BioLife Solutions(US:BLFS)2021-05-14 03:57Financial Data and Key Metrics Changes - The company reported record revenue of nearly $17 million for Q1 2021, representing a 40% increase compared to Q1 2020 [7] - Total revenue for Q1 was $16.8 million, a 39% increase from $12.2 million in Q1 2020, and a 14% increase sequentially [21][26] - Adjusted gross margin for Q1 2021 was 55%, down from 64% in the same period last year, primarily due to the lower margin profile of acquired product lines [24] - Adjusted net income for Q1 2021 was $478,000 or $0.01 per share, compared to $1.4 million or $0.06 per diluted share in Q1 2020 [25] Business Line Data and Key Metrics Changes - Media revenue reached nearly $9 million, a 3% increase year-over-year, with a normalized growth rate of approximately 25% after accounting for COVID-related demand pull forward [9][22] - Revenue from the freezer and thaw platform totaled $4.8 million, a 59% increase compared to 2020, driven by strong freezer sales [12][23] - Bio storage platform revenue was $3.1 million, significantly up from $438,000 in Q1 2020, primarily due to the acquisition of SciSafe [23] Market Data and Key Metrics Changes - The company gained 80 new customers in Q1 2021, compared to 213 new customers for the entire year of 2020 [7] - The Sterling ultra-cold business added 29 new customers during the quarter, totaling over 450 ultra-low temperature freezer systems globally [14] Company Strategy and Development Direction - The company is focused on M&A activity to accelerate growth and solidify its position as a leading supplier of bioproduction tools and services [13] - The integration of Sterling ultra-cold is expected to create revenue and cost synergies, with a focus on cross-selling products and expanding distribution networks [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong 2021, citing a strong start in Q1 and positive customer demand for products and services [28] - The company increased its full-year 2021 revenue guidance to $106 million to $115 million, up from the previous guidance of $101 million to $110 million [26][27] Other Important Information - The company has streamlined its revenue reporting into three categories: media, freezer and thaw platform, and bio storage platform [21] - The cash balance as of March 31, 2021, was $89 million, including shares issued to Sterling shareholders [26] Q&A Session Summary Question: How differentiated is the ultra-low temperature technology and how difficult is it for competitors to enter this space? - Management highlighted that the technology is well protected by patents, making it challenging for competitors to establish themselves in the market [30][33] Question: What is driving the upside in Sterling revenue guidance? - The increase is attributed to continued strong demand observed in Q2 compared to earlier guidance [34] Question: Is media growth driven by new customers or existing customers increasing utilization? - The growth is attributed to both new customer acquisition and existing customers progressing through clinical trials [35] Question: Can you confirm the sequential growth in the services segment? - There was some sequential growth in the evo side, but the bulk of the increase came from biostorage revenue from SciSafe [39] Question: What percentage of sales do you expect from CDMOs in the future? - Management expects to replicate the success with CDMOs like Catalent, which currently represents a significant portion of media revenue [88]