CYRX - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to Cryoport's Fourth Quarter and Full Year 2023 Earnings Conference Call. All participants will start in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the Operator.

As a reminder, this call is being recorded. the Strategic to Communications. turn Fromer host, now KCSA from will call your over Todd I Please ahead. go

Todd Fromer

Thank you, Operator.

Cryoport Conference Before I the the correct just want Quarter get started with record. this, This Call. I to First Earnings is

Before forward-looking like this remind I'd everyone to or statements All started, that we contains operating everyone beliefs certain developments performance, I events are and get call like management -- would future conference statements. that that and address we are the based expect on forward-looking These team. in information management's or on forward-looking statements assumptions our not currently anticipate statements. to our occurring available

team believes management reasonable statements are as and Our these made. that when forward-looking

of undertake any forward-looking However, publicly except undue forward-looking of as required on you revise because such any update not law. or made. or as whether otherwise, any reliance new place results We do date information obligation the future when only to not such result a should as statements, statements statements by speak or

with Jerrell of described report In differ floor uncertainties addition, over actual limited developments my on file call Form and These expectations It and Jerry, time Executive Securities certain Shelton, projections. to from Exchange those and to risks are results, in yours. XX-K but Chief Officer in Securities time reports to historical pleasure and events statements and could the the is filed we to is to uncertainties or the the with Exchange Commission that in to, turn Factors, other and which our from Mr. Cryoport. and now Commission. and our those elsewhere cause our risks experience present XA, are not described Item include, materially forward-looking subject Risk annual

Jerrell Shelton

Officer, Vice of first Thank earnings Financial and today. you, Corporate and is our Investor Scientific Relations, Mark call us quarter our you and joining President Thomas our Good this Chief Stefanovich; Officer, Thank Dr. Robert our Sawicki; Heinzen. afternoon Todd. With gentlemen. for Chief ladies afternoon, Development

review This document found Relations general review document a uploaded As performance section. we operational a website. be business have in and reminder, our Investor & outlook. to quarter XXXX financial the Events and News provides a It in our of can our first under

you've chance I to update brief our to it. our to a and not take a If encourage with I business, had you it, and provide would will read questions. then website you go your we will download on

of XXXX, a For to we globally. environment difficult quarter the first experience continued

disappointing the particularly were results science quarterly across board, products. Our our in life

we improve we when revenue our are guidance there anticipate year, year million will guidance, $XXX revenue of asking, maintain and Well, our makes total are you stated provided us some we initially confident? annual million. what I full things. as am of sure $XXX our progressively However, several throughout to the we

challenges, the revenue. seeing our despite still and are and gene BioStorage/BioServices positive cell the our we from example, based from clients growth For of quite on the near-term momentum we're therapy

XXXX same first amount. If positive some drivers services you market X%, biopharma cryogenic systems should signs that rose you continue the rose look and quarter while recently BioServices our in commercial in also Both the slated see for our market. growth to at will results, and BioStorage clients with the also be new revenue therapies We're by and Cryoport in encouraged beyond. these areas

approved, to and be combining softer remainder gaining will completed to There therapies and were Currently, regulatory X and therapies momentum to Services line the over the our commercial think therapy before new year-over-year. geographic be cell increasing the commercial Science have revenue than for we By therapy label an quarter therapies, is, X% this from the spot their As existing seems growth I indicated, gene was we revenue and market anticipated, some should acceleration a of therapies as territory. bright move approved cell to however, global To existing new see additional the date expand year, again. first gene our year-end. X or filings X earlier Life XX of we clients year. believe ramps approved were treatment, expected of revenue been an

