Cytek Biosciences, Inc. Stock Price: Quote, Forecast, Splits & News (CTKB)

Perplexity Finance

CTKB

Cytek Biosciences, Inc.

CTKB

NASDAQ

Market Closed

Wednesday, May 21, 2025

$2.66

-$0.03

1.12%

At close: May 20, 4:00:01 PM EDT

$2.66

$0.00

After hours: 4:00:01 PM EDT

Change

-$0.03

1.12%

Financial Profile

Prev Close

$2.69

Market Cap

$336.91M

Day Range

$2.51 - $2.72

Open

$2.54

P/E Ratio

-29.6

52W Range

$2.51 - $7.63

24H Volume

$2.78M

Dividend Yield

0.00%

EPS

-0.09

Earnings

Report Date

May 8, 2025

Reported Revenue

41.5M

Miss -2.83%

Avg 1d Change

18.73%

Report Period

Q1 2025

Reported EPS

-0.09

Miss -125%

Implied Move 1d

105.99%

Transcript

10m 14s

Earlier today, Cytek Biosciences released financial results for the first quarter ended March 31, 2025. If you haven't received this news release, or if you'd like to be added to the company's distribution list, please send an email to investorscytekbio dot com. A copy of the news release is also available on the Investor Relations section of Cytek's website at investors.cytekbio.com. Joining me today from Cytek are Win Bin Zhang, CEO and Bill McComb, CFO. Please note that we will be referencing a slide presentation during the call today. That has been posted to the Investors section of our corporate website. As a reminder, we will make statements during the call that are forward looking statements within the meaning of the federal federal securities laws, including statements regarding Cytek's business plans, strategies, opportunities, and financial projections. These statements are based on the company's current expectations and inherently involve significant risks and uncertainties that could cause actual results or events to materially differ from those anticipated in these statements. Additional information regarding these risks and uncertainties appears in our slide presentation in the section entitled Forward Looking Statements in the press release Cytek issued today and in Cytek's filings with the SEC.

11m 41s

This call will also include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles. Additional information regarding our use of non GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, may be found in our slide presentation and in today's press release. While the company believes these non GAAP financial measures provide useful information for investors, The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Except as required by law Cytek disclaims any duty to update any forward looking statements whether because of new information, future events, or changes in its expectations. This conference call contains sensitive information and is accurate only as of the live broadcast 05/08/2025. Finally, I would like to invite analysts and institutional investors to attend any of the six user group meetings Cytek will be hosting in 2025. These are typically all day meetings where Cytek scientists and users of Cytek's instruments meet to discuss research initiatives, advances in the field, and use cases for Cytek's products. The next meeting will be in La Jolla on May 15 at the Estancia Hotel.

13m 10s

In addition to Cytek's user group meetings this year, there will be a variety of industry and academic conferences meetings, and seminars where we will be exhibiting Cytek's products in The US. And around the world. While these events are primarily geared to the scientific community, they may offer an opportunity to interact with users of our technologies to learn why Cytek's instruments are so highly valued by our customers. We have a limited number of spaces to accommodate members of the financial community So if you are interested in attending any of these events, please contact me. With that, I would like to turn the call over to Wenbin. Thanks, Paul. Welcome, everyone, and thank you for your interest in Cytek. On today's call, I will discuss our performance during the first quarter. Including factors impacting our business. Provide an update on our 2025 outlook and share details on how we are navigating this dynamic macro environment. Next, I will provide highlights on how our progress in the quarter across our strategic priorities for 2025 before handing the call over to Bill for a more detailed look at our financials [indiscernible] our 2025 outlook. Starting with our first quarter revenue on Slide three.

14m 41s

First quarter revenue in 2025 was $41,500,000 down 7.6% compared to the first quarter of twenty twenty four. The year over year decline was driven mainly by weakness in instrument sales in The U. S. And EMEA, partially offset by strength in instrument sales in APAC and the rest of the world region. Service revenue worldwide reached $13,300,000 an increase of 24% versus a year ago. The growth in service revenue continued its strong performance and was driven by the expansion of our instrument installed base and active usage of our tools across a broad range of disciplines. Turning to slide four. Diving into the underlying factors towards the last month of the first quarter, we again see a broad based slowdown in instrument orders across our U. S. And EMEA regions. Among the academic and the government customers in The U. S, instrument placements declined driven by uncertainties with academic funding from U. S. Policy change. In EMEA, pledger due to government funding by affected purchasing trends Sales across our biotech pharma and the CRO customers declined due to some orders being postponed to the second quarter and the customer buying decisions being influenced by the uncertainties across the industry due to The U. S. Policy environment.

