will host a conference call at 5:00 p.m. ET on March 12, 2024. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company's reported results. A slide deck will accompany the call.
Conference Call Information
Date: | Tuesday, March 12, 2024 |
Time: | 5:00 p.m. ET |
Dial-in numbers: | 1-888-886-7786 ( |
Confirmation code: | Request the "Cryoport Call" or Conference ID: 33425097 |
Live webcast: | 'Investor Relations' section at www.cryoportinc.com or click here. Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software. |
The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company's website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until March 19, 2024. To access the replay, dial 1-844-512-2921 (
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for cell & gene therapies that enable manufacturers, contract manufacturers (CDMO's), contract research organizations (CRO's), developers, and researchers to carry out their respective business with certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are "Enabling the Future of MedicineTM" worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.
Our corporate headquarters, located in
For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.twitter.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding the Company's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to the Company's industry, business, long-term growth prospects, including the Company's belief that its clinical trials portfolio constitutes a significant long-term revenue growth opportunity, plans, strategies, acquisitions, future financial results and financial condition, such as the Company's outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Company operates, the Company's plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, the Company's expectations about future benefits of its acquisitions, the Company's anticipation about 2024 as a year of progressive recovery in its business with stronger overall growth in the Company's services business, the Company's expectations of the continuing stabilization of MVE Biological Solutions revenue into 2024, the Company's plans to continue to build out its platform and broaden its scope with the expectation to further expand its market leading position in cell & gene therapy, and anticipated regulatory filings or approvals with respect to the products of the Company's clients. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in the Company's cash flow, market acceptance risks, and technical development risks. The Company's business could be affected by other factors discussed in the Company's SEC reports, including in the "Risk Factors" section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and the Company cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
Cryoport, Inc. and Subsidiaries | |||||
Condensed Consolidated Statements of Operations | |||||
Three Months Ended | Years Ended | ||||
(in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |
Revenues: | |||||
Service revenues | $ 37,025 | $ 33,088 | $ 144,087 | $ 133,879 | |
Product revenues | 20,235 | 27,270 | 89,168 | 103,398 | |
Total revenues | 57,260 | 60,358 | 233,255 | 237,277 | |
Cost of revenues: | |||||
Cost of service revenues | 21,933 | 18,445 | 81,820 | 75,187 | |
Cost of product revenues | 12,066 | 15,636 | 52,103 | 58,217 | |
Total cost of revenues | 33,999 | 34,081 | 133,923 | 133,404 | |
Gross margin | 23,261 | 26,277 | 99,332 | 103,873 | |
Operating costs and expenses: | |||||
Selling, general and administrative | 38,814 | 32,635 | 146,880 | 120,055 | |
Engineering and development | 4,749 | 4,677 | 18,040 | 15,722 | |
Goodwill impairment | 49,569 | - | 49,569 | - | |
Total operating costs and expenses: | 93,132 | 37,312 | 214,489 | 135,777 | |
Loss from operations | (69,871) | (11,035) | (115,157) | (31,904) | |
Other income (expense): | |||||
Investment income | 2,615 | 2,677 | 10,577 | 8,474 | |
Interest expense | (1,306) | (1,456) | (5,503) | (6,142) | |
Gain on debt extinguishment | - | - | 5,679 | - | |
Other income (expense), net | 4,814 | 1,855 | 5,056 | (5,522) | |
Loss before provision for income taxes | (63,748) | (7,959) | (99,348) | (35,094) | |
(Provision for) benefit from income taxes | 1,359 | (1,477) | (239) | (2,239) | |
Net loss | $ (62,389) | $ (9,436) | $ (99,587) | $ (37,333) | |
Paid-in-kind dividend on Series C convertible preferred stock | (2,000) | (2,000) | (8,000) | (8,000) | |
Net loss attributable to common stockholders | $ (64,389) | $ (11,436) | $ (107,587) | $ (45,333) | |
Net loss per share attributable to common stockholders - basic and diluted | $ (1.31) | $ (0.24) | $ (2.21) | $ (0.93) | |
Weighted average common shares outstanding - basic and diluted | 48,965,068 | 48,508,766 | 48,737,377 | 48,987,295 | |
Cryoport, Inc. and Subsidiaries | ||
Condensed Consolidated Balance Sheets | ||
December 31, | ||
2023 | 2022 | |
(in thousands) | ||
Current assets: | ||