As XX XX trials of XXX supported clinical of same March clinical the over trials, increase last net Cryoport year. time of global year, this a total a of

with in the end, X. trials XX Phase Phase XXX quarter of along these them As in were of X, of

have portfolio a trials therapies substantial through we clinical more our for towards long-term as the commercialization. growth said As represents trial advance Cryoport before, revenue clinical opportunity

with the expansions. commercial additional geographic year rest Our therapy new additional outlook of potentially with approvals the label or strong for X X therapies looks and

investment our systems. This to year. in turn revenue last Life quarter, decreased last prior that Science this Turning is to a continued capital due cryogenic similar MVE This in in was began to for years. products, lower than attributable Biological equipment demand business Solutions slowdown to was

have in as severe in continues Although China. we demand in previously, nature, be reported to most global pullback the

especially this systems in no company. are life time, the put supply and providing investors when believe chain And our remainder we MVE's expansion the to products locations XX with cash position want leader In this other information reducing array funding, company and extensive countries, and located we expect manufacturer on of demand we we systems normalizes, and year resources gene MVE there life to as even the of to worldwide, our end-to-end it sciences we therapy gene the will products space. throughout prepared leading is products constrained, growing dependable be prepare our confident sciences, simply the prospects support Cryoport for services, treatments. for XX to sales of long-term of this infrastructure While in to by in we summary, cryogenic comprehensive government for has expect cryogenic business. With on market. it to will, is the to are well-managed continue plainly, forecast and and services, flow from a and produce clients' business, life-saving full fueled global we and benefit see our Cryoport free and these and improvement and in it chain supply therapies quarters. and in well gradual cell the cell build budgets, is the biotech innovative, to difficult of demand as and advanced ourselves to support remind challenged in life out MVE the in industry sciences. that continues risk solutions systems in indicators for Based the focused provide reliable the a ensuing academic budgets is and

of challenges the financial our initiatives are and we macroeconomic a current the their positive and flow in implementing to considering toward on impact cash near include spending EBITDA delays These our However, result our drive adjusted results, as alignment global of number a initiatives, in term. shared services, reduction planned organization, leveraging improved in reprioritizing capital workforce, refining and of reprioritization. lower-cost and

which prepared a with balance should of balance remarks. All This cash future mindful of support strong sheet positively $XXX balance. are our impact -- million ended our to half second maintain XXXX.We million growth, my to of need quarter the concludes cash of $XXX.X we the and

from you. going we're take Operator, please lines to for happy Now questions. to questions open the be

Operator

from and the now gentlemen, question Morgan session. first we Instructions) Ladies (Operator Tejas conduct Stanley. question-and-answer comes Your will you. Savant Thank from

Tejas Savant

time. Thank is Tejas. on you the Edmond for This for

second how played stand look could at need do Where color half? First today provide of more you their question, the their to in guys things out do heading MVE? into expand on And like books capacity? some what terms customers base order

Jerrell Shelton

repeat Tejas, question Okay, that MVE? again, please.

one Just second.

Tejas Savant

on Sorry, things And is expand of and was, do MVE how But color like could capacity? this played question more into today out books at Jerry, what look quarter? order do this stand Where in provide terms their 'XX? heading half Edmond. the some of customers second need to fees the their you

Jerrell Shelton

and second question. up customers for of half. and MVE recession, continues to government bio know be last in our its business. progressive some Okay. by And tracks And been have last this and the quarter look, breaking. MVE to like large on We the there's it not -- basis. we biotech year, That's for orders and some year. we'll in or institutions funding, seems China we improve funding -- a and reduction for good some and whole will of think in the expect orders this midsized breeder all the this instituted we We in banking a then that second the looks year with repositories. been in we the distributors have half that and that programs been talks to MVE there's government be and and into the simply business. And China year. be do in direct government, There's half its remainder spending is, in seem affected China in a regular be next do pullback improvement think a will lined that's to of have pharma -- half that in the we The the on its There's of probably

within of have very China this a to I on revenue about we our for only point. do at However, compete total initiatives China want basis. remind X% to though, effective accounts you

Tejas Savant

question. it. then very That's Got a higher-level helpful. And

the recently an the Some traditional into have into UPS companies logistics vertical. healthcare of such interest expanding as expressed

to represent Or work there model? business the like for they Cryoport are any threat to opportunities more a Now, providers? a competitive of company with medium-term those do

