- Record revenue of $63
million, representing 20% growth
year-over-year
- Growth across all lines of business: Biopharma/Pharma
revenue up 19%; Animal Health revenue up 30%; Reproductive Medicine
revenue up 13% year-over-year
- Commercial Cell and Gene Therapy revenue up 28%
year-over-year, now supporting 82 Phase 3 clinical trials
- Strong balance sheet with $523
million in cash and short-term investments
NASHVILLE, Tenn., May 4, 2023
/PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) ("Cryoport" or the
"Company"), a leading global provider of innovative
temperature-controlled supply chain solutions for the life
sciences, today announced financial results for the three
months ended March 31, 2023.
Jerrell Shelton, CEO of Cryoport,
commented, "We are pleased to report that we delivered record
revenue of $62.8 million for the
first quarter, representing top-line growth of 20% or 23% in
constant currency compared to the first quarter of last year. This
quarterly performance was driven by solid demand for our
comprehensive set of products and services as we achieved double
digit growth in each of our markets, Biopharma/Pharma, Reproductive
Medicine, and Animal Health.
"We saw solid growth in Biopharma/Pharma with revenue increasing
19% year-over year. The Regenerative Medicine industry was one of
the fastest growing therapeutic segments in 2022, with new
innovative cell and gene therapies entering the market. This trend
has continued in 2023 driving year-over-year growth in revenue from
commercial therapies by 28% for the first quarter. Patient demand
continues to outpace commercial cell therapy supply; however,
biopharma companies and contract development and manufacturing
organizations (CDMOs) are continuing to build out manufacturing
capacity to meet patient demand and the expected future demand for
cell and gene therapies. This bodes well for Cryoport as we believe
that we are well positioned to support this expected growth with
our advanced temperature-controlled supply chain solutions.
"Growth in Animal Health revenue for the quarter increased over
30% year-over-year. This was due to increases in our growing global
population and its demand for animal protein as well as the
expanding ownership of companion animals in developing and emerging
regions. Companion animals are fueling the need for therapeutic
innovation in this area to improve animals' lives. We are seeing
increasing activity from top global animal health pharmaceutical
companies to meet this demand.
"Reproductive Medicine revenue was $2.8
million for the first quarter of 2023 with revenue
increasing 13% year-over-year. Growth was primarily driven by our
continued progress in contracting with key reproductive clinic
networks, as evidenced by our recent announcements regarding our
support of Boston IVF and Inception Fertility.
"Looking ahead, given the current geopolitical instability and
imbalance in the world economy, we remain committed to continuing
our momentum throughout the remainder of 2023. We expect to benefit
from growth in all our markets and especially the dynamic cell and
gene therapy industry where Cryoport supports a total of 652
clinical trials globally with 82 of these in phase 3.
"As a leader in the development of advanced
temperature-controlled supply chain solutions for the life sciences
industry, we have recently launched the Cryoportal® v2
Logistics Management System. The Cryoportal® v2 is
the first and, to our knowledge, the only ISPE
GAMP® 5.0 validated system of its type to
serve the life sciences and provides many new features and
enhancements.
"Of course, we have not stopped there. Other key product and
services initiatives planned for launch this year include our next
generation, advanced Cryoport Elite™ shipper line, which is now
starting to roll out with our ELITE™ Ultra-cold -80°C line of
shippers supporting gene therapies. Cryoport ELITE™ shippers will
provide additional de-risking, longer temperature hold-times, more
advanced communications features, and new security controls. Near
the end of the year, our SkyTrax™ Condition Monitoring System, a
generational leap to an advanced condition monitoring system that
will support temperature ranges from controlled room temperatures
to cryogenic temperatures, will also be released as well.
"As we move forward, we expect the robust cell and gene therapy
industry to continue its march forward and we will continue to
provide new, innovative services and products that will drive our
organic growth. Good examples of this are the build-out of our
Global Supply Chain Center Network, the introduction of our
IntegriCell™ platform to supply autologous and allogeneic cell
therapies a standardized apheresis collection and end-to-end
cryopreservation service for leukapheresis derived therapies, as
well as our Fusion® and
Vario® Cryogenic Freezer Systems.
"Our strategy and our team are committed to ensuring Cryoport is
always delivering the highest quality, most reliable solutions to
support life-saving cell and gene therapies, and we are constantly
evaluating opportunities to ensure this – because we know 'a
patient is waiting.'
"In my opinion, Cryoport is in a great position in the industry
today and has never been stronger than it is today. We are looking
forward to fulfilling our vision of becoming the essential supply
chain company serving the life sciences," concluded Mr.
Shelton.
