BLFS - Earnings call transcript Q3 2024

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Q3 2024 Shareholder and Analyst Conference Call. [Operator Instructions]. After the speakers' presentation, there will be a question-and-answer session. I will now turn the call over to Troy Wichterman, Chief Financial Officer of BioLife Solutions.

Troy Wichterman

operator. you, Thank everyone. Good afternoon, for Earnings joining XXXX you BioLife the Call. Quarter Conference Third Thank Solutions

On me call Chairman the with of CEO de the and Greef, Board. today is Roderick

the our full XXXX business financial highlights We year provide will on performance revenue cover for update an quarter and guidance. and

results of we is XXXX, financial announcing available issued for highlights at release press operational Today, which the a biolifesolutions.com. our and third quarter

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

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

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

Roderick de Greef

report Quarter further our as in Thanks, operate, BioLife's Call. to growth belief I'm is Troy. relates you sequential This of strong us joining and to continuing macro the that improve. subsector Good to our strong it the and revenue afternoon, a which Third rebound Earnings XXXX consecutive bioproduction for period another year-over-year. quarter, demonstrates we for thank pleased environment fourth marking

and detail an EBITDA Adjusted last compared the processing reflected profitability X% This revenue in is that same high-margin in financial XX%, a year. XX% and Our XX% our at a results divestiture than the momentarily, margin streamlined fortified market-leading we long-term see margin delivered representing to cell the ever continued came I revenue growth step the quarter in positioned evolution. adjusted processing strategic yet pivotal underscore our our confident another balance expansion. proprietary of platform shareholders. drive I'm of directly XXXX. serves our which top of is year, last and totaled These but and through this up performance continue attractiveness BioStorage our with margin to gross up increase to expansion sequential million further sheet, of announced X% recurring better BioLife QX business, $XX to deliver streams. Earlier SciSafe for we third as that portfolio in XX% compared in and today, for business, quarter value of with both as cell margin our period will our discuss from this line we high-margin structure we

sustainable year the other of margin realized and based that on of quarter throughout terms QX growth in us will We results, the have to guidance, products. jumping with revenue, this offset to This with media off for focused revenue, decline which account Historical platform's processing a increase. a point the timing-related from XX the by our remain in later of modestly this our momentum the biopreservation was media sequential increased cell which XX enter QX, amount, products, totaled of than our last trends commercially expected we're majority indications therapies combined an Looking unfolds, of solid brings momentum additional indicator or geographic embedded XXXX. Staying vast speak the quarter-over-quarter in biopreservation of in forward Troy an consistent unique us the newly believe cell therapies seeing media the new provides media call. both somewhat XX% year revenue that approved media customers ahead, accounting strength total revenue the encouraging we approved incorporate therapies our our approvals, revenue as with in approximately the X on strong revenue with customers XX%. embedded regulatory believe expansion, We continued year, had which in started what more we've top biopreservation future This processing media estimated biopreservation during our which market-leading of quarter and X of XX% expansions from see CGT in biopreservation for with clinical environment trials relevant of media. sponsored quarter approximately growth. In XX% we occurring products provides for customers last Further, the came that next CGT our revenue. An are direct quarter. the months. product the that to our biopreservation a XX

BioLife provider tools our strategically the support proprietary the recurring we portfolio business and products. is announcement in all-cash balance to a the million up does refocus of cell frees will and processing a our our capital will divestiture at ahead, by the continue be bandwidth, our the of also This high-growth, to SciSafe business. Not it our our CGT products. of step of fortify operational evolution road driven $XX into reagents Looking redeployed processing morning's sheet, efforts a of significant allocate transaction pivotal which core only BioStorage cell growth pure-play high-margin sale our toward

strategic which determined recent our BioStorage accounted review, our core and away was for we competencies year-to-date expertise. from business, QX in million our During $XX further that revenue

we In be specifically to better biopreservation future product required and allocated processing level capital believe would supporting the our of expanding our portfolio, growth addition, and for products. media cell consolidation

role efforts who product has has marketing sales original thank the team year SciSafe. like streamlined our would newly moved become the of Officer. the I founder As for the X exiting of and for CEO a done, result and successful into we're consolidated we their we and job Chief has wish the been Todd, created of contributions with as realize deep Gary product for is the Todd a the to portfolio, as under and right our to CGT last now larger business. Marketing more our key that Commercial who have committed will the Revenue BioLife more years served SciSafe entire BioLife customers. Gary market, Chief relationships over years the personally Berard, understanding future. With with last well who freezer said, and independent the SciSafe our and of and not remaining a Officer Chief as to of XX our Officer, Richardson, line all established has has been