Jerrell Shelton

the we relationships more a with with We've a market, had for recent others. services. years the at on of of closely a has due on still work we In about and them as we tremendous they over them has we've to us. more become We took I purchase talked in the aggressive most which an But work don't have Over or many competitor to been time, integrator basis, some our in threat cases, a since UPS UPS basis. strategic the integrators the least. tried frequent company. regular pose use of to than really XX but

Robert Stefanovich

that healthcare They through vertical. on also with they're sets regular their use conjunction a in supporting programs basis equipment our

Jerrell Shelton

important MVE an point. That's That's equipment.

Tejas Savant

percentage then is product And from legacy revenue what Cryoport the it. and percentage from model. question is for Got one What systems? the housekeeping MVE of

Robert Stefanovich

It's so cryogenic revenue XX% really of systems. look product MVE is revenue, to at the really -- if it's related the majority, the excess in you vast of

Operator

Stanton comes next question Your from Jefferies. from Matt

Matthew Stanton

or of look get P&L we like the move here. savings into like in term bake you I of a the to you impact appreciate of flow. start sounds understanding have as around we number It cash initiatives trying to total EBITDA cost half could the improvements year? could quantify into Just the motion that. what what on us just near OpEx better back help to to focus Can the color and start a on

Robert Stefanovich

But revenue. with Look, Yes. just provide said, obviously No, at overall. the provide information I we for guidance can that of thanks annual bit time, current to related little question. the a our

We our have and are not taking is is that of critical initiatives, the near-term of our some not initiatives. or of CapEx near-term been spending, spending driving to and revenue kind out actions continuously review our of CapEx pushing

building operating built been you last over If know. at things. of as look out that we're couple of and we've overall see our we expense, years of you infrastructure the leverage that And looking out. One, a to infrastructure couple capabilities the

We substantially expect in complete have XXXX. that to

As going we the to that leverage set overall see better grows, revenue of we're infrastructure operating up.

do there. on of terms operating impact a exactly would But We'll half second expect the the specific to out half percentage. second we provide of modeling the I the clarity you can't expenses. the I expenses. year, in certainly, tell and the see In an some operating in drop expect more question

Matthew Stanton

Thanks. helpful. And then back maybe over Okay. MVE. That's to

You sales challenging kind talked improvement of a through gradual and how year. remain the there about

in of baked for MVE growth in I think have prior kind the guys flattish year. you

if flattish Just it given down we is slower reiterate are guide now year? potentially in offsetting what MVE start, be for Or for it to the should I other the And guess the to full areas down in 'XX, of the that 'XX? kind is expect still year?

Jerrell Shelton

severely, then point, so you'll we into We to I I which capacity to capacity. think with budget will back some you do of some to pulling back Look, situation, plus Matt, probably be governments do went last have some freeing in from so pull and we'll for create up. people had back on that to improving think economic which a some the that extra in market think COVID and have that. pulled situation MVE flattish in is and XXXX. will see in XXXX, And But the improvement half and caused forth. second have 'XX. flattish progression the the XXXX and be in expect it At XXXX that half, you where buildup of more No, can

Robert Stefanovich

the offering revenue. half really related the driver our in services the second revenue, to the of especially is And year, for and

Matthew Stanton

for And normal XX. The there. great. one. gross fallout you more to maybe know quick kind the dropped last Okay, I provide of in more X can numbers X the programs? color revenue just And meaningful earlier than you the Phase in one it have net Phase trials of a bit generally Any on any expect some just impact those phase are given Thank XQ on and did quarter? programs you. some

Robert Stefanovich

We're churn seeing still of as to activity. Yes. clinical a lot relates it trial

drawdown due of the terminated. quarter, of trial X some Those Of were that XX saw cash. sequential which you cases If phase, in actually Phase flat and trials. you to XX terminations, we obviously of into completed the the XX those, many terminated a were drill saw were

impact a also But But see are good Phase We the really on accretive we they new in thing a an up where and those diversified the is -- to activity with terminations some programs months. see period on thought as some programs. lag there's are going an start back show did we did couple relatively and in that obviously there was contribute associated will X Obviously, running. were that added had coming get starting that of the that to flat. impact XX that we

Operator

comes Puneet Leerink Your from from next question Souda Partners.