Total revenues by market for the three months ended March 31, 2023, as compared to the same period in
2022 was as follows:
Cryoport, Inc. and
Subsidiaries
|
|
|
|
|
Total revenues by
market
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
(in
thousands)
|
2023
|
2022
|
%
Change
|
Change
|
Biopharma/Pharma
|
$
51,122
|
$
43,011
|
18.9 %
|
$
8,111
|
Animal
Health
|
8,863
|
6,794
|
30.4 %
|
2,069
|
Reproductive
Medicine
|
2,832
|
2,497
|
13.4 %
|
335
|
Total
revenues
|
$
62,817
|
$
52,302
|
20.1 %
|
$
10,515
|
Biopharma/Pharma
As of March 31, 2023, Cryoport
supported ten (10) commercial therapies and a total of 652 global
clinical trials, a net increase of 43 clinical trials on a
year-over-year basis. The number of trials in phase 3 was 82 as of
March 31, 2023. A total of 37
trials were completed or terminated in the first quarter of 2023,
while 35 new trials were started. The number of clinical trials
supported by Cryoport by phase and region at the end of the quarter
was as follows:
Cryoport Supported
Clinical Trials by Phase
|
|
|
|
|
Clinical
Trials
|
March
31,
|
2021
|
2022
|
2023
|
Phase 1
|
222
|
251
|
269
|
Phase 2
|
252
|
277
|
301
|
Phase 3
|
69
|
81
|
82
|
Total
|
543
|
609
|
652
|
|
|
|
|
Cryoport Supported
Clinical Trials by Region
|
|
|
|
|
Clinical
Trials
|
March
31,
|
2021
|
2022
|
2023
|
Americas
|
429
|
477
|
502
|
EMEA
|
86
|
99
|
108
|
APAC
|
28
|
33
|
42
|
Total
|
543
|
609
|
652
|
Some of the significant cell and gene therapy developments
during the first quarter of 2023 were as follows:
- The Committee for Medicinal Products for Human Use (CHMP) of
the European Medicines Agency (EMA) recommended approval of Bristol
Myers' Breyanzi® for the treatment of adult patients
with diffuse large B-cell lymphoma (DLBCL), high grade B-cell
lymphoma (HGBCL), primary mediastinal large B-cell lymphoma (PMBCL)
and follicular lymphoma grade 3B
(FL3B), after first-line chemoimmunotherapy treatment.
Following the quarter end, Breyanzi® was approved by the
EMA as a second line treatment for adult patients with DLBCL, high
grade B-cell lymphoma (HGBCL), PMBCL and follicular lymphoma grade
3B (FL3B). This approval covers all
European Union member states.
- The U.S. Food and Drug Administration (FDA), the European
Medicines Agency (EMA), and Japan's Ministry of Health, Labour, and
Welfare accepted Bristol Myers Squibb's and 2seventy bio's
supplemental Biologics License Application (sBLA) for
Abecma® for earlier use in adults with relapsed and
refractory multiple myeloma who have received an immunomodulatory
agent, a proteasome inhibitor, and an anti-CD38 monoclonal
antibody.
- A total of four Cryoport supported Biologic License
Applications (BLAs) or Marketing Authorization Applications (MAAs)
were filed in the first quarter of 2023.
- Subsequent to the first quarter of 2023 one customer filed a
BLA with the FDA, one customer had a therapy approved by the FDA,
and one customer's therapy was approved by the EMA to move to an
earlier line of treatment.
During the remainder of 2023, we anticipate up to an additional
18 application filings, 10 new therapy approvals and an additional
11 label or geographic expansion approvals.
Additionally, in January 2023,
Cryoport established a new strategic partnership with Syneos Health
to support the global advancement of cell and gene therapies,
providing the industry's first fully integrated biopharmaceutical
and temperature-controlled supply chain solution. The new
partnership couples the full suite of clinical development services
offered by Syneos Health with IntegriCell™, Cryoport's new emerging
platform providing standardized apheresis collection,
cryoprocessing, cryopreservation services, temperature-controlled
supply chain support, storage, secondary packaging, and
labeling.
Animal Health
We believe the Animal Health industry is poised for significant
growth in the coming years, driven by two key factors. First is the
rise in the global population and increased demand for
animal-derived protein. Second is the growing trend of companion
animal ownership in developing and emerging countries, creating a
larger opportunity for animal healthcare products and services.
Combined, we anticipate that these factors will fuel the ongoing
research and development of novel therapies and treatments, further
advances in genomic tools and other technological advancements.
