Cytek Biosciences, Inc. Q1 FY2025 earnings call

Key Points

• First quarter revenue was $41.5M, down 7.6% y-o-y; service revenue up 24% y-o-y.
• Revised full-year 2025 revenue to $196M-$210M, back-end loaded due to market uncertainties.
• Strategic pillars: instruments (installed base 3,149, launch of Muse microsystem), informatics (over 18,000 users), applications and reagents with growth potential.
• Multiple manufacturing locations in US, China, Singapore for supply chain resilience.

First quarter 2025 revenue was $41.5 million, a 7.6% decrease compared to Q1 2024. Product revenue (instruments and reagents) decreased 18% due to weakness in instrument sales in the US and EMEA. Service revenue worldwide was $13.3 million, up 24% year over year. Total revenue in APAC and rest of the world region together was $11.4 million, up 35.6% year over year. More than 50% of product sales are outside the US.

Forward-Looking

• Full-year 2025 revenue revised to $196M-$210M (±2% to +5% vs 2024).
• Growth expected to be back-end loaded in 2025 due to market and geopolitical uncertainties.
• Strong balance sheet allows continued investment for growth.

Risks

• Tariffs potentially impacting gross margin by 1%-3%, mitigated by region-for-region manufacturing.
• Uncertainties in US academic funding affecting instrument sales, factored into revised guidance.
• Geopolitical and market environment uncertainties impacting revenue projections.

Q: Concerns about tariff impact on gross margin and China sales, and how much 2025 guide cut is due to China tariffs?

A: Tariffs mitigated by region-for-region manufacturing; China sales still possible; revised guide factors in US university funding uncertainties.

Q: How AURORA sales grew double-digit and phasing of revenue?

A: AURORA growth due to sorter matching with analyzers; revenue phasing follows seasonal pattern, with service and reagents less impacted by US university funding.

Q: Competitors' pricing, R&D focus on imaging?

A: Pricing still early stage; R&D focuses on imaging within spectral innovation for new products.

Q: Share repurchases vs M&A plan?

A: Plan to do both share repurchases and have capital for M&A; specific repurchase plans based on authorization.