Puneet Souda

half levers end like the MVE ramp levers a on bit more Philip or to softer guidance? you your Or expect give color if just guidance? the you different second will kind Can to kind high-level of sequentially second to improve just implied bit Maybe an for high Coming quarter, is that question. of the gives are you off versus maybe in the Thank on you that's in steeper. just low a what Puneet. Kind of got still of end you. take This us if kind of that sort a first confidence out? hasn't the a quarter, that the bottomed of the reiterate

Jerrell Shelton

currently as Sure. I'll is that to But Mark are other with start on we from and thoughts. trends our cell some therapy specifically the we're answer seeing the and based Robert want seeing in and industry-wide our well may what then outlook gene chime clients. as

of in are and as quarter be geopolitical second, and we're therapies -- and some ramp. bring into current the see one funding year. later later taking are we new take which into approved recently dramatically then will And number in this And economic new contribute products their year. our the and this that If revenue having biotech are from a a the second there clients those growth to ramp X, of should impact increasing number you throughout there's therapies launched we're factors that these we factors services the should revenue. consideration, landscape, year, new with can confident also given half forecasting seeing commercial and a a strong And

all businesses that in will of our all, we XXXX. grow each believe So in

press earlier. I the mentioned a think release, lead the business add little would to you that Robert and Robert, in our like highlighted anything? should As bit service way

Robert Stefanovich

months revenue, revenue. No, revenue mentioned do revenue, terms And it BioStorage/BioServices half. X of growing XX expect grew especially you improvement, revenue the core When for about you some there look and a revenue months over look the you I drivers, second you months last and at commercial of timing. of most QX we maybe some XX XX%. but We think you at lumpiness the yes XX also months in at on a year, year-over-year, progressive X% the look the at XX commercial commercial you're over clarification because And take it. if right, have in even trailing look

or revenue filings, at you to If guidance that services approvals BLA this MAA and the revenue look the our meet beat that, expected you'll additional year. continuous year, plus see will driving that filings we keep for see the momentum

Mark W. Sawicki

Yes.

just coming a of have with might a Let add Obviously, have the earlier BMS And quarter, of J&J. of expansion which ImmunityBio commercial that. Sarepta the significant folks Obviously, approvals. contribute end and lot approvals to are come also recent second more line after out our it out the increasing obviously, activities commercial. for start to in and Atara as way. then to a should Bluebird, Iovance, meaningful all relates to CRISPR/Vertex, to going me contribute

Puneet Souda

to exposure know much Got one China, your there? disruption it. guess don't I there Act That I much sense. housekeeping have about initial Any you question. is business? and kind too of And makes how just for retaliation any then have maybe but you risk that the thought follow-up BIOSECURE to for guys

Jerrell Shelton

we world not China powerful bit. extremely quite about States. a it the have. a in China country bit Look, more is investment China. away. We've it's than Yes, important in trading going United and thought has have most we and partners quite And an an we and country, second the studied the It's

plant plant and compete given people. have very is China buy China We in have And that by we some staffed made Zhi's a in what's President China, initiative better in in to China. an capable

-- We're right period the recession the 'XXs the is be China with of our to risk Chinese so It's that work we assess get but risks, game the over X% in out now, is now, And right substantial rules will to but there some forward. only future not how learn of time. of that revenue of in freezers and We over think the and exposed that economy potential we'll to with have there attention to but to the market going you it move China. market. are have we here and economic and go manufacturing about time. pay But and there Chinese stay have to 'XXs play some there. back is the for to

