CYRX - Earnings call transcript Q2 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Cryoport Second Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded. I will now turn the call over to your host, Todd Fromer, from KCSA Strategic Communications.

Todd Fromer

Thank you, operator.

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

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

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

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

Jerrell Shelton

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

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

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

progress second across the During continued revenue as units saw each sequentially. business from all we quarter of XXXX, improved

the for gene out from another in support This life-saving demand XX% this sequentially, strong these revenue these Our the commercial especially ramp cell demonstrates year-over-year treatments. therapies and quarter, reflecting step therapies. growth of stood of XX% increasing and

Biological XXXX business, Turning MVE government, the to and primary for cryogenic in existing for modest saw continue as softness quarter to the improvement to previous MVE customers anticipate We Sciences remainder and products as delay experience industrial to continued demand we academic our product capital Solutions, overall Life Products sequential and capacities. extending footprints lower continued for of expenditures as systems we of compared years. into demand XXXX their a leverage

to our that clinical on of progressively revenue for experimental, Products and guidance research, improve to with to Services, expected our into $XXX to purposes. Based we biological range workforce and day aligned flow contribution million MVE. are the direct commodities the We not as next have to Life expect demand executed revising management purchased strong sequential and excess our must to $XXX are produced Life million of cryogenic the revenue cryogenic commercial manufacturing is MVE reduced across full growth facilities demand current XXXX. of at as to it's view, systems our from X globally expenses continuing year eventually Longer we XXXX current Sciences store ensure matter a the market capacities revenue absorbed. and/or created and the if an over This SG&A demand in and cost are when, systems our quarters every softness continue and for positive cash be for term, anticipated improve Sciences

alignment capital we to be call, mentioned reduction infrastructure with our the and we as and as building capabilities our -- market more well last earnings line of build-out measures As global the on been pace or in have realignment cost adjusting current implementing environments.

half moving Cryport's positive of team implemented made financial initiatives results in the and progress on cost $XX impact actions. has return of -- to and our our approximately annualized many for will of the anticipate $XX cost goal these been adjusted reduction and million this in substantial be We and in positively by second XXXX. XXXX profitability of implementing toward approximately Our we working have XXXX will diligently fully a million savings, with EBITDA end us

and initiatives we successfully Our intend across cost on enhance performance Through to reduction we growth and global are to growth our our our our cash our us customers execute continue which process, flow. to efficiencies profitable operations. optimize markets, drive generate these operating key service and as in realignment capital in key enable actions, plans will operational positive

effectively. the committed Our it ensuring to and and to entire intend management of team success execute on leadership is this and we swiftly plan

monitoring cost we're of industry while operations view our daily adjust our and obstacles business. overall environment, cost initiatives near-term long-term the our any our to realignment to addition economic strategic related In cutting plans, maintaining for and to

growth, to to intend $XXX flow addition through position. cash we and with strong we have positive sheet quarter In balance actions ended We driving maintain generate million a balance underway. a the expect we continued also to the sequential revenue cash

chain ensure as growth preservation plans, commitment key services profitable strategic to capital to we global conditions. include take our our and market long-term providing initiatives cryopreservation network as and for in well platform the reduction growth supply current consideration IntegriCell our Bioservices cost our balance center Our which into Solutions

Despite through recovery these, the the exception confident industry we with sciences XXXX. will likely Our remain remain broad life for team we of is think China, which well are challenged the market challenges aware in a we of facing. short-term

positioned our this across the us driven to And ramp in currently Our of launching confident been combined of current reduction realignment revenue will therapies full pace improved, year are has and have revenue therapy includes our gene by and offerings, to we start to further expected And executing picking sciences. allow from should service for diversify with products commercial and clients. our in markets as our we half significantly cost support. year-over-year capital this funding sequential and year have clinical market-leading benefit our We of when approvals this as improvements we remarks. and initiatives. goal XXXX, well XXXX outlook growth services are in second new earlier, comprehensively prepared long-term return our support part on of revenue streams my new mentioned I Biotech quickened push growth our profitability. This and concludes the up. The all business and is cell Cryoport the remain our life the and

ask the for open Now to operator your will I the questions. lines

Operator

Your first Instructions] line of [Operator Morgan Savant the of question comes Tejas from Stanley.

