BioLife Solutions(US:BLFS)2021-08-13 02:39Financial Data and Key Metrics Changes - Revenue for Q2 2021 totaled $31.2 million, representing a 215% increase over Q2 2020 revenue of $9.9 million [20] - Organic revenue growth for Q2 was 49%, driven by biopreservation media revenue of $9.7 million, which was up 45% over Q2 2020 [20] - Adjusted gross margin for Q2 2021 was 43% compared to 57% in the previous year [22] - Adjusted operating income for Q2 2021 was $65,000 compared to an operating loss of $510,000 in the previous year [25] - Adjusted EBITDA for Q2 2021 increased 208% to $3.7 million compared to $1.2 million in Q2 2020 [25] Business Line Data and Key Metrics Changes - Biopreservation media revenue for Q2 was $9.7 million, up 45% year-over-year [20] - Revenue from Freezers and Thaw Systems for Q2 was $17.6 million, including a contribution from Stirling of $13.3 million [21] - Revenue from Storage and Cold Chain Services for Q2 was $3.9 million, inclusive of a $3.1 million contribution from SciSafe [21] Market Data and Key Metrics Changes - The company gained nearly 200 new customers across its three product and service platforms in Q2, compared to 80 new customers in Q1 [7] - The biopreservation media products have been incorporated into more than 500 customer clinical applications [9] - The company processed nearly 1,000 shipments of critical starting material and/or manufactured cell and gene therapies for about 140 new end customers in Q2 [12] Company Strategy and Development Direction - The acquisition of Sexton Biotechnologies is expected to enhance growth, with products embedded in over 50 cell and gene therapy clinical trials [14] - The company aims to leverage synergies from the acquisition to expand into underrepresented geographies [17] - The company is targeting a mid-term gross margin of over 50% and aims for $250 million in revenue with an adjusted EBITDA margin of over 30% in the next three to four years [31] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across all platforms, with expectations for continued momentum into Q3 [31] - The company anticipates full-year 2021 media growth in the mid to high 20% range [21] - Management expressed optimism about the future of the cell and gene therapy market and the company's positioning within it [62] Other Important Information - The company expects total revenue for 2021 to be in the range of $108 million to $117 million, reflecting year-over-year growth of 125% to 143% [29] - The acquisition of Sexton is valued at $30 million, expected to contribute $2 million to revenue in Q3 and Q4, and $8 million in 2022 [27] Q&A Session Summary Question: How did evo perform in Q2 and expectations for future revenues? - Management noted strong momentum in the adoption of the evo platform and expects significant contributions from new courier partnerships [34][35] Question: Can you discuss the synergies between cryopreservation media and Sexton's products? - Management indicated that the same users and decision-makers are involved, enhancing workflow efficiency and customer engagement [37][38] Question: What are the drivers of new customer wins in Q2? - Management highlighted increased activity in the cell and gene therapy space and leveraging existing media customers to expand sales [42] Question: Were there any one-time orders that impacted Q2 results? - Management acknowledged backlog at Stirling contributed to the quarter's performance but maintained guidance stability for the second half of the year [46] Question: What is the impact of COVID on demand? - Management indicated that approximately 10% to 15% of current demand is related to COVID, with signs of recovery in certain end markets [49] Question: What is the status of the Stirling manufacturing efficiency roadmap? - Management discussed plans for margin expansion through increased revenue leverage and cost savings from new product introductions [74]