Operator

Your comes UBS. Baranowski next question from from Lucas

Lucas Baranowski

to on increase This definitely there's start of been Leonard in an for is Dan oil things Lucas UBS. the I guess off, since the year. at start prices

Given that the expect any kind are that customers? on able increase of margin we you're pass term? that finding impact in to to And should near you over a costs, there

Jerrell Shelton

On from pass where think we costs. surcharges don't on margin we on extra that expect have increase. we impact extraordinary do you pass the petroleum should I situations,

Lucas Baranowski

it just more China here. when And touched on then updates on manufacturing back bit, you any a locally online? you little the begin initiative theme, come a can guess that's more there could and one capacity going over there. Are the progressing you how have Okay. I to provide that new to

Jerrell Shelton

of any course, in Well, our at it's this investment we small and given a hurry the that company, time. initiative of to make not are entirety right particular

is Although active. that motion still

mid You see coming factory. China next in product probably of out Chinese made probably would see year, the you'd

In to as would well. doors, addition it be freezers

Operator

Your from Larsen next comes question David from BTIG.

David Larsen

these Do that labor of you Thank about helpful. reduction expect I Or But very reduce by EBITDA that positions talk helpful. you efforts? there say any like color firm. anything that you've to you. sense And across cost positive number XQ reduced? for more 'XX? little more reluctant would been would the be a any to admirable. be very of Or become might Can your very be bit certainly know just That's

Jerrell Shelton

couple comments and I of just specific make want David. to then turn to for Robert more broad comments, a

the we have manage It's adjust, take We shareholders when after not our take -- ebbs pride being said in way adjust it's we're with business comments, the company. belong responsible the this we when the appropriate, that's any opening and responsibility reluctant fiduciary we circumstances business that that as way just all, -- assessed and mentioned given of adjust. assets -- our to to great not of that them. our in First and we responsible I We be flows, those business and We're in things initiatives seriously. there. I and very in to

it a little on Robert. your color specifics, give I'll to you Now bit more to turn

Robert Stefanovich

related driven revenue. we working to general, positive on These towards always as that, are points, $X to initiatives bit CapEx to absolutely QX, EBITDA. And a reduction, but you certainly up of over related that by million back that give data million Yes. cash at do, in we're getting cost picking $X few burn. is -- we are the X a a right, to Of this maybe Look, that, in things to topline you taking little was little the some you're look about we over expenditures. related just had

initiatives introduced we're are moving Certainly, on other high initiatives some cryopreservation the as the that call, out such processing not already been market have key investments key as of partially in We the and the IntegriCell, working we earlier we've on mentioned the that making platform and of to space. CapEx the are still related some just been that offerings priority. into

over things with would already looking strong of shared Absolutely, we started maintaining any at a balance, that. are positive EBITDA. of a into services? moving you been months current all that that terms an leverage few that to resources that current certainly the that and working done As capabilities Absolutely. Can company investments. those Can that we fine-tune has expect acquisitions, the on and are capabilities we've sheet, leverage cash in our feeds a QX with especially strong how number yes, we to operational resources. have balance expect do on And We're look into very our we out we maintaining it? have a in company, us and and focused we have can equation and that streamline impact rolling towards we we last

David Larsen

of trials And helpful. of coming BioStorage, cell terms nature, your in but talk has that allogeneic about that storing yet? a Any generated and bit from in BioServices obviously, update IntegriCell? started therapies? the are that I actual any allogeneic revenue And that's also know on That's Okay. being maybe storing revenue you from X/X then tissue, yet? little can

Jerrell Shelton

comments, have beginning the won't the And half David. until be now year, because Let some Mark may and that of But be have a comments coming for both the some of will it right service a online IntegriCell not and significant last we here. Robert and -- revenue IntegriCell additional additional subject They ramp-up. is will that, great producing time, company. have well. are a revenues needed. coming IntegriCell. coming are see will the well, The of will you along -- you The anticipation see after factories that's It's revenue along over partnerships for

a terms along. things, other that's of Mark in and the on how couple better on BioServices of In comment particular, coming can BioServices