16m 26s

Geographically, we continued to benefit from a stronger demand environment for instruments in the APAC and in the rest of the world region. Which include Canada and Latin America. Total revenue in APAC and rest of the world region together was $11,400,000 up 35.6% year over year. While we are viewing future sales in China with a level of conservatism, We continue to experience an increase in orders in the first quarter related to the China stimulus program. Due to the recent change in the market environment, as a result of these macroeconomic and the policy related factors, We now anticipate full year 2025 revenue to be in the range of $196,000,000 to $210,000,000 We continue to expect concerns on capital equipment spending in The U. S. And EMEA due to these conditions. Bill will provide more details on this outlook shortly. While we'll continue to operate in a dynamic market environment, the durable foundation we have built enables us to be agile and to drive Cytek forward through uncertain times. Importantly, we remain confident in our positioning. We are serving a large and growing cell analysis market with our industry leading cell analysis portfolio. Global diversification and the critical first mover advantage we have in FFP technology.

18m 7s

More than 50% of our product sales are outside of The U. S. To support our customers worldwide, we have established manufacturing operations in three countries. The US, China, and Singapore. This manufacturing footprint enables region for region manufacturing and allows us to optimize product flows for any global health environment. We further believe that having multiple manufacturing locations enhances the resilience of our supply chain. Thereby ensuring more reliable and cost effective product availability for our customers. Our current manufacturing capacity for instruments and reagents can more than adequately support our customers' for the foreseeable future without additional capital investments in production. Facilities. I would now like to update you on the progress our team has made across our core strategic pillars, instruments, applications, bioinformatics and clinical who solidify Cytek's position as a market leader in next year's analysis solutions. Starting with our core instruments on slide five. In the first quarter, we expanded our global footprint by 115 instruments bringing Cytek's total installed base to 3,149 units. In the first quarter, we also announced the launch of the Cytek MuS microsystem, The MuS micro cell analyzer is an affordable option that simplifies flow cytometry while enhancing ease of use precision, and the versatility.

19m 59s

This latest instrument expands assay capabilities to drive adoption in new emerging markets such as cell and gene therapy, and drug discovery by enabling smaller labs and resource limited facilities to access high quality flow cytometry at a cost effective price. While revenues were down in this Q1 twenty twenty four in both the academic and government, and the biopharma market segments. We believe this was largely due to market weakness rather than market share loss. Our competitive position at a leader in the FFP market segment remains strong we have established a significant commercial footprint and the brand identity in The U. S. And EMEA and are expanding our market leadership in APAC [indiscernible] in the rest of the world regions. The large installed base of high parameter analyzer instruments we have built over time provides a durable foundation for driving recurring revenue growth in our service and valuations businesses. To expand our addressable market, and accelerate growth, we have made strategic investments to advance our product type with newer generations of products such as our sales products and entry level to mid level instruments, including our Northern Light [indiscernible] The resilience of our product portfolio amidst a challenging macroeconomic backdrop is demonstrated by the 15% trading score among growth in our sales order unit placements and 17% TTM growth in modernized units installed.

21m 48s

Within our portfolio, Aurora sales total revenue grew 15% year over year. And the normalized revenue increased 6% year over year in the first quarter. Northern White's missile use only sales grew 8% year over year. Notably, both AURORA cell solder and Northern Light's instrument sales have continued the growth trend that we saw in the fourth quarter of twenty twenty four. Collectively, these instrument placements represent growth across a diverse customer base offering comprehensive and better solutions tailored to meet their needs. Moving to BioInvolvermatics on Slide six. I am pleased to report that the Cytek cloud continues to grow as a vital resource in the research community. Our main goal is to enable our customers to streamline their experiment workflow through our software tools. Which drive adoption and utilization of our cell solutions and the growth in our region and service businesses. We now have over 18,000 users which grew by 2,000 users in the first quarter alone. This represents an average of about six users per installed Cytek FFP instrument. Which validates the loyalty our users have to our product portfolio and demonstrate the halo effect of our platform. The increase in Cytek cloud users reflects growth in the usage of our products and is directionally correlated with long term recurring revenue growth drivers from our reagents and the service businesses.

