Financial Performance & Outlook - Cytek's 2024 revenue reached $200.5 million, a 4% year-over-year increase[14] - Adjusted EBITDA for 2024 was $22.4 million, representing a 77% year-over-year growth[14] - The company anticipates revenue between $204 million and $212 million for 2025[11] - Cytek has authorized a $50 million share repurchase program[11] Market Position & Growth - Cytek has placed 3,034 units of its instruments[8] - The company has a broad customer base of approximately 2,000 customers across 70+ countries[8] - The initial total addressable market (TAM) for cell analysis in 2025 is estimated at $7.5 billion[20] - The adjacent TAM is estimated at $8.5 billion[20] Product & Technology - Cytek's FSP (Full Spectrum Profiling) technology underpins its core instruments[28] - Amnis ImageStream revenue experienced 14% growth in 2024[32] - The company's cloud-based operating system has over 16,000 users, with a user base growth of over 160% in 2024[42]

Summary of Cytek Biosciences (CTKB) FY Conference Call - June 11, 2025 Company Overview - **Company**: Cytek Biosciences (CTKB) - **Industry**: Biotechnology, specifically in flow cytometry and related services Key Points and Arguments Business Segmentation and Performance - The business is divided into two main segments: service and instrument sales, with service showing consistent growth linked to the installed base of instruments [3][4][22] - The reagent business has shown steady growth, with improvements in execution and delivery times contributing to confidence in future performance [4][22] - The Asia Pacific and rest of the world markets are experiencing good growth, contrasting with pressures on academic funding in the U.S. and Europe [5][6][32] Market Conditions and Guidance - Guidance for the year is bracketed between a decline of 2% and growth of 5%, reflecting uncertainty in academic funding and purchasing decisions [6][7] - The flow cytometry market overall saw a decline of 2% in Q1, with Cytek outperforming this due to a growing installed base and product innovation [10][12][13] - The company expects to continue outpacing the market due to its focus on full spectrum profiling and strong product offerings [14] Service Business Growth - The service business is projected to grow faster than instrument sales, potentially becoming a larger portion of overall revenue [22][23] - Recurring revenue, including services and reagents, currently accounts for about 31% of total revenue, with aspirations to increase this to the 40% range in the future [22][30] Regional Insights - Cytek has established a strong presence in China, benefiting from government stimulus programs and becoming a recognized brand in the market [32][33] - The company ranks as the third supplier in China, indicating significant growth potential in this region [32] Cost Structure and Profitability - Approximately 75% to 80% of incremental revenue contributes to EBITDA, with gross margins expected to improve from 55% towards 60% [38][40] - The company has a fixed versus variable cost structure that allows for significant margin expansion as revenue grows [39][42] Technological Advancements - The Cytek Cloud platform has gained traction with 18,000 users, enhancing customer engagement and providing a competitive edge through data management and analysis capabilities [43][44][48] - The platform allows for efficient panel design and reagent purchasing, which is expected to drive service revenue growth [44][48] Investor Insights - The company emphasizes its positive EBITDA and cash flow generation, distinguishing itself from other small-cap tools companies [50] - Recent product innovations, such as the new AURORA analyzer, have received positive feedback, suggesting strong future sales potential [50][51] Additional Important Content - The company is managing tariff impacts through regional manufacturing strategies, with minimal expected effects on gross margins [34][36] - The service contracts are crucial for maintaining high instrument utilization, which is essential for core labs operating as businesses [23][26]

Core Insights - Cytek Biosciences, Inc. has launched the Cytek Aurora™ Evo system, a new full spectrum flow cytometer that enhances the capabilities of its predecessor, the Cytek Aurora system [1][3][5] Product Features and Innovations - The Cytek Aurora Evo system builds on the success of the original Aurora system, maintaining its reliability while introducing high-throughput and automation capabilities to meet modern research demands [3][4] - The system utilizes Cytek's Full Spectrum Profiling™ (FSP) technology, allowing for large multicolor experiments without compromising data quality and providing assay flexibility [3][4] - Key features include improved sample throughput, automated instrument maintenance, and data harmonization, which empower researchers to accelerate discoveries [3][11] - The system can acquire samples at rates up to 200 µL/min, effectively doubling the speed of sample acquisition compared to previous models [11] Market Position and Impact - Cytek's innovative approach in spectral flow cytometry has positioned the company as a leader in the field, with over 2,600 peer-reviewed publications citing its FSP technology [2][4] - The new Aurora Evo system is expected to meet the increasing demand for high-performance and flexible cell analysis tools, further driving the adoption of spectral flow cytometry [4][5]