Unknown Analyst

is on Tejas. This for Edmond

to on First, the start guidance.

anticipated guys noted expected softness sequential services in revenue growth you continued On in were factored products and guidance. the call, reduced into the the

the relative by wondering help So each continued me better environment million understand the if versus ramp the muted How Science magnitude impact of Service lower midpoint. for you can reduction $XX it to the was Life driven a at I was much MVE?

Jerrell Shelton

want Robert, to that you do question? take

Robert Stefanovich

we And back. change picking about Life companies guidance, in And also the sequential really in which to business. for not of we pick And other in Services Yes, X.X% us, without up that's obviously, side, reduction is a but many general, we really that's is absolutely. promotional product that has certainly outlined, at in MVE XXXX. been fact Biological don't it's Solutions, up Products demand, really When in midpoint. Science picking and by midpoint starting expect the the look not in come up China forecasting in driven, challenging but we is growth from as to see to expect expectation guidance our that do revenue. that going the 'XX, to Look,

XXXX Chinese recall, business market, have we out has XXXX, and earlier which in the in QX significant of you As dropped XXXX. of

look to sequential do flat expect grow. did maybe pretty Services the side. of we be year. to see on the you continue growth. is issue that expected will at remainder We just So the product highlight I much one to if

not see to of the forecast able growth, of in business, QX enough over for trend did a So QX an we sequential be side but product some demand. it's our increase to

grown, XX% as continue a in our and Bioservices other the sequentially service growth therapy grown up some On has gene cell of XX%. robust, we the our to That's elements so and our have conservative growth grown. more year-over-year offering the for the very has earnings And significant then and stance. side, services overall space. that release, of clients, has very, on as you've revenue both seen at expecting well. services support we're taken commercial But we've seen

the going in that funding the increase towards significant of that cell JPMorgan eventually, growth was significant as particular. growth. at the increased you half, look to as at the look have side, out the coming of and kind be But more with really the funding awaiting albeit robust. think very side, optimistic, companies you optimistic advancements a if inspected, that be second in think trend has gene I not will were of most year, everyone And people will aggressive half the therapy to if second and there in it's initially while be a realized continues drive hopefully, I on a expecting the more optimism, cautiously side in earlier in

Unknown Analyst

the Maybe helpful? the side trials what guess up you on Got on it. color product the expectations then be how the confidence revised would are and ramping on with guidance, versus color how from guidance? second I on on backlogs and color some some on orders kind in could sticking your half some side And provide you provides of services new

Robert Stefanovich

a have our spend as more from, on the exactly a significantly a understand to business, approach taken demand We clients. second coming driven what's on expected. our of really And I very, is well spent think of world for we the hence, product them with where significant lot is time the around our to distributors muted very expectation half. -- we've which side obviously, lot as be time by direct of the

side on think discussions the bit have in the one We I services the commercial related therapies with of expectation expectations commercial launches clients, and with to gene of supporting. a different weekly specifically discussions the therapy currently and space. our it's already little do the we're cell

also of trials. clinical in As record we've earnings number a release, you reported our see

ready well we that seeing for getting year-over-year clinical we're as more well approvals. see BLA, And filings in therapies are MAA as growth as as So the sequentially. trials

view So expectations. terms there's certainly fairly of robust growth the in a

certainly expected really and come I 'XX. growth we lot grow side beyond, but 'XX in in, to think the in a to progressively of expect to the services is continue

Unknown Analyst

And one last Super one for it. me. Got helpful.

