Cryoport Reports Second Quarter 2023 Financial Results
- Second quarter revenue of
$57 million - Clinical trials supported by Cryoport increased to a record 668 global clinical trials by quarter end; a net increase of 42 new trials added year-over-year
- Strong balance sheet with over
$500 million
Jerrell Shelton, CEO of Cryoport, commented, "Today, we reported quarterly revenue results that were consistent with the preliminary results we previously provided, which reflected significantly weaker than expected demand for capital equipment from
"
"We have confidence in our corporate strategy, and we remain steadfast that our long-term growth drivers are firmly intact, despite these short term-challenges. Our view is informed and reinforced by the more than
"In addition to these client developments, we also continue to make strategic investments and form relationships to further enhance our growth prospects. These include the continued build-out of our Global Supply Chain Center Network, an expanded infrastructure we are creating that provides the life sciences industry with the most advanced solutions to ensure the safe and timely delivery of its extremely valuable, lifesaving cell and gene therapies. Our bioservices/biostorage network revenue grew
"With these recent client developments, new services and products and strategic relationships, we believe our future growth prospects are stronger than ever. We are committed to continue solidifying our leadership position in the cell and gene therapy industry, which is poised for significant expansion as it transforms the way medicine is practiced. By doing so, we will further strengthen our business and continue to position Cryoport for long-term and profitable growth," concluded Mr. Shelton.
In tabular form, revenue by market for Q2 2023 and H1 2023, as compared to the same periods in 2022 was as follows:
Cryoport, Inc. and Subsidiaries | |||||||
Total revenues by market | |||||||
(unaudited) | |||||||
(in thousands) | Q2 2023 | Q2 2022 | % Change | H1 2023 | H1 2022 | % Change | |
Biopharma/Pharma | $ 46,533 | $ 52,591 | -12 % | $ 97,655 | $ 95,601 | 2 % | |
Animal Health | 7,873 | 9,285 | -15 % | 16,736 | 16,079 | 4 % | |
Reproductive Medicine | 2,615 | 2,277 | 15 % | 5,447 | 4,775 | 14 % | |
Total revenues | $ 57,021 | $ 64,153 | -11 % | $ 119,838 | $ 116,455 | 3 % | |
As of June 30, 2023, the Company supported 12 commercial therapies and a net total of 668 global clinical trials, a net increase of 42 clinical trials over June 30, 2022 and a sequential increase of 16 clinical trials from Q1 2023. The number of trials in Phase 3 was 82 as of the end of the second quarter. The number of trials by phase and region are as follows:
Cryoport Supported Clinical Trials by Phase | |||
Clinical Trials | June 30, | ||
2021 | 2022 | 2023 | |
Phase 1 | 227 | 260 | 273 |
Phase 2 | 265 | 285 | 313 |
Phase 3 | 69 | 81 | 82 |
Total | 561 | 626 | 668 |
Cryoport Supported Clinical Trials by Region | |||
Clinical Trials | June 30, | ||
2021 | 2022 | 2023 | |
444 | 488 | 515 | |
EMEA | 88 | 104 | 109 |
APAC | 29 | 34 | 44 |
Total | 561 | 626 | 668 |
A total of four Cryoport supported Biologic License Applications (BLAs) or Marketing Authorization Applications (MAAs) were filed in the second quarter of 2023. During the remainder of 2023, we anticipate up to an additional 14 application filings, five new therapy approvals and an additional nine label or geographic expansion approvals.
Financial Highlights
Total revenue for Q2 2023 was
- Biopharma/Pharma revenue decreased to
$46.5 million 12% or$6.1 million $52.6 million China , and slower than expected ramps from certain clients, partially offset by the increase in revenue from the support of commercially launched therapies as well as demand for our bioservices solutions. Revenue from the support of commercial cell and gene therapies increased by$0.4 million 9.2% , to$4.3 million $0.9 million 38% , to$3.2 million - Animal Health revenue decreased to
$7.9 million 15% or$1.4 million $9.3 million - Reproductive Medicine revenue increased to
$2.6 million 15% or$0.3 million $2.3 million the United States andAustralia .