23m 31s

Turning to our next growth pillar, applications. While we are in the early innings with our religion business, continue to breathe that it has strong growth potential. We plan to drive growth by accelerating our new vision product introduction engine which will expand our reagent offering and application specific kits. The share of regions we supply at reagent volumes used on our instruments is still at the onset of its growth trajectory. We believe there is a significant growth potential ahead as we continue serving our expanding installed base. Improving our execution and the delivery time to customers, leveraging the Cytek cloud as a leading sales platform. And introducing new revision products and applications. Notably, I believe we have reached an inflection point with recurring revenue. Including region and service revenue combined. Leveraging our established and expanding installed base. In the first quarter, we were pleased to see our sales positively contribute to our recurring revenue rate at a percentage of our total revenue. Specifically, our trailing twelve month recurring revenue is steadily growing. Representing 31% of our total revenue in the first quarter. Up from 26% a year ago. Further, our trailing twelve months recurring revenue grew 17% in the first quarter compared to the prior year.

25m 12s

Longer term, we expect our recurring service and the reagents revenue to be stronger growth drivers for Cytek. Turning next to clinical. We continue to believe clinical market represents an attractive business opportunity for Cytek. And we have seen considerable growth in The EU and APAC for clinical applications. In The EU, one academic hospital fully validated our minimal residual disease, or MRD panel, for leukemia and lymphoma, and we will begin implementing it in their routine clinical testing this quarter. As a key opinion leader, this institution has also supported our outreach to other clinical sites in The Netherlands Australia and Brazil. Overall, I'm encouraged by our results despite challenging macro headwinds in The U. S. And EMEA. We have areas of strength in high growth regions, including in Asia Pacific and the strength in our sales order and Northern Light instruments. The larger installed base we have built worldwide provides the basis for long term growth in our recurring services and religion businesses. And offers the opportunity to scale our instrument offerings. I believe that we are well positioned to emerge from this period even stronger than we are today. Leveraging our industry leading cell analysis portfolio and the strong business fundamentals.

26m 49s

With that, I will now turn the call over to Bill for more details about our financials. Thanks, Wendin. Turning to Slide seven and our first quarter financial results. Total revenue for the first quarter of twenty twenty five was 41,500,000.0 a 7.6% decrease compared to the first quarter of twenty twenty four. Product revenue, which is instruments and reagents, decreased 18% versus Q1 of twenty twenty four. This decrease was driven by a weaker instrument market in The U. S. And EMEA. As Wenbin described earlier, this was primarily due to academic funding uncertainties in The U. S. Pressure on government budgets in EMEA causing delays in academic and research funding, and a cautious capital spending environment in the biotech and pharma industries. Service revenue was a bright spot growing 24% versus Q1 of twenty twenty four. Growth in service revenue reflects continued expansion of our installed base of instruments and active usage of our systems. Turning to our geographic market performance, total U. S. And EMEA revenue declined 1324% respectively driven by lower instrument sales for the reasons I mentioned. On the other hand, Asia Pacific grew very strongly, up 40% driven by particularly strong growth in China.

28m 17s

Other international markets, primarily Canada and Latin America, grew strongly off a small base. We believe this growth reflects the strength of Cytek's brand and customer preference for our technology globally. GAAP gross profit was $20,000,000 for the first quarter of twenty twenty five, a decrease of 12% compared to gross profit of $23,000,000 in the first quarter of twenty twenty four. GAAP gross margin was 49% in the first quarter compared to 51% in the prior year. Non GAAP adjusted gross margin in the first quarter was 52% compared to 55% in the prior year quarter. The decline in GAAP and adjusted gross margin was primarily due to lower product revenues and higher manufacturing overhead. This was offset by higher service gross margin compared to a year ago. We expect quarterly gross margin to improve for the balance of the year as quarterly revenue increases consistent with typical seasonal patterns. Operating expenses were $35,100,000 for the first quarter an increase of $1,400,000 from the prior year. Research and development expenses were $9,700,000 for the first quarter, down $100,000 from the first quarter of twenty twenty four. Sales and marketing expenses were $12,500,000 for the first quarter flat versus the first quarter of twenty twenty four.