your the initiatives. growth key On guys outlined cancellations today, actions about in guys facilities, into or while talked delays consideration new taking you you cost that also

online come this expectations earlier you And ones online, clarify and 'XX to come delayed think you in and for the this infrastructure Can and the your X to therapy year, more global year been ability canceled? the sites which on impact 'XX. gene to I and cell IntegriCell chain of how supply have will establish come capacity inflection? actions expected noted ahead which having X was and to these center

Jerrell Shelton

operations. fall These under Mark's

I'm that So question going Mark. to to turn

Mark W. Sawicki

The them track. facilities, on are Yes. both IntegriCell of

will business In the fact, starting their at quarter. they contract end both for doors opening be of this

and anticipate track contribute doors from on going starting to but they 'XX, we they're in standpoint, a nominal to have although them revenue the are obviously So opened.

all of those that progress. to are facilities other you discussed, continuing The

that of have other areas are we bringing the strengthen. However, through and markets the some modified the demand until aspects online some facilities of and facilities in cover can pacing high those deferring of infrastructure we

differences of any within the the some there to service of So some There in cancellation areas facilities. is facilities. those isn't pacing

Operator

of KeyBanc. comes from question Knight from the next Your line Paul

Paul Knight

the this like equipment COVID lot on growth back of do up burning MVE, end, a do MVE? 'XX. on tough long-term had I comp And it think early rate you not guess, capital a They spending behind budgets. think look Jerry, of were like you when we companies What of looks was As aware in what would kind factors there?

Jerrell Shelton

about analyzed good ago. a it. did more know months than question, we've We what a now we lot certainly happened several Paul, It's and

as money government a and money, was free lot of the I buying. basically knows. period, at of COVID During fear were was was a X. There mean, everyone there lot there grants

And capacity is the so built-up in marketplace.

because actually and we that have that diligence In not it built-up. that we bought We We happening. at was But still over our was was did was crates. in a during know the can years' -- done thought fact, thing product time that actually of it was history some seen XX MVE. looked what had time natural I due

with used is up But distributors customers, up. So capacity our an unprecedented in with this an our and as capacity being was used because being are is is unprecedented that conversations dip we conversations we're COVID condition. that in

all don't will not it it return the after know It some and sudden, had return, were factors. there buying. people was that X%, grants was growth the money they were likely. grants a capital extra will XXXX fear free were rate. cost of But and It on had China was -- And then capacity. until the we people and we most no the to a up. was those putting it So money, expenditures government government was think brakes

temperatures it's positive scale in storage demand it up the adjusting. is cryogenic cash There continues for biological is business. of that This and It is So just that perpetual. great produce commodities. business. down flow. no can a is We to And to alternative a

Paul Knight

therapy the data ARM be, be volume translate takes it we would for gene And for funding others. would and a a for guess fair that to assumption? My question new into and that for a from you. Is Mark see cell and funding while

Mark W. Sawicki

we I is What that increase the earnings the It I sequential is. Yes. in mean, about talked last is obviously, trial honest, be account. Paul, positive, call. to clinical very see

activity, funding that the money positive continued execution. pushing that very clinical matriculate is as directionality it sign I earliest of which that's indicative relates to think down that anticipate to system. into the into back I is And starting the

Operator

question the Larsen next David BTIG. Your comes line of of from

David Larsen

color you're Can in contribution helpful. commercial just products be about revenue you the supporting? on of them China quarter? talk The And number then would that any the from now

Jerrell Shelton

Robert and then aspects numbers the with other that will with We the Mark question. We'll on start David. take can, of

Robert Stefanovich

Yes.

the on revenue. So just commercial

increase if you increase commercial quarter, XX% the had So sequentially. we for at look about XX% million, and so revenue a $X.X a year-over-year

performance, approvals. the some that strong in bit talk currently supporting. on will the therapies reflected not our about Those out. recent will announcements be more of are obviously, the on reflected but QX So a few we're performance Mark in little quarters

revenue. commercial strong So

forward to as good a going pipeline see continue We well.