EBITDA for CBS the than sales, on generated it positive of is Although and represents drag XX% less long-term quarter margins. adjusted

steady provide we'll are warrant. and updates progress, events as We making

Our and we market CGT our and of beyond. a strongest to approach reagents provider revenue vision to XXXX our pure-play profitability into leadership distinct delivering we both is drive fully into media. We tools this competencies believe so path value the growth sustained evolve and leverage as can represents the BioLife core and shareholder biopreservation

of provide I'll Now turn call review a our financials. the Troy, who will QX to over

Troy Wichterman

primarily an favorable in business $XX.X The to driven $X.X biorepository with due our year-over-year was company of SciSafe from up compared million $X.X we which excludes in QX to related XXXX $XX.X from an operating head product largely XXXX. Adjusted XXXX. XXXX, continuing is XXXX, million compared in prior by We in at QX better operating for asset financials $X.X lower the was was gross X%, increase XX% XXXX $XX QX related that year. was of Rod. $X.X personnel prior XXXX. QX costs margin million biopreservation year a or QX million in Thank XX% was took The sequential to a million QX QX year-over-year. by the in the and focus were with GAAP end the for from expenses million versus representing for with was mix a XXXX for operating revenue. expenses platform. Total in addition the freezer decrease XX% XXXX for that compared due XXXX reduction in primarily million you, took reported XX% the prior for Today, QX due QX reduction continuing more and $XX.X XX% operations versus increase our media will at $XX.X place sequentially XXXX reviewing prior loss facilities. GAAP to the million in of QX be compared force increase year. utilization to revenue prior primarily Stirling. double-digit count the quarter and continued in to from primarily million QX on The to decrease expenses. GAAP current was year. Adjusted in totaled XX% margin gross QX our third revenue of increase The salt increase period operations processing impairment

third in our operating Our decrease of XXXX. XXXX loss an loss due $XXX,XXX quarter adjusted was in for the to $X.X took compared The was the to in XXXX QX company operating primarily freezer business. related impairment million with $X.X million QX

and $X.X costs. business quarter revenue compared prior million $X.XX impairment share $X.X year. during revenue with media per million increased was GAAP year of biopreservation margin. Adjusted XXXX per QX $X.XX sales the improvement $XX.X in related in our XX% the in or primarily lower of increased to net the QX $X.X due $X.X improvement took prior for X% EBITDA share was EBITDA Our to million of a driven gross million due year. XXXX gross was million third of to in prior net from Adjusted an by the loss in compared margin, to or XXXX the The $X.X or and in million freezer decrease personnel $X.X million company or loss a

XXXX Our biopreservation of sequentially increased to adjusted EBITDA primarily from due QX $X.X million sales media. increased

and formas X-K Rob sale without SciSafe issued included in BioStorage which business, today, financial of earlier non-GAAP results and the our includes GAAP mentioned, reconciliations. to an earlier we announced pro we our SciSafe As today,

ending For versus period would without been results XXXX, revenue $X.X have $XX.X XX, million our X-month reported the June million. our SciSafe of

safe versus XX% reported XX% adjusted been margin have outsized Our adjusted our with XX% versus would would reported. EBITDA been XX% gross have and

without decrease the adjusted profile of Although SciSafe EBITDA forward first there we significant without flow-through our to going EBITDA we XXXX profile will stronger as which slight bottom a has a was have media SciSafe, believe half a in increases, line. for revenue our