29m 48s

General and administrative expenses were $12,900,000 for first quarter, up $1,500,000 from the first quarter of twenty twenty four due to higher outside services and headcount expense. Loss from operations was $15,000,000 for the first quarter compared to the $10,700,000 loss from operations in the prior year quarter. GAAP net loss was $11,400,000 in the first quarter compared to GAAP net loss of $6,200,000 in the prior year quarter. This was primarily due to a larger loss from operations of $15,000,000 in the current quarter versus $10,700,000 a year ago and a tax expense of 100,000.0 versus tax benefit of $2,800,000 a year ago. Offset by higher other income due to 1,300,000.0 foreign exchange gain in the current quarter compared to a 1,100,000.0 FX loss in the prior year quarter. Adjusted EBITDA, which excludes stock based compensation and foreign currency impacts decreased to a loss of $3,300,000 for the first quarter due to lower gross profit compared to a loss of 700,000.0 in Q1 of last year. Adjusted EBITDA included investment income of 2,300,000.0 Excluding this amount, adjusted EBITDA loss was $5,500,000 in Q1 compared to a loss of $2,600,000 in Q1 of last year. We expect adjusted EBITDA to improve on a quarterly basis as revenues and gross margins increase consistent with typical seasonal patterns.

31m 29s

Total cash and marketable securities decreased $12,300,000 versus Q4 to $265,600,000 as of 03/31/2025. The decline was primarily driven by our investment $10,600,000 to repurchase shares during Q1. Lastly, turning to our full year guidance on Page eight. As Wenzhen described earlier, due to the significant change in our market environment since our last earnings call in late February, we are revising our full year 2025 revenue outlook to a range of $196,000,000 to $210,000,000 representing overall growth of minus 2% to plus 5% over full year 2024. Assuming no change in currency exchange rates. Consistent with our typical seasonal pattern and a especially given the current uncertainties in the market and geopolitical environment, we expect this growth to be back end loaded to the second half of twenty twenty five. As Wenzhen further noted, our market leadership position remains strong and we believe we will perform well relative to the overall flow cytometry market. Our strong balance sheet also gives us the ability to continue investing for growth. With that, I'll turn it back over to Wendy.

32m 50s

Thanks, Gil. Turning to slide nine. I want to take a moment to thank our team at Cytek for their dedication to our mission and the overall resilience amidst a very difficult market backdrop. It is this shared belief that positions us well as we strengthen our foundation for the future. We are serving a large and growing cell analysis market as a market leader. We continue to make thoughtful investments in our product pipeline and our service teams to drive growth and innovation. And to strengthen our competitive position. Our strong balance sheet underpins our foundation, which provides us with options and further flexibility in the future. We have a clear roadmap to expand our market leadership position in cell analysis. These powerful attributes provide us with confidence in our long term objective of delivering sustainable growth and profitability. I want to thank everyone for joining today's call and we will now open it up for questions. [indiscernible] Thank you. We will now begin the question and answer session. If you would like to ask a question, We will pause for just a moment. First question comes from the line of Tejas Sabant with Morgan Stanley. Your line is open.

34m 38s

Hi, this is Jason on for Tejas. Thank you for taking our questions. Tara's statement, key focus for investors. So I sound manageable for Cytek, but I just want to confirm, should we expect any gross margin impact because of the recent tariff policy? Apologies if misheard. I believe you said I Cytek could potentially use some of your current available inventory to provide a buffer, but obviously, that is just temporary. So I was wondering if you quantify like a gross margin impact from the current of the tariff policy. And then you talked about some supply chain mitigants. I believe I heard you talk really about pricing. So is pricing something Cytek could turn to also as a mitigant to the tariffs? And I guess the third part would be there's 125% tariffs from China and U. Exports. So obviously, it's very hard to sell any products there. Wondering like how much of the 2025 revenue guidance cut could be because of this dynamic, like the inability to sell products in China? Thank you. [indiscernible] try to take those in order. [indiscernible] it's important to understand that we have established manufacturing facilities that are all producing and shipping product.