Total revenue for H1 2023 increased to
- Biopharma/Pharma revenue increased to
$97.7 million 2% or$2.1 million $95.6 million $9.3 million 19% or$1.5 million - Animal Health revenue was
$16.7 million 4% or$0.7 million $16.1 million New Prague, Minnesota manufacturing facility during Q1 2022. - Reproductive Medicine revenue increased to
$5.4 million 14% or$0.7 million $4.8 million
Gross margin was
Operating costs and expenses increased by
Net loss for Q2 2023 and H1 2023 was
Net loss attributable to common stockholders was
Adjusted EBITDA was a negative
Cryoport held
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
Outlook
Cryoport's revenue for the full year 2023 is expected to be in the range 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 Quarterly Report on Form 10-Q for the three months ended June 30, 2023, which is expected to be filed with the SEC on August 9, 2023. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport's website at www.cryoport.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: In addition to the earnings release, a document titled "Cryoport Second Quarter 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 Wednesday, August 9, 2023. The document is designed to be read in advance of the questions and answers conference call and will be accessible at http://ir.cryoport.com/events-and-presentations.
Cryoport management will host a conference call at 5:00 p.m. ET on August 9, 2023. 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: | Wednesday, August 9, 2023 |
Time: | 5:00 p.m. ET |
Dial-in numbers: | 1-888-886-7786 ( |
Confirmation code: | Request the "Cryoport Call" or Conference ID: 85344190 |
Live webcast: | 'Investor Relations' section at www.cryoport.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.cryoport.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 August 16, 2023. To access the replay, dial 1-844-512-2921 (
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global provider of innovative products and services to the fast-growing Cell & Gene Therapy industry - enabling the future of medicine for a new era of life sciences. With 48 strategic locations covering the
For more information, visit www.cryoport.com or follow @cryoport on 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 expected growth in all of the Company's markets, plans, strategies, acquisitions, future financial results and financial condition, such as the Company's outlook and guidance for full year 2023 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 plans to further strengthen its business and continue to position itself for long-term and profitable growth in the cell and gene therapy industry, 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 conditions, including as a result of the COVID-19 pandemic and its variants, supply chain constraints, inflationary pressures, the ongoing war between
Cryoport, Inc. and Subsidiaries | |||||
Condensed Consolidated Statements of Operations | |||||
(unaudited) | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||
(in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |
Revenues: | |||||
Service revenues | $ 35,204 | $ 34,585 | $ 71,040 | $ 67,495 | |
Product revenues | 21,817 | 29,568 | 48,798 | 48,960 | |
Total revenues | 57,021 | 64,153 | 119,838 | 116,455 | |
Cost of revenues: | |||||
Cost of service revenues | 20,008 | 19,111 | 39,084 | 37,829 | |
Cost of product revenues | 12,280 | 16,204 | 28,949 | 27,447 | |
Total cost of revenues | 32,288 | 35,315 | 68,033 | 65,276 | |
Gross Margin | 24,733 | 28,838 | 51,805 | 51,179 | |
Operating costs and expenses: | |||||
Selling, general and administrative | 38,802 | 30,563 | 72,043 | 57,185 | |
Engineering and development | 4,263 | 3,522 | 8,139 | 7,060 | |
Total operating costs and expenses: | 43,065 | 34,085 | 80,182 | 64,245 | |
Loss from operations | (18,332) | (5,247) | (28,377) | (13,066) | |
Other income (expense): | |||||
Investment income | 2,647 | 2,048 | 5,114 | 3,312 | |
Interest expense | (1,331) | (1,586) | (2,840) | (3,077) | |
Other expense, net | (704) | (4,028) | 3,301 | (9,045) | |
Loss before provision for income taxes | (17,720) | (8,813) | (22,802) | (21,876) | |