consolidating marketing under In and be forward our addition, cost there by Berard. sales Todd going will savings department

our to sheet. balance Turning

cash not with sequential $X.X balance loan of XXXX, reported a operation primarily million was cash capital XX, $X.X million offset activities principal The XX, the cash proceeds from September increase and compared partially sale marketable any expenditures. by of as SciSafe. $X.X $XX.X driven our does of XXXX. of Our securities total as million was This and $X.X of in June include $XX.X term by payment by million million on provided million

million. SUV Our debt $XX.X long-term was balance

forward. to going expect $X.X quarterly making of repayments million We continue

guidance. rev XXXX to Turning

expectations are is on not of previous SciSafe CBS. updating based does revenue processing XX and our evo, guidance platform, from any our cell include [indiscernible] revenue and We months from for which

case guidance ThawSTAR devices line. been ] platform throughout year, has service filling the the automation As [ product BioStorage this includes a

related million revenue from for in guidance in million, of our given the total to reduction to be expected $X revenue to is to our million processing an $XXX the cell which million, by a $XX original sale of of increase reflecting guidance $XXX is offset $XX storage Our $X decrease expected million SciSafe. million, platform

cell Our This million contribute our both X% million, processing growth platform million previous increase of end expected XX% to is an $XX XXXX. to $X $XX of low is high the guidance. and to over or

XX expected includes million revenue. Our BioStorage to $XX contribute months is which services of million, SciSafe platform $XX to

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

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

Operator

Our [Operator Johnson comes Stephens Inc. Jacob first Instructions] question from from

Unknown Analyst

how sale, forward? This depreciation think frame Hannah And OpEx start To any and about going Jacob. gross then like? for we up margins with forma what look can is pro you SciSafe the savings just on should

Troy Wichterman

periods, the months all prior Yes. XXXX. the today out issued lays X-K We details for in up X different an earlier ended XXXX that to

see months XX%. XXXX, XX% of of what and SciSafe adjusted adjusted gross So of margin in outside margin EBITDA X the you'll an

EBITDA that very profile. have However, expect a our going to adjusted impact minimal we forward, on

Unknown Analyst

you're think And could we've here? And but to guiding All puts year. I'm frame about are we should know any curious think if takes And revenue about you over up of if destocking, we're and growth there swings from as should we how and last be starting not some into aware XXXX? right. long-term seen I growth then with the just in XXXX,

Roderick de Greef

Yes.

we'll to time. forward, our And out our that think every But may look wait as respect best the we growth. -- put the guidance, sequential be which we us each said we've going last do your X formal is is and growth believe in do point advance at if JPM to in this 'XX you quarters not to had do in formal with remarks in sequential we expect of while in then be and well of point thing it in you for when think early January year. to would QX QX QX that destocking, I I behind But well to the conference. at taken certainly us quarter particular, forward,

Operator

from comes Matt next Jefferies. The from Stanton question

Matthew Stanton

it able the value. just sale structure, post a areas of be you in capacity some sale, strategically the balance post like just additional business, to being SciSafe Rod, about sheet Can deals, the the deliver position kind SciSafe be of focus about looking do media you where whether adds talked of to focus better the the post to sale? streamline will talk around

Roderick de Greef

include case focus [ which automated film CTX our would processing newly The general as Crow years and tools around we line, line, machine. as steel cryo the is in bet. biopreservation the product includes the back, You be cell the acquired Sexton the product introduced which would well media that which several ] [indiscernible]

from impact And thing I cell to I to position think our that this the on definitely there's our capacity think needs biopreservation and around with into extent at of So we this direct respect would look the those couple SciSafe going of have transaction to only provides or at to perspective, leadership we that. But in attention. to that of those With issue some to criteria M&A with expanding products are very a I our capacity, us the coming the or maintaining anything look processing. any think do capital particular, that next going is a point, years for place To inorganic market do fill stringent. have in so. needs respect forward lion's share an get the that we would that

So that HPL, media. would et It be be would cetera. biopreservation

EBITDA criteria for growth a on us not negatively trajectory that's margin the is expansion other, whatever and increase key the think, both impact critical side on to we're that adjusted do The now I we does on margin that the that because objective side. right

Matthew Stanton

[ the Awesome. over new of going to I And ] crowd back guess then the case. launch

those had of there? like update any successful now, that. folks have whether their a going customers, out that commercially if product you trial of as kind available it's that a Just to launch think I that year quantify quarter. CDMOs, in feedback, this are biopharma be hands what or a And that it look from we CROs, here?

