Cytek Biosciences Reports Second Quarter 2024 Financial Results
FREMONT, Calif., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Cytek® Biosciences, Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq: CTKB), a leading cell analysis solutions company, today reported financial results for the second quarter ended June 30, 2024.
Recent Highlights
- Total revenue for the second quarter of 2024 was $46.6 million, representing a 4% increase sequentially over the first quarter of 2024 and a 6% decrease over the second quarter of 2023
- For the first half of 2024, total revenue grew 5% compared to the first half of 2023
- Launched Enhanced Small Particle (ESP™) detection, an upgrade option for the Cytek Aurora™ and Northern Lights™ systems for the analysis of viruses and other sub-cellular components
- Attained a total installed base of 2,656 Cytek instruments, including the Amnis® and Guava® instruments shipped since the acquisition of the flow cytometry and imaging business from Luminex Corporation in February 2023, adding 147 units in the second quarter of 2024
- Repurchased $2.7 million of Cytek stock in open market purchases during the second quarter of 2024 under a new $50 million share repurchase program, following the expiration of the previous $50 million repurchase program at the end of 2023
“In the second quarter of 2024, we posted strong year over year double-digit revenue growth in EMEA and APAC as well as in our service business worldwide as compared to the second quarter of 2023. However, this performance was offset by a decline in our U.S. instrument sales, particularly among academic and government customers,” said Dr. Wenbin Jiang, CEO of Cytek Biosciences. “Despite the headwinds in the U.S. market, we believe the fundamental drivers of long-term growth remain in place, and the underlying opportunity for our products remains strong. We remain focused on executing our business strategy and delivering durable growth and profitability and strong value to our customers and shareholders.”
Second Quarter 2024 Financial Results
Total revenue for the second quarter of 2024 was $46.6 million, a 6% decrease compared to the second quarter of 2023. The decline in revenue was related to weakness in the U.S. instrument market, offset by strong revenue growth across the EMEA and APAC regions.
Gross profit was $25.4 million for the second quarter of 2024, a 10% decrease compared to the second quarter of 2023. GAAP gross profit margin was 55% in the second quarter of 2024 compared to 57% in the second quarter of 2023. Adjusted gross profit margin, after adjusting for stock-based compensation expense and amortization of acquisition-related intangibles, was 58% in the second quarter of 2024 compared to 60% in the second quarter of 2023.
Operating expenses were $34.0 million for the second quarter of 2024, a 9% decrease from $37.3 million in the second quarter of 2023. The decrease in operating expenses was primarily driven by reduced research and development and sales and marketing expenses.
Research and development expenses were $10.0 million for the second quarter of 2024 compared to $12.1 million for the second quarter of 2023.
Sales and marketing expenses were $12.3 million for the second quarter of 2024 compared to $14.4 million for the second quarter of 2023.
General and administrative expenses were $11.7 million for the second quarter of 2024 compared to $10.8 million for the second quarter of 2023.
Loss from operations in the second quarter of 2024 was $8.5 million compared to loss from operations of $9.1 million in the second quarter of 2023. Net loss in the second quarter of 2024 was $10.4 million compared to a net loss of $4.4 million in the second quarter of 2023.
Adjusted EBITDA in the second quarter of 2024 was $2.9 million compared to $1.5 million in the second quarter of 2023, after adjusting for stock-based compensation expense, foreign currency exchange impacts and acquisition-related expenses.
Cash and marketable securities were $277.2 million as of June 30, 2024, compared to $270.4 million as of March 31, 2024. This represents an increase of $6.8 million, despite a cash expenditure of $2.7 million for the repurchase of Cytek shares during the second quarter.
2024 Outlook
Cytek Biosciences narrowed the range of its 2024 revenue guidance, now expecting full year 2024 revenue to in the range of $203 million to $210 million, representing growth of 5% to 9% over full year 2023, assuming no change in currency exchange rates. In addition, Cytek expects to report a net loss in the single digit millions for the full year 2024 due to an outlook of slightly lower gross profit, higher than expected stock-based compensation, and lower other income. Cytek expects to generate positive cash flow from operations in 2024.
