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]

I rate Cytek Biosciences (NASDAQ: CTKB ) with a Buy rating. I think the net losses that the company has reported since mid-2022 do not correspond with the 79.82% plunge in its stock price. Cytek hasDaniel Mellado is an economist from Carabobo University with a Master's Degree in Statistics from Simon Bolivar University, both obtained in Venezuela.Daniel worked analyzing the agricultural commodity market and the financial investment portfolio for an agribusiness group. Then, he managed two teams, one in trad ...

Core Insights - Cytek Biosciences is committed to advancing cell analysis through its patented Full Spectrum Profiling™ (FSP) technology, which will be showcased at key industry events such as CYTO 2025 and IMMUNOLOGY2025 [1][2][5] Company Overview - Cytek Biosciences, Inc. (Nasdaq: CTKB) is a leading company in cell analysis solutions, focusing on high-resolution, high-content, and high-sensitivity tools [6][7] - The company’s FSP technology enhances multiplexing capabilities with precision and sensitivity, positioning it as a pioneer in spectral flow cytometry [6][2] Industry Events - At IMMUNOLOGY2025, Cytek will present its complete cell analysis solutions, including instruments, reagents, and software, aimed at advancing research and discovery [3][4] - The company will also host a workshop on in-depth characterization of mouse immune responses during the event [4] - CYTO 2025 will feature Cytek as a Platinum sponsor, where it will showcase technology designed to accelerate scientific discovery [4][5] Strategic Goals - Cytek aims to make flow cytometry technology more accessible and scalable, unlocking new opportunities in high-growth areas such as immunology, oncology, and cell therapy [2][5] - The company emphasizes its commitment to delivering innovative and flexible solutions to empower researchers and accelerate breakthroughs in scientific advancement [5]

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