Core Viewpoint - Cytek Biosciences, Inc. will participate in the Goldman Sachs 46th Annual Global Healthcare Conference, indicating its active engagement in the healthcare investment community [1]. Company Overview - Cytek Biosciences is a leading cell analysis solutions company that specializes in high-resolution, high-content, and high-sensitivity cell analysis through its patented Full Spectrum Profiling™ (FSP) technology [3]. - The company offers a comprehensive suite of products including the Cytek Aurora™, Northern Lights™, and Cytek Orion™ systems, as well as flow cytometers and imaging products under the Amnis and Guava brands [3]. - Cytek is headquartered in Fremont, California, with a global presence through offices and distribution channels [3]. Upcoming Events - Cytek management is scheduled for a fireside chat on June 11 at 11:40 a.m. Pacific Time, which will be accessible via a live and archived webcast on the company's website [2].

Financial Performance - Cytek Biosciences reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, and compared to a loss of $0.05 per share a year ago, indicating a significant earnings surprise of -125% [1] - The company posted revenues of $41.46 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.07%, and down from $44.86 million in the same quarter last year [2] - Over the last four quarters, Cytek has surpassed consensus EPS estimates two times and topped revenue estimates just once [2] Stock Performance - Cytek Biosciences shares have declined approximately 42.5% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $48.5 million, and for the current fiscal year, it is -$0.07 on revenues of $205.91 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Cytek belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Cytek's stock performance [5]

Financial Data and Key Metrics Changes - First quarter revenue for 2025 was $41.5 million, a decrease of 7.6% compared to the first quarter of 2024, primarily due to weakness in instrument sales in the U.S. and EMEA regions [9][26] - Service revenue increased by 24% year-over-year, reaching $13.3 million, driven by the expansion of the instrument installed base and active usage [9][27] - GAAP gross profit was $20.2 million, a decrease of 12% from $23 million in the prior year, with a GAAP gross margin of 49% compared to 51% a year ago [28][29] - Adjusted EBITDA loss was $3.3 million for the first quarter, compared to a loss of $0.7 million in Q1 of the previous year [31] Business Line Data and Key Metrics Changes - Product revenue, which includes instruments and reagents, decreased by 18% compared to Q1 of 2024, primarily due to a weaker instrument market in the U.S. and EMEA [26] - Aurora cell sorter revenue grew by 15% year-over-year, while Northern Lights revenue increased by 6% year-over-year in the first quarter [18] - Trailing twelve-month recurring revenue grew 17% year-over-year, representing 31% of total revenue in the first quarter, up from 26% a year ago [21][58] Market Data and Key Metrics Changes - Total revenue in the Asia Pacific and the rest of the world regions was $11.4 million, up 35.6% year-over-year, driven by strong demand in China [12][27] - U.S. and EMEA revenue declined by 13% and 24% respectively, due to lower instrument sales influenced by academic funding uncertainties and government budget pressures [27] Company Strategy and Development Direction - The company aims to solidify its position as a market leader in cell analysis solutions by expanding its product pipeline and investing in service teams [34] - The strategy includes region-for-region manufacturing to mitigate tariff impacts and enhance supply chain resilience [39][40] - The company is focused on growing its reagent business and expanding its installed base to drive recurring revenue growth [21][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite macroeconomic challenges, noting that over 50% of revenue comes from outside the U.S. [13][47] - The revised full-year 2025 revenue outlook is projected to be between $196 million and $210 million, reflecting a growth range of -2% to +5% compared to 2024 [32] - Management anticipates that uncertainties in funding will impact instrument sales, but service and reagent revenues are expected to continue growing [48][57] Other Important Information - The company has established manufacturing operations in the U.S., China, and Singapore to optimize product flows and enhance supply chain resilience [14] - The installed base of instruments increased by 115 units in the first quarter, bringing the total to 3,149 units [15] Q&A Session Summary Question: Impact of tariffs on gross margin - Management indicated that tariffs would have a limited impact on gross margin, estimated between 1% to 3%, and that gross margins are expected to improve as revenues increase in the following quarters [37][42] Question: Academic government end market outlook - Management acknowledged the uncertainties in university funding and indicated that these factors were included in the revised guidance, noting that over 50% of revenue is generated outside the U.S. [45][47] Question: Growth drivers for AURORA sales - Management highlighted that the growth in AURORA sales is driven by the alignment of their sorter and analyzer technologies, which are well-received by both academic and industry users [51][52] Question: R&D spending focus - Management confirmed that R&D spending remains between 15% to 20% of revenue, with a focus on imaging technologies for new product innovation [61][62] Question: Share repurchase versus M&A - Management stated that they plan to continue both share repurchases and have capital available for M&A, indicating a balanced approach to capital allocation [65]

