BLFS - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to the BioLife Solutions Q2 2024 Shareholder and Analyst Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Troy Wichterman, Chief Financial Officer of BioLife Solutions. Please go ahead.

Troy Wichterman

Thank you, operator. thank Earnings joining Conference and XXXX BioLife everyone, Quarter Second Call. afternoon, you the for Solutions Good On today's update call, financial year performance we revenue will cover the XXXX and business quarter provide an guidance. on full for our highlights and announcing issued highlights and second of release the available is financial XXXX, results Earlier today, which press at our we quarter a operational for biolifesolutions.com.

SEC call, risks filings. statements. These found subject to and As as that date forward-looking in statements of a to statements given, undertake These make them. our reminder, speak only and we will during no be uncertainties this update can the are obligation we

this We will GAAP metrics of adjusted also Reconciliations financial to issued speak are included adjusted press afternoon. results. non-GAAP the or or to in non-GAAP we release

to to Chairman over like I'd Rod call the CEO and turn Greef, BioLife. of De Now

Roderick de Greef

Troy. for us deeper Revenue I'm CFO; our for revenue our Garrie and afternoon, BioLife's Call. results look QX and by Richardson, grow Second as Troy Thanks, thank Today, you to offer a Earnings biopreservation our who will franchise. strategy market-leading Wichterman, as joined XXXX joining BioLife's into Good well Officer, our Quarter Chief

processing revenue I'm another begin, report core quarter business. cell of in To to our sequential pleased growth

underscore through environment, improvement we in operate halfway specifically we our the the year, Now these are the results in. macro that belief seeing an bioproduction subsector

our products platform. our behind largely services from freezer us, is legacy BioStorage shift processing cell high-margin by away platform primarily revenue With driven the in strategic and our our

increase year. headwinds in last to revenue. On macro continued posted late QX Turning X% processing sequential and increase total to XX% year of in a an sequential cell We industry-wide revenue ease that this highlights the the our a level, began quarter. from in

research our destocking pressure earlier-stage For BioLife, direct proxy market in customers we our from and segment. revenue, sent for which view the strength a focused continued less as distributor larger this inventory

a resulted modest results, the processing cell call. increase of will second revenue with XXXX outlook Troy in guidance, in in the our half Our later first for which our combined half has to speak

side, we will be recurring continued of strategic to product the the to streamline strength with efforts our On our increasingly offerings. positioned from benefit and better the consumable business,

margin that unit GCI April. the of The our You gross and positive in financial exiting committed divestiture is margin XX% job we're will of XX% an million reflected of possible. QX revenue. and not freezer EBITDA and adjusted efficiently $X.X Freezer adjusted divestiture the is the as or to Sterling of financial realize We or announced we done, quickly impact as results remaining of recall in business our the with clearly GCI

completed. less Although is for the XX% CBS and transition represents drag margin generated it margins, expansion and further adjusted once EBITDA was that we sales, expect than quarter a see to positive of on

We will provide warrant. updates as events

drivers XX The market approximately with regulatory year back II therapies. a new indications X CGT lines approved that of trials continued our with Turning include commercially CryoStor. In XX% the earlier growth revenue revenue overall of for media momentum U.S. supportive the utilizing BioLife Phase treatment forward QX, in last trials environment and started Phase clinical sponsored the commercially that and relevant X the III believe for specifically the excess for sponsored cell of processing. market-leading of we of in trials to and that biopreservation clinical We share have segment, fundamental CTT. environment our share regulatory

direct better by Our to relationships allowing exposure customers. commercial our similar we and the the partners. X these end bioproduction deep commercial additional support growing And have over the see with next XX quarter, our therapies months. We're of was at the excited to embedded provide us opportunities an over XX developed therapies. media years, approval in to we and

by encouraged albeit higher realize progress customers modality we continue margins. this mature. direct become revenue to as to and evolve, to We're we expect believe early, continues evolution, these and this pronounced more which will to As enhanced

the biopreservation confirms in CGT premium BioLife and support services, leading the which share clearly bioproduction that market a industry. is provider media tools industry critical established and Our and pure-play picks of standard ourselves the shovels, we as fast-growing have

we steps to positioned extremely industry focus cell continue that optimize to more to space and platform, on our headwinds As continues benefit business the to our ease BioLife the take as to is processing ever convinced mature. continue I'm well necessary than to

some to insight strategy. Garrie, sales QX over on I'll and turn Now who Garrie? provide our revenue additional the call will

