Celularity (CELU) - 2025 Q1 - Quarterly Results

Management Commentary Management highlights strong 2024 performance with Biovance® revenue growth and positive FDA feedback, anticipating continued momentum - Net revenue growth was primarily driven by the strong performance of commercial-stage advanced biomaterial products, particularly the Biovance® product line[2] - The company received favorable recommendation letters from the U.S. FDA's Tissue Reference Group for new additions to its portfolio of human placental-derived biomaterial products[2] - Management anticipates continued momentum in 2025, leveraging its unique business model, technical infrastructure, and human capital[2] Financial Highlights Celularity reported 138.1% net revenue growth to $54.2 million and 57.0% reduced operating expenses, significantly narrowing loss from operations Key Financial Metrics (FY 2024 vs. FY 2023) | Metric | FY 2024 (million USD) | FY 2023 (million USD) | Change (million USD) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $54.2 | $22.8 | +$31.4 | +138.1% | | Total Operating Expenses | $92.6 | $215.1 | -$122.5 | -57.0% | | Loss from Operations | $38.4 | $192.3 | -$153.9 | -80.1% | - The primary driver of revenue growth was a $22.2 million (168.7%) increase in product sales within wound care applications[3] - The significant decrease in operating expenses is mainly attributable to the non-recurrence of goodwill and in-process research and development (IPR&D) impairments, which were major expenses in 2023[4] Detailed Financial Results Detailed financial results show significant revenue growth and reduced operating expenses due to no impairment charges, impacting balance sheet assets, liabilities, and equity Results of Operations (Income Statement) Consolidated Statement of Operations (in thousand USD) | Line Item | 2024 (thousand USD) | 2023 (thousand USD) | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $54,220 | $22,771 | 138.1% | | Product sales, net | $35,336 | $13,149 | 168.7% | | License, royalty and other | $13,744 | $4,181 | 228.7% | | Total operating expenses | $92,578 | $215,058 | (57.0)% | | R&D | $17,386 | $30,465 | (42.9)% | | SG&A | $58,643 | $50,576 | 16.0% | | Goodwill impairment | $0 | $112,347 | (100.0)% | | IPR&D impairment | $0 | $107,800 | (100.0)% | | Loss from operations | $(38,358) | $(192,287) | (80.1)% | - No goodwill or IPR&D impairment charges were recorded in 2024, compared to a combined $220.1 million in such charges in 2023, which was the primary reason for the large decrease in total operating expenses[5] Financial Position (Balance Sheet) Consolidated Balance Sheet Highlights (in thousand USD) | Line Item | Dec 31, 2024 (thousand USD) | Dec 31, 2023 (thousand USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $738 | $227 | | Total current assets | $20,561 | $19,793 | | Total assets | $132,682 | $143,889 | | Total current liabilities | $53,680 | $67,298 | | Total liabilities | $123,845 | $102,929 | | Total stockholders' equity | $8,837 | $40,960 | - Total liabilities increased from $102.9 million to $123.8 million, while stockholders' equity decreased sharply from $41.0 million to $8.8 million year-over-year[7] - The company's debt structure shifted, with short-term debt decreasing significantly while long-term debt from related parties increased to $35.9 million[7] Company Overview Celularity is a regenerative and cellular medicine company developing advanced biomaterial products and cell therapies from postpartum placenta for global health needs - The company's focus is on developing therapeutic solutions from the postpartum placenta[8] - Celularity aims to address significant unmet global needs with effective, accessible, and affordable therapies[8]