Mark W. Sawicki

Yes, I specific want focus on therapy to fulfillment-related for your it the allogeneic relates around need capabilities. and question storage to as

have, years, there's a significant impact low is -- right time revenues. is into which a not and the allogeneic part we're very that support volume which BioServices by in itself. autologous clients, We has and as for be are requirements, space to of short as market distribution. out currently real cell used as the for the a investment U.S. labeling need gene the as built time both support supporting Those other into financial support there's so obviously, infrastructure well now going build packaging the term. where doses product all indication allo X.X base which competencies therapy therapies both competency Europe. over contribution the and last now, on over secondary backup a for being right over been Obviously, really only But there's the also clinical additional elements, well direct Atara, also on to that in We've of in transitioning commercial successful are as in the

Robert Stefanovich

The revenue add Lastly, the looking grew X% amount. dollar year-over-year million there, in maybe to BioServices quarter. for were a first you just $X.X to

David Larsen

were that Okay. those And that large in came One New Jersey. X I facilities think Are fairly profitable that in online now? new are there Texas, recently. one

Robert Stefanovich

both stages introduced, the the We're up we're example, at When and early not, obviously not of still for about point our this in utilizing just all working utilized fully now was for talking in Look, and Mark we're so this early is time. commencing. We're were in initiatives. commercial therapies stages. them revenue And up of the really in bringing filling those towards BioServices the BioStorage/BioServices.

Jerrell Shelton

to we have have remember, their what in. was in come to I to they're David, once to for opened do facilities and rearrange think takes the those for to It traffic their those XX they then year they facilities, open do doing. and They clients June were ago. X have a months audits trial runs, it

around it's just -- I BioServices, you'll inflection, right down that point time. think up always see so anticipated we up. So, over now ramping and we're an does It it I think development, of still there picking exponential

Thomas Heinzen

Actually, I just to comment this. want on

have XX facilities, We -- onboarded actually months over last clients. we've those XX the in

David Larsen

And Okay. more then quick just one. one

Is quarter's new I that Does think therapies new today? number that you're on XX as means? last and mean for talked about And filings and XXXX is XXXX. therapies in you X what Is coming commercial X XXXX? call, in that still of that it how supporting X that online XX?

Mark W. Sawicki

we're and ImmunityBio. we're CRISPR X see can That's this And XXXX. reporting a gone call would more pushed had, XX has it AMTAGVI one more saying We I'll we have approved. from it Anktiva In Casgevy, today, away. so year, therapies therapies that give so Vertex you Iovance, seeing now, in going filings be recently, far product, right But this most It's probably new get from year, X hasn't to new the approved XXXX. X. our It out.

Operator

comes Your from Paul next question from Knight KeyBanc.

Paul Knight

early Mark, I X.X%. the count that was -- trial business that some a into getting have press question a starters. you is biotech indication Phase those back X is, getting money trial for the in meaning release, and the this most Is And significant stage? up that for customer up

Mark W. Sawicki

in had new space. We -- as XX trials. of volatility a are which seeing we the and XX mentioned. had whole lot average money collective the our net of the only portfolio, means focus come of playing we around a is trials churn, position lot of starting users so a obviously we're that's We back the relates it to Well, will into quarter We net see space, to with seeming vast add in a and removal on upside, still winners we're confident that QX, trials funding to need that. a the to as And indicator. then we those. long in as and as we if with have remain that's in the the and improving But those we the sustainable, positive of stabilize see supporting majority

Paul Knight

the was & And I customer [conference attendees an obviously seeing think Deltia] And was you like potential think uptick X,XXX then in mean but of a Gene Therapy, right? the Society Are I Cell employees. record. non-employees, I that's interest? it American and

Mark W. Sawicki

a I of there's and Yes. new so XX a programs which of new from those a is mean significant very clients, new came lot start-ups, good percentage sign.