Financial Data and Key Metrics Changes - First quarter revenue for 2025 was $41.5 million, a decrease of 7.6% compared to the first quarter of 2024, primarily due to weakness in instrument sales in the U.S. and EMEA regions [8][25] - Service revenue increased by 24% year-over-year, reaching $13.3 million, driven by the expansion of the instrument installed base [8][26] - GAAP gross profit was $20.2 million, a decrease of 12% from $23 million in the prior year, with a GAAP gross margin of 49% compared to 51% a year ago [27][28] Business Line Data and Key Metrics Changes - Product revenue, which includes instruments and reagents, decreased by 18% compared to Q1 of 2024, mainly due to a weaker instrument market in the U.S. and EMEA [25][26] - Aurora cell sorter revenue grew by 15% year-over-year, while Northern Lights revenue increased by 6% year-over-year in the first quarter [18][19] - Trailing twelve-month recurring revenue grew 17% year-over-year, representing 31% of total revenue in the first quarter, up from 26% a year ago [21][56] Market Data and Key Metrics Changes - Total revenue in the Asia Pacific and the rest of the world was $11.4 million, up 35.6% year-over-year, driven by strong demand in China [11][26] - U.S. and EMEA revenue declined by 13% and 24% respectively, due to lower instrument sales influenced by academic funding uncertainties and government budget pressures [26][27] - The company continues to experience growth in the clinical market, particularly in the EU and APAC regions [22][23] Company Strategy and Development Direction - The company is focused on expanding its market leadership in the cell analysis market and has established manufacturing operations in the U.S., China, and Singapore to optimize product flows [13][14] - Strategic investments are being made to advance the product pipeline, including the launch of the SiPET MUSE microsystem to drive adoption in emerging markets [15][18] - The company aims to leverage its established and expanding installed base to drive long-term growth in recurring services and reagent sales [21][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and uncertainties affecting capital equipment spending in the U.S. and EMEA [12][31] - The full-year 2025 revenue outlook has been revised to a range of $196 million to $210 million, reflecting a growth of -2% to +5% over the full year 2024 [31][32] - Management remains confident in the company's positioning and believes it will perform well relative to the overall flow cytometry market [31][32] Other Important Information - The company has a strong balance sheet, allowing for continued investments in growth and share repurchases [30][34] - The company plans to host six user group meetings in 2025 to engage with the scientific community and showcase its products [5][6] Q&A Session Summary Question: Impact of tariffs on gross margin - Management indicated that tariffs are manageable and expect a limited gross margin impact of 1% to 3%, with improvements anticipated as revenues increase [36][41] Question: Academic government end market outlook - Management acknowledged uncertainties in university funding and indicated that more than 50% of revenue comes from outside the U.S., which mitigates the impact of U.S. funding issues [44][46] Question: Growth drivers for AURORA sales orders - Growth in AURORA sales is attributed to the alignment of the SiTeX sorter with existing analyzers and strong performance across all territories [50][51] Question: R&D spending focus - The company continues to allocate 15% to 20% of revenue to R&D, with a focus on imaging and spectral innovations [59][60] Question: Share repurchase versus M&A - Management plans to balance share repurchases with capital available for M&A, indicating a healthy balance sheet [63]

