Financial Data and Key Metrics Changes - BioLife Solutions reported Q3 2024 revenue from continuing operations of $30.6 million, a 30% increase year-over-year, primarily driven by a 43% increase in cell processing platform revenue [20][21] - Adjusted gross margin for Q3 2024 was 54%, up from 44% in the prior year, while GAAP gross margin increased to 51% from 48% [21][25] - Adjusted EBITDA for Q3 2024 was $6.1 million, or 20% of revenue, compared to $1.4 million, or 6% of revenue, in the prior year [26][25] Business Line Data and Key Metrics Changes - Cell Processing platform revenue totaled $19 million, reflecting a sequential increase of 6% and a year-over-year increase of 43% [8][20] - Biopreservation media products, which account for the majority of cell processing revenue, showed strong quarter-over-quarter growth, although there was a decline in other products due to timing [12][20] Market Data and Key Metrics Changes - The top 20 customers accounted for approximately 80% of biopreservation media revenue, with 60% of this revenue coming from direct customers, and 40% from customers with approved therapies [12][20] - BioLife's biopreservation media products are embedded in over 70% of relevant, commercially sponsored CGT clinical trials, indicating strong future growth potential [13] Company Strategy and Development Direction - The company announced the strategic divestiture of its SciSafe bio storage business for $73 million, marking a pivotal step towards becoming a pure-play CGT tools provider [10][14] - Future focus will be on high-growth, high-margin cell processing products, with plans to allocate capital towards expanding the biopreservation media product line [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving macro environment for the bioproduction subsector, highlighting four consecutive quarters of sequential revenue growth [7][11] - The company anticipates continued growth in 2025, with destocking issues largely behind them [36][52] Other Important Information - The company updated its 2024 revenue guidance to $98 million to $100 million, reflecting an increase in cell processing platform guidance offset by a decrease in expected storage revenue due to the sale of SciSafe [31][32] - Cash and marketable securities balance as of September 30, 2024, was $39.3 million, an increase from $36.9 million as of June 30, 2024 [29] Q&A Session Summary Question: Can you frame up what pro forma gross margins look like post SciSafe sale? - The adjusted gross margin without SciSafe for the first half of 2024 was 60%, with minimal impact expected on adjusted EBITDA profile going forward [34] Question: How should we think about long-term growth from here? - Management indicated that formal guidance for 2025 will be provided in early January, but they expect growth to continue [36] Question: What will be the focus post SciSafe sale? - The focus will be on the cell processing product line, particularly biopreservation media and Sexton tools, with potential for capacity expansion [38][39] Question: Can you expand on specific levers within the cell processing platform for growth? - Key factors include deepening relationships with distributors, pricing opportunities, and cross-selling Sexton tool products [47][48] Question: How is the demand from smaller customers and academia? - Demand from smaller customers is improving, with good sequential growth observed from distributors representing these segments [58] Question: What is the relevance of Asia for long-term growth? - Less than 5% of revenue comes from China, indicating that while Asia is important, it is not material for immediate growth [59]

Core Insights - BioLife Solutions, Inc. reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.09, and showing improvement from a loss of $0.67 per share a year ago [1] - The company achieved revenues of $30.57 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 21.98%, although this represents a decline from $33.33 million in the same quarter last year [2] - BioLife Solutions has surpassed consensus EPS estimates for four consecutive quarters, indicating a positive trend in earnings performance [2] Financial Performance - The quarterly report resulted in an earnings surprise of 77.78%, with a previous quarter's surprise of 57.14% when the loss was expected to be $0.14 per share but was reported as $0.06 [1] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $26.02 million, and for the current fiscal year, it is -$0.36 on revenues of $111.18 million [7] Market Position - BioLife Solutions shares have increased approximately 63.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.8% [3] - The Zacks Industry Rank places the Medical - Products sector in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - Current estimate revisions for BioLife Solutions are unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6]