Paul Knight

million talk loss. to $X.X at, Or out? And XX%? about few really mean, in it want business do this a then what's run I What business? a EBITDA XX% you EBITDA years a is Jerry, margin we Is -- the

Jerrell Shelton

have gross Paul, our XX% and goals not are to goals our XX% adjusted XX% margin EBITDA. mean changed. I

Our looking changed, often, do you that's goals metrics should so them examine be and that for us. the have we not from

Operator

Your Riley. next B. from Zhi question comes from Yuan

Yuan Zhi

because help have Can and lower the understand And a biologics about XQ? of better beyond? you XQ weakness services volume? follow-up. I in in confidence it us Was visibility in and how And the

Jerrell Shelton

assume? that your has just answer going you out put Mark's with report question, to this do but to the recently I

Mark W. Sawicki

guys? Because I'm sorry, talking the can No, you we're BioServices. confused. he's question, about repeat

I a thought thought I little here. you think biologics Jerry and garbled BioServices. you it said was over said

Jerrell Shelton

repeat No, said I is biologics, he -- said BioServices. What thought you question? the

Yuan Zhi

Can because help beyond? of the the and in visibility us you lower confidence it bio XQ how about Was services? in volume? And weakness Yes. better and understand logistics

Jerrell Shelton

good. Okay,

now. can answer Mark it Okay,

Mark W. Sawicki

were Biologistics XX trial was take saw many terminations XX those yes. those ongoing. time because was and ramp. of new now, active programs but that than we it get with starts volume replaced revenue by Those were XX established starts, to softer those anticipated new I

to to usually X see We'll we it's relates quarters quarter, a in so as programs And progressive on the onboard X we seeing that later financial contribution it improvement as contribution. just online. start those them before new because come

Yuan Zhi

Got it. because not last And are was or orders the was and on quarter yet? it's dropping it seems from curious, then MVE, now of because of it just I'm canceling customers just it the there

Mark W. Sawicki

softness. continued again, of softness, orders. of was demand cancellation out was it There China, And not demand mostly

Yuan Zhi

last And it. one Got one us. from

that a second sales, the impact sales costs Because are some I'm it have the revenue reduce and capital impact. For to if will part? degree half, goals you certain or of could in workforce costs some cutting curious, reducing in

Robert Stefanovich

No.

If something and the I revenue. to as number have that to high not the impact on Again, not acquisitions CapEx look, that taking seen with initiatives as the moving out, expect these mentioned, this we relationships. that of have on you of of client initiatives kind at after the that we've and closer near-term our in the This our revenue priority is some that organizational on we're more we're headcount organization then of well working we're will looking the look not any are actions review. They're Same especially at the that related completed, impact on. our as refining as a is structure. some

Operator

Needham. Saxon from question comes next Your from David

David Saxon

in I've apologize Great. repeating if been I you. with Jerry, calls, between But so start I any maybe questions. am I'll

quarter. quarter earnings back did quarter mid-March, confirm seem the in fourth growth into first the for you the sequential On fourth call from to expectations

weeks growth? that drove the X got any orders factors into sequential pushed what the the before Over Or out were that were shortfall of quarter? the second end, quarter there

Jerrell Shelton

the would knew confirm time that's And over to that say nothing the bit then said the our as came at slow, speak market progressive out it I we were we but guidance going year. out. in we quarter. with That's happened. -- the the quarter did specifically what that know what that higher we didn't fourth to slow progressively a we guidance and turn we expected the We quarters. And exactly gave and we was having first the see would and is the time, did We And we we come revenue a There in was was did weakness a did it strong out, recognized have add did may quarter. at than confidence than well. say slower But we today. improve than why I in -- and guidance Mark anticipated. first improvement that we other come didn't we quarter. could disappointed But have out What have the were was we way. little We to said say the something it throughout it we marketplace how -- was first to would