Financial Performance - Total revenue for Q1 2025 was $41.5 million, an 8% decrease from $44.9 million in Q1 2024[165]. - The net loss for Q1 2025 was $11.4 million, compared to a net loss of $6.2 million in Q1 2024, primarily due to decreased revenues and increased operating expenses[169]. - Total revenue decreased by $3.4 million to $41.5 million, or 8%, for the three months ended March 31, 2025, compared to the same period in 2024[204]. - Product revenue decreased by $6.0 million to $28.1 million, or 18%, primarily due to lower revenue in EMEA and the United States, partially offset by growth in the APAC market, particularly in China[205]. - Service revenue increased by $2.6 million to $13.3 million, or 24%, driven by growth in the installed base and related service contracts[206]. - Gross profit margin declined to 49% for the three months ended March 31, 2025, down from 51% in the same period in 2024[208]. Expenses - Research and development expenses were $9.7 million in Q1 2025, slightly down from $9.8 million in Q1 2024[167]. - General and administrative expenses increased by $1.5 million to $12.9 million, or 13%, primarily due to higher outside service expenses and increased headcount[214]. - Interest expense decreased by 34% to $0.3 million for the three months ended March 31, 2025, compared to $0.4 million in 2024[216]. - Interest income decreased by 63% to $0.5 million for the three months ended March 31, 2025, due to lower average balances of cash and cash equivalents[217]. - The company plans to continue investing in research and development, which may lead to increased expenses in future periods[194]. Cash Flow and Investments - As of March 31, 2025, the company had approximately $265.6 million in cash and cash equivalents and short-term investments, down from $277.9 million as of December 31, 2024[221]. - Net cash used in operating activities for the three months ended March 31, 2025 was $0.1 million, including a net loss of $11.4 million[229]. - Net cash provided by investing activities was $9.5 million for the three months ended March 31, 2025, driven by proceeds from maturities of marketable securities[231]. - Net cash used in financing activities was $11.5 million for the three months ended March 31, 2025, primarily due to share repurchases and loan repayments[233]. Market and Strategic Developments - The company completed the acquisition of Luminex's flow cytometry and imaging business on February 28, 2023, enhancing its product offerings and market reach[164]. - The Northern Lights-CLC system received CE Marking in September 2020 and was registered in the EU in November 2023, allowing for clinical use in multiple regions[177]. - The installed base of instruments is expected to drive recurring revenue growth, which is anticipated to become a significant contributor to total revenue[172]. - The company plans to continue investing in commercial infrastructure and expanding its workforce to support growth in instrument sales and reagent offerings[168]. - The revenue mix is expected to shift towards increased service revenue as the installed base expands, improving gross margins over time[174]. Risks and Challenges - Recent inflation trends and geopolitical factors may adversely affect operating costs and revenue, particularly in the context of a challenging fundraising environment for customers[180][181]. - The company has not entered into any hedging arrangements to minimize foreign currency exchange rate fluctuations, which may impact future results as international operations expand[243]. - The company does not anticipate material risk from changes in interest rates due to the short-term nature of its cash and cash equivalents[241].

