BioLife Solutions (BLFS) 14 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Rod de Greef	Chief Financial Officer
Mike Rice	Chief Executive Officer
Dusty Tenney	President and Chief Operating Officer
Chris Lin	Cowen
Jacob Johnson	Stephens
Thomas Flaten	Lake Street Capital
Mike Gokay	KeyBanc Capital Markets
Carl Byrnes	Northland Capital Markets
Suraj Kalia	Oppenheimer & Company
Marc Wiesenberger	B. Riley Securities

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2021 BioLife conference. [Operator Instructions] I would now like to hand the conference over to your host, CFO, Rod de Greef. Sir, please go ahead.

Rod de Greef

Thanks you ,John. Good afternoon, everyone and thank you for joining us for the conference this call to review the operating and financial results for the first quarter of 2021. issued the release, XXst. three we financial summarizes afternoon, for results months this a which press our Earlier ended March

a are regarding actual materially call, and this the may company future reminder, cause make acquisitions. of risks As projections These from and its certain that statements financial we performance differ other to events expectations. results future may statements to or or subject the forward-looking during uncertainties

they affect of to forward-looking the the business to as risks other required based For the a that statements, or subject these you change, on except speak therefore, update company’s projections statements forward-looking that uncertainties that company refer statements, law. and public to detailed our forward-looking qualifies are and assumes no discussion SEC. Company with given. any and are and and The are filings the projections I obligation filed periodic only factors date by statements as of

will we release we or adjusted non-GAAP included alternative be press the call, viewed to should adjusted in metrics financial this GAAP. metrics as this afternoon. or financial GAAP of speak to or issued These non-GAAP During not Reconciliations are results. non-GAAP adjusted an to

prior use M&A we our to of investors light in However, or believe of that adjusted a view periods. activity, results of compared financial when the clearer non-GAAP with provides metrics our current

to the Mike turn BioLife, call like I’d CEO. to Now over Rice,

Mike Rice

our you Thank joining everyone. call. afternoon good for and Rod Thanks,

Joining strong Operating to start Dusty Rod Officer. We're President me and XXXX. today to a is off Tenney Chief and

to nearly count stage new a $XX to of which year the over to initial customers set few XX% it. XX, In for team gained compared dry a year QX, with So customers. booked QX. and XX will revenue XX XXXX, we're I'll the speak an in our Rod full revenue we increase of we product adoption for to XXXX, of XXX increase making stellar strong get of the executed new guidance record portfolio, The the of million across full the Last year, minutes. right

our expanded Sir global Aebersold of the promotions Schulz revenue also VP We with human. to leadership officer. chief team And is Marcus

same Amy Lastly, the Rachel record $X about we up media gained media period platforms booked therapeutics, by orders, make about in safety biosis. million, customers, a starting in and Zilliox. New nearly I'll Ellingson. new our the Directors, strengthened and stock X.X far XXXX, board COVID-XX you in at comments Celsius booked Ross, as QX. XX some was three including therapeutics, we addition and We know, media. of de preservation, of media with cop related revenue our which X% tough sell, over galvanize when with revenue million buyer We hyper

or additional new in products and Takeda, confirmation We an also media used seller media Yancy be allergen approved that and kite our estimate XXX five Scarda received media from clinical therapies will We nearly trials and clinical have for Mustang, customers, Bio, into Carta, incorporated community. used including applications. been gene our that preservation in cell marquee Carlos to into sticky from These XX Yonson, Yes, Of our these our can believe the cell Bluebird, a media leverage therapies. for to Camita products viral is customer Celgene. a in customers we could the from that from that used franchise, that is get continue Yonson Cipla Beckman we is Celgene. from therapies few approved next market. engine we the do clerestory from When [inaudible] Bluebird new also quarters. in from cell Ida cell And Ellie from include cell and

gained the of new freezer controlled we'll XX same $X new million XX% family. nearly thought XXXX, and to a in capacity services and in Q. tools our over customers our production we rate of and revenue, booked development completed portfolio the freedom freezer We high increase perform platform period. thought Our In

over $X.X cold of increase XXXX. users, gained XX QX size shipped was including to the which for inside booked services foster revenue demand chain customers million which continues April store revenue in We stave new new of evil storage to of cold includes first $X.X three services. in bio a and mid The platforms, current storage, our million platform, Evo, XX chain safe increase. our final We customer

and position we class, defining to a believe acquisition on be of leading ultra update as can supplier would production further continued like M&A, growth and to buyer tools cold. our Regarding strategy our an active give services. an Sterling I accelerate of solidify and