36m 3s

In three regions. The US Singapore, which is our new facility and Wuxi, China. And so primary strategy for managing tariffs is what we call region for region manufacturing. So we make product in for sale in in a particular region in the region that would be least impacted by tariffs. So making product free Asia and Europe in Asia and US product product for sale in the S. Obviously we can't do that 100%, but we are able to mitigate a substantial portion of the potential tariff liability that way, The other thing that we can do is reorganize where we source components from. And then thirdly, we are recovering some costs from customers through surcharges. And so, those are the strategies for dealing with [indiscernible] We don't think that that will have any significant impact on our on our revenues in 2025. We When I say that, obviously putting to one side the uncertainties created by the economic and market environment that we're in But in terms of tariff specifically, we don't think that will have an impact.

37m 51s

In terms of gross margin, the impact I think is will be fairly limited and in the range of 1% to 3%. And in that regard, we would expect, as I mentioned in my remarks, that gross margin will improve over the ensuing quarters [indiscernible] expect that revenues will follow typical seasonal pattern where they'll be stronger in Q2, Q3, Q4. And with higher revenues we will see a benefit at the gross margin line. Did I cover all your questions?

38m 39s

Yeah, most of it. And then the third part, about the 125% from China and U. S. Exports. Are you still able to sell your products in China? Thank you.

38m 49s

We are able to sell products in China, absolutely. But that's the way that we deal with that tariff is through our region for region manufacturing. So obviously products sold in China don't incur a tariff if they're manufacturing in China or if they're manufacturing in Singapore.

39m 11s

Thank you for the color on that. And then if I may ask just a follow-up. So the academic government end markets, seems like the policy situation might have gotten worse since you last guided in 4Q. So we're seeing significant disruption in government funding at universities with some of the country's largest research budgets. There was also like a proposed 40% cut in the proposed 2026 budget to the NIH. I'm just wondering, how are you thinking about, like, these potential risks to your 2025 guide? And what was your overall outlook for this end market? Like do you think maybe like minus mid single digit decline could be reasonable? Thank you.

39m 53s

The uncertainties associated with the university funding in The US are factored into our revised guidance. That's one of the new issues that caused us to to come out with this revised guidance. So the short answer to your question is it's factored into what we've told you about revenue expectations. I would make a couple of points though. One is that more than 50% of our revenue is outside The United States. So obviously that revenue isn't affected by US university funding. And then thirdly and most importantly is we think about our revenue in three buckets service, which is growing strongly [indiscernible] which also saw some nice growth in Q1 particularly in US and EMEA.

41m 1s

And then the instrument portion of our revenue is the one that's most impacted by issues like the one that you mentioned.

41m 11s

But the other two revenue sources or revenue streams are not particularly affected by US university funding issues. All that said, we are continuing to sell instruments to U. S. Universities here in the second quarter.

41m 44s

Your next question comes from the line of Matt Skyes with Goldman Sachs. Your line is open. Hi, this is Evie on for Matt. Thanks for taking my questions.

41m 53s

So the first one on the AURORA sales order, what growth what drove the double digit growth there? And are there any specific end markets you would call out that may be differentiated versus your other instruments? [indiscernible] think we are seeing nice growth across all territories for our sales [indiscernible] Part of the reason is clearly, we see the benefit of Cytic Assortment matches very well with our analyzer now already and widely being adopted by both academic and the industry users. And this matching of the panels between Cytek Soda and Cytek Analyzer clearly demonstrated the benefits for our users and make it very easy for them. So that's one reason. Second part is clearly the performance. Of our sales orders and has been very well demonstrated. And many of our users can easily go with our soldiers directly and go beyond the four d color panels. And so this is something they would like to see. And so even under today's we know the tight budget situations, they see the benefits. And they are jumping to Cytek technology.