comment So Mark, to want do this? on you

Mark W. Sawicki

be will volume guys on -- at market significant really substantial at move line now for won't drive a nice Carvykti commercial Sure. and mean, you half they're now second now at they Yes, label products, obviously patient good drivers, Iovance And the and really, to volume late although products, to the which based the and a online obviously and going couple Wall earlier of is their look of if expansion, and product, the then therapies line, just have the CAGRs consistent 'XX the products, I a population feedback, year these the the to look had approvals, potential BMS bluebird they modest obviously, we coming we Sarepta, BMS went forecasting J&J/Legend then it, in they've if analysts, got additional XX,XXX starting. the with space. And to is CRISPR/Vertex, subsequent then Street of for ramps continue some 'XX be is in of moderate you Kite/Gilead now they XXX,XXX. they're Abecma earlier patients quarter, have on

think continued the that's issue, going patient you they if about to improvements in that's accessibility issue, nice address So volume. the once -- drive that, accessibility

addition, this substantial In another X in is there's year which positive. and potential 'XX obviously approvals

So yes, X the we through potentially have mean, -- could I we of filings the also balance year. another

David Larsen

China? on And thoughts Okay.

Jerrell Shelton

a stay while, Yes. David. it economy going improve China that think through XXXX. will is and don't for the to is there in ditch We

Robert Stefanovich

China very this China to point, At Yes. -- revenue related small. is the

So in we're revenue little related to a X% China. just total above

there the us for risk So is minimal.

David Larsen

last quick then one. Okay. just one And

academic board? is? on medical the any MVE, seeing any research Just certain more centers, Is Is entities? are on where Is Like, weakness across certain it large In it the demand? channel terms facilities, countries? more biopharma where labs, the color color weakness? of it we

Jerrell Shelton

some question, Well, as in COVID, do it it's a with during and and defensive systems the the build-up with was in in general to had -- I freezer was And it do weakness mentioning in cryogenic the freezers. the certainly Paul's earlier, buying David. market, answering had across -- side, some to both dewars to capacity board, it in

and -- came that built-up and that weakness that COVID during the the across So board it up -- it's now systems market were cryogenic that period. just is right pretty capacities using the been is much have

conversations more clients stream We larger having with the be seems now conversations -- order are stabilizing. and to

fully, we're BioLogistics point fully at and not way, -- or we base like our integrated business. a company. and positive. is Bioservices. partially BioStorage, but think So parts a a by it's MVE. of with sound flow the MVE, still It's integrated cash with with other It is still contributor it's

company it important So profitable. our is it's and an of part

Operator

comes from from question Souda Puneet Partners. line next the Your of Leerink

Unknown Analyst

Philip on Puneet. is for This

touching give what us month-over-month order on how stabilizing you June just trends of us tell what Like, improving MVE? sequentially? about just been how can sort have has the some the book And been has trending you kind on demand been for in exit Could rate talked Just or or about. there? of trending you like color

Jerrell Shelton

Chengdu about Philip, you're specifically? asking

Unknown Analyst

talking MVE. I'm about

Jerrell Shelton

Yes.

is I restate that correct? So around mean, your demand, question Philip, China demand all-time at your is question and I'll an answer the China please low. -- it.

Unknown Analyst

been just I wondering over... on I that for -- as just more the like kind sort broadly MVE on of business was and overall, Yes. book of for color how wanted month China well? how trending just Just order has just

Jerrell Shelton

Okay.

we So pretty our follow do trends carefully. order

the this at X% freezer at level, if at about look but lower a and they they're ordering course, they're It's Our at are is more then for sound of orders trends the trends, than And steady stabilizing point. point. of we accounting the dewar business. think insignificant China rather not are this right -- The order now. and we that that market, our

Mark W. Sawicki

think it's it say data trending promising, just looks at while look Yes. upwards. I to you intake, if that it's the not order enough just