Roderick de Greef

Yes.

end to this. But shape way, initial impression and in to positive. handful through go validation next the about may start our not of of feedback see point any year, customers to in a I early. in contribution of at to half revenue talking of would insurmountable is think kind key end initial I a Matt, sort from at guidance. next expect process significant good, a really generated consider revenue back But There's time, this little pretty customers we that material level of it's It's toward these up year. the form. the But the any some is need or

Operator

Next question comes TD from Brendan Cowen. Smith from

Brendan Smith

expand to a that internally? of help And I restructure could what some business can I'm Just processing just solid can that the XXXX. kind I'm kind of cell questions wondering kind the you some of platform into specific guess next what on growth bit pull levers the you line macro shore trends as previous seeing a getting really some quick us the Maybe But one those on here. continue you're top quarter. up specifically what building within in you leveraged be of of heading are how to year? and of a at, Congrats from on

Roderick de Greef

of comes as a about That's of that our the really XX a from key media factors. fact. would key I fact we've So think that couple revenue One be talked XX% customers.

thing. degree, on So right? success that's our And set, important their is an so some based to

And different cell on year, of driving working other opportunity And historical that evaluations customers some cross-selling can doing. There going where relationship of are a I we pull to have that the legacy customer that far and I the we are our actually come opportunities material had of for reducing natural good expect terms would these I different revenue on area from sort of would to existing discounts. is impact processing into on there different we the revenue to case our have see have the some base. tool in that we past earlier. drive feature we're number mentioned revenue that that particular, with of one products think next success of being distributors, have some our in products toward Sexton end And out happen with customers. so the initial think that pricing large Cryo is as potentially we those, a of deepen also on which

Operator

question Next Anna Snopkowski KeyBanc. comes from from

Anna Snopkowski

Snopkowski the SciSafe. Paul. My This announced for divestiture regarding Anna on is first is question of

your CBS? this this strategy But going at potential about talked during if forward, specifically all wondering was little on prepared your You a the changes remarks. I of divestiture

Roderick de Greef

I speak just I'll CBS, Sorry, think in terms specifically. to of that

throes a to for pretty as business definitely are we transaction. We have We're that the transaction we close, time and committed exiting are in some been through a there. of

tuned stay So for that.

terms today. to products cell the are going forward going in think that processing I higher of ] be be about clear we've recovenue of growth, on higher-margin that platform the primarily impact In sale [ the to of SciSafe, the of company proprietary the the as is focus tried it's the defined fact strategic

Anna Snopkowski

would sense. normalized just of call would there terms within you out cell that largely And say Makes pushing in then or destocking Or at segment? the processing, out looking customer is you is anything orders?

Roderick de Greef

to QX and us that respect destocking. was for believe We that Yes. quarter with a normalized

to started QX. the sort we product really customer in had take one behind customer QX, that of QX, about us talked we've but got As in past, in

believe up here again. barring it's industry-wide pops sort us that So of some we behind do issue

Operator

Capital Matt question comes next from from Hewitt The Group. Craig-Hallum

Matthew Hewitt

pointing X-K. first the thank you Maybe quarter. for and strong a up, out on Congratulations

XX% SciSafe gross mentioned into year. and you in think the about margins, 'XX first beyond, margin thinking as half look trajectory we the of we side? margin could where your should gross the roughly on go, be out I particularly contribution margins mean, How absent your I