Financial Performance - Total revenue for Q1 2025 was $41.5 million, a 7.6% decrease compared to Q1 2024[5] - Gross profit was $20.2 million for Q1 2025, a 12% decrease from Q1 2024, with a GAAP gross profit margin of 49%[6] - Net loss for Q1 2025 was $11.4 million, compared to a net loss of $6.2 million in Q1 2024[11] - Adjusted EBITDA loss was $3.3 million in Q1 2025, compared to a loss of $0.7 million in Q1 2024[12] - Non-GAAP adjusted EBITDA for Q1 2025 was $(3,251,000), compared to $(679,000) in Q1 2024, indicating a decline of approximately 378.4%[28] - GAAP net income for Q1 2025 was $(11,402,000), compared to $(6,169,000) in Q1 2024, indicating a worsening of approximately 84.5%[28] Operating Expenses and Assets - Operating expenses increased by 4.1% to $35.1 million in Q1 2025 compared to $33.7 million in Q1 2024[7] - Total current assets decreased from $396,446,000 as of December 31, 2024, to $380,501,000 as of March 31, 2025, a reduction of about 4.0%[26] - Total assets decreased from $499,500,000 as of December 31, 2024, to $482,596,000 as of March 31, 2025, representing a decline of approximately 3.6%[26] - Stockholders' equity decreased from $395,737,000 as of December 31, 2024, to $379,623,000 as of March 31, 2025, a decline of approximately 4.1%[26] - Total liabilities slightly decreased from $103,763,000 as of December 31, 2024, to $102,973,000 as of March 31, 2025, a decrease of approximately 0.8%[26] Product and Market Developments - The installed base expanded to 3,149 Cytek instruments, adding 115 units in Q1 2025[10] - Cytek launched the Cytek Muse® Micro instrument, enhancing ease-of-use and precision in flow cytometry[10] - Cytek commenced operations in Singapore to enhance manufacturing capacity and global supply flexibility[10] Revenue Guidance - The 2025 revenue guidance was revised to a range of $196 million to $210 million, indicating a potential growth of -2% to 5% over 2024[14] Profit Margins - GAAP gross profit for Q1 2025 was $20,157,000, down from $23,013,000 in Q1 2024, reflecting a decrease of about 12.1%[28] - Non-GAAP adjusted gross profit decreased from $24,461,000 in Q1 2024 to $21,736,000 in Q1 2025, a decline of approximately 11.1%[28] - GAAP gross margin decreased from 51% in Q1 2024 to 49% in Q1 2025[28] Inventory Changes - The company reported an increase in inventories from $43,893,000 as of December 31, 2024, to $45,347,000 as of March 31, 2025, an increase of about 3.3%[26]

Core Insights - Cytek Biosciences reported a total revenue of $41.5 million for Q1 2025, reflecting a 7.6% decrease compared to Q1 2024, primarily due to a slowdown in product sales in the US and EMEA regions, although this was partially offset by growth in the APAC region and strong service revenue globally [4][8] - The company experienced a gross profit of $20.2 million in Q1 2025, which is a 12% decrease from the previous year, resulting in a GAAP gross profit margin of 49% compared to 51% in Q1 2024 [5][20] - Operating expenses increased by 4.1% to $35.1 million, with general and administrative expenses rising significantly from $11.4 million in Q1 2024 to $12.9 million in Q1 2025 [6][7] - The net loss for Q1 2025 was $11.4 million, compared to a net loss of $6.2 million in Q1 2024, indicating a worsening financial position [7][20] - Cytek's cash and marketable securities totaled $265.6 million as of March 31, 2025, down from $277.9 million at the end of 2024, despite share repurchases of $10.6 million during the quarter [9][20] - The company has revised its full-year 2025 revenue guidance to a range of $196 million to $210 million, which represents a potential decline of 2% to growth of 5% compared to 2024 [10] Financial Performance - Total revenue for Q1 2025 was $41.5 million, with product revenue at $28.1 million and service revenue at $13.3 million [20] - Gross profit for the quarter was $20.2 million, leading to a GAAP gross margin of 49% [5][20] - Operating expenses were $35.1 million, with research and development expenses at $9.7 million and sales and marketing expenses remaining flat at $12.5 million [6][20] - The adjusted EBITDA loss for Q1 2025 was $3.3 million, compared to a loss of $0.7 million in Q1 2024 [8][20] Strategic Developments - Cytek expanded its installed base to 3,149 instruments, adding 115 units in Q1 2025, and commenced operations in Singapore to enhance manufacturing capacity [8] - The company launched the Cytek Muse Micro instrument, aimed at providing an affordable option for simplified flow cytometry [8] - Cytek repurchased $10.6 million of its common stock during the first quarter, indicating a commitment to returning value to shareholders [8]