Garrie Richardson

in core to Rod. Thanks, sentiment continued here processing be our an activity base. second uptick positive we quarter, customer see call Good to across the again. In

sequential revenue above For as XX% product increased of our our non-biopreservation in growth all in million acquisition media, million continues QX. We $XX from driven cell biopreservation particularly our The be processing increase in lines, a through in our Biotechnologies achieved demand our across products. revenue our [indiscernible] XXXX. strong media reminder, to including platform, which or came performed sales processing products, QX majority of expectations, and to HBL BPM $XX.X a by in cell and sequential

continue account with of market revenue half reflecting direct customers. And spectrum XX%. totaled a we approximately sales, XXXX from BPM BPM The XX% to customers Our coming second approximately approved and of therapies compared having that BPM approximately customers of the revenue. Distributor XX% top for to represented improve XX% of to XX amount, CGT revenue which of continued broader as see the media

platform a approach. Our cell processing features growth for two-pronged strategy the

CAR engaging targeting applications and an CTT committed by as T growing promising example. This we're non-oncology leading both diseases entrants. early-stage share our market First, BPM market maintaining includes autoimmune new and to therapies with oncology new of indications

early-stage the key building just mechanism In not with have access exposure partners and but robust product to cell to these distribution developers in BPM a conjunction ensure our products we're processing that portfolio. addition, entire

tools. our recently to thought which cell Matthew to customers our case AB thanks key been we're example have, nearly to place cryo efforts which of leadership cases, customer and interest. generated Second, the for expose initial in a some key strong processing introduced other our dedicated BPM is our A relationships, in effort leveraging Dr. has this BPM decade of to good cross-sell the ongoing

the bags. recall Cryo final the ISCT inherent dose. uses could case the intended impact industry-wide we first its compatible introduced of we rigid the ever which the may to and use issue, cryo container, cryo the the in replace which on bags is initial You cryo in for standard May Based at CGT that is standard case cryo believe testing, positively particular

for and Before to existing like conditions facilities market our get handing our call services and as offset briefly growth revenue touch where see in storage growth stable to services over general capacity. our closer This category. within sequential modest platform, Troy, to other I'd to services BioStorage we as continue on full products by the that was those remain reductions

I'm We other as exciting position products. cell for an provides an in still processing-related position have the portfolio CGT leader performance continued that have the combined market in the revenue early the the enviable we of basis with underlying the of and this of field media, confident industry biopreservation trends future.

turn Now the over will I to Troy. call

Troy Wichterman

Garrie. you, Thank

our continuing any Rod current will gross primarily from X% a this X%, April revenue was XXXX a operations Total And which financials from to GCI due is platform, to by or year-over-year. on processing at Custom increase for due noted, excludes $X.X $XX.X results. our capacity of processing was revenue related related decrease margin sequential mix, X prior the biorepository reviewing cell sequentially and from from compared million, XX% The financials prior primarily with XX. efficiencies Global we our $X.X product operations decrease and operations operational As representing XX% of million continuing process The was Cooling facilities. of primarily includes The period be call, million XX% only, utilization the year. second we QX in decrease cell on in platform. of was which Biogenic reported LN continuing being year-over-year revenue. Adjusted or up in quarter Systems, our X% the higher freezer increase QX a to in divested. We divested

$XX XXXX to costs lower reduction QX compared for year. and primarily expenses the $XX.X personnel The operating is from due in Adjusted in expenses. million on focus the totaled prior decrease QX continued with force million XXXX

$X.X the XXXX. compared QX operating loss $X.X in adjusted Our was with for second million quarter million

Our in revenue was the processing GAAP to improvement greater in by million million X% operational in a gross the due costs year compared The our with $X.X our to $X.X lower compared efficiency, investment due personnel [indiscernible] or the increase in to due to loss margin increased Adjusted going of $X.X prior of driven platform of write-off second revenue. prior decrease year. from was prior million primarily year. by EBITDA in and cell offset of XX% or XXXX partially the revenue uncertainty $X.X net EBITDA the QX in million for [indiscernible] net a status. Adjusted of was loss $X.X million concern quarter

profit Our in million adjusted gross QX sequentially from $X contribution higher EBITDA increased and to primarily decreases professional XXXX, fees. due

balance to Turning our sheet.

EBITDA outflows related million cash balance $XX.X $XX.X offset sequential positive The to during million by the XXXX. decrease marketable continuing from XX, partially $X.X reported by driven was divestiture This Our compares million $X.X June end quarter, and approximately adjusted the of primarily quarter to cash million $XX XXXX. in securities the at of at cash of first cooling the million global was our operations. of

XXXX. million beginning debt with of $XX was $X.X Our SVB million, long-term balance repayments QX quarterly in

million to revenue guidance. expected guidance $XXX $XXX is X% $XX.X reflecting growth an Total to Turning million $XX to of our of year million, to updated X% be revenue to to full our original compared overall million.

revenue product services services product lines. guidance for XXXX our ThawStar platform BioStorage expectations includes processing discussed, and The on based previously any devices freezer filling not automated our from is BioStorage and line. does As platform include cell