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $30.6 million, representing a 30% increase compared to $23.6 million in the same period of 2023[154] - Product revenue for the three months ended September 30, 2024, was $23.5 million, an increase of $6.3 million, or 37%, compared to the same period in 2023[155] - Cell processing product revenue increased by $5.7 million, or 43%, for the three months ended September 30, 2024, compared to the same period in 2023[156] - Biostorage services product revenue increased by $0.2 million, or 49%, for the three months ended September 30, 2024, compared to the same period in 2023[157] - Service revenue was $4.7 million for the three months ended September 30, 2024, representing an increase of $0.3 million, or 6%, compared to the same period in 2023[159] Cost and Expense Management - Total costs and operating expenses for the three months ended September 30, 2024, were $32.1 million, a decrease of $6.9 million, or 18%, compared to $39.0 million in the same period of 2023[161] - Cost of revenue increased by $2.7 million, or 23%, for the three months ended September 30, 2024, compared to the same period in 2023[162] - General and administrative expenses for the three months ended September 30, 2024, were $11.4 million, an increase of $0.5 million, or 5%, compared to $10.8 million in the same period of 2023[161] - G&A expenses for the three months ended September 30, 2024 increased by $0.5 million, or 5%, while decreasing by $3.6 million, or 10%, for the nine months ended September 30, 2024[166] - Sales and marketing expenses decreased by $1.3 million and $2.3 million, or 27% and 18%, respectively, for the three and nine months ended September 30, 2024 compared to the same periods in 2023[167] - R&D expenses decreased by $1.7 million and $3.9 million, or 45% and 37%, respectively, for the three and nine months ended September 30, 2024 compared to the same periods in 2023[168] Cash Flow and Liquidity - Net cash provided by operating activities was $6.8 million during the nine months ended September 30, 2024, compared to $14.8 million used in the same period in 2023, reflecting a significant improvement[180] - Net cash used by investing activities totaled $15.3 million during the nine months ended September 30, 2024, compared to $13.9 million provided in the same period in 2023, primarily due to payments related to the divestiture of Global Cooling[181] - Net cash used by financing activities was $2.7 million during the nine months ended September 30, 2024, compared to $0.8 million provided in the same period in 2023, indicating increased payments on the Company's Term Loan[182] - As of September 30, 2024, the company had $39.3 million in cash, cash equivalents, and available-for-sale securities, down from $50.2 million as of December 31, 2023[174] - The company recognized $6.1 million in cash expenditures related to the Global Cooling divestiture during the three months ended September 30, 2024[175] - The company expects to incur approximately $1.8 million in fees and $0.4 million in severance costs related to the SciSafe divestiture[176] - The company believes its current level of cash and liquid assets will be sufficient to meet liquidity needs for at least the next twelve months[178] Divestitures - The company divested Global Cooling, Inc. on April 17, 2024, presenting it as a discontinued operation in the financial statements[149] - The company entered into a Stock Purchase Agreement for the sale of SciSafe, which is presented as part of continuing operations as of September 30, 2024[150]

Revenue Performance - Cell Processing revenue for Q3 2024 was $19.0 million, a 6% sequential increase and a 43% increase compared to Q3 2023[1] - Total revenue for Q3 2024 was $30.6 million, representing a 30% increase from $23.6 million in Q3 2023 and an 8% sequential increase[6] - Product revenue for the three months ended September 30, 2024, was $23,457,000, representing a 37.5% increase from $17,137,000 in the same period of 2023[31] - Total revenue for the nine months ended September 30, 2024, was $85,678,000, compared to $81,992,000 for the same period in 2023, reflecting a growth of 4.3%[31] - Total revenues for the three months ended September 30, 2024, increased to $30,571,000, up 29.5% from $23,573,000 in the same period of 2023[37] Profitability Metrics - GAAP gross margin for Q3 2024 was 51%, up from 48% in Q3 2023, while non-GAAP adjusted gross margin was 54%, compared to 44% in the same period[10] - Adjusted EBITDA for Q3 2024 was $6.1 million, or 20% of revenue, compared to $1.4 million, or 6% of revenue, in Q3 2023[16] - The company reported a comprehensive loss of $(1,356,000) for the three months ended September 30, 2024, compared to $(29,293,000) for the same period in 2023[34] - The net loss from continuing operations for the three months ended September 30, 2024, was $1,703,000, significantly improved from a net loss of $15,804,000 in the same period of 2023[40] - The company reported a gross margin of 51% for the nine months ended September 30, 2024, compared to 42% for the same period in 2023[37] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, decreased to $32,130,000 from $39,048,000 in the same period of 2023, a reduction of 17.7%[31] - Operating expenses from continuing operations for the three months ended September 30, 2024, were $32,130,000, a decrease from $39,048,000 in the same period of 2023[38] - Adjusted operating expenses from continuing operations for the nine months ended September 30, 2024, were $51,423,000, down from $57,313,000 in the same period of 2023[38] Cash Flow and Financial Position - Cash provided by operating activities for the nine months ended September 30, 2024, was $6,786,000, a significant improvement from $(14,809,000) in the same period of 2023[36] - Cash and cash equivalents as of September 30, 2024, were $39,256,000, down from $50,184,000 as of December 31, 2023[35] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $(11,277,000) for the nine months ended September 30, 2024[36] Guidance and Future Outlook - The company has increased its Cell Processing revenue guidance for 2024 to $72.0 million to $73.0 million, reflecting a growth of 9% to 11% compared to 2023[18] - Total revenue guidance for 2024 is now set at $98.0 million to $100.0 million, adjusted due to the divestiture of SciSafe[17] - The company expects 6 additional product approvals or geographic expansions in the next 12 months[3] Business Developments - The sale of SciSafe biostorage business was completed for $73 million in cash, allowing the company to focus on high-growth cell processing products[4] - The company processed 16 new U.S. FDA Master File cross references for biopreservation media, bringing the cumulative total to 744[3] - Inventory reserve costs for the three months ended September 30, 2024, were $247,000, a recovery from a loss of $1,623,000 in the same period of 2023[39]