Cash and cash equivalents | $ 46,346 | $ 36,595 |
Short-term investments | 410,409 | 486,728 |
Accounts receivable, net | 42,074 | 43,858 |
Inventories | 26,206 | 27,678 |
Prepaid expenses and other current assets | 10,077 | 9,317 |
Total current assets | 535,112 | 604,176 |
Property and equipment, net | 84,858 | 63,603 |
Operating lease right-of-use assets | 32,653 | 26,877 |
Intangible assets, net | 194,382 | 191,009 |
Goodwill | 108,403 | 151,117 |
Deposits | 1,680 | 1,017 |
Deferred tax assets | 656 | 947 |
Total assets | $ 957,744 | $ 1,038,746 |
Current liabilities: | ||
Accounts payable and other accrued expenses | $ 26,995 | $ 30,855 |
Accrued compensation and related expenses | 11,409 | 5,649 |
Deferred revenue | 1,308 | 439 |
Current portion of operating lease liabilities | 5,371 | 3,720 |
Current portion of finance lease liabilities | 286 | 60 |
Current portion of notes payable | 149 | 128 |
Current portion of contingent consideration | 92 | - |
Total current liabilities | 45,610 | 40,851 |
Convertible senior notes, net | 378,553 | 406,708 |
Notes payable, net | 1,335 | 355 |
Operating lease liabilities, net | 29,355 | 24,721 |
Finance lease liabilities, net | 954 | 216 |
Deferred tax liabilities | 2,816 | 4,929 |
Other long-term liabilities | 601 | 451 |
Contingent consideration | 9,497 | 4,677 |
Total liabilities | 468,721 | 482,908 |
Total stockholders' equity | 489,023 | 555,838 |
Total liabilities and stockholders' equity | $ 957,744 | $ 1,038,746 |
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on the basis of
We believe that revenue growth is a key indicator of how Cryoport is progressing from period to period and we believe that the non-GAAP financial measures, revenue at constant currency and revenue growth rate at constant currency, are useful to investors in analyzing the underlying trends in revenue. Under GAAP, revenues received in local (non-
However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into
Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, gain on extinguishment of debt, goodwill impairment, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events.
Management believes that adjusted EBITDA provides a useful measure of Cryoport's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport's ongoing operating performance. Further, management and the Company's board of directors utilize adjusted EBITDA to gain a better understanding of Cryoport's comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA, when read in conjunction with Cryoport's GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport's ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport's underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport's underlying business.
Cryoport, Inc. and Subsidiaries | |||||
Reconciliation of GAAP net loss to adjusted EBITDA | |||||
(unaudited) | |||||
Three Months Ended | Years Ended | ||||
2023 | 2022 | 2023 | 2022 | ||
(in thousands) | |||||
GAAP net loss | $ (62,389) | $ (9,436) | $ (99,587) | $ (37,333) | |
Non-GAAP adjustments to net loss: | |||||
Depreciation and amortization expense | 7,449 | 6,134 | 27,487 | 22,765 | |
Acquisition and integration costs | 641 | 621 | 6,945 | 2,165 | |
Investment income | (2,615) | (2,677) | (10,577) | (8,474) | |
Unrealized (gain) loss on investments | (3,542) | (1,042) | (1,242) | 11,508 | |
Gain on insurance claim | - | - | (2,642) | (4,815) | |
Foreign currency gain | (1,078) | (1,212) | (964) | (584) | |
Interest expense, net | 1,306 | 1,456 | 5,503 | 6,142 | |
Stock-based compensation expense | 5,848 | 5,333 | 22,808 | 20,082 | |
Gain on extinguishment of debt, net | - | - | (5,679) | - | |
Goodwill impairment | 49,569 | - | 49,569 | - | |
Change in fair value of contingent consideration | (665) | 63 | (601) | 213 | |
Other non-recurring costs | 187 | - | 437 | - | |
Income taxes | (1,359) | 1,477 | 239 | 2,239 | |
Adjusted EBITDA | $ (6,648) | $ 717 | $ (8,304) | $ 13,908 | |
Cryoport, Inc. and Subsidiaries | ||||
Total revenues by market for the three months ended December 31, 2023 | ||||
(unaudited) | ||||
Biopharma/ | Animal Health | Reproductive | Total | |
(in thousands) | ||||
Non US-GAAP Constant Currency | $ 47,370 | $ 6,661 | $ 2,547 | $ 56,577 |
As Reported | 47,949 | 6,759 | 2,552 | 57,260 |
FX Impact [$] | 579 | 98 | 5 | 683 |
FX Impact [%] | 1.2 % | 1.5 % | 0.2 % | 1.2 % |
Cryoport, Inc. and Subsidiaries | ||||
Total revenues by market for the year ended December 31, 2023 | ||||
(unaudited) | ||||
Biopharma/ | Animal Health | Reproductive | Total | |
(in thousands) | ||||
Non US-GAAP Constant Currency | $ 192,781 | $ 30,654 | $ 10,288 | $ 233,723 |
As Reported | 192,583 | 30,379 | 10,293 | 233,255 |
FX Impact [$] | (198) | (275) | 5 | (468) |
FX Impact [%] | (0.1 %) | (0.9 %) | 0.0 % | (0.2 %) |
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SOURCE Cryoport, Inc.
FAQ
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