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CYTEK(CTKB) - 2024 Q4 - Earnings Call Transcript
2025-02-28 14:49
Financial Data and Key Metrics Changes - Full year revenue in 2024 grew 4% over 2023, reaching $200.5 million, driven by strong growth in service revenue and double-digit growth in international markets outside of the U.S. [12] - Adjusted EBITDA for 2024 was $22.4 million, a gain of more than 77% compared to $12.6 million in 2023 [15][54] - Fourth quarter revenue was $57.5 million, essentially flat compared to Q4 2023 after adjusting for the strong appreciation of the U.S. dollar [16][36] - GAAP net income for Q4 was $9.6 million, including a $2.6 million nonrecurring benefit [45] Business Line Data and Key Metrics Changes - Service revenue grew 8% year-over-year in Q4, mainly due to the growth in the total installed base of instruments [16][38] - Product revenue decreased 3% versus Q4 2023 but increased 14% sequentially versus Q3 2024 [37] - Northern Lights CLC unit placements grew by 15% in 2024 compared to 2023, achieving the highest placement growth rate across the product portfolio [33] Market Data and Key Metrics Changes - Total U.S. revenue declined 10% compared to Q4 last year, driven by lower instrument sales [39] - Asia Pacific revenue grew 21%, driven by strong growth in China [39] - Other international markets, primarily Canada and Latin America, also saw strong growth, with revenue reaching $5.3 million in Q4 compared to $1.9 million in the prior year quarter [39] Company Strategy and Development Direction - The company is focused on driving sustainable growth and profitability through technological leadership and excellent user support [13][34] - The recent acquisition of Luminex has diversified the instrument portfolio and enhanced technical capabilities [25][27] - The company aims to solidify its position as a market leader in next-gen cell analysis solutions [34] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative stance on the China market due to a dynamic environment but noted an uptick in orders related to the China stimulus program [16] - The company expects solid growth in service business and good momentum in instrument sales in APAC, despite softer market conditions in the U.S. and EMEA [59][60] - Full year revenue guidance for 2025 is projected to be in the range of $204 million to $212 million, representing overall growth of 2% to 6% over 2024 [60] Other Important Information - The company repurchased approximately 4 million shares for a total cost of approximately $21.6 million in 2024 [56][57] - Cytek Cloud user base grew by more than 160% in 2024, reaching over 16,000 users [30][124] Q&A Session Summary Question: Can you talk about the 8.5% instrument growth and the mix? - Management noted good growth in Northern Lights and expects that momentum to carry forward, but did not provide specific guidance on product categories [66][70] Question: Can you summarize the impact of recent tariffs and export controls? - Management indicated that the company has a flexible global manufacturing system to mitigate potential impacts from tariffs and export controls [76][80] Question: What is the exposure to NIH funding and its impact? - The company estimated that around 5% of total revenue was funded by NIH grants, with a potential 8% reduction in funding [90][92] Question: What are the expectations for service revenue growth in 2025? - Management expects to continue solid growth in service revenues, driven by the growing installed base [114] Question: Is the company open to additional M&A? - Management confirmed openness to M&A, focusing on businesses in existing or adjacent markets that can contribute positive EBITDA within a year [120][121]