Mark W. Sawicki

ourselves the anticipate quarterly the the players board on basis. between second at a strongly do Yes. continuous the in And the Obviously, give itself. We're guidance across looking progression don't other year the space, we and in really year. of we entirety a half of

of a look up does the uptick which need indicate relates difficult quarter a if rest come at of or out to that the it second strong you We that on Sequencing you slips development of don't therapies sometimes and have of anticipate, P.O.s towards rollover quarter. biostorage very things You indicator even life first next. see from a impact the some else it to that because the biologistics the in that pickup. end in itself is, And in have quarter significant QX, the could will picked that year. P.O. can't have as things that to revenue. And the like is consumables slip quarter into did through was and the something they end ascertain question quarter, for That's the that of fairly sciences. one the

David Saxon

said integration And then I'd Bluebird how and And that then Jerry Express, range? question both million. Is be Maybe, my kind difficult some get off cadence half made. being by of just And continuous And $X growth ballpark? might with Mark, to to we thought love improvement second On guidance This sequential good second see we in the of Should Robert. hear I I'll just we predict, least, contribution in can might around up see right half. appreciate the I'll is expect you of? ask And then my sequentially? second think but the second about that the here. the that the for growth the quarter be base of estimate is follow in flattish at you. to kind a you to that you revenue was I Thank Okay. comments some going.

Jerrell Shelton

comment. let I'll Robert

Robert Stefanovich

about talk Maybe Yes. your first question.

Just if last throughout the really year, I the Tom some improvement year. of year-end. towards as about is talk towards was related certainly QX, the particularly year. that you year, of second and the look of can saw it progressive at datapoints the mentioned, Pac what that way we But improving second QX. actually weighted did QX, in that in Asia half outlook what a those at the I experienced in the but we Hence, unexpected. drop off, of was X With give improvement half QX, see we in to progressively our slight QX as described then and can't progressive you a improvement weighted give you to specifics we

David Saxon

Okay. super that's could? if Yes, helpful. on you Express, just And then Bluebird

Jerrell Shelton

knows It an the CRYOPDP. CRYOPDP. and on U.S. logistics the think having out number very good Express the Bluebird positive well done a Express We're market new development have opening small X a U.S. a we'll it's I It's build very and is integrating having but CRYOPDP. Bluebird a network and it's years impact have in it's centers business Systems, Cryoport at impact. at Yes, of acquisition, for we a to with with year that known of quantity,

David Saxon

be Okay, $X and ballpark so it sounds for contribution? million the right might like

Robert Stefanovich

modeling think fine. Probably at that's but purposes the for I end, lower

Operator

time. with further There questions remarks. please your closing proceed Speakers, are this at no

Jerrell Shelton

discussions. for Okay, thank our your Thank questions and you. you

to the and and quarter effect. are results based improvements year guidance. feel industry positioned economic gene market Thank the improvements joining therapies next move in and our on you and delivering revenue of as recent a product to Cryoport its we look your next built therapy have In top strategic cell capitalize and services our momentum productivity while actions, we innovation to and with the continued our to Operator? confident approval results year. is and appreciate the accounts, liked, global encouraged company. echoed interest today. as to in controls life services support again few in position a FDA therapy Thank progress our challenging climate, is growth. start you. approvals, focused over increases support Though on expand XXXX. cost and commercialization to and updating diligent than seen is we on we quarter. priorities, and will our & the the expand in We you will new in our XXXX progressively through current sciences the us And geopolitical would market Our differentiated rapid was XXXX Even full our expected substantially we've and expect support forward our our remain We remaining evening. We you more first on with our improvements market remainder and Cryoport environment. the products, have improve for margins good in of well we take achieve particularly receive the cell softer and gene years growth hope and through on summary, continuing during initiatives

Operator

this Ladies call. today's joining. Thank concludes conference and gentlemen, you for

now disconnect. may You

Cryoport (CYRX) 7 May 242024 Q1 Earnings call transcript