BLFS - Earnings call transcript Q4 2024

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Q4 2024 shareholder and Analyst Conference Call. [Operator Instructions] As a reminder, today's call is being recorded.

I would now like to turn the conference call over to Troy Wichterman, Chief Financial Officer of BioLife Solutions. ahead. go Please

Troy Wichterman

performance biolifesolutions.com. Good the operator. Call. XXXX and you Earlier highlights, and thank this and quarter year at and Thank issued and XXXX Solutions morning, XXXX joining financial business is full cover of BioLife we Conference XXXX today, present the Fourth revenue for quarter call, full you, will everyone, for Quarter a our guidance, announcing available On fourth release revenue for and results the guidance. XXXX which financial our we press operational highlights year Earnings

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

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

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

Roderick de Greef

Good morning, and and us Quarter Fourth Conference for Troy. Year year for you XXXX pivotal BioLife's XXXX Full for Call. joining BioLife. was thank a Thanks,

leading reshaped and growth last we the months, of streamlined as of profile unleashing our the portfolio, and gene operations. trajectory enabler strategically XX BioLife establishing a therapies, Over strengthening long-term pure-play cell our our attractive financial

divesting growth, lines including In expansion. of the year gross exceeding us and product full in business, and we our that sequential bringing We processing evidenced our QX, and core for adjusted optimized platform. raised our drive revenue X quarterly guidance already executed end margin portfolio, company of repositioned consecutive noncore by to high margin to the EBITDA growth parallel, quarters cell

with BioStorage makes other from with which history. today By I only time in we us cleaner stronger believe not much long we sale cash operationally, two at our positioned and flow business, are operations, of our positive sheet, any when freezer emerged completing combined more but a better lines focused and also product the balance self-sufficient. than

at our operations our A have our profile to XXXX as-reported and impact go-forward look summary results compared from divestitures highlights financial when the results material had. these with XXXX positive in continuing

million revenue in in to million margin GAAP with XXXX $XXX $XX total 'XX Although million from with was to divestitures, absolute $XX XX% which XXXX 'XX, XX% compared GAAP XXXX. due in in gross $XX in doubled gross generated million dollars margin compared of our

XX% revenue Our $X adjusted EBITDA or of in negative compared million million in with XXXX. XXXX $XX was positive

with the XXXX We compared also in million $XX million our doubled $X down 'XX bank million while million of principal cash $XXX paying XXXX ending on cash assets, $XX our balance also with debt. year-end sale noncore in of with

and are in moving self-sufficient strong place, into a have well positioned foundation XXXX. We financially strategically and

Moving to results. quarter the fourth

Our cell a QX and year-over-year X% increase processing platform revenue was XX%. over $XX.X million, of up

in by biopreservation the revenue increasing our cell in BPM, For other growth higher and when high, record million, smaller a single-digit base. compared $XX although year, growth much or totaled driven to 'XX media full a percentage tools, from processing high XX%

to XXXX. from development XX% In XX% saw a are, coming of process approximately with full XX% in direct. customers in QX came programs our top from that the revenue customers BPM and total of those with portion clinical likely about XX and continue validation of demand to These with we distribution our for revenue BPM year, therapy commercial with going general, what versus metrics represent patient dosing. pipeline XX% versus that consistent is a caveat Approximately

expansions, of a unique XX during the additional a And total geographic was earlier year, had our indications 'XX, cell At and or the total of utilized approvals, treatment. we of therapies. BPM in gene combined XX of unique lines therapy end

As trials identify trials. in we able And sponsored this set the XX-plus utilized of of percent media freeze at our U.S. products clinical relevant any CGT previously commercial in commercially been stated, have have in to not used we BPM this are believe point, we

form formulation home-brew continues So remain to the of only competition.