43m 13s

Okay, great. Thank you. And then another one on phasing. You noted that that you expected growth would be back half loaded this year. What's driving this assumption? And is there any specific end market you expect to improve as we move throughout the year?

43m 27s

There's two factors. One is that typically our [indiscernible] second half of the year represents more than 50% of total sales. So it's generally, usually somewhere in the mid-50s. So that's point one. And that's just a function of the buying patterns of our customers. Tend to buy more, particularly in the fourth quarter than than in the the first quarter. First quarter tends to be a light quarter Fourth quarter significantly more active. We don't obviously, there are some new uncertainties in the market environment.

44m 14s

Can't sort of predict the future with respect to overall economic growth and the broader market. But beyond that, we don't see anything that would suggest that there's going to be a fundamental shift or difference in that that normal quarterly pattern. So that's point one. And then point two is that the impact that we've seen on the first quarter has been clearly there's been some signaling of direct reductions in in funding. But to a large part it's been the driver of reduced spending has been uncertainty about what the future may hold. Not unreasonable to expect that as we get further into the year, that our customers funding individual funding situations will be clearer and that some of that uncertainty might lessen. [indiscernible] so I think that's also an overlay of how we we think about it. I also want to come back to this point that our revenue outlook is a function of is formulated based on three different revenue streams, service, where we think that the installed base and the usage and activity of our systems is going to drive continued growth. Reagents where we've been seeing nice solid growth trends. So those those revenue streams should continue to see steady growth. [indiscernible] [indiscernible] seasonal variation and lessening uncertainty is primarily going to affect the instrument portion of our business.

46m 27s

The recurring revenue from service and reagents have now already exceeded 30% of our total revenue.

46m 34s

Up from 26% a year ago to 31 And that recurring portion is growing at 17%. So that should continue to to grow at similar rates. The service revenue growth rate just as the installed base increases that's going to moderate slightly. But that's something that's an effect that will take some use to Great. Thank you.

47m 9s

Your next question comes from the line of David Wiesenberg with Piper Sandler.

47m 14s

Your line is open.

47m 17s

Hi.

47m 18s

This is John on for Dave. Thanks for taking the questions. So could you just comment on whether or not you're seeing any of your competitors raising price due to tariffs? And also, you give any color on your R and D spending? Are you looking more into imaging or spectral for new product innovation? Thank you.

47m 42s

On the pricing side, things still in the early stage, right? And I think we do see a report talking about passing around some of the tariff cost over to the customers So [indiscernible] we still wait to see how it going to impact the overall market situation. With regarding to R and D, we continue to spend between 15% to 20% of our revenue to R and D and to drive new products. Imaging clearly is one of the directions of the company. Which we are working on within the R and D department.

48m 23s

Okay. Thank you.

48m 28s

Your next question comes from the line of Chad Yakrowski with TD Cowen. Your line is open.

48m 35s

Hey, guys. This is Chad White House on for Brendan Smith. Just on the share repurchases this quarter, obviously, balance sheet is still healthy. How do you sort of reconcile doing share repurchases versus like M and A? Organic investment and what sort of the plan throughout the remainder of the year?

49m

We plan to do both share repurchase and have capital available for M and A. So we think we have plenty of cash available to do both. With respect to specific share repurchase plans, I can't say much more than [indiscernible] Late last year. We purchased $10,500,000 worth of shares in the first quarter approximately 2,100,000.0 That's basically all I can say [indiscernible] the time being. In terms of capital allocation priorities, our [indiscernible] plan is to have capital available to do both.

50m 3s

Again, if you would like to ask a question, press 1 on your telephone keypad. Your next question comes from the line of Andrew Cooper with Raymond James.

50m 17s

Your line is open.

50m 20s

Hey, everyone. This is Noah on for Andrew.