So I'll ask acquired all we Dusty and and the upgrades by focusing integrate Dusty? system to synergies revenue continuing are to on efficiencies. we how provide some cost comments organizational on companies

Dusty Tenney

Sterling's globally. ultra over cold adding realize to new market U totaling freezer during systems significant traction quarter LT continues customers XX XXX the

energy emerging market customer and biologics gene Within unique chain new cold cell range temperature efficient, only a to temperatures the minus these is establish C a ideal strategic for as for footprints and partnership announced have virtually modalities, within ultra power that cord. multiple systems ultra to temperature requirements, XX capabilities Catalent these to low minus global operate full between the was the therapies. deploy anywhere can storage, in in any the global flexibility by and Sterling's ULTs XX cold Sterling ultimate system that low recently world. location freezer system simply companies in This including enabling ultra a of single biological changing provide is

Additionally, the engine, these footprint, The also combination Sterling has within on use culminates parts. only class of star, application environmental has all being highest freezers freezers, of Sterling its on capacity moving two of both market benefits. rated any reliable of the attributes energy in Sterling that extremely systems smallest freezer the which of are the sustainability output having the the proprietary lowest superior lowest delivering and heat energy market, ULT given

applications which Annette engine his complete commercialized XXXX, to XX% demonstrated increases recently and an within provide of C. to distribution. even record sales potentially roughly these Sterling ability biotech, could XX concept also sales of therapy the us Approximately more end our government flexibility this strongest finish year. on property a can of a at be gene spending. storage EU of given balance within with year seasonality supporting falls sales disruptive offset and of the The capacity and XX% and testing clinical experience during operations. level delivered holidays, slightly expanding into and intellectual support pattern If temperatures attributed fiscal to technology, the by some million QX building cell of cryo pharma audited the research XX% proprietary government of We to for substansive of with biobanking does vaccine a XX.X achieve minus off XXX market proof within XX% Sterling academic revenues COVID of leveraging business similar Sterling balance strong to historic our The summer support

During critical role biolife midterm. our the factors practices structure. in synergy of customer the are chain eliminated focus assumed supply in cost clear across and have later initial the the quarter built with that optimization have sales the in outlook agric the improve half, experienced in marketing, not complimentary guidance nature identified we that that be new a for [indiscernible] into second Across networks enterprise, in or as have cost share factored portfolio, energies discretionary discretion, across and include, integration portfolio, half of further reach have withstanding budgets. will the the will our launch has historically QX, BioLite to best and These rod and and In targeted that some already slight energies as improve products that the productivity be gross our and near in not we counter to call, pickup into was opportunities year the the second G&A are our given can typical of enhance business, guidance. area leader on have information the I operational spend to spend we've capital their in These technology, the the been expenses recognizing of to Sterling and that are distribution shared performance identify into several we but rationalization portfolio. reduced expanding of selling limited there geographic efficiency products, the the begun to cross business opportunities you

turn the to over Rod Now call I'll

Rod de Greef

X Thanks dusty.

Total revenue As and and as solid storage freezer the we mentioned into revenue, on three storage which we our sequentially. revenue, over by quarter modest the bio includes last the resulting million, revenue our rental first $X.X XXXX, safe last revenue, revenue which reporting sales, bio quarter, categories consists of size well revenue lines a which acquisition revenue media and XX% over our freezer over preservation representing media, prior quarter, streamlined platform, was October a last last automated first have year's increase a call product $XX.X for the media of up for represents XX% as all total million thought which $XX.X million increase total of X% year. from includes platform

QX have related pull included approximately we year's believe discussed, of we media demand last million revenue as COVID However, $X.X previously forward.

