Cytek® Biosciences, Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq:
CTKB), a leading cell analysis solutions company, today reported
financial results for the third quarter ended September 30, 2023.
Recent Highlights
- Total revenue was $48.0 million,
representing 19% growth over the third quarter of 2022
- Total revenue on a non-GAAP constant
currency basis was $47.7 million
- Organic revenue was $41.2 million,
representing an increase of 2% compared to the third quarter of
2022. Third quarter revenue from the product lines acquired from
Luminex Corporation on February 28, 2023, was $6.8 million
- Achieved ISO 13485 Quality
Management System certification at headquarters in Fremont,
California
- Completed transition of
manufacturing of Guava® instruments from Luminex’s U.S. based
facility to Cytek’s Wuxi, China location
- Repurchased 1,155,229 shares of
common stock during the third quarter at an aggregate cost of $8.4
million, and a total of 1,281,011 shares of common stock at an
aggregate cost of approximately $9.4 million since the stock
repurchase program was announced in May 2023
“While we continue to experience macroeconomic headwinds within
our industry, I am pleased with our team’s commitment to
effectively navigate this evolving and challenging environment,”
said Dr. Wenbin Jiang CEO of Cytek Bioscience. “We are diligently
focused on improving operational efficiencies across our business
and aligning our overall cost structure to ensure we remain an
agile organization in the best possible position to drive growth
and deliver profitability. As market pressures persist, we remain
focused on execution across our key strategic pillars, maintaining
our position of financial strength and advancing next generation
cell analysis as an industry leader.”
Third Quarter 2023 Financial Results
Total revenue for the third quarter of 2023 was $48.0 million, a
19% increase over the third quarter of 2022. This included $6.8
million of revenue from the products lines acquired from Luminex on
February 28, 2023. Excluding revenue from this acquisition, organic
revenue was $41.2 million, a 2% increase compared to the same
period of the prior year. On a constant currency basis, total
revenue for the third quarter of 2023 was $47.7 million.
Gross profit was $27.2 million for the third quarter of 2023, an
increase of 1% compared to a gross profit of $26.9 million in the
third quarter of 2022. Gross profit margin was 57% in the third
quarter of 2023 compared to 66% in the third quarter of 2022.
Adjusted gross profit margin, after adjusting for stock-based
compensation expense and amortization of acquisition-related
intangibles, was 59% in the third quarter of 2023 compared to 68%
in the third quarter of 2022.
Operating expenses were $33.6 million for the third quarter of
2023, a 32% increase from $25.5 million in the third of 2022. The
increases in operating expenses were primarily due to expenses
related to increased headcount from the Luminex acquisition and
personnel-related expenses across sales and marketing, research and
development and general administrative. These expenses included an
increase in trade shows and other sales and marketing costs, and an
increase in fixed assets and intangible assets amortization
costs.
Research and development expenses were $11.2 million for the
third quarter of 2023 compared to $8.7 million for the third
quarter of 2022.
Sales and marketing expenses were $12.1 million for the third
quarter of 2023 compared to $8.8 million for the third quarter of
2022.
General and administrative expenses were $10.4 million for the
third quarter of 2023, an increase from $8.0 million for the third
quarter of 2022.
Loss from operations in the third quarter of 2023 was $6.4
million compared to income from operations of $1.4 million in the
third quarter of 2022. Net loss in the third quarter of 2023 was
$6.5 million compared to a net income of $1.6 million in the third
quarter of 2022.
Adjusted EBITDA in
the third quarter of 2023 was $3.7 million compared to $7.3 million
in the third quarter of 2022, after adjusting for stock-based
compensation expense and foreign currency exchange impacts.
Cash, cash equivalents, and short-term investments in marketable
securities were approximately $288.0 million as of September 30,
2023, compared to $344.0 million as of December 31, 2022. The
decline was primarily due to the acquisition of business lines from
Luminex and Cytek’s repurchase of stock in 2023.
Please refer to Cytek’s Quarterly Report on Form 10-Q, expected
to be filed with the Securities and Exchange Commission on November
9, 2023, for Cytek’s results of operations and financial condition
for the third quarter of 2023.
