Financial Data and Key Metrics Changes - Total revenue for the full year 2024 was $38.6 million, a 6% decline from $41.3 million in 2023 [28] - Total revenue in Q4 2024 was $8.7 million, representing a 45% decline from $15.7 million in Q4 2023 [28] - Core revenue for Q4 2024 was $8.6 million, an increase of 20% compared to $7.2 million in the prior year quarter [28] - Core revenue for the full year 2024 was $32.5 million, up 9% from $29.8 million in 2023 [30] - Gross margin for Q4 2024 was 74%, down from 90% in Q4 2023 [33] Business Line Data and Key Metrics Changes - Instrument revenue for Q4 2024 was $1.6 million, down from $2.3 million in Q4 2023 [29] - License revenue for Q4 2024 was $2.6 million, slightly up from $2.4 million in Q4 2023 [29] - Processing assembly (PA) revenue for Q4 2024 was $4.2 million, a significant increase from $2.2 million in Q4 2023 [29] - For the full year 2024, SPL program-related revenue was $6.1 million, down from $11.5 million in 2023 [32] Market Data and Key Metrics Changes - As of the end of 2024, there were 28 active SPL customers, including 18 active clinical programs [15] - The total pre-commercial milestone potential across SPL agreements is greater than $2 billion [15] - The number of active clinical programs enabled by MaxCyte increased by 50% since the IPO, from 12 to 18 [17] Company Strategy and Development Direction - The acquisition of SeQure Dx is aimed at enhancing safety assessments in cell and gene therapy development [9] - The company plans to continue focusing on organic and inorganic investments that offer the best outcomes for customers [26] - MaxCyte aims to become a premier end-to-end cell and gene engineering platform [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the funding environment for customers in 2025 [14] - The company expects Core revenue growth of 8% to 15% in 2025, including at least $2 million from SeQure Dx [35] - Management noted that the operational changes made in 2024 have positioned the company well for future growth [8] Other Important Information - The company ended 2024 with $190.3 million in cash and cash equivalents, with no debt [34] - The integration of SeQure Dx into MaxCyte's commercial team has been completed from day one of the acquisition [113] Q&A Session Summary Question: Guidance for Core business excluding SeQure Dx - Management indicated continued growth across the customer base and expects operational changes to support year-over-year growth [41][42] Question: Revenue track record and business model for SeQure Dx - SeQure Dx is expected to grow modestly in 2025, with a fee-for-service model currently in place [46][48] Question: Integration costs for SeQure Dx - The integration costs are expected to be immaterial due to existing commercial infrastructure [58][60] Question: Exposure to academic markets and NIH spending - The company's exposure to NIH grants is minimal, with only about $200,000 linked to grants [64] Question: SPL environment and customer agreements - Most customer agreements are still at the pre-IND level, with negotiations occurring close to that stage [66] Question: Combined company gross margins and potential upside - Management expects combined gross margins to remain in the low to mid-80s [80] Question: Changes in customer conversations regarding macro environment - Conversations with customers have remained steady, with a stabilization in program prioritization [118][119]

Financial Data and Key Metrics Changes - Total revenue for 2023 was $143.3 million, an 11% decrease compared to 2022, with ex-COVID revenue decreasing 4% [10] - Q4 revenue was $32.7 million, representing a 26% year-over-year decrease, and a 23% decline when excluding COVID-related revenue from Q4 2022 [21] - Adjusted gross margin for Q4 was 35%, up from 32% in the prior year, primarily due to product mix and lower warranty expenses [23] - Adjusted operating loss for Q4 2023 was $9.3 million, compared to $8.2 million in Q4 2022 [25] - Adjusted EBITDA for Q4 2023 was $700,000, down from $1.7 million in the prior year but increased sequentially by $3.8 million from Q3 [26] Business Line Data and Key Metrics Changes - Cell processing platform revenue for 2023 declined 4% to $65.8 million, with a 6% decrease in biopreservation media revenue, partially offset by a 9% increase in other cell processing tools [10] - Biostorage and services platform revenue decreased 2% to $25.9 million, but grew 61% when excluding prior year COVID-related revenue [12] - Freezer and thaw platform revenue declined 23% to $15.1 million, primarily due to a difficult capital equipment environment [13] Market Data and Key Metrics Changes - The top 20 media customers accounted for 78% of media revenue, which was up slightly by 1% year-over-year [11] - Customers with commercially approved therapies accounted for an estimated 52% of direct media revenue in 2023, compared to 49% in 2022 [11] - The cell and gene therapy (CGT) industry is expected to grow at a 20% to 25% CAGR through 2033 [7] Company Strategy and Development Direction - The company is refocusing on higher margin recurring revenue streams and divesting freezer product lines to improve financial performance [6][14] - The company aims to leverage its market position in biopreservation media to drive adoption of other tools and services in its portfolio [89] - The 2024 revenue guidance is set between $95.5 million and $100 million, reflecting a cautious approach despite some optimism in market conditions [18] Management's Comments on Operating Environment and Future Outlook - Management noted that 2023 was a challenging year for the CGT industry, but there are early signs of stabilization and momentum [9] - The company expects a sustained recovery as 2024 progresses, with a focus on managing inventory normalization [9] - Management expressed confidence in the company's position to benefit from the growth of the CGT market, despite a cautious outlook for 2024 [89] Other Important Information - The company is in the process of divesting its freezer product lines, with two signed letters of intent (LOIs) and expects to close these transactions within 45 to 60 days [31][45] - The cash and marketable securities balance at December 31, 2023, was $52.3 million, up from $42.2 million at September 30, 2023 [27] Q&A Session Summary Question: Does the LOI allow the company to move the freezer assets to discontinued operations? - Management stated that a signed document is required to move them into discontinued operations, and they are working on finalizing the legal documents [31][32] Question: Can you discuss the steps taken to achieve positive EBITDA? - Management highlighted a reduction in force and control over discretionary expenses as key factors contributing to positive EBITDA [34][35] Question: How confident is the company about concluding the freezer sale? - Management expressed a 70% to 80% confidence level regarding the completion of the freezer sale within the expected timeframe [45][46] Question: What are the expectations for media revenue in 2024? - Management indicated that the first half of 2024 might be flat compared to the second half of 2023, with expectations of an uptake in the latter half [49] Question: What is the impact of the freezer business on adjusted EBITDA? - Management noted that they do not provide specific information on segment reporting but will clarify post-divestiture [81]