Troy Wichterman

that I'll one. Matt, Yes, take

half, the what only So you're but adjusted we've to And profile, side, right? of about key right, first media our how is EBITDA on side. the XX% the the on for growth not financial revenue talking the growth been

to we're gross gross the upper the consolidated overall into, you'll even any acquisitions, the XX% then media some As our on to working historically, internally margin recall, we further roughly initiatives it, in XX%. expand was before drive And call that did margin of ] margin [ help distant future. the

Matthew Hewitt

just the third for some obviously, Excellent. in just nice the X media was drove a extra And then else here, a both regarding the that kind there? getting something business. quarter and sequentially stocking increase? the Was that that function of there of pop year-on-year quarter, Or approvals

Roderick de Greef

amount Yes. for strong It saw. summer between came There's goes the was time that of flow. across demand not related had do just to base approvals we top in ] usually that and a that and us. very decent [ seeing that additional nicely to really fairly by those approvals demand XX with X It

So that's -- by that and us $X is the processing led to what we guidance see happening in cell what QX increase million.

Operator

from next comes Thomas from our question Lake And Street. Flaten

Thomas Flaten

some a qualitatively the of Can just biotechs on from et you perspective? [indiscernible] that comment. they smaller follow-up along the coming on academia, are earlier-stage customers, How Rob, cetera? last comment

Roderick de Greef

Yes.

for through those our proxies our we've growth fine. at coming look distributors smaller for around top around agreement than the bar sequential renegotiation of did -- they're X], from at instance, [ along the demand. we distributors, pricing that I it distributor basically distributors, as X, the those to with and do more had look but customers think seen And those we good large

the direct It's been as for not that So we smaller across well, in is right us demand the distributors earlier-stage for for pretty world, good customers, and only but representing those academic feel the just the moving direction for sure. companies.

Thomas Flaten

growth terms is cell Asia, how growth geographic then to long-term And for with expansion rates respect example, of Excellent. keep in longer-term within to relevant those help up? processing,

Roderick de Greef

less than for right Less comes out Asia. our of revenue specifically the of China, rest believe, of even X%, now, we China

least business do us see while BioSecure whether us, for things that So impact time. going not in material are that, we of Act sense the the like that of important not it's going any on of in it's an at this piece forward, the at or things point it's on, other

Operator

from The Yi H.C. comes next question from [ Wainwright. ] Chen

Unknown Analyst

approximate It's Jade idea Chen]. [ more distributors customers on you do individual those quickly like you you any just represents? for that were Can biggest -- of have number on X talking Sorry. Yi about, of the

Roderick de Greef

Yes. X,XXX neighborhood Collectively, in worldwide. of it's we to think the X,XXX

Unknown Analyst

Okay. Great.

approved I currently think I using the it heard say so was earlier, you CGT services? XX And

Roderick de Greef

That's particularly. correct. Biopreservertaion media,

Unknown Analyst

that further expect you you X change are the queue, do back number so? Or Do to things the most next in or in months think?

Roderick de Greef

-- same unique line No, expect or therapies stated do up a we or of indications indications, expansions, we they're geographic additional the as movement treatment. for new we therapy earlier, X the whether

occurrences the or We XX expect months in next X months. those of XX so, to X

Operator

This turn would to the back our like closing Greef session. concludes conference any for Roger to over question-and-answer de remarks. I

Roderick de Greef

This a operator. In revenue year growth, level. role have core with operations, of call I little has expansion, solid EBITDA has over It's operating processing very And a our with the allowed the you, been since pleased back, as the company. the bulk of look especially adjusted the the last reestablish came we higher-margin efforts team BioLife back made. margin progress both sequential platform. months, growth I'm to proprietary on at focused driven streamline XX our into an us our I Thank higher which and

we believe the positioned strengthened focused in an product drive even cell of portfolio, balance to market-leading other recurring high-margin the which processing the well to With revenue months. calls our in some our time and during progress with and you investor revenue continued adoption at sheet leverage coming look you and portfolio, tools more your position updating continued conferences biopreservation our profitability. We meeting will future forward growth today on increased to upcoming the appreciate you. drive and Thank of on we're

Operator

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

disconnect. You may now

BioLife Solutions (BLFS) 12 Nov 242024 Q3 Earnings call transcript