drive broader portfolio. cell business, and in while this to To BPM a priority relationship increase opportunities create to of year key leveraging our and trial commercial cross-sell sustained is to customers, growth in settings, partnerships cell both continue existing processing our adoption those deepen our commercial processing with clinical

can enhance commercial these commercial of materially revenue differently, Xx X revenue For a spec-ed are cell can an to see integrated a into alone. increase there as dose incorporated products they our if over a our established BPM our opportunity field to trials, in patient additional scale We long-term therapy, commercial growth clinical Said potential. products and significant these to already therapies products as to our instance, products mid- by factor in vials is per time. lever numerous significant while therapy are utilized this a compared into

As the this continue. in we guidance will that With we we anticipate growth morning, XXXX, an are when enter X% realized in cautiously XXXX. that XXXX improvement industry to the the respect in optimistic fundamentals emerged compared issued to underlying acceleration we XXXX of modest the

anticipate to by XXXX of $XX in projected sales platform. to BPM our XX% total of to driven to million growth to to processing commercial cell million, largely between revenue with compared $XX.X representing to growth XXXX, CGT primarily million due XX% expect increases our revenue will $XX XX% that to grow We cell processing We XX% million customers. $XX.X

the EBITDA margin drive will this full expect We turn expansion for adjusted in year. solid

full over results Troy? our will hand provide of who to call I'll and Troy, XXXX overview guidance. 'XX an the Now

Troy Wichterman

Today, prior you, period XXXX, results CBS. Rod. QX and will financials reviewing and excludes SciSafe we current continuing for Stirling, from be operations from Thank financial which

and was X% a from processing platform same of $XX.X We reported an increase million, our million, Thaw XXXX. evo $XXX,XXX to of for in XX% of period The or platform. year-over-year related QX the total was increase representing decrease increase year-over-year. QX in revenue revenue primarily XX% cell $X.X

GAAP fourth customer compared was quarter prior the margin in gross XX% Adjusted year gross prior an XX% margins with with in XX% XXXX the due offset for QX revenues margins product by XX% compared increase year. and in was gross to was QX for Adjusted with mix. in line XXXX.

operating for totaled in expenses $X.X prior million GAAP operating $XX.X the for with Adjusted for million QX $XX.X 'XX QX million in were versus 'XX XXXX. versus operating QX $X.X compared GAAP in year. the was $XX.X year. loss QX million prior XXXX million million expenses $XX

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

to million QX or per was per $X.XX The in share $X in year. was GAAP divestitures loss $X.X million accounting addition loss revenue accrual, compared $X.XX decrease share to loss personnel net fees increased primarily partially net to in to GAAP costs, and stock-based increase This including related was in and comp. Our prior offset by or increased due and the decreased performance-based operating bonus in an SOX.

Adjusted XXXX EBITDA in was million $X.X fourth the $X million with compared the of quarter for prior year.

increased QX partially be and SOX EBITDA primarily consulting to in lower which fees by XXXX. expect $XXX,XXX divestitures related a periods in increase to offset adjusted Our after accounting future higher we due revenue, due

Turning to balance our sheet.

our $XX.X December SciSafe XX, increase was into compared at the during marketable adjusted million September primarily Our December XX, our cash $XXX.X CBS. was balance QX million in at $X Taking with divestitures securities XXXX, EBITDA consideration XXXX. million, XXXX at related and XX, of million and to of cash $XX.X and XXXX,

XXXX, December compared SVB XX, $XX $XX was Our with quarterly moving at million $X.X million December balance million to forward. debt long-term at XX, repayments of XXXX,

is revenue to expected XXXX. million to $XX overall guidance. XX% growth to Turning XX% revenue over of be reflecting Total an million, XXXX $XX.X to

$XX.X $XX or XX% Our growth over to cell XX% processing million platform XXXX. to is expected million to contribute

to evo to growth million expected Thaw to or $XX and contribute million Our platform XXXX. is XX% over $X X%

year reduction GAAP R&D partially in We to for projects. EBITDA net in related expansion margin revenue, loss due gross expected XXXX development be expect margin by to mid-XXs, the adjusted higher expenses adjusted offset a in increases full to in and in the

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

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

Operator

And Matt today's from question [Operator comes Instructions] Jefferies. Stanton at first