X% contribute of compares a processing growth XXXX. This platform million is guidance to to $XX X% $XX.X Our to $XX expected original million, million. to million reflecting over $XX our to cell

growth or our X% services expected a million on XXXX growth platform X% X% to BioStorage million. and $XX contribute XX%. $XX This like-for-like original to million to guidance compares $XX.X basis, million Our is to of to $XX.X over of to

count, XX.X terms in diluted had basis. million shares in fully our XX million on and shares issued share August as of a X, we Finally, of outstanding

I'll to open to Now back questions. call up operator for the the turn

Operator

[Operator Instructions]

And come Johnson with from the first question Stephens. Jacob will

Jacob Johnson

nice a quarter. on good Congrats obviously, processing, quarter there. On cell

and XQ number, I of get You calculator my annualize right this just the is to increased guidance. your the I guidance midpoint if

cell quarter the the is cell year? repeat they more in of be back And we year? the why in in third, Or aware kind back the that So in of X see a question, not some this? of may of benefits I guess there onetime assume second then conservatism half and in pickup should questions. Any the processing demand we be I processing in shouldn't the of half guess

Roderick de Greef

We line. your to don't necessarily respect have as strong mentioned, on question and so X in to that with particularly QX, Gary did Qs a the Jacob, X. product that quarter in expect Yes. repeat HPL, we

at we're when half think I to against against that you X% half at a implied half. -- look really second looking half over guidance guidance, half increase X% second our first the actual first first

think feel how articulate pretty as to best here being good of to we we sit the half see So that. conservative, the we've August. we of done year our With beginning today second about respect in I the

Jacob Johnson

Got then, it. And Rod, you. with maybe sticking

mentioned that quarter, last update point? your process of that you're we product from expect to share? like you portfolio you'd there internally. initial think some some any I Are kind Should at findings reviewing formal

Roderick de Greef

so been process. the We've much on And some cell in we next we've processing the review, trying as lines, strategic months on be but think outcome call, a to you XX to clarity the that divesting on the freezer further last I streamlining focus position should the progress can. provide made not of Yes, platform, on right? really spending the

Jacob Johnson

if And maybe too, it like more you're can Got call, you and working both lastly, about talked your well, and customers on how that. going? on cross-selling Garrie, Can about just quarter, this distributors I last you sneak are direct it. just elaborate just -- maybe with efforts in. on talked tools, you sounds one those

Garrie Richardson

Yes.

relationships in solid clients. formally I we're of things because particularly push to product the to was to excited the is these we're to We've and really that line our these And the that's it. having and really case, media. it be really like And instance, product. Sexton obviously seen addressing we've around success it have, market, right, do, that through, effective is that a we of the we're to what with relationships innovation, think got trying cryo hands biopreservation what need some see for things utilize homegrown of those we're great the right? And super able put about that people the think legacy super I relationships

leveraging Sexton I biopreservation So former that, Sexton comes effective combined media lines. think to think, kind or super when I and it the has been of

Operator

Anna will from The KeyBanc. from come Sapkowski next question

Unknown Attendee

Paul. for closely, funding be clinical environment. commentary was seen one, would have on substantial Anna whether if tracking ARM the I seen starts. it's more the around that data pretty improvement. is more your We've This business, and just affect I it's sequential around you've just or we've wondering trial activity been pretty and Any just overall this helpful.

Roderick de Greef

Thanks, Yes. Dana.

as I impacted funding particularly the before, to really think commercial environment. well are the overall -- and the by talked direct we've ones they're funded, you are that with so our therapies not customers

And distribution seen I the compared particularly on of our the that who we've earlier distribution revenue and larger that side impact growth accounts. that year. we focus last the we the through research distribution, think to see on have, the solid where stage is type partners the we generate

So to funding environment revenue. dot can our that's of connection kind with the best that we the impacting respect make

Operator

question next Jefferies. from Matt from The Stanton is

Matthew Stanton

progress process, you past? maybe the a of margins quarter. XX% are dollars given comfortable Nice any XX% see of XQ, just plus sooner that's of reason in for around on flattish kind the kind couldn't And comfort here about processing in rate XQ, maybe in cell we bit any EBITDA the you've exit half, still into the talked the just the I the the here exit Are given this but guess, that rate a with plus year. color back little

Roderick de Greef

target. We're still Matt. Thanks, to as that a Yes. committed

about all think the as because it's next that that of before, with growth along media the over comes talked quarters the several we've revenue I flow-through growth.