sales that of rate over platform, from XXXX and approximately media XX%. increase XX% high by or quarter, which price was below shipment freezer to X.X driven this freezer, So the including normalized growth Revenue freezer quarter we year capacity slightly first strong an a had totaled thought a estimate the $ sales, of year this million for compared rate $XXX,XXX. our

platform bio is Our in The last of in to billion compared year. XXX,XXX which our this size generated increase $X.X acquisition safe, primarily revenue total of last occurred attributable revenue storage QX by to year. sales

lines, of the quarter this with for last gross XX% compared year for decrease this margin XXXX place increase $X.X the year, QX with this margin expense total QX the lower reflects for support QX of expenses increase primarily size operating product XXXX, revenue first the and the the margin to quarter compensation of of accounted was $X.X of to compared secondarily in revenue growth. attributable with last overall inclusion count acquired was in head in profile operating gross costs adjusted adjusted of million our XXXX Our quarter, of quarter, XX% adjusted year, compared XX% in and XX% in necessary which for the not safe million stock-based

it shareholders $XX full Sterling. in share net related cash shares million adjusted outstanding demand media XXX balance than last the million inclusive million. year XX We were impacted demand. the Xrd, are year on to on $XXX year, of on million. positively higher adjusted On issued basis. Last of issued May of contribution of be of currently COVID the by flow-through guidance inclusive based period. that both million and now come and QX quarter expect income million same X.X flat year of March to noted in expected million to million XXXX fully provided a our million to $XX an contribution period X.X basically originally of diluted million XXXX million X for $XXX the EBITDA with XXX the XXX,XXX XXst on per Sterling will from forward net million, accordingly we approximately $X million increasing adjusted at X for with strong XX.X was XX the year we and to our or that have should cent diluted Pull cents Sterling. income the full from and And adjusted $XX acquisition last between guidance net totaled revenue adjusted the X.X last shares expected quarter based compared in we first EBITDA call, X.X same compared which continued to or of first revenue million was $X million share XXXX our per income XXXX of or Sterling shares was XX.X the On for Our

Now call turn to I'd over like back call, to the Mike.

Mike Rice

and I'd sites members. Thanks we're lifting team to outlook. customers on portfolio. to our takeaways summarize key and like your with and of Travel to We're across great a the restrictions the our meet are back start off QX the from rod. visiting rest road,

on in so far, Sterling We an life. inflection play expect results, throughout dusty very of our QX confidence critical to strong team a year. accounting customer and the on products and services be Sterling continues demand a buyer QX based into crush it role for our to XXXX the year our integrating rest to for The

to over to the operator take questions, turn I'll call John, your Now back the

Operator

remind like like would At this a if would to question,[Operator to I ask you Instructions]. time, everyone,

Lin Chris coming is line question First from of the with Cowen

Chris Lin

for Mike. questions. Hi, my Chris, Thanks taking Mike and

how Dusty, addressed with the was difficult would this of temperature you the know this will can number for I space. increments be appreciated. it specifically concerns So and call and point from this that investors I details one be investors question enter microbiome asking during are how to competitor thoroughly a provide but received is ultra last technology all today, low call, the any differentiated

Mike Rice

that one? Dusty. Why take don't you

Dusty Tenney

and, of for question base Okay, the Chris. Thanks the and representation share the there.

that a is, a ULP really think market, of there's take you of you single One our to standpoint, to when making we're growing is look I couple I portfolio. that think meaningful. terms know, and the a things around at investments which definitely market the key it's are from digit mid the attribute in from, the expand high

also share I taking, think the we're in market.

reach. we're relationship is, as to the to And third of you And the the market out clearly probably in an multiple through visibility flexibility the market. ULTs. market and that the know, space, right touch the opportunities in ultra throughout start there brand terms of of we're is that that clearly be about think virtue COVID addressing. period And at different in that in cold respective comes Our China the used highest that's I exacerbated growth in opportunity the really particular geographic that, has recognition think I of now, points today Sterling the that's by under-penetrated markets to the the tool can mind

So those think it's things. I three

growth. the I market think it's

and I that have think we're in that that some a fact today. playing we in taking a, the we're it's not share the in market opportunities

Chris Lin

how a competitor long be just enter take So you. difficult technology you guess, space? I just also this competitor? Thank for, how for it Maybe, Okay. really larger a develop would you would could this address it to to

Dusty Tenney

have is well that portfolio. the which brought the technology that patents been Stirling BioLife one protected Well, leverages into realization a we have, patents, is with there's

Chris, I the For ability a successful, be to the sales and we challenge, on relationship the established. of and the with with of into be have One someone especially a market by to distribution with of was virtue get course, highlight, the number a we with into And That's get global part, real quite establish basis. real that space that, just honest. entrenchment that to recently is Catalent to we breadth customers. themselves, global a especially that tough have critical of