Matthew Stanton

the one point EBITDA the improving around of some line and top expansion? Maybe dynamics continued you also I investment R&D. the just margins, particularly finer can think margins. mix about but the Any kind there, put on first talked into dollars you

just maybe where the talk a then expansion look EBITDA bit you to might can in year that exit we So margins. on here through color of the the year? pacing the continued 'XX any little And about

Troy Wichterman

Yes, that sure, one. I'll Matt. take

related off But say, nature of to there more SG&A, if which commentary that if you some we for QX as made type we'll in and see G&A and a cost look being abnormal, good of thereof, you some divestiture the that was the the QX. take be in onetime I'd jumping XXXX accounting that point at number SOX point. earnings good would jumping-off cost call, for leakage in So a

we development some working didn't R&D, for then mention we're And projects on.

as take that expect And mid-XXs we XXXX those as compared to that baseline that we QX into development pretty XXXX increasing expansion, EBITDA far to XXXX for So a projects. due throughout XXXX that far be would QX if you then better as would than as R&D, baseline margin steady yes, that mentioned.

Matthew Stanton

Xx talk that? about you're could Can talked by cross-selling start when about of opportunity the like in do the to the And or potential we over here? to time a portfolio media. helpful. that focus beyond big X then, That's the portfolio it's Obviously, of And the cross-selling overnight. you the Okay. just doesn't either that increase where of to customers you benefits just kind some most revenue see of It sounds the happen to Rod, products seeing maybe 'XX.

Roderick de Greef

come Cryo so so that It to it's thanks That years. to multiple going time, a should take in look and of large therapy. definitely something some for start approved and that to poster Well, we our recognizing Sure. vials that's, position company us said, to is CryoStor both right? And customer, our that, strong sealed the what for child that. their have media takes a like. close to utilizes market Because large us, commercial

drives top well. automating a On a hardware, process, which closed in as on our automated of they're they piece really that, that consumables their system, system they're at lot looking focused as evaluating of of fill manufacturing are

So it's accounts focused we a have, have the those force half customers introducing and on about that that those really directing a clinical dozen the push salespeople sales to targeting we put trial products.

We to commercial mentioned as year, last introduced one Cryo not opportunity is another where in one I case chain because product on final do costly like end we commercial development product. again media, clinical end product, their it traction customers, for to have the extremely a for example. product, make was then making the one a and a difficult you container a drug as on good There's the further particularly our for and you which get have later-stage down the evaluation, with commercial up the switch that,

clinical with their So not into about we pipeline, CryoStor are discussions which is them in introducing insignificant.

from commercial therapy customers. where going to we're early and So to easier less pipeline and switch it both it's stage sides, the on expensive the the attack for

Troy Wichterman

to And to meant Rod for say CryoCase, the... just not CryoStor clarify,

Roderick de Greef

you. Does make CryoCase, Thank sense? yes. that

Matthew Stanton

helpful. Appreciate it, that's Yes, guys.

Operator

question from comes KeyBanc with Capital our next Anna Markets. And Snopkowski

Anna Snopkowski

you Paul I platform. Knight. on is ask processing seeing want the in on momentum cell for This to Anna are

of You quarter fifth mentioned consecutive this growth. the is

increased one and it industry overall of just growth a any bit is the approved what it Or improving? Is So is little maybe the visibility? this specific health into therapy? driving

Roderick de Greef

So start therapy. -- we're nonapproved seeing the with on

trial 'XX clinical come cell we to see the the that is we for group of there. the bulk But base. Distribution, from growth to So ahead, 'XX. is fundamental expect growth and biopreservation XX of That's we media is slightly processing and expect our general the of see driver customers have in in that customers some growth. commercial group revenue in where we slight going

Anna Snopkowski

the is EBITDA in long have And that coming pro certain then and forma of could product past focus? margins adjusted we Perfect. term we over the outlook on business terms get moved now your update an into lines