2023 Outlook
Cytek Biosciences expects full year 2023 total revenue to be in
the range of $188 million to $192 million, representing growth of
15% to 17% over full year 2022. This includes an expected revenue
contribution from our organic business to be approximately flat
versus 2022 and inorganic revenue in the range of $25 million to
$30 million from the Luminex flow cytometry and imaging business,
which was acquired on February 28, 2023.
Webcast Information
Cytek will host a conference call to discuss the third quarter
2023 financial results on Tuesday, November 7, 2023, at 1:30 p.m.
Pacific Time / 4:30 p.m. Eastern Time. A webcast of the conference
call can be accessed at investors.cytekbio.com.
About Cytek Biosciences, Inc. Cytek Biosciences
(Nasdaq: CTKB) is a leading cell analysis solutions company
advancing the next generation of cell analysis tools by delivering
high-resolution, high-content and high-sensitivity cell analysis
utilizing its patented Full Spectrum Profiling™ (FSP™) technology.
Cytek’s novel approach harnesses the power of information within
the entire spectrum of a fluorescent signal to achieve a higher
level of multiplexing with precision and sensitivity. Cytek’s FSP
platform includes its core instruments, the Cytek Aurora™ and
Northern Lights™ systems; its cell sorter, the Cytek Aurora™ CS;
the flow cytometer and imaging products under the Amnis® and
Guava® brands; and reagents, software and services to provide
a comprehensive and integrated suite of solutions for its
customers. Cytek is headquartered in Fremont, California with
offices and distribution channels across the globe. More
information about the company and its products is available
at www.cytekbio.com.
Cytek’s products are for research use only and not for use in
diagnostic procedures (other than Cytek’s Northern Lights-CLC
system and certain reagents, which are available for clinical use
in China and the European Union).
Cytek, Full Spectrum Profiling, FSP, Cytek Aurora, Northern
Lights, Amnis and Guava are trademarks of Cytek Biosciences,
Inc.
In addition to filings with the Securities and Exchange
Commission (SEC), press releases, public conference calls and
webcasts, Cytek uses its website (www.cytekbio.com), LinkedIn
page and X (formerly Twitter) account as channels of
distribution of information about its company, products, planned
financial and other announcements, attendance at upcoming investor
and industry conferences and other matters. Such information may be
deemed material information and Cytek may use these channels to
comply with its disclosure obligations under Regulation FD.
Therefore, investors should monitor Cytek’s website, LinkedIn page,
and X account in addition to following its SEC filings, news
releases, public conference calls and webcasts.
Statement Regarding Use of Non-GAAP Financial
Information
Cytek has presented certain financial information in accordance
with U.S. GAAP and also on a non-GAAP basis for the three-month
periods ended September 30, 2023 and September 30, 2022. Management
believes that non-GAAP financial measures, including “Adjusted
gross profit margin,” “Adjusted EBITDA” and revenue on a “constant
currency basis” referenced above, taken in conjunction with GAAP
financial measures, provide useful information for both management
and investors by excluding certain non-cash and other expenses that
are not indicative of the company’s core operating results. Cytek
calculates constant currency revenue growth rates by applying the
prior period weighted average exchange rates to current period
results. Cytek presents constant currency information to provide a
framework for assessing how our underlying business performed
excluding the effect of foreign currency rate fluctuations.
Management uses non-GAAP measures to compare the company’s
performance relative to forecasts and strategic plans and to
benchmark the company’s performance externally against competitors.