50m 22s

First question, just wanted to get a feel for what are customers saying about the Cytek Muse? Are you seeing a lot of interest I just want to get an idea of what you're seeing in that new product launch. [indiscernible] Cytekmuse being a new product line and is to support gene and cell therapy line and this is a new product currently still in the sampling evaluation stage, but we do have some early products based on the technology acquired from Luminex And that's the part has been selling very well. And normally, match certain needs for example, like cell counting and live dead cells, that kind of testing, But MicroMuse, the one we're going to launch, will add new features, new functionalities to support new application and enable us entering into a new market in the meantime to help drive our region revenue as well.

51m 33s

Awesome. And then maybe if I can just get one more. You mentioned pharma biotech and I think the CRO market postponing orders. Kind of want to get an idea of what you're seeing now that we're about a week into May. Is there a little bit more optimism? Is it still just about the same as April? And then also how does that compare to what you're hearing from your academic and government customers as it relates to funding?

51m 59s

Look, we incorporated everything that we're seeing into our quarterly guide sorry, into our annual guidance So I also mentioned that we expect to see a typical seasonal pattern between the quarters. So there's nothing that we've seen so far in May that would be at odds with that But we don't typically comment on month by month or give quarterly guides but just suffice it to say that typically our Q2 is stronger than our Q1.

52m 48s

I think as we've mentioned in the past, we're primarily a third month company. Significant majority of our sales for each quarter happens in the third month of the quarter. So obviously we haven't seen June yet And [indiscernible] [indiscernible] so the evidence around second quarter so far is limited, but it's consistent with the supports the views that we've expressed here. Pharma customers versus academic and research I think you'll see from our 10 Q that revenue from those two sectors was down by a similar amount. So we saw cautious spending environment from the pharma industry. There are some macro reasons for that related to tariffs and drug pricing concerns, and so on. But generally speaking, we haven't seen much different other than just a more cautious turn around capital spending. But our systems big pharma still has a strong preference for our systems because they're uniquely capable of being harmonized and that's very important to them and we continue to see multiple system orders from big pharma [indiscernible] And seeing no further questions at this time, that does conclude today's conference call. Thank you all for and you may now disconnect.

Key Insights

Q1 2025 revenue was $41.5M, down 7.6% YoY, driven by weaker instrument sales in the US and EMEA, partially offset by strong growth in APAC and other international markets; service revenue grew 24% YoY to $13.3M.
Full-year 2025 revenue guidance was revised to $196M–$210M (–2% to +5% YoY), with growth expected to be back-end loaded in the second half due to typical seasonal patterns and anticipated easing of customer uncertainty.
Gross margin declined to 49% GAAP (52% non-GAAP) in Q1, primarily due to lower product revenues and higher manufacturing overhead; gross margin is expected to improve in subsequent quarters as revenue increases.
Recurring revenue (service and reagents) represented 31% of total revenue in Q1, up from 26% a year ago, and grew 17% YoY; installed base expanded by 115 instruments to 3,149 units.
Management expects limited gross margin impact (1–3%) from tariffs due to region-for-region manufacturing and surcharges; US academic/government funding uncertainties are factored into guidance, but over 50% of revenue is generated outside the US.

Recent Transcripts

Q1 revenue declined 7.6%, but recurring revenue and APAC growth offset US/EMEA weakness.

Full year revenue grew 4% to $200.5M, with adjusted EBITDA up 77%.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$93M	$128M	$164M	$193M	$200M
Cost of Revenue	$41M	$49M	$63M	$84M	$89M
Gross Profit	$52M	$79M	$101M	$109M	$111M
Gross Profit %	56%	62%	62%	57%	55%
R&D Expenses	$14M	$24M	$35M	$44M	$39M

2020

2021

2022

2023

2024

Revenue

$93M

$128M

$164M

$193M

$200M

Cost of Revenue

$41M

$49M

$63M

$84M

$89M

Gross Profit

$52M

$79M

$101M

$109M

$111M

Gross Profit %

56%

62%

57%

55%

R&D Expenses

$14M

$24M

$35M

$44M

$39M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$19M	$3M	$2.5M	-$12M	-$6M
Dep. & Amort.	$603K	$1.2M	$5.7M	$9.2M	$10M
Def. Tax	$1.7M	$448K	$0	$0	-$2.9M
Stock Comp.	$611K	$6.6M	$17M	$22M	$27M
Chg. in WC	-$7.5M	-$8.6M	-$40M	-$11M	$0

2020

2021

2022

2023

2024

Net Income

$19M

$3M

$2.5M

-$12M

-$6M

Dep. & Amort.