Chris Lin

helpful. very Great,

Just $X think What's two me. guidance more million for questions I if the full-year. increased apologies I missed the this, revenue driving from by you And upside? but Stirling

Dusty Tenney

down throughout when expected. strong Chris we that's that just It's demand continued to back QX to in in rest been fundamentally March. our versus put the guidance And coming we out near-term, see the of continue It's the year. both in than stronger expected

Chris Lin

driven great. question. the customers? new the progress in due media unpack utilization Okay, they're bit just a being to as customers last existing us detail? And strings Mike, Is trials? is the you help clinical by of Or growth more increasing it addition through could they

Mike Rice

very need both progress trials Chris. media. really new and more glad clip. a also detail. media They at much well. factor in preclinical or even to in customers is stages progressing and the advanced their increases, But of buy phase, capturing they market the phases but as through clearly don't biggest early development. It's fast so Thanks, customers clinical but some customers Yes, seriously, Great question. that needing provide do the later existing impact we're to we're to enrollment as continue acquiring more really the what's and to comes from the I'm And existing

Chris Lin

for question. taking thanks my Great,

Mike Rice

Sure.

Operator

[Operator Instructions].

Jacob from question Next coming from of the Johnson is line Stephens.

Jacob Johnson

Rod Hey, good and afternoon, Mike, Dusty.

Mike Rice

Hi, Jacob.

Jacob Johnson

sequential if that to guess of segment? up They you revenues in the on picked the any that just maybe first growth talk and looks nicely, case, sequentially. about services was want just I it like in segment, color Hey, confirm kind question, the the growth evo

Rod de Greef

Yes.

more my or streamline of on be per you trying comments quarter, less Stirling Jacob, the revenue. even somewhere to categories, around are and when plugged smaller revenue. of we at look revenue both And to mix into X% thaw when representing going So they're evo, because now, X% early total we next than it's the X% like right

we a growth something are nice unfolds. that evo pretty have from the visibility sequential say some that seeing we're but bump we that that can had them bulk is and call biostorage a that item some -- the kick is And timelines as was on growth line large increase when some contracts specific to out I revenue but to pretty the in. decent to and the up. that are there is separate starts side, do, of not of there ones Because in revenue So going there's what strong as some terms typically, with pretty with signed are associated SciSafe

year. optimistic confident about this pretty we're and contribution that So

Jacob Johnson

got one for Thanks And maybe question for Okay, Rod. it. that you, Rod. other

look did I freezer the the million just shy during if you at in segment, and $X revenues Just thaw quarter. of

like think I does million kind back I year. the but segment similar talk doing, benefit that if you're to Stirling? $XX this to in the of at to one-time quarter? don't out that something million any about the product specific segment that to Stirling, there you're in guiding I seasonality Or for is $XX there for want seasonality dusty outlined -- Was lines,

Rod de Greef

I something going Yes, Dusty think highlighted. we're to QX in that that similar see

strong core Certainly, on a as relative you many don't has the that's had high think, the that have I line. with for high selling revenue just But $X.X million, have and capacity here. to we now the product mentioned, I the those line impact company rate sell ASP to some QX time. very of freezer, which a to nearing certainly, positive been has we that introduced quarter

Jacob Johnson

just it then question to maybe it. wants whoever one got tackle big And picture for Rod. Okay,

the or talk defined three to million of segments? more we expect, growth three kind get similarly? of two years? important growth next goal those we you million drivers have four of each we these should Or put or to segments maybe kind be one growing you segments Just, the all look about How Should and assume now profile you to $XXX the newly think of should about, out or $XXX out we this they're goal? these revenue in four Can of years? as

Rod de Greef

then rates. the look would XX%. this, I just is Jacob, $XXX over Yes, slightly you rather right, million, What that would at growth expect than get we specific around when say

go we thaw have and storage we that freezer come coming Now from from expect line. the would and to storage About on XX% XX% come from to platform. Stirling in would that board, media, product from

Jacob Johnson

should it? question and Thanks way. Rod for on ask that that quarter. the Got I congrats the

Rod de Greef

You Thank bet. Jacob. you,

Mike Rice

Jacob. Thanks

Operator

Flaten Next question Thomas from is Street from Lake Capital.