Core Insights - BioLife Solutions reported a sequential growth of 6% in Cell Processing revenue, reaching $19.0 million, and a 43% increase compared to the same period in 2023 [1] - The company achieved a GAAP gross margin of 51% and a non-GAAP adjusted gross margin of 54% for Q3 2024 [5] - BioLife Solutions announced a GAAP net loss from continuing operations of $1.7 million, with a non-GAAP adjusted EBITDA of $6.1 million, representing 20% of revenue [7][8] - The company has increased its Cell Processing revenue guidance for 2024 by $2 million, now projecting between $72.0 million and $73.0 million, while total revenue guidance for 2024 is set at $98.0 million to $100.0 million [1][8] Financial Performance - Total revenue for Q3 2024 was $30.6 million, a 30% increase from $23.6 million in Q3 2023, and an 8% increase sequentially from Q2 2024 [4] - For the nine months ended September 30, 2024, total revenue was $85.7 million, reflecting a 4% increase from the same period in 2023 [4] - Cell Processing platform revenue for Q3 2024 was $19.0 million, a 43% increase from Q3 2023, and a 6% increase sequentially [4] - Biostorage Services platform revenue was $7.5 million, a 14% increase from Q3 2023 [4] Gross Margin and Operating Loss - The GAAP gross margin for Q3 2024 was 51%, up from 48% in Q3 2023, while the adjusted gross margin was 54%, compared to 44% in the prior year [5] - The operating loss from continuing operations for Q3 2024 was $1.6 million, significantly improved from a loss of $15.5 million in Q3 2023 [6] Net Loss and Adjusted EBITDA - The net loss from continuing operations for Q3 2024 was $1.7 million, compared to a loss of $15.8 million in Q3 2023 [7] - Adjusted EBITDA for Q3 2024 was $6.1 million, or 20% of revenue, compared to $1.4 million, or 6% of revenue, in Q3 2023 [8] Cash and Marketable Securities - As of September 30, 2024, cash, cash equivalents, and marketable securities totaled $39.3 million [8] Business Highlights - BioLife processed 16 new U.S. FDA Master File cross references for biopreservation media, bringing the cumulative total to 744 [2] - The company completed the sale of SciSafe Holdings, Inc. for $73 million in cash, allowing for a more focused investment in high-growth cell processing products [2][1]

Core Viewpoint - BioLife Solutions, Inc. has sold its biostorage subsidiary SciSafe Holdings, Inc. for $73 million in cash, marking a strategic shift towards proprietary, higher-margin cell processing products and enhancing its balance sheet [1][2]. Group 1: Transaction Details - The sale of SciSafe generated approximately $10.4 million in revenue for the six months ended June 30, 2024 [1]. - BioLife acquired SciSafe in October 2020 for $39 million, and the current sale represents a solid return for shareholders [2]. - The transaction was facilitated by Stephens Inc. as the financial advisor and K&L Gates LLP as legal counsel [3]. Group 2: Management Changes - Following the divestiture, Todd Berard will take on the role of Chief Commercial Officer, overseeing all sales and marketing functions [2]. - Garrie Richardson, previously the Chief Revenue Officer at BioLife, will become the CEO of the now-independent SciSafe [3]. Group 3: Company Overview - BioLife Solutions specializes in developing and supplying cell processing tools and services for the cell and gene therapy market, focusing on maintaining the health and function of biologic materials [4].

Core Viewpoint - BioLife Solutions, Inc. is set to release its third quarter 2024 financial results on November 12, 2024, after market close, followed by a conference call and live webcast to discuss the results and provide a business update [1]. Company Overview - BioLife Solutions is a leading developer and supplier of bioproduction products and services specifically for cell and gene therapies (CGT) and the broader biopharma markets [2]. - The company's expertise aids in the commercialization of new therapies by providing solutions that ensure the health and function of biologic materials throughout their lifecycle, including collection, development, storage, and distribution [2]. Conference Call Details - The conference call will take place at 4:30 PM ET (1:30 PM PT) on the same day as the financial results release [1]. - Investors can access the conference call via a toll-free number or through the Investor Relations page on the BioLife Solutions website [2]. - A replay of the webcast will be available approximately two hours after the call and will be archived for 90 days [2].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting that price movements should be supported by strong fundamentals and positive earnings estimates [1][2]. Group 1: Stock Performance - BioLife Solutions, Inc. (BLFS) has shown a solid price increase of 18.4% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also maintained a price increase of 3.2% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, BLFS is trading at 87.7% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - BLFS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like BLFS that are on an uptrend supported by strong fundamentals [3]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [8].