Non-GAAP information is not prepared under a comprehensive set of
accounting rules and should only be used to supplement an
understanding of the company’s operating results as reported under
U.S. GAAP. Cytek encourages investors to carefully consider its
results under GAAP, as well as its supplemental non-GAAP
information and the reconciliation between these presentations, to
more fully understand its business. Reconciliations between GAAP
and non-GAAP operating results are presented in the accompanying
tables of this release.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
as contained in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are subject to the “safe harbor” created by those
sections. All statements, other than statements of historical
facts, may be forward-looking statements. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as “may,” “might," "will,”
“should,” “expect,” “plan,” “anticipate,” “could,” “intend,”
“target,” “project,” “contemplate,” “believe,” “estimate,”
“predict,” “potential” or “continue” or the negatives of these
terms or variations of them or similar terminology, but the absence
of these words does not mean that a statement is not
forward-looking. These forward-looking statements include
statements regarding Cytek’s plans to improve operational
efficiencies across its business and aligning its overall cost
structure; Cytek’s business strategy and its ability to execute on
the strategy; Cytek’s plans to maintain its position of financial
strength and advance next generation cell analysis as an industry
leader; and Cytek’s expectations regarding full year 2023 total
revenue, including expected revenue contribution from its organic
business and from the acquired Luminex flow cytometry and imaging
business. These statements are based on management’s current
expectations, forecasts, beliefs, assumptions and information
currently available to management. These statements also deal with
future events and involve known and unknown risks, uncertainties
and other factors that may cause actual results, performance or
achievements to be materially different from the information
expressed or implied by these forward-looking statements. Factors
that could cause actual results to differ materially include risks
and uncertainties such as those relating to global economic and
market conditions; Cytek's ability to evaluate its prospects for
future viability and predict future performance; Cytek’s ability to
accurately forecast customer demand and adoption of its products;
Cytek’s ability to successfully integrate the acquired Luminex
business and recognize the anticipated benefits of the transaction;
Cytek’s dependence on certain sole and single source suppliers;
competition; market acceptance of Cytek’s current and potential
products; Cytek’s ability to manage the growth and complexity of
its organization, maintain relationships with customers and
suppliers and retain key employees; Cytek’s ability to maintain,
protect and enhance its intellectual property; and Cytek’s ability
to continue to stay in compliance with its material contractual
obligations, applicable laws and regulations. You should refer to
the section entitled “Risk Factors” set forth in Cytek’s most
recent Quarterly Report on Form 10-Q filed with the SEC and other
filings Cytek Biosciences makes with the SEC from time to time for
a discussion of important factors that may cause actual results to
differ materially from those expressed or implied by Cytek’s
forward-looking statements. Although Cytek believes that the
expectations reflected in the forward-looking statements are
reasonable, it cannot provide any assurance that these expectations
will prove to be correct nor can it guarantee that the future
results, levels of activity, performance and events and
circumstances reflected in the forward-looking statements will be