Jerrell Shelton

say No, that. we can't

Mark W. Sawicki

the think to really a largest of demand It's We I because the provider of cryogenic know when is come far MVE by question expect do global the reality. market. stuff that's come the it back will in And back. we systems

So measures XXs in in coming to already as make an as perspective. obviously, of back demand back, is sure perspective, volume EBITDA it's be demand. comes MVE a high-teens It will back, from the margin increase. generating that come took the beneficiary And from gross starts profitable. contribution We the that that will in

Unknown Analyst

makes That it. a then follow-up. sense. Got And lot just of maybe

kind can to of lot meaningful your for we just the you? of benefit constraints You like is different is impact. of just or and what ask next terms year? touched on top-line wanted sense on manufacturing for around there's accessibility point, And of what this Sarepta, a estimates flying label kind side. kind But assume of capacity this expansion for on the therapeutic in like of To year your how

sort just think how wondering about we So of could that?

Mark W. Sawicki

Yes.

you XX,XXX revenue is we a anticipate at 'XX. patient a take label the if population through a the data, significant about goes year, patients increase Obviously, up notable predominantly then So and step-up. QX look the in with to eligible expansion, which a in

overall. very we're optimistic very, So

Operator

of Stanton Your line next of comes question Jefferies. from the Matt

Matthew Stanton

Robert. one Maybe you, to for start,

half pacing show and for the up you could like the positive top-line Are or without might just can certain in On here can if year. in will XQ the meaningful clarify help of year of terms And that adjusted EBITDA and million back expansion? you you in of the the adjusted of saying the outs? of rest cost it positive on that the Anything just to of XXXX, 'XX growth in XQ? that then EBITDA any get basically in us $XX to show savings, level assumes with you some revenues up a start what with annualized sounds

Robert Stefanovich

No, Yes. absolutely.

adjusted quite even sequentially, look, EBITDA, adjusted look our can performance, you significant you QX think, EBITDA. I that in was a see in there the improvement if at

we've reduced about EBITDA quarter-over-quarter. sequentially half So the lost

and Now the side, year then QX, measures And we've products of in we to taken initiatives in taking the QX. MVE measures last reaction slowdown just some both the already took -- demand. we're underway the on have significant services in actually, the

We year. expect the end globally of by to those completed have the

that part the revenue EBITDA with for the the ramp, expectations achieve reaching In more with to positive timing areas. of terms taken that that's that to increase think obviously to more organization, for adjusted the us a have from do of we the of goal, expect based the of align the of in consultants modest the 'XX, actions we terms in a expected taken. related we've reduction that full-time of capital the to going on related in expenditures to non-critical adjusted even I of of we've be to delayed one revenues EBITDA, And flow actions dictate but in the that's reduction able some worked some expected cash the growth. then have, them perspective, FTEs And us

Timing achieve rate is a million year, you on side. it is, -- in annualized direct the through do the the of sales then sales That's I on on answer SG&A the ramp run revenue. cost total and reductions as full half. say, the about $XX look be expect in million. And of labor wouldn't direct of of as of second the to cost the to combination well expected depend So side, if But QX, more to than, yes, it. we the on somewhere for the expect remainder part of and around will $X QX at run

Matthew Stanton

to growth going high-single there the been China MVE's had attribution the a earlier important from market historically? more rate of then you point the that about kind what the in or terms structural any guess, one to kind growth China And kind rate Just MVE of can long-term to trying Is to And going in China way or it's mid-teens? a questions the just is of how back growth behind rate. I big that forward maybe is, of and quantify was there mature maybe headwind from how think growth business? of if

Jerrell Shelton

you take that? to Do want

Robert Stefanovich

a question look strong come you if think of -- little come they back, I back. how bit when will Look, China Yes. will at is of they a

take very, and if modest of very MVE that be rates. for looking it kind higher-single-digit growth at you rationale expect both at dominant to and we you at and cash-generating the systems growth just picture gross China, percentage, fact they contribution a look integration the from the as expect a of you rate, a certainly that if it all So the adjusted margin fact EBITDA that the for they're was, from acquiring profitable. We've perspective. player maintained MVE, profitability one, the on vertical and are the cryogenic Again, the

