Cytek Biosciences, Inc. Q4 FY2024 earnings call

• Full year 2024 revenue up 4% to $200.5M, driven by service revenue growth and international market growth. - Instrument placements: FSP instruments up 8.5% in 2024, Aurora cell sorter up 13% y-o-y, Northern Lights System up 12% y-o-y. - Cytek Cloud expanded with 16,000 users, using proprietary algorithm for panel design. - Clinical approvals: Northern Lights CLC system got China approval, expanding market presence. - Manufacturing: Opened new facility in Singapore for supply chain flexibility.

Full year 2024 revenue grew 4% to $200.5 million. Fourth quarter revenue was $57.5 million, essentially flat y-o-y. Service revenue grew 8% in Q4. Instrument placements: FSP instruments up 8.5% in 2024, Aurora cell sorter up 13% y-o-y, Northern Lights System up 12% y-o-y. Cytek Cloud had over 16,000 users. Imaging systems (Amnis) showed growth. Revenue contribution: Service revenue grew, international markets outside US had double-digit growth, APAC saw strong demand in Q4 with some uptick in China orders.

• 2025 full year revenue expected to be $204M to $212M, 2-6% growth from 2024. - Growth expected to be back-end loaded due to current market conditions and Q1 being seasonally weakest. - Factors like NIH funding cuts, export controls, and tariffs create headwinds for instrument revenues.

• NIH reducing funding for indirect costs associated with grants. - Biden administration's new export controls and licensing requirements for flow cytometry products to China. - Trump administration's wide-ranging tariffs on imports from several countries, including China.

Q: Discuss 8.5% instrument growth and mix impact.

A: Northern Lights showed growth, but guidance doesn't specify product categories. Reagent consumption impact minimal.

Q: Impact of tariffs and manufacturing in Singapore.

A: US is less than 50% of revenue, Europe is one-third, rest from Rest of World. Singapore manufacturing helps weather tariffs, but tariff impact on costs and margin is being mitigated.

Q: Exposure to NIH and U.S. academic customers.

A: NIH exposure is ~5% of total revenue, impact TBD, but global presence helps weather domestic conditions.

Q: Growth in large pharma and CDMO harmonization.

A: Pharma and CROs migrating to harmonize workflows, biotech pharma distributor CRO segment up 14% in Q4.

Q: OpEx and G&A run rate.

A: G&A had $2.6M one-time benefit, otherwise flat.

Q: Capital allocation and M&A.

A: Open to M&A, criteria include relevance to existing markets, synergies, and positive EBITDA within near-term.

Q: Cytek Cloud growth.

A: User growth due to AI-powered panel design making it easier for high dimensional analysis, integrated into CRO and pharma workflows.

Q: Flow cytometry market growth and geography expectations.

A: Assumed market growth similar to 2024, U.S. market flattish, APAC and EMEA expected to grow more.