Cryoport (CYRX) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 Good afternoon, and welcome to Cryoport First Quarter twenty twenty five Earnings Call. All participants will start in a listen only mode. After the speakers' presentation, there will be a question and answer session and instructions will be provided at that time. As a reminder, this call is being recorded. I will now turn the call over to your host, Todd Frommer from KCSA Strategic Communications. Please go ahead, sir. Speaker1 Thank y ...

[CEO Commentary and Business Highlights](index=1&type=section&id=CEO%20Commentary%20and%20Business%20Highlights) Cryoport started 2025 strongly with 10% revenue growth and improved adjusted EBITDA, driven by stabilizing demand and strategic partnerships - Revenue from continuing operations reached **$41.0 million**, growing **10% year-over-year**[3](index=3&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) - Commercial Cell & Gene Therapy revenue increased **33%** to **$7.2 million**[3](index=3&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) - The company supported **711 global clinical trials**, a net increase of **36 trials**[3](index=3&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) Key Financial and Operational Metrics | Metric | Q1 2025 Value | YoY Growth | | :--- | :--- | :--- | | Revenue from Continuing Operations | $41.0 million | 10% | | Commercial Cell & Gene Therapy Revenue | $7.2 million | 33% | | Global Clinical Trials Supported | 711 | +36 trials | - The company is seeing signs of demand stabilization in its Life Sciences Products business and new momentum in its Life Sciences Services business, which accounted for **56% of total revenue**[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - A strategic partnership with DHL Group was announced, which includes the anticipated acquisition of CRYOPDP by DHL, expected to enhance operational reach in APAC and EMEA and allow Cryoport to focus on the regenerative medicine space[6](index=6&type=chunk)[12](index=12&type=chunk) - The company is advancing key initiatives like the IntegriCell™ Cryopreservation Solution and completing its Global Supply Chain Centers to diversify revenue streams[8](index=8&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Q1 2025 saw solid top-line growth, significant margin improvement, and a strengthened financial position, driven by Life Sciences Services [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Q1 2025 total revenue from continuing operations grew 10.1% to $41.0 million, primarily led by Life Sciences Services Revenue from Continuing Operations | Revenue from Continuing Operations (in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Life Sciences Services | $22,865 | $19,485 | 17% | | - BioLogistics Solutions | $18,531 | $15,957 | 16% | | - BioStorage/BioServices | $4,334 | $3,528 | 23% | | Life Sciences Products | $18,175 | $17,806 | 2% | | **Total Revenue** | **$41,040** | **$37,291** | **10%** | - Revenue from the support of commercial Cell & Gene therapies increased by **33% year-over-year** to **$7.2 million**[4](index=4&type=chunk)[7](index=7&type=chunk)[10](index=10&type=chunk) [Profitability and Margins](index=4&type=section&id=Profitability%20and%20Margins) Q1 2025 profitability improved significantly, with gross margin expanding to 45.4% and net loss narrowing due to decreased operating expenses Gross Margin from Continuing Operations | Gross Margin from Continuing Operations | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Life Sciences Services | 47.9% | 43.5% | | Life Sciences Products | 42.3% | 37.0% | | **Total Gross Margin** | **45.4%** | **40.4%** | Key Profitability Metrics | Profitability Metric (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss from Operations | $(9.5) | $(17.5) | | Net Loss | $(12.0) | $(18.9) | | Adjusted EBITDA | $(2.8) | $(6.7) | - Operating costs and expenses from continuing operations decreased by **13.7% year-over-year** to **$28.1 million**[14](index=14&type=chunk) [Financial Position](index=4&type=section&id=Financial%20Position) Cryoport maintained a strong financial position as of March 31, 2025, with $244.0 million in cash and $73.9 million available for share repurchases - The company held **$244.0 million** in cash, cash equivalents, and short-term investments as of March 31, 2025[16](index=16&type=chunk) Balance Sheet Highlights | Balance Sheet Highlights (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $411,276 | $341,572 | | Total assets | $699,844 | $703,493 | | Total current liabilities | $74,030 | $64,563 | | Total liabilities | $301,033 | $301,595 | | Total stockholders' equity | $398,811 | $401,898 | - As of March 31, 2025, **$73.9 million** remains available for repurchase under the company's two share repurchase programs[17](index=17&type=chunk) [Business and Operational Review](index=2&type=section&id=Business%20and%20Operational%20Review) Cryoport showed strong operational momentum, supporting 711 clinical trials and 19 commercial therapies, with Life Sciences Services driving growth [Clinical Trial Progress](index=3&type=section&id=Clinical%20Trial%20Progress) Cryoport's clinical trial support remains robust, with 711 global trials, including 79 in Phase 3, and anticipates significant regulatory milestones in 2025 Clinical Trials by Phase | Clinical Trials by Phase | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Phase 1 | 304 | 286 | | Phase 2 | 328 | 312 | | Phase 3 | 79 | 77 | | **Total** | **711** | **675** | - The majority of trials are in the **Americas (544)**, followed by **EMEA (118)** and **APAC (49)**[11](index=11&type=chunk) - For the remainder of 2025, the company anticipates up to **17 additional application filings**, **4 new therapy approvals**, and **4 approvals for label/geographic expansions** for its clients[11](index=11&type=chunk) [Strategic Initiatives and Outlook](index=1&type=section&id=Strategic%20Initiatives%20and%20Outlook) Cryoport is executing strategic initiatives, including the DHL partnership and CRYOPDP divestiture, to focus on regenerative medicine and achieve positive adjusted EBITDA in 2025 [DHL Partnership and CRYOPDP Divestiture](index=1&type=section&id=DHL%20Partnership%20and%20CRYOPDP%20Divestiture) The DHL partnership and CRYOPDP divestiture will enhance global reach, provide capital, and sharpen Cryoport's focus on regenerative medicine - The partnership with DHL is expected to enhance the company's operational reach, especially in the **EMEA** and **APAC** regions, and reshape its competitive profile[6](index=6&type=chunk)[12](index=12&type=chunk) - The divestiture will provide a strong infusion of capital and allows the company to sharpen its organizational focus on the rapidly growing regenerative medicine space[6](index=6&type=chunk) - The transaction is subject to customary closing conditions and is expected to close in the **second or third quarter of 2025**[6](index=6&type=chunk)[12](index=12&type=chunk) [Fiscal 2025 Guidance](index=6&type=section&id=Fiscal%202025%20Guidance) Cryoport reiterates full-year 2025 guidance, projecting $165.0M-$172.0M organic revenue and a return to positive adjusted EBITDA during the year Fiscal Year 2025 Guidance | Fiscal Year 2025 Guidance | Range | YoY Growth | | :--- | :--- | :--- | | Total Organic Revenue | $165.0M - $172.0M | 5% - 10% | - The company remains confident that its current momentum and strategic actions will lead to a return to **positive adjusted EBITDA during 2025**[8](index=8&type=chunk) [Appendix](index=6&type=section&id=Appendix) This appendix provides supplementary information, including conference call details and non-GAAP financial measure reconciliations [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The company provides GAAP to non-GAAP reconciliations, showing Q1 2025 adjusted EBITDA loss of $2.8 million from a GAAP loss of $9.0 million Reconciliation to Adjusted EBITDA | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP loss from continuing operations** | **$(9,028)** | **$(15,035)** | | Depreciation and amortization expense | $6,134 | $5,747 | | Stock-based compensation expense | $3,064 | $4,666 | | Change in fair value of contingent consideration | $(5,178) | $293 | | Divestiture costs | $2,290 | $— | | Other adjustments (net) | $(181) | $(1,928) | | **Adjusted EBITDA from continuing operations** | **$(2,819)** | **$(6,657)** | - Adjusted EBITDA is used by management to assess operating results and for incentive compensation programs, excluding items like interest, taxes, depreciation, amortization, stock-based compensation, and other non-recurring or non-cash items[34](index=34&type=chunk)[35](index=35&type=chunk) [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Cryoport held a conference call on May 7, 2025, at 5:00 p.m. ET for investors to discuss Q1 2025 results - A conference call for investors was held on Wednesday, **May 7, 2025, at 5:00 p.m. ET**[23](index=23&type=chunk)[24](index=24&type=chunk) - A live webcast and a replay of the call are available in the 'Investor Relations' section of the company's website[24](index=24&type=chunk)