Troy Wichterman

sure. Yes,

the expect So adjusted we'd full outward XXXX, And then dependent said, year it's for really for EBITDA. going like we growth. highly on mid-XXs media

tremendous a from revenue there's As the know, media. on you flow-through

with of, growth we model get revenue out could in increases XX% expanded flow-through points an certain on margin it, So EBITDA to OpEx. that with media percentage huge to call not at

XXs, the the So you frame, if XXXX out, call 'XX, model end to do middle you in time of get that 'XX. of can it, towards

Operator

And Wiatrowski our comes next Chad with Cowen. question from TD

Chad Wiatrowski

indications, just like be therapy, are therapy XXXX, speak growth just is at dig I at going newer level, so like sort media wanted into these kind approved how or respectively? just BioLife mentioning, maybe and to like a for catalysts could larger to modalities you look of maybe less it's on a when a clinical between of used trials therapies higher driving to TIL-based as expanding some of But in media CAR-T you're and gene how as like positioned benefit, differently and is you to a growth.

Roderick de Greef

question. Yes, it's a good

really in That instances, in type said, better CryoStor dose. the the product the per of cell to the than difference between used types, some think that and I that others. across works amount I down cell some think the modalities really comes most

a that which think they And so say are which AMTAGVI, when they dose largest CryoStor CAR-T, CryoStor, per versus you that specifically the I use user states would use would look less. I at Iovance's of

volume our And the think confidential that's information. to dose. to seem that, down per many comes really customers -- it of we're really So

to dose, comments So whereas product CryoStor difficult instance, well, did of used per I in how can our why FDA which into earlier, used much is there get back it's I clearly. you how insert very made is pretty exactly AMTAGVI, their much is sometimes the for

Chad Wiatrowski

just that come speak some then the And nonmedia dynamics could cross-sell? media, to of only it. the And this cell home-brew you brand, If of is what you're to the these on has trying sort expect to cross-sell. to created processing really trying products? of dominant competitive tools which Got alternative other profile you across just when just for

Roderick de Greef

Sure.

talk vials. about let's on CellSeal the -- think I

there are vials, out mind, competitive larger the there. comes company. to they're West vials a So

with therapy. the freezing you final attributes when to certain have et profile, that frozen vials materials respect Our with the used, cetera, have the down

down dose clearly On no the regard direct and CryoCase cryo final doubt competitor that in it to container. most And used the a And well prior that's benefits mitigation an CryoCase, to to freezing in the comes to bags. very established they our reduction it's side, of if include particularly the and state. which work frozen or with shattering dropped easier dose a form factor, of are

combination automation, addition there's So the yield well these time, against I product nice we're well pretty that is that we no products the CryoCase lines, another some in question with our benefits comfortable guess, benefit entrenched, and the feel toward a credible automating that as which of up has bag, that versus products, drive fact adoption relative to we as to companies those the over a will we a therapy that that commercial think are earlier-stage in lot to large things, supplier companies. push

Operator

at And our Hewitt next Craig-Hallum question from Capital Group. today comes Matt

Matthew Hewitt

price it, about finish Congratulations about much of year, when talk We've price on some including model? companies year. to a the Maybe your any, some report that, first is strong how you here if Are several couple the adjustments, up, the whatever. into over of increases, weeks growth to of increases? past implementing heard related some call this that you're talking CPI

Roderick de Greef

some sort to mid-single been is baked previous in And years, a addition that until we've alter kick price into that. a that Yes. pricing to which of relationships standpoint we on into digits, of the increase, the year the half We won't they're given do that, of and legacy. direct push have base from than 'XX. our really back Those have in lower distribution

but of pricing is side So demand of factor, a it the coming volume. the from in is terms bulk definitely

Matthew Hewitt

that. to follow-up a of kind maybe then And great. That's

portfolio given for the vials it's pricing your As a to you're and there, look everybody? you maybe little products, here, more giving you rest ultimately, bundle product of bit together, and taking strength there whole a to media from way the a you're kind win-win perspective is the and but grow the the of for portfolio, a with

