Cytek Biosciences (CTKB) 5 Nov 24 2024 Q3 Earnings call transcript
2min read In a recent earnings call, Cytek Biosciences provided a comprehensive update on its performance in the third quarter of 2024. The company, which is a leading player in the cell analysis market, reported solid growth, driven by strong demand across its service revenue and international markets.
Financial Performance and Strategic Initiatives
Cytek Biosciences reported total revenue of $51.5 million for the third quarter, representing a 7% year-over-year growth. The company's revenue growth was driven by double-digit year-over-year growth in EMEA and APAC, and from its service revenue globally. Cytek's strong performance can be attributed to its strategic focus on innovation and customer-centric initiatives, which have positioned it as a technology leader in the core instrument category.
The company's strategic initiatives are centered around instruments, applications, bioinformatics, and clinical. These pillars are integral to Cytek's long-term growth and are designed to drive sustainable profitability. In the third quarter, the company expanded its global footprint with 164 instruments sold, reaching a total installed base of 2,821 units. The Cytek Aurora and Northern Lights systems have shown good growth, with strong demand for their higher multiplexing, data quality, sensitivity, and ease of use.
Financial Highlights
Cytek's financial performance was notable, with significant revenue growth and positive adjusted EBITDA. The company reported a 14% increase in product revenue, driven by recovery in the U.S. market and continued growth in international markets. Service revenue grew by 25% year-over-year, reflecting the expansion of the installed base and active usage of Cytek's tools across various disciplines. GAAP gross profit increased to $29 million, driven by revenue growth and disciplined focus on expense management.
Outlook and Future Prospects
Looking ahead, Cytek remains optimistic about its growth prospects. Despite a relatively soft market in North America, the company is seeing good momentum in Europe and Asia Pacific. It expects to see solid growth in its service business and reaffirms its full-year revenue outlook in a range of $203 million to $210 million. The company is also focused on portfolio enhancements to accelerate its business strategy, with the aim of delivering high growth and profitability.
Investor and Analyst Interactions
During the call, key analysts asked insightful questions about Cytek's performance and future prospects. These interactions provided valuable insights into the concerns and priorities of investors and stakeholders, highlighting the company's strong reputation and loyal customer base. The company's confidence in its long-term growth prospects was evident, with a focus on driving revenue growth and controlling costs to improve profitability.
Conclusion
Cytek Biosciences' third-quarter performance underscores its position as a leader in the cell analysis market. The company's solid financial performance, strategic initiatives, and positive outlook for the future are key indicators of its strength and resilience in navigating market challenges. With a focus on innovation, customer-centricity, and sustainable profitability, Cytek is well-positioned to drive long-term growth and create value for its shareholders.