Group 1 - BioLife Solutions, Inc. (BLFS) has shown strong year-to-date performance, returning 56.7%, significantly outperforming the Medical sector average return of 12.1% [4] - The Zacks Consensus Estimate for BLFS's full-year earnings has increased by 18.1% over the past 90 days, indicating improving analyst sentiment and a positive earnings outlook [4] - BioLife Solutions, Inc. holds a Zacks Rank of 2 (Buy), suggesting it has characteristics favorable for outperforming the market in the near term [3] Group 2 - BioLife Solutions, Inc. is part of the Medical - Products industry, which consists of 88 stocks and currently ranks 65 in the Zacks Industry Rank, with an average gain of 15.9% this year [6] - In comparison, Sensus Healthcare, Inc. (SRTS), another stock in the Medical sector, has achieved a year-to-date return of 159.3% and has a Zacks Rank of 2 (Buy) [5] - The Medical - Instruments industry, which includes Sensus Healthcare, has returned +10.2% since the beginning of the year and consists of 85 stocks, currently ranked 63 [7]

Financial Data and Key Metrics Changes - The company reported Q2 revenue from continuing operations of $28.3 million, a decrease of 3% year-over-year, primarily due to a 4% decrease in the cell processing platform [15] - Total revenue increased sequentially from Q1 2024 by $1.5 million or 6%, driven by an 11% sequential increase in cell processing revenue [15][17] - Adjusted gross margin for Q2 was 52%, up from 45% in the prior year, attributed to product mix and operational efficiencies [15][17] - Adjusted EBITDA for Q2 was $4.8 million or 17% of revenue, compared to $1.7 million or 6% of revenue in the prior year [17] Business Line Data and Key Metrics Changes - Cell processing revenue increased 11% sequentially to $18 million in Q2 from $16.1 million in Q1 [10] - The biopreservation media revenue is a fundamental driver of growth, with the company holding over 70% market share in commercially sponsored clinical trials in the U.S. [8] - Distributor sales represented approximately 35% of biopreservation media revenue, indicating a recovery in the earlier-stage research market segment [11] Market Data and Key Metrics Changes - The company noted easing industry-wide headwinds that began late last year, contributing to improved revenue performance [5] - The CGT regulatory environment showed forward momentum with new indications and treatments approved, enhancing the market outlook [8] Company Strategy and Development Direction - The company is focusing on streamlining its business and divesting from lower-margin freezer products to enhance profitability [7] - A two-pronged growth strategy for the cell processing platform includes maintaining market share and leveraging relationships for cross-selling [12][13] - The company aims to capitalize on the growing CGT industry by providing premium biopreservation tools and services [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro environment for bioproduction, anticipating continued revenue growth in the second half of 2024 [4][5] - The company expects to achieve a total revenue of $99 million to $101 million for the full year, reflecting a growth of 5% to 8% [18] - Management highlighted the importance of the divestiture of lower-margin products to improve overall margins and operational efficiency [16][18] Other Important Information - The company divested its GCI or Stirling Freezer unit, positively impacting Q2 financial results [7] - Cash and marketable securities balance was $36.9 million at June 30, 2024, down from $46.1 million at the end of Q1 2024 [17] Q&A Session Summary Question: Any one-time benefits in cell processing in the quarter? - Management indicated that while there was a strong quarter in HPL, they do not expect it to repeat in the second half of the year [20] Question: Insights on product portfolio review? - Management stated that they have been focusing on streamlining the cell processing platform and will provide updates in future calls [21] Question: Commentary on funding environment and its impact? - Management noted that direct customers with commercial therapies are well-funded, while distribution revenue has seen solid growth [24] Question: Comfort with 20% plus exit rate for EBITDA margins? - Management remains committed to this target, citing media growth and the divestiture of CBS as key factors [28][29] Question: Validation process for CryoCase? - Early interest has been noted, but adoption timelines are uncertain as clients go through their validation protocols [31] Question: Impact of CBS divestiture on EBITDA margins? - Management indicated that the divestiture would allow for the removal of low-margin operational expenses [41]