achieved or occur. The forward-looking statements in this press
release are based on information available to Cytek as of the date
hereof, and Cytek disclaims any obligation to update any
forward-looking statements provided to reflect any change in its
expectations or any change in events, conditions, or circumstances
on which any such statement is based, except as required by law.
These forward-looking statements should not be relied upon as
representing Cytek’s views as of any date subsequent to the date of
this press release.
Media Contact:Stephanie OlsenLages &
Associates(949) 453-8080stephanie@lages.com
Investor Contact:Paul GoodsonHead of Investor
RelationsCytek Biosciencespgoodson@cytekbio.com
Cytek Biosciences, Inc.Consolidated Statements of
Operations and Comprehensive Income
(Loss)(unaudited) |
|
|
|
Three
Months Ended |
|
Nine
Months Ended |
(In thousands, except share and per share
data) |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Revenue, net: |
|
|
|
|
|
|
|
|
Product |
|
$ |
38,441 |
|
|
$ |
36,389 |
|
|
$ |
110,065 |
|
|
$ |
104,963 |
|
Service |
|
|
9,559 |
|
|
|
4,088 |
|
|
|
24,717 |
|
|
|
10,737 |
|
Total revenue, net |
|
|
48,000 |
|
|
|
40,477 |
|
|
|
134,782 |
|
|
|
115,700 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
Product |
|
|
16,205 |
|
|
|
10,606 |
|
|
|
45,557 |
|
|
|
34,153 |
|
Service |
|
|
4,617 |
|
|
|
3,009 |
|
|
|
12,847 |
|
|
|
9,947 |
|
Total cost of sales |
|
|
20,822 |
|
|
|
13,615 |
|
|
|
58,404 |
|
|
|
44,100 |
|
Gross profit |
|
|
27,178 |
|
|
|
26,862 |
|
|
|
76,378 |
|
|
|
71,600 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
11,171 |
|
|
|
8,650 |
|
|
|
33,282 |
|
|
|
25,111 |
|
Sales and marketing |
|
|
12,076 |
|
|
|
8,810 |
|
|
|
37,587 |
|
|
|
24,201 |
|
General and administrative |
|
|
10,351 |
|
|
|
8,042 |
|
|
|
33,217 |
|
|
|
24,176 |
|
Total operating expenses |
|
|
33,598 |
|
|
|
25,502 |
|
|
|
104,086 |
|
|
|
73,488 |
|
Income (Loss) from operations |
|
|
(6,420 |
) |
|
|
1,360 |
|
|
|
(27,708 |
) |
|
|
(1,888 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(595 |
) |
|
|
(649 |
) |
|
|
(1,677 |
) |
|
|
(1,886 |
) |
Interest income |
|
|
1,622 |
|
|
|
1,584 |
|
|
|
4,965 |
|
|
|
1,993 |
|
Other income (expense), net |
|
|
1,208 |
|
|
|
(445 |
) |
|
|
4,600 |
|
|
|
(1,073 |
) |
Total other income (expense),
net |
|
|
2,235 |
|
|
|
490 |
|
|
|
7,888 |
|
|
|
(966 |
) |
Income (loss) before income
taxes |
|
|
(4,185 |
) |
|
|
1,850 |
|
|
|
(19,820 |
) |
|
|
(2,854 |
) |
Provision for (benefit from)
income taxes |
|
|
2,271 |
|
|
|
224 |
|
|
|
(2,169 |
) |
|
|
(1,620 |
) |
Net income (loss) |
|
$ |
(6,456 |
) |
|
$ |
1,626 |
|
|
$ |
(17,651 |
) |
|
$ |
(1,234 |
) |
Less: net income (loss) allocated
to noncontrolling interests |
|
|
- |
|
|
|
40 |
|
|
|
- |
|
|
|
281 |
|
Net income (loss) attributable to
common stockholders, basic and diluted |
|
$ |
(6,456 |
) |
|
$ |
1,666 |
|
|
$ |
(17,651 |
) |
|
$ |
(953 |
) |
Net income (loss) attributable to
common stockholders per share, basic |
|
$ |
(0.05 |
) |
|
$ |
0.01 |
|
|
$ |
(0.13 |
) |
|
$ |
(0.01 |
) |
Net income (loss) attributable to
common stockholders per share, diluted |
|
$ |
(0.05 |
) |
|
$ |
0.01 |
|
|
$ |
(0.13 |
) |
|
$ |
(0.01 |
) |
Weighted-average shares used in
calculating net loss per share, basic |
|
|
136,173,278 |
|
|
|
134,711,701 |
|
|
|
135,862,905 |
|
|
|
134,342,059 |
|
Weighted-average shares used in
calculating net loss per share, diluted |
|
|
136,173,278 |
|
|
|
138,709,335 |
|
|
|
135,862,905 |
|
|
|
134,342,059 |
|
Comprehensive income (loss): |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(6,456 |
) |
|
$ |
1,626 |
|
|
$ |
(17,651 |
) |
|
$ |
(1,234 |
) |
Foreign currency translation
adjustment, net of tax |
|
|
165 |
|
|
|
(758 |
) |
|
|
(856 |
) |
|
|
(1,427 |
) |
Unrealized gain (loss) on
marketable securities |