Thomas Flaten

Good morning taking Thanks the questions. for guys.

Mike Rice

Tom. Hi,

Thomas Flaten

Just that and expansion said a I might you'd little pushing be I you've month commercial the here. XX that, bit know products in But XX see to likely window. Mike,

a criteria. ends number expansion out Do in to those to early small products got too from terms commercial if a couple selling of you're that really multiple product it meet that see thesis that terms is -- is of that You've bearing of products? in you

Mike Rice

too bit more therapies several I mean, A quarters. still now. next five in, I five four get early mentioned, who approved CryoStor the in approved we're Thomas. could Sure. using

thesis attrition, cancer not I mean, several is that fair takeaway I all we're right. serious let's to specific or about targeting to going be so on there if And clinical we're be think of Tecartus XX CryoStor in probably the have there's XXX, same form many the our applications. going used customer HypoThermosol they're in it,

we and three up they're next that. But believe on staff to five nevertheless, to that shots that a review, XX we're could what And goal of such market year new fast see to those is can we in for upside the XXXX. if doing there's many have the to say do years, us side approvals XX starting see, where FDA tremendous they to that could then on and each actually over support going media the big so the we alone. However, number track applications we in

Thomas Flaten

else's and bigger picture use phrase question. Great, someone slightly then to a

opportunities. the are you do Or Is versus look Or the there board? skew a As preference product you there? service? potential opportunistic of at acquisition you out a have across universe

Mike Rice

consumable course, to targets the find Well, active, disposable we're falling trees, growing of for those I certainly And could revenues going with aren't do can like try but aren't think if there Those media be we're off find or Nevertheless, meaningful margins, to those that have opportunistic, of is we immediate so. we response and many are that that some left. us. first.

Thomas Flaten

one. worried prepared was Dusty I sure seasonality you was taking could those Great. caught made if in And caught then not just comments the notes. in that the I up one if repeat you properly. I'm I final comments.

Dusty Tenney

the government of slightly summer centered the Yes, was used fact QX some by slight is phraseology U.S. business holidays, offset in turn downward slight in year-end really that offs, I there spend. so, the around Thomas, European that level by but there flight, driven the the fiscal

we capital QX pickup experienced The second in normally year-end slight the the virtue reference was really that's and just spending. of where by

Thomas Flaten

Thanks so quarter, much. guys. the you. Congrats on Thank Excellent.

Dusty Tenney

Thank you.

Mike Rice

Thank you.

Operator

Instructions] KeyBanc question [Operator is Next Markets. from Capital from Gokay, Mike

Mike Gokay

To up the growth you're approvals approved numbers mentioned earlier any launches that and visibility to media media. significant that? guess guidance two potential talk the commercial on baked the commercial into I were preparation any call? of that pretty you the commercial on in And Can looking step that and and the you that the of stocking forward, in was baked XQ then implying in revenue in XQ, just

Mike Rice

This is Yes. one. the Mike. take first Mike. Thanks, I’ll

into meaningful just should part. the calendar whether I in be not or customers can meaningful expect we're to would this for order that But take remark be approved stocking get we Rod revenue or companies the -- that. second that So to gearing to they for media. going not got going their up contributions with want We're attribute recently commercialization. to my we to flow for customers, leave year, say you would us meaningful

Rod de Greef

we've Yes significant the have in we a concentration the pretty about media in Mike, revenue sure. past, Yes, talked as business.

it the have agreements visibility, provide last, gives of the decent months with they And versus say was us with, XX forecasts, customers some we those us and supply before bulk choppier getting little over what so visibility. it's in which decent through to us forecast. then that customers out of larger of some ones some starting placing gives habit the are to actually it the And of the which get the year, balance nevertheless, But correspond that. also a

visibility on chunk we're So we of a is. Why have pretty pretty confident about where media that that, business. it good

Mike Gokay

implies first of $XX And I gets full-year. mix. run to side. into well. about Stirling for $XX then, the overall kind once rating thanks. it's dynamics guess, BioLife million of to think, quarter Dusty baked of Great, of million you revenue on maybe new guys. $XX.X But revenue then, million, that. the kind the guidance, Can incrementally, was that I the much into the the you how run And talk as Thanks, Catalent announcement the

