BioLife Solutions(US:BLFS)2022-03-01 03:15Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $37 million, representing a 153% increase year-over-year and a 10% sequential increase [9][26] - Organic revenue growth in Q4 was 64% year-over-year, driven by biopreservation media revenue growth of 64% [9][26] - Adjusted gross margin for Q4 2021 was 18%, down from 54% in Q4 2020, primarily due to unusual costs related to the Stirling product line [31][32] - For the full year 2021, total revenue was $119.2 million, a 148% increase over 2020, with organic revenue growth of 37% [28][29] Business Line Data and Key Metrics Changes - Cell processing platform revenue in Q4 was $14.8 million, up 81% year-over-year, with organic growth of 64% [27] - Freezers and Thaw systems platform revenue was $16.6 million, up 285% year-over-year, with organic growth of 13% [27] - Storage and storage services platform revenue was $5.9 million, up 164% year-over-year, with organic growth of 164% [28] Market Data and Key Metrics Changes - COVID-19 related revenue accounted for approximately 15% of total revenue in Q4 2021 and 15% for the full year 2021 [27][29] - The company gained at least 235 new customers in Q4 2021, compared to 213 in all of 2020, and 700 new direct customers for the full year [12][28] Company Strategy and Development Direction - The company is focused on cross-selling to capture revenue synergies, with 46 customers purchasing additional portfolio solutions in 2021 [14] - The company aims to improve gross margins through operational overhead leverage and increased average selling prices [33][48] - The company is committed to defining class-leading products through innovation and has a robust product development roadmap for the evo platform [25][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for bioproduction tools and services, particularly in cell and gene therapy [50] - The company anticipates a positive impact on margins throughout 2022 due to various improvement initiatives [33][39] - Management noted that operational issues related to the Stirling product line have been identified and are being addressed [48][104] Other Important Information - The company expects total revenue for 2022 to be in the range of $159.5 million to $171 million, reflecting year-over-year growth of 34% to 44% [39] - The adjusted operating loss for Q4 2021 was $13.2 million, compared to an operating loss of $255,000 in Q4 2020 [36] Q&A Session Summary Question: Can you frame expectations for the margins in Q1 or the first half versus the second half? - Management does not provide specific margin guidance but expects overall gross margin to improve throughout 2022 [54][55] Question: Is there a backlog building in the Stirling segment? - There is a backlog building, but it is not quantified [57] Question: What are the significant factors impacting operating income? - The significant factor impacting operating income is the Stirling product line [60] Question: What contributed to the increase in customer count? - The increase in customer count is attributed to the integrated freezer sales team and heightened brand awareness [61] Question: Can you comment on the durability of COVID-related revenues? - The durability of COVID-related revenues depends on specific contracts and customer renewals [74] Question: What are the competitive advantages of the evo system? - The evo platform is differentiated by its thermal hold time and patented features that reduce risk for customers [86][89]