CBS, expect year. going to we going other the the EBITDA aspect to prior of that's which end margin to adjusted happen the think I the impact of the would to is be divestiture

things target to feel achieve we've stated. So good that about allowing we those us that

Matthew Stanton

clinical when on you be as maybe then potentially And a hands cryo from customers? you've then in getting talk it? using feedback one And the about just they Can gets validation customers' launch. so the to it And process case bit when launched early any could been we start Is Is point looking beyond, Any of of to the few color and customers side? you can numbers months? think it about side commercial provide it 'XX finer more terms contribution now at you've any another in it? there? in that

Michael Okunewitch

Yes.

yes, for -- the So I think question. thanks we've

a had early stage So interest. I think we've of lot

the time client. in think some right? is that obviously the the, really to I right I validation think a but of on of are it something by through it is early hands when the is comes driven this that process don't that I to in want And obviously, -- going particular to be is their the protocols challenges market adoption put stages, I going own really the depending around, think people

market interest you an I conditions. the product but So time is around there give couldn't due to I exact line, great think the

Matthew Stanton

from commercially wouldn't to the a be try able to Okay. there anything allow commercial that, or the is just supported perspective, terms Maybe standpoint? swap and regulatory therapies on-market from on more to one this product of just on side, regulatory in that

Roderick de Greef

don't that, do is I've well. that regulatory this been a aware of Not also point, I made challenge. we think do some at I think as have But that ongoing major authorities to outreach no.

Operator

And Mah the Cowen. Steven from from TD next question is

Unknown Analyst

more from a mean seem platform, prior you -- mentioned that quarter. easing the processing customers cell destocking be on you color pressures quantify that expansion any or anticipations how maybe or are the new there clinical way have from questions. using us with destocking geographic products. indications? One question I impact cell increasing much from and is versus of is guess, just companies it or how some on and follow-up Congrats processing was ordering it approvals engagement the can on I much to approvals between give But you

Roderick de Greef

question. the for thanks Steve, Yes.

one think if I in QX I've granular. I the doing are out customer. have which large were direct mean, clearly, asked large plus to it's we know or past, looking at distributor X X said that. get was of to direct last us it's a customers at Where as difficult push look we today, perhaps we customers year, And orders. that probably you that

of you to Jeff, headwind. particular trajectory that So -- sort easing of those just give a of the

Unknown Analyst

Okay. words, replacement Is cryo a in then on question In right. follow-up workflow case. will that impact All physicians And other that for bags. a drop maybe cryo the using? currently are

Roderick de Greef

it's is think a particularly closed it We nice a in fit, was designed which for. system, what

think addressing of are the of cryo And which it take consider don't has change really use massive and I of bags. terms in see you So into impact in particulates, the workflow. the we as account inherent potential issue when of it a

to is is in change end workflow, worth than a there think I user. that the the more for that extent trade-off it

Unknown Analyst

appreciate maybe Okay. that. one more. in I And then sneaking

the have some guide, square biostorage you overall the comments, some that it the the into lower given color recovery marketplace tied of prior end of maybe kind Can and in seems happening? us seems that to the other On the range. of give be sentiment away to with and

Michael Okunewitch

Yes.

So with that to continue growth regard storage, to the in see we platform, sequential area. with

solid. So that's

Some we courier excited of partners future. about based have product market of to some resized but fleets bit the the on in their line a our the little be EVO continue prior conditions, of

Operator

Capital is Lake next Thomas Markets. from from Flaten question [Operator The Instructions] Street

Thomas Flaten

cryo products? case, And just the remind sticking with with the theme that's us compatible of the if Softstar

Roderick de Greef

what right have effective our not device. -- with is Thomas, currently compatible now, to it is definite although be the is It bag our

automated vial with device thaw definitely is compatible line. our product device vial vial our So our Celsia

go the bag road, to at introduction. kind be the down point device the would a same likely for cassette some the device of So XXXX

Thomas Flaten

CBS EBITDA one product million margins. of quick line I EBITDA mean the positive. a divestiture just a potential Got single-digit on that's it. on then a And impact

OpEx to the able be of many about we out So bucks. might are million you talking a few strip I that mean, here, middle how millions of

So can that? you put some around magnitude

Troy Wichterman

correct. that Yes, be would

So side as the recall, CBS well. you as on low margin is a growth

obviously, rest we that being, that out. the OpEx of So can strip

Operator

today's gentlemen, Roderick And concludes to session. de ladies closing question-and-answer over any remarks. Greef I the and would back to this conference turn like for

Roderick de Greef

Thank Chad. you,

in tools the environment. through BioLife of on biopreservation amount high-margin second underlying half industry, position market-leading strength our year, self processing to move that we adoption the believe be to the position services this future. in and on excellent As continued macro we provide the is plan fundamentals and portfolio CGT of increasing We other those will capitalize our recurring there an in leveraging profitability drive of of revenue and in revenue and to the expect our an

you you for of calls and during the Thank time meeting we today, your updating future participating at investor months. forward conferences and look you the upcoming to coming be some we'll with in on

Operator

has conference The today's attending you presentation. concluded. for Thank

You may disconnect. now

BioLife Solutions (BLFS) 8 Aug 242024 Q2 Earnings call transcript