Cryoport(US:CYRX)2023-05-03 16:00Financial Performance - Total revenues increased by $10.5 million, or 20.1%, from $52.3 million in Q1 2022 to $62.8 million in Q1 2023, driven by recovery from the New Prague Fire and strong demand for supply chain solutions [230]. - Service revenues rose by $2.9 million, or 8.9%, from $32.9 million to $35.8 million, attributed to strong customer demand for Cryoport's supply chain solutions [231]. - Product revenues surged by $7.6 million, or 39.1%, from $19.4 million to $27.0 million, primarily due to recovery from the New Prague Fire [232]. - Revenue from the biopharma/pharma market increased by $8.1 million, or 18.9%, from $43.0 million to $51.1 million, supported by global clinical trials and demand for logistics services [233]. - Gross margin for total revenues improved to 43.1% in Q1 2023 from 42.7% in Q1 2022, with total cost of revenues rising by $5.8 million to $35.7 million [236]. - Net loss attributable to common stockholders decreased by $7.8 million, or 50.8%, from $15.4 million to $7.6 million [240]. - For the three months ended March 31, 2023, the GAAP net loss was $5.6 million, a significant improvement from a net loss of $13.4 million in the same period of 2022 [252]. - Adjusted EBITDA for the same period was $2.9 million, compared to $2.0 million in the prior year, indicating a year-over-year increase of approximately 46.4% [252]. - Revenues reported for the three months ended March 31, 2023, totaled $62.8 million, with a non-GAAP constant currency revenue of $64.3 million, reflecting a decrease of $1.4 million due to foreign exchange impacts [259]. Operational Highlights - As of March 31, 2023, Cryoport supported 652 clinical trials, including 82 in Phase 3 and 10 commercial therapies [215]. - Cryoport's advanced temperature-controlled supply chain solutions are critical for the distribution of high-value biologic and cell-based products regulated by the FDA and EMA [214]. - The company operates 48 strategic international locations, serving over 3,000 customers in the life sciences industry [213]. - Cryoport's mission is to provide certainty throughout the temperature-controlled supply chain, supporting life sciences to save and improve lives globally [217]. - The company is focused on supporting the animal health market and human reproductive market, particularly through IVF technologies [216]. - Cryoport's solutions are designed to address supply chain challenges faced by cell and gene therapy developers, enhancing their operational efficiency [219]. Insurance and Incident Impact - The New Prague fire in January 2022 resulted in an estimated revenue impact of approximately $9.4 million, primarily in Q1 2022 [225]. - Cryoport received a total of $15.1 million in insurance proceeds related to the New Prague fire, with the final payment of $2.2 million received in Q1 2023 [226]. - Other income (expense), net improved by $9.0 million, primarily due to a gain on an insurance claim related to the New Prague fire [244]. Market and Economic Conditions - The biopharma/pharma market raised over $12 billion in funding for cell and gene therapies in 2022, with 1,457 developers worldwide [219]. - The ongoing conflict in Ukraine may lead to significant volatility in commodity prices and supply chain disruptions, impacting Cryoport's operations [228]. Expenses and Cash Flow - Selling, general and administrative expenses increased by $6.6 million, or 24.9%, to $33.2 million, driven by scaling operations and increased employee costs [241]. - Engineering and development expenses rose by $0.3 million, or 9.5%, to $3.9 million, focusing on enhancing Cryoport Express® Solutions and related technologies [242]. - Investment income increased by $1.2 million, or 95.2%, due to higher average invested cash balances and interest rates [243]. - The company had cash and cash equivalents of $38.5 million and short-term investments of $484.1 million as of March 31, 2023, with total working capital of $563.1 million [260]. - Operating activities generated cash of $2.8 million, while investing activities used $1.4 million, resulting in a net increase in cash and cash equivalents of $1.9 million for the quarter [262]. - The company expects to continue incurring operating losses in the near term while investing in new supply chain initiatives and geographic expansion [260]. Shareholder and Capital Management - The company has a repurchase program authorized for up to $100 million, with no shares repurchased during the three months ended March 31, 2023 [266]. - The company recognizes the need for additional capital to fund operations and potential acquisitions until sustained profitable operations are achieved [261]. - As of March 31, 2023, the estimated fair value of the Convertible Senior Notes was $316.4 million [269].