Dusty Tenney

COVID laid I seeing and of into business basis, Yes, strong if from that business inside the take what the QX. a I some I total upside were share observations think Rod at guidance a in One over on we the to that and we're bit so to you fact look -- byproduct of look a linear little and in you had to as say revenue. provided Mike, what a a of things the that that, demand sort like the did perspective provide would to profile, see that relationship very in right relationship

seeing spill is and build guidance. out of And the come So that and by as by the of over. a given supported the dynamics, through both And business. the that we're to benefit that's again we're inside continuing in in seeing some research that the bookings as side, continued effort capabilities of level a terms result, COVID that of construct virtue

a the with see in $XX to we're QX range categorization operating to QX, though basis, again, shared team, a by linear downturn, just expect virtue you of on you million Rod linear As that if noticed. do that slight bit extrapolate $XX a the a little there's million of in we even just

Mike Gokay

the announcement? the around provide you Thanks. of was on Can the guide And any driver upside the color of that? Catalent

Dusty Tenney

that that the Catalent globally, the of some from So baked building in we've and in over has a as are guidance, of done incredible work last the that that of got years two an relationship. been a or part expanding byproduct relationship perspective we've was three they

Mike Gokay

the Perfect. Thanks for guys. time,

Mike Rice

Thanks Mike.

Operator

Byrnes Markets. Carl from is question Capital Next Northland from

Carl Byrnes

also progress. and Question on your congratulations

Mike Rice

Thank you, Carl.

Carl Byrnes

up was on XXXX. year-over-year to Looking $X.X approximately $X.X basis. would number million think COVID And and I the the purchases you'd at normalized up have safety in media million sales to XX% X% related been mentioned

a So my COVID have save has in follow-up question. purchases is, question point? here at impact then the XXXX this And the off the from baked I

Rod de Greef

on would Yes, pull call forward what customers saw permanent the when demand know if safety didn't that early was place, rest was simply two recall I result our it you think might year, in were that year. the it last were happened, a we we of if we in revenue putting that be stock or of minds, that reduced throughout

a pull forward at lower think to they this was I pull based demand forward. was and on point, that throughout the confident bit used pretty it probably we feel little that say really it XXXX and balance XXXX of

that QX of QX this this zero in year. of of impact think there's we So issue

look the to I in as again is number But better talked the in reflection, at we we our go past through that's way calibrate try media it's rate go from does forward that to think XXXX. to we've us. to behind lumpiness. view, year-to-date sort year, the perspective, XXXX. it'll had And And because best a this as as about in we've that be growth of it the the the smooth So create going bumps through our out

Carl Byrnes

of feet Got Catalent was that it? being expect garner I vendor on you're I'm also it. a That's if Thanks. in able If agreement. what spend just to would to preferred even addition you very XXX quantify recall a helpful. freezers, to timeframe expanded wondering commitment correctly, there And follow-up over then and

Mike Rice

XXX the Catalent facilities the ready, place. around specifics are Yes, agreement actually at deploying their them and their facilities of we’ll in we've so got that time systems. an the with those a is be byproduct And getting

that again baked take our will the likely place back over the here most and earmarked, outlook, been into have those So of the over but half year.

Carl Byrnes

Excellent. Thanks again. congrats so and much

Mike Rice

Thanks.

Operator

Next from Oppenheimer. is Kalia Suraj question from

Suraj Kalia

Good afternoon, everyone.

Mike Rice

Hi, Suraj.

Rod de Greef

Suraj. Hi,

Suraj Kalia

the I arms the an If we can between call, last correctly Stirling, related COVID COVID so business. of Help something to us basis want to we from on sort once incremental make sure come get I was this? normalize our ex-COVID $XX so million related. Dusty, for that we million understand was of $XX just Hey, there remember around out

Dusty Tenney

in so comments revenues I'll framework, to XX.X, here today call COVID. during XX% Yes, we what and the about, framework speak of I'd to relative attributed targeted roughly just to we Suraj, for the a say directly saw about as were that XX% my the

to experienced the QX. is So million $X there, about in $X roughly the what of we dynamics is and math million that

there declining mentioned I focus COVID. of now sort before, on is As a

So we've COVID seeing actually most and in actually outside environment, market in that were of the the areas biotech. comeback bookings pharma QX experienced critical the in we're the