Roderick de Greef

it's good as Yes, well. question a

I opportunities exist. think those that

that around, final lower the container real ASP let's And for would the even price it by the of utilizing matter really example, outweigh it the it beyond on goes per, using think to of just switching the us. CryoCase, per to or decisions I price equal because fact may of the say, benefits kind is be dose increase. any

need So to we feel don't really the discounting. be

way the trying truly what on that that go have is our reflect products fact, we In the are. pricing they other to line product the premium and do we're have

Matthew Hewitt

feel complete year. having sense. and out with must were not year strong makes and of you That to the some Congratulations last good year the distractions to necessarily again dealing this looking

So congratulations.

Roderick de Greef

Matt. you, Thank

Troy Wichterman

Matt. Thanks,

Operator

Our today Street. next question at comes Thomas Lake from Flaten

Thomas Flaten

Rod, just ideal that an growth guided XX% keeping XX%? that noted that beyond in cross-selling, do particularly but in potential with to look XX% do where were you've rate you at kind -- if XXXX, for mind can all see about the maybe you things growth not to go in world, accelerating think of you've that opportunities, you the

Roderick de Greef

few over it media this XX% represents media, to time, years next it going cadence think demand time, by again, at going the approximately is depend growth down these of least, going cell on can. to and driven -- the in road. to overall for the the and approvals at I of is It's really really the is bulk be of dependent given that therapies be the driven point line processing the that biopreservation for

So that's in trials sure What's as that's number in come we many online. control. and to control one, make our can we're our is clinical they that as be in as not really

is the then to start for beyond, not an move see just think, growth of volume growth revenue for with tools, higher think the these to going journey these well we point established clinical acceleration rates I to will get increases, time. media to are therapies the really, over you're but through XX and I today. where other take Sexton, months XX respect to I the going us, there as it would be to where to And say,

change from rate about would months still would I XX to I say. in material be of away any XX growth we're what So kind I -- think

Thomas Flaten

then I itself, been the of on anticipate it. appreciate business Got middle past the in now any negatively? either that. changes November, more that of we couple the you've months to And the should that a just positively deals or P&L

Troy Wichterman

comments because of basis, that financials all with continuing some still as right? those No. those are those people made Thomas, stand, strip divestiture The well as as from that financials, earlier any you the entities know, divestitures. I went does So out

year good R&D for SG&A. a R&D, then mentioned, be money baseline, annualized to compared as XXXX. it's And for more this I QX we will So putting 'XX into

Operator

from comes question next our Wainwright. And Chen H.C. Yi at

Eduardo Martinez-Montes

on I regarding any customer guess got I from catalysts would they question for This potential expansion, clients, or had is be approvals for related relevant Eduardo expansions really projections? guys' a massive to that Yi. your naturally, label your

Roderick de Greef

it's clinical trial right? through movement Correct, cetera, time adoption, of in both terms it's commercial say, have, the On we I the really from once Phase Phase base United commercial, -- they're from the to customer et States. let's the in it's -- that II, just side,

geographic time factors, using of indications But those Also, around there the and terms several as those treatment, same the therapies adoption getting other by. of pool to then expansion additional goes years later overall of things equally are that lot therapies world, the patients. up rate those the of growth the up up also opens end a are drug, line important movement in of and that us

Eduardo Martinez-Montes

visibility you do on points milestones And of not those any have happening are in whether clients? XXXX inflection your guys for or or Right.

Roderick de Greef

a XXXX. things -- happening in track data. those X-month that to The to third-party has are working to of information one opaque, of think we internally, opposed we're as on every of track trying Yes. I well about of actually as less have believe those We we with which now a fulsome formalize it given what an than to we We X us and try -- that we're right a basis as review bit visibility think more that consultant is can. any to

'XX, the the that. So should at But over in what say. I months I think next or we'll now, seeing we're get better right year about is -- XX of X

Eduardo Martinez-Montes

I But And clinical helpful. funding government trials the associated know running don't complications any complications anticipate know freezes you I really guys on That's freezes? grant that are clinical just funding it. are revenue any dependent significant. if that of your with of the funding. potentially. if trial if Got component customers you But anticipate with curious isn't any

