BioLife Solutions(US:BLFS)2022-08-10 01:40Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $40.5 million, representing a 30% increase from Q2 2021, with organic revenue growth of 44% and Biopreservation media revenue growth of 46% [7][14] - Adjusted gross margin for Q2 2022 was 36%, down from 43% in Q2 2021, but improved from 33% in Q1 2022 [15] - GAAP operating expenses for Q2 2022 were $116.8 million, significantly higher than $35.8 million in Q2 2021, primarily due to a non-cash intangible impairment of $69.9 million related to the Global Cooling acquisition [15][16] - Adjusted EBITDA for Q2 2022 was positive $1.5 million, compared to positive $3.7 million in Q2 2021 [17] Business Line Data and Key Metrics Changes - Biopreservation media revenue was $14.1 million, up 46% from Q2 2021, with significant customer confirmations for clinical trials [14][10] - Cell processing platform revenue was $15.4 million, up 58% over the same period in 2021 [14] - Freezers and thaw systems platform revenue was $18.7 million, up 6% over the same period in 2021 [14] - Storage and cold chain services platform revenue was $6.5 million, representing a total and organic growth of 65% over the same period in 2021 [14] Market Data and Key Metrics Changes - COVID-19 related revenue accounted for approximately 9% of total revenue in Q2 2022 [14] - The storage and cold chain services platform saw a 100% increase in shipments compared to the same quarter last year, with expectations to exceed 8,000 shipments for the full year [13] Company Strategy and Development Direction - The company is focused on increasing capacity for Biopreservation media products and has plans to establish a new production suite in Indianapolis by mid-2023 [24] - The company aims to achieve aspirational financial goals of $250 million in revenue, 50% adjusted gross margin, and 30% adjusted EBITDA by Q4 2024 [20] - The company is tightening its full-year 2022 revenue guidance to a range of $160 million to $166 million, reflecting year-over-year growth of 34% to 39% [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of operations and the potential of the Sterling technology, despite recent non-cash accounting adjustments [9][20] - The management highlighted strong demand for their portfolio of bioproduction tools and services, expecting to meet or exceed revenue guidance for the year [26] Other Important Information - The company has shipped products to 202 new unique customer sites across its three product and service platforms in Q2 [9] - The company is experiencing strong growth in the cell and gene therapy space, with products embedded in numerous clinical applications [11] Q&A Session Summary Question: Can you provide more color on the guidance and the freezer business? - Management acknowledged that some customers have had to buy from competitors due to sales headwinds but expects a return to normal flow post-field updates [28] Question: Will gross margin improvements continue? - Management indicated that gross margin improvements are expected to moderate moving into Q3 and Q4 [29] Question: What is the status of the stock for cash compensation program? - Management has not publicly commented on whether the program will be extended [31] Question: How should we think about the timeline to get back to 30% margins for Stirling? - Management expects continued improvement in gross margins but did not provide a specific timeline for reaching 30% [34] Question: What are the cross-selling opportunities within the portfolio? - Management highlighted successful cross-selling between Biopreservation media and Sexton self-processing products [35] Question: What is driving non-COVID growth in storage and cold chain? - Management noted that biopharma companies are increasingly outsourcing storage needs to mitigate risks [38] Question: How comfortable is the company with its cash balance? - Management stated that they do not foresee the need to raise cash with current operations [44] Question: Was there a change in the long-term ULT revenue outlook? - Management confirmed a slight lowering of long-term ULT revenue outlook but remains confident in Biopreservation media growth [48] Question: Can you break down the growth in Biopreservation media? - Management indicated that growth is primarily driven by volume rather than price increases [56] Question: What is the growth potential for the evo platform? - Management expressed optimism about the evo platform's adoption and its differentiated offering in the market [57]