BioLife Solutions(US:BLFS)2022-05-10 02:28Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $36.2 million, up 115% from Q1 2021, with organic growth of 45% and biopreservation media revenue growth of 53% [10][34] - Adjusted gross margin for Q1 2022 was 33%, compared to 55% in Q1 2021 and 18% in Q4 2021, with expectations for sequential improvements throughout the year [38] - Adjusted operating loss for Q1 2022 was $8 million, compared to adjusted operating income of $494,000 in Q1 2021 [40] - Cash balance at March 31, 2022, was $59.5 million, down from $69.9 million at December 31, 2021 [41] Business Line Data and Key Metrics Changes - Cell processing platform revenue was $14.9 million, up 67% over Q1 2021, with organic growth of 53% [35] - Freezers and thaw systems platform revenue was $15.3 million, up 216% over Q1 2021, with COVID-19-related revenue accounting for approximately 4% [35] - Storage and storage services platform revenue was $6 million, up 95% over Q1 2021, with COVID-19-related revenue accounting for approximately 52% [37] Market Data and Key Metrics Changes - The company gained at least 189 new customers across its three product and service platforms in Q1 [15] - Biopreservation media products have been incorporated in over 540 customer clinical applications, up from 450 at the end of 2020 [20] - The evo cold chain management platform saw a 60% increase in shipments year-over-year [29] Company Strategy and Development Direction - The company is focused on optimizing and scaling operations to meet anticipated demand for its tools and services, particularly in the cell and gene therapy space [11] - Management affirms full year 2022 revenue guidance in the range of $159.5 million to $171 million, reflecting year-over-year growth of 34% to 44% [42] - A new co-marketing agreement with the Coriell Institute for Medical Research aims to enhance service offerings and customer reach [27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong execution from operations and engineering teams, with expectations for continued sequential improvements in gross margin and adjusted EBITDA throughout the year [14][58] - The company anticipates that the cell and gene therapy market will experience explosive growth over the next few years, positioning its portfolio as critical in reducing risk [11][60] Other Important Information - The company is implementing dual sourcing for components to mitigate supply chain risks [53] - A pilot program for a revenue-generating service offering has been initiated, generating approximately $79,000 in revenue in Q1 [55] - The company plans to hold a Global Innovation Summit to explore innovations in CGT manufacturing, storage, and distribution workflows [31] Q&A Session Summary Question: Confidence in stock for cash compensation - Management expressed confidence in the business and the decision to accept stock instead of cash compensation, indicating a belief in the company's growth potential despite current market conditions [65][91] Question: Details on the co-promotion agreement with Coriell - The agreement allows for cross-marketing and revenue sharing, with a focus on customers needing storage and cell analytics services [66][68] Question: Impact of operational issues on Stirling freezers sales - Management indicated that while there are operational challenges, they have not seen significant order cancellations and are confident in retaining most orders [74][75] Question: Growth in evo shipments - Most evo shipments are related to approved CAR T-cell therapies and early-stage clinical trials, indicating strong traction in the market [76][78] Question: Market share growth in biopreservation media - Management believes they are taking market share from home brew solutions, with increased awareness and adoption of their products in clinical settings [81][84] Question: Utilization of new facilities - New facilities are being utilized by both existing and new customers, indicating a positive trend in business growth [86]