Provision for income taxes | (635) | (364) | (1,127) | (705) | |
Net loss | $ (18,355) | $ (9,177) | $ (23,929) | $ (22,581) | |
Paid-in-kind dividend on Series C convertible preferred stock | (2,000) | (2,000) | (4,000) | (4,000) | |
Net loss attributable to common stockholders | $ (20,355) | $ (11,177) | $ (27,929) | $ (26,581) | |
Net loss per share attributable to common stockholders - basic and diluted | $ (0.42) | $ (0.23) | $ (0.58) | $ (0.54) | |
Weighted average common shares outstanding - basic and diluted | 48,709,384 | 48,792,559 | 48,536,901 | 49,467,691 | |
Cryoport, Inc. and Subsidiaries | ||
Condensed Consolidated Balance Sheets | ||
June 30, | December 31, | |
2023 | 2022 | |
(in thousands) | (unaudited) | |
Current assets: | ||
Cash and cash equivalents | $ 67,314 | $ 36,595 |
Short-term investments | 437,360 | 486,728 |
Accounts receivable, net | 43,076 | 43,858 |
Inventories | 28,821 | 27,678 |
Prepaid expenses and other current assets | 8,616 | 9,317 |
Total current assets | 585,187 | 604,176 |
Property and equipment, net | 69,008 | 63,603 |
Operating lease right-of-use assets | 30,011 | 26,877 |
Intangible assets, net | 194,992 | 191,009 |
Goodwill | 149,308 | 151,117 |
Deposits | 1,210 | 1,017 |
Deferred tax assets | 934 | 947 |
Total assets | $ 1,030,650 | $ 1,038,746 |
Current liabilities: | ||
Accounts payable and other accrued expenses | $ 26,124 | $ 28,046 |
Accrued compensation and related expenses | 8,717 | 8,458 |
Deferred revenue | 927 | 439 |
Current portion of operating lease liabilities | 4,234 | 3,720 |
Current portion of finance lease liabilities | 191 | 128 |
Current portion of notes payable | 61 | 60 |
Total current liabilities | 40,254 | 40,851 |
Convertible senior notes , net | 407,992 | 406,708 |
Notes payable, net | 347 | 355 |
Operating lease liabilities, net | 27,520 | 24,721 |
Finance lease liabilities, net | 624 | 216 |
Deferred tax liability | 4,658 | 4,929 |
Other long-term liabilities | 361 | 451 |
Contingent consideration | 4,639 | 4,677 |
Total liabilities | 486,395 | 482,908 |
Total stockholders' equity | 544,255 | 555,838 |
Total liabilities and stockholders' equity | $ 1,030,650 | $ 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 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. 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 June 30, | Six Months Ended June 30, | ||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |
GAAP net loss | $ (18,355) | $ (9,177) | $ (23,929) | $ (22,581) | |
Non-GAAP adjustments to net loss: | |||||
Depreciation and amortization expense | 6,723 | 5,480 | 13,127 | 10,845 | |
Acquisition and integration costs | 4,372 | 566 | 5,629 | 823 | |
Investment income | (2,647) | (2,048) | (5,114) | (3,312) | |
Unrealized (gain)/loss on investments | 1,388 | 3,728 | (36) | 8,636 | |
Gain on insurance claim | - | - | (2,642) | - | |
Foreign currency (gain)/loss | (753) | 271 | (596) | 431 | |
Interest expense, net | 1,331 | 1,586 | 2,840 | 3,077 | |
Stock-based compensation expense | 5,800 | 5,258 | 10,984 | 9,383 | |
Income taxes | 635 | 364 | 1,127 | 705 | |
Adjusted EBITDA | $ (1,506) | $ 6,028 | $ 1,390 | $ 8,007 | |
Cryoport, Inc. and Subsidiaries | ||||
Total revenues by market at constant currency for the three months ended June 30, 2023 | ||||
(unaudited) | ||||
Biopharma/ | Animal | Reproductive Medicine | Total | |
(in thousands) | ||||
Non US-GAAP Constant Currency | $ 46,710 | $ 7,997 | $ 2,612 | $ 57,319 |
As Reported | 46,533 | 7,873 | 2,615 | 57,021 |
FX Impact [$] | (177) | (124) | 3 | (298) |
FX Impact [%] | (0.4 %) | (1.6 %) | 0.1 % | (0.5 %) |
Cryoport, Inc. and Subsidiaries | ||||
Total revenues by market at constant currency for the six months ended June 30, 2023 | ||||
(unaudited) | ||||
Biopharma/ | Animal | Reproductive Medicine | Total | |
(in thousands) | ||||
Non US-GAAP Constant Currency | $ 98,994 | $ 17,129 | $ 5,453 | $ 121,576 |
As Reported | 97,655 | 16,736 | 5,447 | 119,838 |
FX Impact [$] | (1,339) | (393) | (6) | (1,738) |
FX Impact [%] | (1.4 %) | (2.4 %) | (0.1 %) | (1.5 %) |
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SOURCE Cryoport, Inc.
