Release Date: March 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CryoPort Inc (NASDAQ:CYRX) achieved total annual revenues of $228.4 million in 2024, aligning with expectations.
• The life sciences service business experienced double-digit year-over-year growth, with bio storage and bioservices showing significant expansion.
• Revenue from commercial cell and gene therapies increased by 37% in Q4 and 20% for the full year.
• CryoPort Inc (NASDAQ:CYRX) supported a record number of 701 clinical trials, indicating potential commercial revenue opportunities.
• The company improved its gross margin to 45.8% in Q4 2024, up from 40.6% in the same period last year.

Negative Points

• 2024 was a challenging year for the life sciences sector due to macroeconomic conditions and market dynamics.
• The cryogenic systems market experienced a downturn, impacting the company's product segment.
• There is uncertainty regarding the impact of tariffs on aluminum and stainless steel, which could affect costs.
• The company has not provided specific guidance on the revenue contribution from the five new therapies approved in 2024.
• The non-cell and gene therapy market is expected to grow only nominally or modestly, indicating limited expansion in this area.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Signs with CYRX.

Q: Could you walk through the drivers behind the 37% increase in commercial revenue in the fourth quarter? Was this broad-based or driven by one commercial therapy? A: The increase was broad-based, not focused on one or two clients. Key drivers included advancements in earlier online approvals with commercial clients and geographic expansion of existing programs. (Answered by Unidentified_6)

Q: Do you feel confident that the stabilization seen in the MBE side of the business in the fourth quarter will continue or recover in 2025? A: We are seeing order patterns beginning to show signs of stability at MBE, and we feel that this will continue throughout 2025, although it may be uneven. (Answered by Unidentified_3)

Q: Can you elaborate on your expectations for service versus product growth in the 2025 guidance? A: Services will be a bigger portion of our guidance and will grow faster than Life Science's products. Revenue growth in bio storage and bioservices was double-digit, and the cell and gene therapy side showed strong growth. (Answered by Unidentified_8)

Q: Are there any impacts from tariffs on the cost of freezers or other products, and how are you managing these? A: We will pass on tariff impacts through surcharges for the period they exist, so we don't expect impacts on our margin. Our freezers for the US market are made domestically, so there is no impact from tariffs on our US business. (Answered by Unidentified_3 and Unidentified_9)

Q: What are your expectations for clinical trial growth in 2025, and are there any impacts from NIH funding cuts? A: We expect 2025 to be stronger than 2024 in terms of new trial acquisition. We have very little exposure to NIH funding cuts, so we aren't directly concerned about that. (Answered by Unidentified_3 and Unidentified_6)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.