Some part. market, as of trials where even clinical and business, taking that an play place the in the well our are studies products in as important in extremely bio-banking dynamics the

seeing from specific you with by dynamic areas So share on the least market what here. at some least targeted all in up that a business. perspective, guidance we picked other I being within we decline we’re a perspectives have have But can reported is actually that the that

Suraj Kalia

contribution was of And Stirling, be that's I would Dusty, directional COVID specifically asking for incremental off still specifically I'm terms about and Stirling? range the in

Dusty Tenney

a like looks a it Suraj, line bit, number then. lost or something and little to say about a you or a Just we percent right were

Suraj Kalia

Gentlemen, you sorry, can bad, is if my all right? me line hear

Dusty Tenney

Yes.

Suraj Kalia

was about to asking just I XX really? XX Well,

Dusty Tenney

What's the context?

Suraj Kalia

Hello.

Dusty Tenney

hear? you Suraj, could

Suraj Kalia

in us picture, this have Mike, revenues one should I driven right can Mike cross and we Again, selling like has we’re of I'll a heard acquisition my Mike, and all Mike, headed, How always that the call. big gentlemen, offline. hear metric you this on just directionally the bad. per you question, me, hope looks it that guys given that think where talked is to the we terms is give specific I the can hope in metrics you right? past large me are line Sorry your customer about of strategy. part I all heard my take and efforts. where

Mike Rice

three, QX any by complicated We conference quarter some much we to all QX, it’s we're the get weren't right I on, pleased and QX, related modest refining Well, going given And four to or illustrated the Suraj. present or COVID had sequentially customers most the stuff to where working Suraj about We're sell. customers we the not publish the I'm solutions. seeing still Yes, two, to in have to visibility question, even face. from how in start that increases we increase, because is on to to of have calls, environment restriction better five yet, thing speak that had how it on more it's to face now sequential because working. ready one, many index database more we we're think still or travel but it that,

capitalize optimistic with more we will able this much now that leveraging, road be customers to transact that on obviously other the core we're the the cross them of selling So visit on for can get customer will portfolio. and accelerate the and base parts media

Suraj Kalia

down. margins Got When it. I'll you in back And thank through gross hop taking and in in and for advise you from there contribution, Stirling re-model would a took beyond, take Rod, for queue, Obviously, margins. Gentlemen, a last a question QX perspective? the And gross how flowing questions. incisive P&L starts was step-up for you.

Rod de Greef

on Thanks, is Suraj, in basis, an Suraj, dilution adjusted based margin, there you just some XX% has somewhere gross to range. bet. to running the Stirling that been operation the to the be the On fact going XX%

it gross to we is lower be percentage the apply was. take blend, our from expect revenue that you and were what if than then of current margin you'd getting an then them, that, than So adjusted

margin, the have Stirling, the has about large better margin and XXXX. significantly that gross freezer improvement, margins QX part, And one product year, fact march down a that I large than as strong in think that and record side, out that we particularly QX, to there's rest then out Dusty going it’s line. there's the very of the at the margin significant into that to thanks through be to then gross some CBS laid further CBS, we in where shipment in of a path talked probably had we both

five, expectations it. front of Still an there, in back feel returning with for a we'll on our that of five get Suraj? adjusted So, sort into the We very margins, basis, there. confident

Mike Rice

you don't the Wiesenberger. question up why call, from queue Marc John, the

Operator

from Riley Wiesenberger B. Marc have Securities. we Certainly,

Marc Wiesenberger

question. taking afternoon, appreciate Thanks. Good my

to CBS much Celsius, the you potentially? as differ reserve the the CBS about versus line? around strategies talk the degrees nitrogen impact the into from Stirling temperatures Over can go might kind looks And Stirling growth and expectations freezers liquid market for medium-term, of the XXX the how to that product get would maybe or lower how the demand Stirling

Mike Rice

questions. really insightful Thanks. Marc, Sure,

integrated together, folks all we've compete that So any for freezer an sales now opportunity. stitched don't really have Dusty, these to now opportunity to platform and these why our team speak you

Dusty Tenney

on part a about Sure, as direct Stirling of BioLife biggest is on Marc, roughly with top that resources sales. freezer complement have to came one is network of distribution strong we business overlaid so the the all that of now course selling of attributes, XX