We global the a also strategic as the maintained positioning space. in leader

again, will that So further the to to overall service overall, if contribution. grow Ultimately, the more that expectation comes so time you if continue is our as zoom you back, model much at look at significantly. our out -- going is look over to

if still going its -- importance to terms the integration is leadership, and maintain MVE same and but it 'XX its you still of look it's So its maintain maintain rate growth vertical 'XX, have that will 'XX, strategic at not in profitability.

Operator

comes question B. Riley. next Zhi from from Yuan Your the of line

Yuan Zhi

from customers have you I'm any clinics? from IVF trends there hear an those cryostorage and fertility demand just curious Was one. recently? got to increased observed I

Jerrell Shelton

We parents around medicine And the cryostorage. X, and focus the going improvement us to that's goes volumes them seen strategy significant on established medicine largely that and relationships consistent reproductive versus individuals. networks comes intended with large through not due up over last which our any Yes. associated clinic we in have through in where X locked with cryotransportation quarters, action and with reproductive we've through

future foreseeable the for increases volume drive to continue there. will that so And

Yuan Zhi

extend cryostorage Any have customers? can those to you Got services the to upstream the to it. transportation chance

Jerrell Shelton

evaluating. currently we're that something not It's

product space Bioservices around different strategy a Our really really approach. focused the and is medicine different not is material, gene and focus built our infrastructure around and flow, and gene managing is a cell which cell in reproductive

Operator

Needham. from the Saxon Your next line of question of comes David

David Saxon

for one Maybe Robert.

program, you've are that kind What the been months make XXXX a quarter? then how here burn the thinking about XXXX and Just should converts? next XX do position you've cash for about You you we these or How And so? for talked on the of flow. about cash free making restructuring net the cash think over and was year? for investments but continue XX, to balancing have

Robert Stefanovich

yes, down fairly comprehensive initiatives no, it's slimming the No, significant organization. Yes. quite good the really terms in a we've look you at But they're and taken, question. of if

know, to a both we've as over years couple in you very, become supply and -- chain organically acquisitions therapies. establish as cell aggressively really global gene our As complete the well really platform, the for the built of through to space very last to out leader establish

now adjust is a the us to to and we really where profitable these current So drove to bit current And really growth. profitable to that drive have revenue, the time little initiatives demand. really really market implement

piece. So a main that's kind really of

operations cash look used the $XX.X If at million. was you the cash burn, in $X.X was about about half. million CapEx for first

can at CapEx that you we've year see already compared CapEx. time, So last Last to down the the we year. about same dialed expenditure have spent $XX.X million in

net million of debt transaction. and the protect about $XX after positive number drive measures So by a really we're cash. We're taking to this

significant look to operate leaves the in and and investments strategic to think $XXX that million us discount. business short-term And approximately of buy a I back us pursue at million the of, gave $XXX XX.X% convert, cash an dry power at buyback ability that we activities. if our an with

the well really entrench with kind in us any into had market will wallet and of cutting base the therapy client strategic and that the I Mark of that a have Jerry sheet further operational really our from drive key global So within and initiatives more the execution think the mentioned, think organization. perspective we increase share space of these performance initiatives, sciences growth we're cell balance our life from positioned it's particular. plans as off infrastructure we profitable of And a without and completing to now gene perspective on and

David Saxon

to Robert. helpful, super was Maybe That just that. quick follow-up Okay. a

$XX.X said used first you So the cash half. million in

answers in You a savings question one to about seeing of the in talked in around second $X previous million your half. maybe

we burn, kind should be thinking throw second guidance. to for of then I'll question So just the second mid-single-digits? And half my it relates as

