Release Date: March 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BioLife Solutions Inc (BLFS, Financial) achieved five consecutive quarters of growth in cell processing revenue, exceeding the high end of their full-year guidance.
- The company successfully divested non-core product lines, resulting in a stronger and cleaner balance sheet with a doubled cash balance of $109 million by the end of 2024.
- GAAP gross margin improved significantly from 31% in 2023 to 62% in 2024, generating $51 million in gross margin dollars.
- Adjusted EBITDA turned positive in 2024, reaching $16 million or 19% of revenue, compared to a negative $5 million in 2023.
- BioLife Solutions Inc (BLFS) anticipates 16% to 20% revenue growth in 2025, driven primarily by their cell processing platform, with expected growth in adjusted EBITDA margin.
Negative Points
- Total revenue in 2024 decreased to $82 million from $143 million in 2023 due to divestitures.
- EVO and SAW platform revenue for Q4 2024 decreased by 8% compared to the same period in 2023.
- GAAP operating expenses for Q4 2024 increased slightly to $24.8 million from $24.4 million in Q4 2023.
- The company faces competition from home-brew formulations in the media market and established products like cryobags in the CryoCase market.
- R&D expenses are expected to increase in 2025, which may offset some of the anticipated revenue growth.
Q & A Highlights
Q: Can you provide more details on the continued expansion of EBITDA margins, considering the top line and mix dynamics, as well as R&D investments?
A: Troy Wichterman, CFO, explained that the Q4 2024 SG&A costs, which included one-time expenses related to SOX and divestiture accounting, should serve as a baseline for 2025. R&D expenses will be based on Q4 2023 levels due to ongoing development projects. EBITDA margin expansion is expected to be steady throughout 2025, reaching the mid-20s.
Q: Regarding the revenue opportunity to increase 2 to 3 times by cross-selling beyond media, which products or customers show the most potential?
A: Roderick de Greef, CEO, noted that while the media market position is strong, cross-selling will take time. A large commercial customer uses both CryoStor and Cryo sealed vials, serving as a model for future opportunities. The focus is on targeting clinical trial customers and leveraging existing commercial relationships to introduce additional products like the automated fill system.
Q: What is driving the growth and increased visibility in the cell processing platform, marking the fifth consecutive quarter of growth?
A: Roderick de Greef highlighted that the growth is primarily driven by the 17 commercial customers in their base, with slight growth expected from clinical trial customers and distribution. The bulk of revenue growth in 2025 is anticipated from these commercial customers.
Q: Can you provide an update on the long-term outlook for adjusted EBITDA margins now that certain product lines have been divested?
A: Troy Wichterman stated that for 2025, adjusted EBITDA margins are expected to be in the mid-20s. Looking forward, media growth will significantly impact margins, with potential expansion into the 30s by 2026, driven by the high flow-through on media revenue.
Q: How does BioLife plan to allocate additional R&D spending, and is it focused on new products or improvements to existing ones?
A: Roderick de Greef explained that the R&D spending will focus on expanding the consumable product line acquired from Sexton, such as the CryoCase and consumables for the CT-5 automated fill device. The aim is to enhance existing product lines rather than develop entirely new products.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
