CYTEK(US:CTKB)2022-05-12 01:13Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $35.1 million, a 44% increase compared to Q1 2021 [20] - Gross profit was $20.2 million for Q1 2022, up 39% from $14.5 million in Q1 2021, with a gross profit margin of 58% [21] - Operating expenses increased by 69% to $22.5 million in Q1 2022 from $13.4 million in Q1 2021 [22] - Net loss for Q1 2022 was $2.2 million compared to a net income of $0.1 million in Q1 2021 [24] - Adjusted EBITDA for Q1 2022 was $1.9 million, an increase from $1.1 million in Q1 2021 [24] - Full year 2022 revenue guidance is now expected to be closer to the high end of the range of $160 million to $168 million [25] Business Line Data and Key Metrics Changes - Service revenue more than doubled year-over-year as instruments came off warranty [20] - The installed base of instruments grew to 1,226, with 116 instruments placed in Q1 2022 [12] Market Data and Key Metrics Changes - Cytek's technology has been validated by 463 peer-reviewed publications, with 95 publications in Q1 2022, the highest in any quarter since the company's founding [16] Company Strategy and Development Direction - The company is focused on expanding its reagent business, which is expected to drive revenue growth over the next 3 to 5 years [11] - Cytek opened a new facility in Fremont, California, tripling its manufacturing capacity to meet global demand [14] - The company aims to maintain profitability while investing in core business and exploring M&A opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro pressures, including supply chain disruptions and inflation, by leveraging a global workforce and maintaining inventory buffers [13] - The company remains optimistic about its growth trajectory and the demand for its instruments despite industry challenges [18] Other Important Information - Cytek will participate in the CYTO 2022 conference and host its first Analyst Day in New York City [27] Q&A Session Summary Question: Guidance on achieving the high end of revenue range - Management expects to carry momentum from Q1, with strong demand for key instruments and the reagent business [30] Question: Adoption metrics for the 25 color immuno-profiling kit - No specific metrics available at the moment, but updates may be provided at the upcoming analyst meeting [31] Question: Progress on MRD monitoring efforts - R&D is ongoing, with more data expected to be shared towards the end of the year [32] Question: Gross margin progression - Margins are expected to increase as the organization scales and the reagent business grows [34] Question: Instrument mix for the quarter - The Aurora remains the majority of instruments sold, followed by the Northern Lights family [35] Question: Customer feedback on the cell sorter - Initial setups take time, and significant results from publications may take 12 to 18 months [36] Question: Profile of early adopters in the reagent business - Customers include both pharma/biotech and academic sectors, with a high growth rate in reagent sales [40] Question: Impact of new competitive launches - No significant impact on business has been observed despite new competitors [41] Question: Operational challenges in China - The company has planned well for potential challenges and does not foresee significant impacts [44] Question: Sales ramp for the reagent business - The reagent sector is currently the fastest-growing part of the business [47]