BioLife Solutions(US:BLFS)2021-11-12 02:41Financial Data and Key Metrics Changes - The company reported Q3 2021 revenue of nearly $34 million, representing a 200% increase compared to Q3 2020 and an 8% increase over Q2 2021 [7][18] - Organic revenue growth was 37% year-over-year, driven by a nearly 50% increase in bio-preservation media revenue [8][18] - Adjusted gross margin for Q3 2021 was 28%, down from 57% in the previous year, primarily due to unusual cost of sales charges [19][20] - Adjusted operating loss for Q3 2021 was $8.1 million compared to a loss of $359,000 in Q3 2020 [21] Business Line Data and Key Metrics Changes - Revenue from the Cell Processing platform for Q3 2021 was $11.5 million, including bio-preservation media revenue [18] - Revenue from the Freezers and Thaw Systems platform was $17.6 million [18] - Storage and Cold Chain Services revenue for Q3 2021 was $4.7 million [18] - The company gained 213 new customers across its three product and service platforms in Q3 2021 [8] Market Data and Key Metrics Changes - The company gained nearly 500 new customers in the first nine months of 2021, with expectations for higher counts post-year-end [9] - The company is experiencing strong demand across all platforms, particularly in the cell and gene therapy market [24] Company Strategy and Development Direction - The company aims to capture revenue synergies through cross-selling its portfolio solutions [9][10] - Plans for expanding storage services include opening additional facilities in strategic locations [13] - The company is focused on integrating its acquisitions and improving gross margins [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for bioproduction tools and services, anticipating significant growth in the cell and gene therapy industry [24] - Operational challenges faced in Q3 are viewed as typical for a growing company and are being addressed [24] Other Important Information - The company expects total revenue for 2021 to be in the range of $115 million to $119 million, reflecting year-over-year growth of 139% to 147% [22] - The company has a cash balance of $75.1 million as of September 30, 2021 [22] Q&A Session Summary Question: Supply chain disruption details - Management indicated that the supply chain issues were related to a vendor transition, which has caused unexpected surcharges and inconsistent delivery [27][28] Question: Q4 revenue outlook - Management noted strong demand across platforms and success in both acquiring new customers and expanding existing accounts [30][31] Question: Customer base expansion and cross-selling - Management confirmed that all new customers were de novo and emphasized the importance of cross-selling opportunities [64][35] Question: Impact of operational issues on customer relationships - Management acknowledged that operational issues could affect customer experiences but emphasized their focus on improving service quality [38] Question: Demand for freezers - Management reported strong demand across various segments, including cell and gene therapy and broader biopharma markets [40] Question: SciSafe facility expansion - Management confirmed the opening of five facilities and plans for future expansion based on biotech clusters [42] Question: Gross margin normalization - Management indicated that normalized gross margins are expected to be in the range of 40% to 42%, with a goal of exceeding 50% in the next few years [69][70]