So with the think we line that selling to have CBS we're here to customers thing they're most both well The relationship within key you stakeholders need be the organization, Stirling now different those of to dealing line. are and that several respective that sales the modalities I as research is doing. in key as our going these understand

be to that and similar combination natural extension Mike business talking the with that exists. have want or of approach have various of think within evo about respective And tissues. terms freezers modalities customers offer we of And customers targeted with the CBS And earlier research to on on very, most Stirling ultimately XX gives focused and buying us very all inside a therapies that cells very focus are the I regime, sort because example, now as note those some buying now and opportunities that materials. blood, clearly as CBS, biological on put a we those noted complementary customers customers, doing up that our natural business either using we is actually are in the in that how are media, typically to those of sell that's really on, of urine also minus customers to Our products. why business an related

having opens really really serving to penetration the of the in to critical now both XX get it So that it, strengthen we as up standpoint, spectrum of some XXX. some ends doors. that capabilities really between mass go we minus after a biological pathway a But market by and have can market and minus from leverage virtue

Mike Rice

let's Dusty, whatever basically to But short is, displace everything LNX the and think part Marc, the Stirling XXX, not. I LNX will infrastructure, is there's inference certainly if at two, in then offer situations needs. in the answer we'll minus it And in where fact, have the portfolio running think, take customer can commercialized, that I be

Marc Wiesenberger

That’s correct.

Mike Rice

Marc difficulty think It's I opportunities up would mechanical because particular the isn't Yes, temperatures. opens as And to renewable would today, challenges that LNX, in any getting the not actually, a not it's are space, of in the if the there a take of into level it Stirling we opportunities complementary. resource. quite that honest, really that of type be it taking in and terms competition in that it's world there space, the Technology that in us believe, create have away CBS, from of places that, cryogenic

Rod de Greef

we guys not three also part speak this Marc’s mechanical, time, versus Marc, of freezer to the now, rates we and then platform not growth the we're thoughts. And at including it's LNX are was, of and have prepared various to question

to three platforms. even portfolio rates going to speak not we're the So the of growth

to that kept So one.

Marc Wiesenberger

more was expect of can you what kind to the it, to time, sales announcement what represent? CDMOs over your and and percentage play partnership, kind prominent CDMOs very information, and role as nice how to percentage more maybe of evolve could and Catalent of did past relationship come of with sales they gene Got maybe represent to broadly, talk Catalent in of wondering, therapy development continue helpful. in lot cell that manufacturing. Very you a a with I'm the

Rod de Greef

scheduled Marc. a or can my I finger I a research. if space that, success think the media, in-play we the service, everything of we’ll you expect those some hands reputations, do uses about to to out And number. maybe try at that time, can various only in later But the And CDMO some replicate media ago, were And already we've years it's but corporate could we realize there got get our CDMO, portfolio and the of talking complicated. another able at follow-up selling expect call lot other that, If the maybe tell that our customer with to it, be we're not CDMOs relationships, more Yes, with we'll to in if can XX to we've degree, we in put you solution that like But to fully degree, that with questions, on time. not, portfolio the to does. were on by and now couple if some replicate large dint takeaway little to I one CGT and the our this from revenue we in right right the good CDMOs now. less ability leverage had all the Catalent is least a

Marc Wiesenberger

taken out you. for last And rationalizations? of thanks. one of maybe duplicative timeline quantify the you one. those will Great, Could Thank the and potentially be costs that the kind the then system year throughout

Rod de Greef

have Gary a And can of is I we still perspective over Stirling though that, think of go work what synergy to a we a CapEx as freezers. concrete I don't yet, Dusty No, is is want And lot from the SciSafe do. really a a all there. user the of to on example side. say

that's And We're buying by to in the year vendor. saving from order Europe, be other so moving now. up freezers there Stirling $X new opened location alone, million this some approximately versus going right in to in outfit in being CapEx

Marc Wiesenberger

Thanks. helpful, Thank you. Very Rod.

Rod de Greef

bet. You

Operator

this any Presenters, time. you may have We continue. questions don't at

Mike Rice

forward a that our as QX by operating very night. is clear, in BioLife. to companies. is our This everyone sharing Good Thanks, interest looking John. It's off built we've we're totally acquired special evidenced Thanks customer here paying for with We're that dedication our results extending to focused, culture your results. and you. team

Operator

all conference participating. you today’s concludes Thank call. This for

You disconnect. may now

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