Webcast Information
Cytek will host a conference call to discuss its second quarter 2024 financial results on Tuesday, August 6, 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 Enhanced Small Particle (ESP™) detection technology, the flow cytometer and imaging products under the Amnis® and Guava® brands; and reagents, software and service 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, ESP, 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 June 30, 2024 and June 30, 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 deliver durable growth and profitability and strong value to its customers and shareholders; Cytek’s long term growth and opportunity in the U.S. market; Cytek’s business opportunities and market demand for advanced cell analysis solutions; and Cytek’s future financial performance, including its outlook for fiscal year 2024. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management. These statements also deal with future events and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include global economic and market conditions; Cytek's ability to evaluate its prospects for future viability and predict future performance; Cytek’s ability to accurately forecast customer demand and adoption of its products; Cytek’s ability to recognize the anticipated benefits of collaborations; Cytek’s dependence on certain sole and single source suppliers; competition; market acceptance of Cytek’s current and potential products; Cytek’s ability to manage the growth and complexity of its organization, maintain relationships with customers and suppliers and retain key employees; Cytek’s ability to maintain, protect and enhance its intellectual property; and Cytek’s ability to continue to stay in compliance with its material contractual obligations, applicable laws and regulations. You should refer to the section entitled “Risk Factors” set forth in Cytek’s most recent Annual Report on Form 10-K filed with the SEC on March 13, 2024, Cytek’s Quarterly Report on Form 10-Q to be filed with the SEC on or about the date hereof and other filings Cytek makes with the SEC from time to time for a discussion of important factors that may cause actual results to differ materially from those expressed or implied by Cytek’s forward-looking statements. Although Cytek believes that the expectations reflected in the forward-looking statements are reasonable, it cannot provide any assurance that these expectations will prove to be correct nor can it guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. The forward-looking statements in this press release are based on information available to Cytek as of the date hereof, and Cytek disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Cytek’s views as of any date subsequent to the date of this press release.
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 Balance Sheets |
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| (In thousands, except share and per share data) | June 30, 2024 |
December 31, 2023 |
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| (unaudited) | (audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 177,888 | $ | 167,299 | ||||
| Restricted cash | 30 | 331 | ||||||
| Marketable securities | 99,323 | 95,111 | ||||||
| Trade accounts receivable, net | 44,643 | 55,928 | ||||||
| Inventories | 50,070 | 60,877 | ||||||
| Prepaid expenses and other current assets | 12,130 | 12,514 | ||||||
| Total current assets | 384,084 | 392,060 | ||||||
| Deferred income tax assets, noncurrent | 29,676 | 30,487 | ||||||
| Property and equipment, net | 18,114 | 18,405 | ||||||
| Operating lease right-of-use assets | 9,328 | 10,853 | ||||||
| Goodwill | 16,183 | 16,183 | ||||||
| Intangible assets, net | 21,420 | 23,084 | ||||||
| Other noncurrent assets | 4,920 | 3,385 | ||||||
| Total assets | $ | 483,725 | $ | 494,457 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 3,191 | $ | 3,032 | ||||
| Legal settlement liability, current | 2,503 | 2,561 | ||||||
| Accrued expenses | 15,489 | 20,035 | ||||||
| Other current liabilities | 7,228 | 7,903 | ||||||
| Deferred revenue, current | 23,968 | 22,695 | ||||||
| Total current liabilities | 52,379 | 56,226 | ||||||
| Legal settlement liability, noncurrent | 16,912 | 16,477 | ||||||
| Deferred revenue, noncurrent | 14,064 | 15,132 | ||||||
| Operating lease liability, noncurrent | 8,113 | 9,479 | ||||||
| Long term debt | 1,330 | 1,648 | ||||||
| Other noncurrent liabilities | 1,804 | 2,431 | ||||||