Commercial Cell & Gene therapy revenue of $7.2 million, up 33% year over year Q1 2025 revenue from continuing operations of $41.0 million, up 10% year over year Supporting 711 global clinical trials as of March 31, 2025 Strategic partnership with DHL; CRYOPDP divestiture expected to close Q2/Q3 2025NASHVILLE, Tenn., May 7, 2025 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global provider of temperature-controlled supply chain solutions for the life sciences sector, today announced financial ...

Cryoport, Inc. (NASDAQ:CYRX) Strategic Agreement and Transaction with DHL Group Call March 31, 2025 8:30 AM ET Company Participants Todd Fromer - Investor Relations, KCSA Strategic Communications Jerrell Shelton - Chief Executive Officer Tom Heinzen - Vice President, Corporate Development & Investor Relations Robert Stefanovich - Chief Financial Officer Mark Sawicki - Chief Scientific Officer Conference Call Participants Todd Fromer Thank you, operator. Before we begin today, I would like to remind everyone ...

Cryoport's Strategic Agreement and Transaction with DHL Group March 2025 © 2025 CRYOPORT, INC. 1 Forward Looking Statements Statements in this presentation which are not purely historical, including statements regarding Cryoport'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, ...

BONN, Germany and NASHVILLE, Tenn., March 31, 2025 /PRNewswire/ -- DHL Group ("DHL"), the world's leading logistics provider, and Cryoport, Inc. (NASDAQ: CYRX) ("Cryoport"), a global provider of supply chain solutions for the life sciences sector, are pleased to announce that DHL has acquired 100% of CRYOPDP, a leading specialty courier focused on clinical trials, biopharma, and cell and gene therapies. In this context, the companies also announced a strategic partnership to strengthen their supply chain se ...

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.cryoportinc.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 April 7, 2025. To access the re ...

NASHVILLE, Tenn., March 12, 2025 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) ("Cryoport" or "the Company"), a global leader in supply chain solutions for the life sciences, today announced the launch of MVE Biological Solutions' ("MVE") High-Efficiency 800 C, the latest addition to its next-generation High-Efficiency ("HE") Series of cryogenic freezers. The HE 800 C combines ergonomic features and consistent performance in a compact size to meet the evolving needs of fertility clinics, biorepositories and ...