|
|
15 |
|
|
|
- |
|
|
|
(26 |
) |
|
|
- |
|
Net comprehensive income (loss) |
|
$ |
(6,276 |
) |
|
$ |
868 |
|
|
$ |
(18,533 |
) |
|
$ |
(2,661 |
) |
Cytek
Biosciences, Inc.Consolidated Balance
Sheets(unaudited) |
|
|
|
|
|
(In thousands, except share and per share
data) |
|
September 30,2023 |
|
December 31,2022 |
|
|
(unaudited) |
|
(audited) |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
163,629 |
|
|
$ |
296,601 |
|
Restricted cash |
|
|
- |
|
|
|
2,899 |
|
Marketable securities |
|
|
124,392 |
|
|
|
44,548 |
|
Trade accounts receivable, net |
|
|
55,402 |
|
|
|
48,864 |
|
Inventories |
|
|
66,875 |
|
|
|
48,154 |
|
Prepaid expenses and other current assets |
|
|
12,017 |
|
|
|
12,954 |
|
Total current assets |
|
|
422,315 |
|
|
|
454,020 |
|
Deferred income tax assets,
noncurrent |
|
|
24,080 |
|
|
|
20,459 |
|
Property and equipment, net |
|
|
17,415 |
|
|
|
13,682 |
|
Operating lease right-of-use
assets |
|
|
11,703 |
|
|
|
13,883 |
|
Goodwill |
|
|
16,457 |
|
|
|
10,144 |
|
Intangible assets, net |
|
|
24,292 |
|
|
|
4,331 |
|
Other noncurrent assets |
|
|
3,168 |
|
|
|
2,957 |
|
Total assets |
|
$ |
519,430 |
|
|
$ |
519,476 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Trade accounts payable |
|
$ |
4,711 |
|
|
$ |
4,805 |
|
Legal settlement liability, current |
|
|
2,600 |
|
|
|
2,163 |
|
Accrued expenses |
|
|
20,514 |
|
|
|
21,126 |
|
Other current liabilities |
|
|
7,821 |
|
|
|
7,960 |
|
Deferred revenue, current |
|
|
23,047 |
|
|
|
12,986 |
|
Total current liabilities |
|
|
58,693 |
|
|
|
49,040 |
|
Legal settlement liability,
noncurrent |
|
|
16,095 |
|
|
|
15,596 |
|
Deferred revenue, noncurrent |
|
|
14,958 |
|
|
|
13,124 |
|
Operating lease liability,
noncurrent |
|
|
10,139 |
|
|
|
12,312 |
|
Long term debt |
|
|
1,736 |
|
|
|
2,271 |
|
Other noncurrent liabilities |
|
|
2,285 |
|
|
|
1,587 |
|
Total liabilities |
|
$ |
103,906 |
|
|
$ |
93,930 |
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.001 par value;
1,000,000,000 authorized shares as of September 30, 2023 and
December 31, 2022, respectively; 135,545,663 and 135,365,381
issued and outstanding shares as of September 30, 2023 and
December 31, 2022, respectively. |
|
|
136 |
|
|
|
135 |
|
Additional paid-in capital |
|
|
451,648 |
|
|
|
442,887 |
|
Accumulated deficit |
|
|
(34,681 |
) |
|
|
(17,030 |
) |
Accumulated other comprehensive
loss |
|
|
(1,579 |
) |
|
|
(697 |
) |
Noncontrolling interest in
consolidated subsidiary |
|
|
- |
|
|
|
251 |
|
Total stockholders’ equity |
|
$ |
415,524 |
|
|
$ |
425,546 |
|
Total liabilities and stockholders’ equity |
|
$ |
519,430 |
|
|
$ |
519,476 |
|
Cytek Biosciences, Inc. Reconciliation of GAAP to
Non-GAAP Measures (Unaudited) |
|
|
Three
months ended September 30, |
|
2023 |
|
|
2022 |
|
(In thousands, except per
share amounts) |
|
|
|
GAAP gross
profit |
$27,178 |
|
|
$26,862 |
|
Stock-based compensation |
829 |
|
|
759 |
|
Amortization of
acquisition-related intangible assets |
458 |
|
|
64 |
|
Non-GAAP gross
profit |
$28,465 |
|
|
$27,685 |
|
GAAP gross profit
% |
57% |
|
|
66% |
|
Non-GAAP gross profit
% |
59% |
|
|
68% |
|
|
|
|
|
GAAP Net income
(loss) |
$(6,456) |
|
|
$1,626 |
|
Depreciation and
Amortization |
2,561 |
|
|
1,452 |
|
Provision for (benefit from)
income taxes |
2,271 |
|
|
224 |
|
Interest Income |
(1,622) |
|
|
(1,584) |
|
Interest Expense |
595 |
|
|
649 |
|
Foreign currency exchange
loss, net |
613 |
|
|
570 |
|
Stock-based compensation |
5,758 |
|
|
4,359 |
|
|
|
|
|
Adjusted
EBITDA |
$3,720 |
|
|
$7,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30 |
Revenue |
Three Months Q3'23 |
|
Three Months Q3'22 |
As reported |
$48,000 |
|
|
$40,477 |
|
Non-GAAP constant
currency |
47,703 |
|
|
40,501 |
|
FX Impact
[$] |
$(297) |
|
|
$24 |
|
FX Impact
[%] |
-0.6% |
|
|
0.1% |
|
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