| Total liabilities | $ | 94,602 | $ | 101,393 | ||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value; 1,000,000,000 authorized shares as of June 30, 2024 and December 31, 2023, respectively; 131,505,201 and 130,714,906 issued and outstanding shares as of June 30, 2024 and December 31, 2023, respectively. | 132 | 131 | ||||||
| Additional paid-in capital | 434,967 | 423,386 | ||||||
| Accumulated deficit | (45,781 | ) | (29,178 | ) | ||||
| Accumulated other comprehensive loss | (195 | ) | (1,275 | ) | ||||
| Total stockholders’ equity | 389,123 | 393,064 | ||||||
| Total liabilities and stockholders’ equity | $ | 483,725 | $ | 494,457 | ||||
| Cytek Biosciences, Inc. Consolidated Statements of Operations and Comprehensive Loss (unaudited) |
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| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue, net: | ||||||||||||||||
| Product | $ | 34,576 | $ | 40,452 | $ | 68,698 | $ | 71,624 | ||||||||
| Service | 12,041 | 9,241 | 22,779 | 15,157 | ||||||||||||
| Total revenue, net | 46,617 | 49,693 | 91,477 | 86,781 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Product | 15,808 | 16,675 | 32,554 | 29,352 | ||||||||||||
| Service | 5,373 | 4,856 | 10,474 | 8,229 | ||||||||||||
| Total cost of sales | 21,181 | 21,531 | 43,028 | 37,581 | ||||||||||||
| Gross profit | 25,436 | 28,162 | 48,449 | 49,200 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 10,001 | 12,136 | 19,796 | 22,110 | ||||||||||||
| Sales and marketing | 12,268 | 14,367 | 24,811 | 25,512 | ||||||||||||
| General and administrative | 11,694 | 10,786 | 23,102 | 22,867 | ||||||||||||
| Total operating expenses | 33,963 | 37,289 | 67,709 | 70,489 | ||||||||||||
| Loss from operations | (8,527 | ) | (9,127 | ) | (19,260 | ) | (21,289 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (134 | ) | (409 | ) | (575 | ) | (1,082 | ) | ||||||||
| Interest income | 1,416 | 1,201 | 2,775 | 3,344 | ||||||||||||
| Other income, net | 59 | 1,740 | 881 | 3,392 | ||||||||||||
| Total other income, net | 1,341 | 2,532 | 3,081 | 5,654 | ||||||||||||
| Loss before income taxes | (7,186 | ) | (6,595 | ) | (16,179 | ) | (15,635 | ) | ||||||||
| Provision for (benefit from) income taxes | 3,248 | (2,207 | ) | 424 | (4,440 | ) | ||||||||||
| Net loss | (10,434 | ) | (4,388 | ) | (16,603 | ) | (11,195 | ) | ||||||||
| Net loss, basic and diluted | $ | (10,434 | ) | $ | (4,388 | ) | $ | (16,603 | ) | $ | (11,195 | ) | ||||
| Net loss per share, basic | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.13 | ) | $ | (0.08 | ) | ||||
| Net loss per share, diluted | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.13 | ) | $ | (0.08 | ) | ||||
| Weighted-average shares used in calculating net loss per share, basic | 131,440,486 | 135,918,707 | 131,180,734 | 135,705,139 | ||||||||||||
| Weighted-average shares used in calculating net loss per share, diluted | 131,440,486 | 135,918,707 | 131,180,734 | 135,705,139 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (10,434 | ) | $ | (4,388 | ) | $ | (16,603 | ) | $ | (11,195 | ) | ||||
| Foreign currency translation adjustment, net of tax | 1,375 | (980 | ) | 1,131 | (1,022 | ) | ||||||||||
| Unrealized loss on marketable securities | (16 | ) | (192 | ) | (51 | ) | (40 | ) | ||||||||
| Net comprehensive loss | $ | (9,075 | ) | $ | (5,560 | ) | $ | (15,523 | ) | $ | (12,257 | ) | ||||
| Cytek Biosciences, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) |
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| Three months ended | ||||||||
| (In thousands) | June 30, 2024 | June 30, 2023 | ||||||
| (Unaudited) | (Unaudited) | |||||||
| GAAP Gross Profit | $ | 25,436 | $ | 28,162 | ||||
| Stock Based Compensation | $ | 1,200 | $ | 868 | ||||
| Amortization of Acquisition-related Intangible assets | $ | 503 | $ | 539 | ||||
| Adjusted Gross Profit (Non-GAAP) | $ | 27,139 | $ | 29,569 | ||||
| Adjusted Gross Profit Margin (Non-GAAP) % | 58 | % | 60 | % | ||||
| GAAP Net Loss | $ | (10,434 | ) | $ | (4,388 | ) | ||
| Depreciation and Amortization | $ | 2,479 | $ | 2,445 | ||||
| Benefit From Income Taxes | $ | 3,248 | $ | (2,207 | ) | |||
| Interest Income | $ | (1,416 | ) | $ | (1,201 | ) | ||
| Interest Expense | $ | 134 | $ | 409 | ||||
| Foreign Currency Exchange Loss | $ | 1,784 | $ | 535 | ||||
| Stock Based Compensation | $ | 7,152 | $ | 5,922 | ||||
| Acquisition Related Expenses | $ | — | $ | 27 | ||||
| Adjusted EBITDA (Non-GAAP) | $ | 2,947 | $ | 1,542 | ||||
