Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CellaVision AB (CLVSF, Financial) achieved all-time high sales in the APAC region, demonstrating strong regional performance.
- The company reported a strong gross margin of 69%, attributed to a favorable product mix, particularly in the instrument category.
- CellaVision AB (CLVSF) has made significant progress in its strategic alliance with SysMex Corporation, achieving double-digit growth.
- The company is advancing its innovation agenda, with substantial investments in next-generation digital cell morphology analyzers.
- CellaVision AB (CLVSF) reported a 33% EBITDA margin, aligning with its annual target of 30% or more, despite regional sales variability.
Negative Points
- CellaVision AB (CLVSF) experienced a 7% decline in overall growth for the quarter, with notable sales challenges in the Americas.
- The company faced a decline in the MEA region, attributed to a higher Q3 performance that impacted Q4 revenues.
- Operating expenses increased to 42% of sales, partly due to compliance costs and increased R&D spending.
- CellaVision AB (CLVSF) reported a significant drop in operating cash flow, primarily due to inventory buildup in the US.
- The company is experiencing delays in order placements and installations in the Americas, impacting sales performance.
Q & A Highlights
Q: Are you experiencing any market share loss in the Americas due to increased competition, particularly from Scooppio Labs?
A: No, according to the data, SysMex is gaining market share in America, and we see limited clinical utility from competitors in digital cell morphology. - Unidentified_1
Q: Do you have any exposure to the NIH, given the current administrative changes and turmoil?
A: No, we do not have exposure to NIH. Our communication primarily goes through SysMex, and despite fluctuations in their order uptake, we see a positive closure on the quarter. - Unidentified_1
Q: How is the expanded collaboration with SysMex progressing, especially in addressing market gaps in Europe?
A: The collaboration is progressing globally, not just in Europe. We are deploying resources more efficiently and providing comprehensive training, which has improved transparency and data sharing, allowing us to target resources better. - Unidentified_1
Q: What is needed for CellaVision to meet its financial targets in 2025 and beyond?
A: We are in a transition phase, focusing on growth with SysMex and investing significantly in innovation. We expect new product launches in 2025 and 2026, which should help improve workflows in hematology labs and meet our growth targets. - Unidentified_1
Q: Regarding the investment phase, are we nearing the end, and should we expect a slowdown in investments?
A: The majority of investments are in the next-generation instrumentation platform. We are in a maturing engineering phase, and while clinical trials are ongoing, the program is progressing according to plan. - Unidentified_1
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