Roderick de Greef

of at aware this Yes, point. the around not We're funding. NIH uncertainty

the that an think say that our up distribution extent there to of would be impact side I it business. could of I that the that, shows on

large have distributors. We two

much early have very academic might they're Those institution all think on research. -- impacted by I folks this. might of focused be

are we But year. distributors, the talk any about in now, bit versus terms I side a that it change two come think direct concerned That it we Most this the don't to of our at may right distribution side. of a overall sense on But of our customers get point. throughout of they're when demand from would softening funded. those revenue, direct the privately

Eduardo Martinez-Montes

helpful. strategy products, strategy Got well? fit And potential kind little would a of curious these with And those cell increase processing. Thaw? with as I'm and services if finally, curious there's products also of and it. into your talked if a kind you footprint two any bundling there I'm evo then packages to you about for That's bundling have previously bit if

Roderick de Greef

Yes.

accept So our reverse been it a line, Thaw to a Thaw. be has device our razor/razor automated CellSeal viewed on modified the the designed as definitely our line product for sense own that vial almost in Thaw and now blade is could side, product

almost pretty benefit it can vials, razor/razor it placed, a although a gets indirect would in the it's CellSeal the way, the or it's utilization -- look could some way, adoption at I it of as terms drive another soft of Cryo a so. blade in our scenario can thought if seal. be say it a And also nice of if it using add-on doing So could you're just of be you as yet

are or of the that around utilizing are evo utilizing little people CellSeal decisions than very people would different evo very the different. that On chance. decision-makers the very Thaw, things, The the making side are products, other be including

So that. to there's do very opportunity little

Operator

from comes Group. And Okunewitch with Maxim our question next Michael

Michael Okunewitch

progress. the all on Congratulations

Roderick de Greef

you. Thank

Michael Okunewitch

bit. would drill just we could see little down like a to I if

quarter. at You fourth more R&D versus a going bit mentioned forward you're the spend looking that

to So how just -- products could additional Is bit more on just product line? new planning little you for color is continued provide spend? improvements your this a more that you're allocate on or more existing this

Roderick de Greef

the some of relative we that on do acquired It's CryoCase work to to expanding some that set and the additional Yes. customer consumable products really Sexton. would from about That have feedback. be would front It modifying own on words, our a the be other CryoCase CryoStor internal various for that. use out the In benefits are CryoCase. end. our There to product shipping in

It's fill about increasing the consumable line with automated of products our that are CT-X associated device.

So say, as se. opposed line it's products new expansion really, would product I to per

Michael Okunewitch

I just in could a then traction been see your historically And that space. I has a products. that stem involvement mesenchymal remind to with you Okay. if there hasn't of Mesoblast customer, know wanted or lot us been of gains but cell-based any

So here. your any helpful with be color additional could involvement

Roderick de Greef

sit of don't after I have that know I'll you them in our with you have any come that can with you with if can real on fact Yes. side managed I the folks give back and trial to things I the follow Michael. time, up on chat that, and but clinical certainly a

Michael Okunewitch

progress. again, congrats on the Once

Roderick de Greef

Thanks very much.

Operator

session. And de Greef conference over for this to closing to remarks. turn I'd concludes like Rod back the our question-and-answer

Roderick de Greef

for profitability. solidify an solid both Rocco. growth XXXX in an closing, a XXXX In long-term BioLife. leverage strategic as our as execution CGT and market-leading and year position the and therapies of enabler sustainable operational you, and see company Thank revenue opportunity to position for transformation of We was

forward and you. to year look conference updating you year. the for as Thank well through and this the the we other week of as morning, time you throughout your this conferences some seeing Cowen we you at move as Thank

Operator

Thank you. today's presentation. concludes This

and disconnect a now wonderful... have may lines, You your

BioLife Solutions (BLFS) 3 Mar 252024 Q4 Earnings call transcript