Clinical Trials and Therapies - As of December 31, 2024, the company supported 701 clinical trials and 19 commercial cell and gene therapies[20]. - The company focuses on the Cell and Gene Therapy market, utilizing specialized temperature-controlled supply chain solutions to meet customer needs[47]. Product and Service Innovations - The newly introduced Cryopreservation services (IntegriCell®) enhance the quality of cellular therapy starting materials[20]. - The Cryoportal® Logistics Management Platform provides real-time monitoring and tracking, ensuring quality and regulatory compliance[20]. - The Cryoportal® 2.0 logistics management platform was launched in Q2 2023, compliant with ISO 21973, enhancing supply chain management capabilities[51]. - The Cryoport ELITE™ -80°C Gene Therapy Shipper was launched in Q2 2023, designed for clinical and commercial gene therapy distribution[23]. - The MVE Fusion® Cryogenic System operates without ongoing liquid nitrogen supply, ideal for remote locations[38]. - The Vario® Cryogenic System supports temperatures from -20°C to -150°C, offering significant energy savings[38]. Acquisitions and Business Development - The company acquired Tec4Med in Q4 2023, enhancing cold-chain packaging temperature and location monitoring capabilities[26]. - The company aims to leverage Tec4Med technology across its products and services in the coming years[27]. - CRYOGENE, acquired in 2019, focuses on pre-clinical temperature-controlled biological materials management and operates FDA registered facilities[30]. - The company launched its first two Global Supply Chain Centers in June 2022, integrating logistics and BioServices[30]. Financial Performance - Cryoport's total revenue decreased from $237.3 million in 2022 to $233.3 million in 2023, a decline of about 1.7%[85]. - The company incurred a net loss of $114.8 million and $99.6 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $757.2 million as of December 31, 2024[176]. - The company has approximately $301.6 million of indebtedness and other liabilities as of December 31, 2024, which may limit cash flow available for operations[177]. - Adjusted EBITDA is the profit measure used by the Company for evaluating business performance, defined as earnings before interest, taxes, depreciation, amortization, and certain non-operational items[40]. Employee and Operational Growth - The number of employees increased from 1,024 in 2022 to 1,170 in 2023, reflecting a growth of approximately 14.3%[85]. - As of December 31, 2024, Cryoport had 1,186 employees, an increase of over 16 employees compared to December 31, 2023, due to global organizational expansion[122]. - The company anticipates hiring additional personnel to support its global growth strategy in response to market expansion[123]. Environmental and Regulatory Compliance - The Company’s Quality Management Systems are certified to ISO 9001:2015 and ISO 13485 standards, ensuring compliance with industry regulations[62]. - The company is subject to various global regulations regarding the manufacturing and shipping of biologic products, ensuring adherence to safety and environmental standards[65]. - Cryoport is actively working on compliance with RoHS 3 and REACH regulations, demonstrating commitment to environmental standards[103]. - The company has implemented policies to ensure compliance with complex foreign and U.S. laws, but violations could result in significant penalties[173]. Emissions and Sustainability - Cryoport's total Scope 1 and 2 emissions increased from 6,231 MT CO2-e in 2022 to 6,672 MT CO2-e in 2023, representing a rise of approximately 7.1%[82]. - The average emissions per employee decreased from 6.08 MT CO2-e in 2022 to 5.70 MT CO2-e in 2023, a reduction of approximately 6.3%[85]. - The reduction in energy consumption from Cryoport's freezer lines equates to 152,504,879 pounds of GHG emissions avoided, equivalent to the emissions from 16,135 passenger vehicles driven for one year[102]. Risks and Challenges - The company faces significant competition and must continuously innovate to maintain market share, as failure to introduce new products timely could lead to revenue decline[155]. - The company is exposed to risks from pandemics and public health crises, which could materially affect its financial performance and operations[142]. - The company relies on third-party shipment services for transporting biological materials, which could be disrupted by natural disasters or other factors[148]. - The company faces risks related to foreign currency exchange rates that could adversely affect its operations and cash flows[130]. Stock and Shareholder Information - The Series C Preferred Stockholders are entitled to dividends at a rate of 4.0% per annum, paid-in-kind, accruing daily and paid quarterly in arrears[179]. - The company completed the sale of 250,000 shares of Series C Convertible Preferred Stock at a price of $1,000 per share to funds affiliated with The Blackstone Group Inc.[179]. - The company has never paid dividends on its common stock and does not anticipate doing so in the foreseeable future, limiting returns to stock price appreciation[193][216]. - The company's stock price has been highly volatile, influenced by various factors including technological innovations and market perceptions[191][192].

Full Year 2024 Conference Call March 4, 2025 Forward Looking Statements Statements in this press release which are not purely historical, including statements regarding Cryoport'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 Cryoport's industry, business, lo ...