BIOLIFE SOLUTIONS INC Q4 FY2024 earnings call

• Strategic portfolio reshaping in 2024 positioned BioLife as a leading pure-play enabler of cell and gene therapies.
• Cell Processing revenue had five consecutive quarters of growth, exceeding full-year guidance.
• Divested non-core product lines (freezer product lines and biostorage business) to improve gross margin and adjusted EBITDA margin.
• 2024 total revenue was $82 million vs. $143 million in 2023; GAAP gross margin doubled to 62%; adjusted EBITDA was positive $16 million (19% of revenue).
• Ended 2024 with $109 million in cash, having paid down $5 million of bank debt.
• Q4 2024 total revenue was $22.7 million, up 31% year-over-year; Cell Processing revenue up 37%; GAAP gross margin 60%; adjusted EBITDA $4 million.

Cell Processing platform: Q4 2024 revenue was $20.3 million, up 7% from Q3 and 37% year-over-year. Full-year 2024 Cell Processing revenue totaled $74 million, a record high, increasing 12% compared to 2023. Evo and Thaw platform: Q4 2024 revenue was $2.4 million, a decrease of $200,000 or 8% from the same period in 2023. Cell Processing was the key growth driver, with its revenue contributing significantly to the overall results.

• 2025 total revenue is expected to be $95.5 million to $99 million, representing 16%-20% growth over 2024.
• Cell Processing revenue is expected to grow between 18%-21% to $86.5 million to $89 million.
• Evo and Thaw platform revenue is expected to be $9 million to $10 million, a 3%-15% growth over 2024.
• Anticipate adjusted EBITDA margin expansion in 2025, aiming for a mid-20s range.

• Uncertainty around NIH funding could potentially impact the distribution side of the business.
• Dependence on the cadence of approvals and demand for cell and gene therapies for growth in Biopreservation Media.

Q: Matt Stanton asked about margins and EBITDA expansion.

A: Troy Wichterman discussed SG&A and R&D costs, stating that one-time costs related to SOX and divestiture accounting would be lower in future periods and expecting EBITDA margin expansion mid-20s.

Q: Matt Stanton inquired about cross-selling the portfolio.

A: Rod de Greef talked about a commercial customer using CryoStor and CellSeal vials, and targeting clinical trial customers to introduce additional products.

Q: Anna Snopkowski asked about Cell Processing growth drivers.

A: Rod de Greef mentioned growth from commercial customers and momentum in clinical trials.

Q: Chad Wiatrowski asked about Media growth and competitive profile.

A: Rod de Greef discussed CellSeal vials and CryoCase, highlighting their benefits compared to competitors.

Q: Matt Hewitt asked about pricing and portfolio bundling.

A: Rod de Greef talked about mid-single-digit price increases and premium pricing for their products.

Q: Thomas Flaten asked about growth acceleration.

A: Rod de Greef mentioned that growth is dependent on Media growth and would likely see material change in 24-36 months.

Q: Eduardo asked about client milestones and R&D spend.

A: Rod de Greef discussed visibility on client milestones and R&D allocation for expanding the product line.

Q: Michael Okunewitch asked about R&D and mesenchymal stem cells.

A: Rod de Greef mentioned R&D for product line expansion and offered to follow up on mesenchymal stem cell involvement.