$603K

$1.2M

$5.7M

$9.2M

$10M

Def. Tax

$1.7M

$448K

-$2.9M

Stock Comp.

$611K

$6.6M

$17M

$22M

$27M

Chg. in WC

-$7.5M

-$8.6M

-$40M

-$11M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$165M	$365M	$297M	$167M	$99M
ST Investments	$0	$0	$45M	$95M	$179M
Cash & ST Inv.	$165M	$365M	$341M	$262M	$278M
Receivables	$18M	$30M	$49M	$56M	$61M
Inventory	$23M	$32M	$48M	$61M	$44M

2020

2021

2022

2023

2024

Cash

$165M

$365M

$297M

$167M

$99M

ST Investments

$45M

$95M

$179M

Cash & ST Inv.

$165M

$365M

$341M

$262M

$278M

Receivables

$18M

$30M

$49M

$56M

$61M

Inventory

$23M

$32M

$48M

$61M

$44M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $337M
IPO Date: 7/23/21
CEO: Dr. Wenbin Jiang Ph.D.
Fulltime Employees: 663
Sector: Healthcare
Industry: Medical - Devices
Country: US
Exchange: NASDAQ Global Select

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$1.41

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Watchlist

$0.00

Earnings

Report Date

May 8, 2025

Reported Revenue

41.5M

Miss -2.83%

Avg 1d Change

18.73%

Report Period

Q1 2025

Reported EPS

-0.09

Miss -125%

Implied Move 1d

105.99%

Transcript

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37m 51s

38m 39s

Yeah, most of it. And then the third part, about the 125% from China and U. S. Exports. Are you still able to sell your products in China? Thank you.

38m 49s

39m 11s

39m 53s

41m 1s

And then the instrument portion of our revenue is the one that's most impacted by issues like the one that you mentioned.

41m 11s

41m 44s

Your next question comes from the line of Matt Skyes with Goldman Sachs. Your line is open. Hi, this is Evie on for Matt. Thanks for taking my questions.

41m 53s

43m 13s

43m 27s

44m 14s

46m 27s

The recurring revenue from service and reagents have now already exceeded 30% of our total revenue.

46m 34s

47m 9s

Your next question comes from the line of David Wiesenberg with Piper Sandler.

47m 14s

Your line is open.

47m 17s

Hi.

47m 18s

47m 42s

48m 23s

Okay. Thank you.

48m 28s

Your next question comes from the line of Chad Yakrowski with TD Cowen. Your line is open.

48m 35s

49m

50m 3s

Again, if you would like to ask a question, press 1 on your telephone keypad. Your next question comes from the line of Andrew Cooper with Raymond James.

50m 17s

Your line is open.

50m 20s

Hey, everyone. This is Noah on for Andrew.

50m 22s

51m 33s

51m 59s

52m 48s

Key Insights

Q1 2025 revenue was $41.5M, down 7.6% YoY, driven by weaker instrument sales in the US and EMEA, partially offset by strong growth in APAC and other international markets; service revenue grew 24% YoY to $13.3M.
Full-year 2025 revenue guidance was revised to $196M–$210M (–2% to +5% YoY), with growth expected to be back-end loaded in the second half due to typical seasonal patterns and anticipated easing of customer uncertainty.
Gross margin declined to 49% GAAP (52% non-GAAP) in Q1, primarily due to lower product revenues and higher manufacturing overhead; gross margin is expected to improve in subsequent quarters as revenue increases.
Recurring revenue (service and reagents) represented 31% of total revenue in Q1, up from 26% a year ago, and grew 17% YoY; installed base expanded by 115 instruments to 3,149 units.
Management expects limited gross margin impact (1–3%) from tariffs due to region-for-region manufacturing and surcharges; US academic/government funding uncertainties are factored into guidance, but over 50% of revenue is generated outside the US.

Earnings

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Reported Revenue

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Reported EPS

Implied Move 1d

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Balance Sheet

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Earnings

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Transcript

Key Insights