I revenue. think flat assumed prior guide the MVE

coming you want new from down? And MVE, of MVE I even Jerry, or just I mean, the to expectations stabilizing. main the delta the about orders guidance driver all talked So for confirm then is

the is starting fourth orders range a revenue for million this $XX third of million, good stabilized? confidence your quarters So level or MVE have that what's kind of point $XX and for indeed

Jerrell Shelton

numbers per $XX the up. now we don't is running MVE around and little rate run quoted high. that anticipate right bit going David, quarter you at million a are

So that in sequential bit the do high. be We we some a of starting but used excess this it's as growth up. then capacity is and going rather little growth it's we'll beginning rest think year stable see to anticipate XXXX for in XXXX,

that company So as growth in in way substantial very well do is But I and CRYOPDP doing is forward. moving business. It's have look BioStorage prepared Systems and well. the Cryoport services we the the that's for both and to think

we forward. do those moving have So offsets

Robert Stefanovich

down Yes. of on file XX-Q somewhat cash Manny you'll the second would restructuring obviously ] half second tomorrow there's operations yes, we some flows. significantly to more used expect in in in the that down you the I question would have flow the have and in the come quarter. as cash [ the related in cash in But to costs your half going related be fourth and and see then And go we have that within the to the it mind, to more second half. but I to table once in detail that to expect But well,

Jerrell Shelton

a those comments minutes. closing those address few general my in points And David, in I'll in

David Saxon

just calling I how relates at, around here and for measuring I'm just excess around how jump could excess capacity it a that through that? XXXX? wrap kind the really Like back as about your kind leave are to MVE, do kind this capacity if of get there. measure I'll fear-buying working I'll like to question Jerry, do how it you Okay, of of bottom growth kind sneak that. And great. you in I talked guess, COVID pandemic. in and mentioned you head queue. confident the excess in trying of follow-up in at And And capacity? calling you've

Jerrell Shelton

struggle question with. it we and a a do. very because that's question it's It's David, we very to struggle good with hard that

see to have time. customer in go know if right to still inventory. that of they during some had crates every bought You now of out know inventory. company to I We was would actually do the some had have that that's period that

those. a the by So of the many from with are lot clients that's and institutions -- patterns, and order funded then timing we all funded government. of conversations that by of These from we are looking government. is are way the governmental hard. The The endeavors important funded other are at is because our really very government, biological budgets our users determine research judge the

important. So government spending is

visibility about and it try we not to the where their and the So about all we to that the do we plus is of trying in it's fact with not but things it's But at what this going best business determine plus to quantitatively the continue an is capacity We're the together, science. don't read marketplace. that's by things and -- looking our placed. put orders have time, are. that clients is because driven order those to on when be we not talking can probe are look a pattern, art, at in all just absolutely It's build-up

Operator

speakers, there CEO. I are And further no Jerry hand this time. to will at call Shelton, your questions the over

Jerrell Shelton

and questions this afternoon for you our your Thank discussions. for

Sciences lines Our evidenced XX% quarter-over-quarter. continues of progress in life-saving and all to cell in industry the gene in as therapy increase second these we strong businesses therapies. demand and results quarter business revenue and our -- saw year-over-year our strong from showed particular, the improved Life advance, by revenue the In

support goal and in a We our positive progress We EBITDA next is interest and for not think quarterly we're and time XXXX. afternoon. just trim as waiting in return to move market the continued financial support earlier discussions updating aspiration, and us mandate. Thank about help improvements. quarter. keep have will that back you review growth again We're the sitting from our this We our and you in appreciate at our us I that can company. on forward reaching we We're a an us same proactive serious not in sciences. you for hope a forward our adjusted our profitability taking measures your remarks look of Profitable my tell to of you good life it's joining just evening. and advance

Operator

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

Thank disconnect. you. You may now

Cryoport (CYRX) 6 Aug 242024 Q2 Earnings call transcript