Cryoport's animal health strategy is based on building a strong
foundation with the leading animal health firms. This strategy will
allow the opportunity for Cryoport to develop additional
purpose-built solutions to meet the currently unmet needs and
nuances that are unique to the animal husbandry industry. We
continue to build and expand our relationship with Zoetis, and we
have established formal contractual relationships with Elanco and
Boehringer Ingelheim during this past year.
The Animal Health industry is highly competitive with many
players operating in both developed and emerging regions. Cryoport,
however, is uniquely positioned to support the global animal health
industry globally with key supply-chain dynamics such as the
increasing value of the commodities being shipped, an increase in
the number and volume of temperature-controlled products, auditable
traceability requirements, and efficiency demands. Our
comprehensive supply chain platform, which begins with planning and
consulting to intelligent logistics, biostorage, and advanced
packaging solutions, provides a true value proposition for the
evolving needs of the Animal Health industry.
Reproductive Medicine
The Reproductive Medicine industry is also growing globally. In
March 2023, Cryoport signed a
multi-year agreement with Inception Fertility™ (Inception),
North America's largest provider
of comprehensive fertility services. Inception operates The Prelude
Network® (Prelude), the largest and fastest-growing
technology-led network of fertility centers in North America, and MyEggBank®, one
of the largest and most diverse networks of donor egg banks and
practices in North America.
Through this three-year partnership, Prelude and MyEggBank will
continue to utilize Cryoport's end-to-end supply chain solutions
for egg and embryo shipments across their clinical networks to
ensure significant risk mitigation for families using these
services. Additionally, Prelude's patient medical record system
will be integrated with Cryoport's Cryoportal® v2
Logistics Management System, which will merge each shipment's
tracking, condition monitoring and equipment qualification data
into a single data stream, providing a higher quality of service to
Inception's and Prelude's patients.
Following the quarter end, in April
2023, the Company signed a new three-year agreement with
Boston IVF, a pioneer in reproductive healthcare and innovative
research and one of the world's most experienced fertility
treatment providers. Utilizing Cryoport's end-to-end supply chain
solutions, Boston IVF will integrate its regional and satellite
labs across Massachusetts,
New Hampshire, Maine, Rhode
Island, New York and
Indiana, along with its partner
sites in Delaware, Ohio, Idaho,
Utah and North Carolina. Cryoport's platform is
expected to improve the overall efficiency of Boston IVF's
reproductive material shipments and ensure significant risk
mitigation for patients and families entrusting Boston IVF with
their care.
Financial Highlights
Total revenue for the first quarter of 2023 was $62.8 million compared to $52.3 million for the first quarter of 2022, a
year-over-year increase of 20% or $10.5
million, and 23% at constant currency. Demand for Cryoport's
comprehensive temperature-controlled supply chain solutions
continued to be strong, while revenue for the first quarter of 2022
was adversely impacted by approximately $9.4
million from the fire at our New
Prague manufacturing plant. First quarter 2023 performance
by market was as follows:
- Biopharma/Pharma revenue increased to $51.1 million, up 19% or $8.1 million for the first quarter of 2023,
compared to $43.0 million for the
first quarter of 2022. Revenue from commercial therapies was
$5.0 million, a 28% increase compared
to the first quarter of 2022. Overall, revenue growth in this
market continued to be driven by the support of global clinical
trials and commercially launched therapies as well as general
demand for our temperature-controlled systems, logistics and
biostorage services.
- Animal Health revenue was $8.9
million, up 30% or $2.1
million for the first quarter of 2023, compared to
$6.8 million for the first quarter of
2022. This year-over-year growth reflects increased demand for
animal protein and expanding ownership of companion animals in
developing and emerging countries. These trends are quickly driving
greater demand for therapeutic innovation in this area to improve
the lives of animal companions. We are seeing increased activity
from top global animal health pharmaceutical companies to meet this
demand.
- Reproductive Medicine revenue was $2.8
million for the first quarter of 2023, compared to
$2.5 million for the first quarter of
2022. Our growth this quarter was primarily driven by our
continued progress in contracting with key reproductive clinic
networks as evidenced by our recent announcements regarding our
support of Boston IVF and Inception Fertility.
Gross margin was 43.1% for the first quarter of 2023, compared
to 42.7% in the first quarter of 2022.
Operating costs and expenses for the first quarter of 2023 were
$37.1 million, compared to
$30.2 million for the first quarter
of 2022. The increase was primarily attributable to the further
build out of our solutions, capabilities, competencies, global
infrastructure, and technology development to support the continued
scaling of our business and broadening of our solutions to meet the
expected increase in demand for our temperature-controlled supply
chain solutions, particularly in the rapidly developing cell and
gene therapy industry.
Net loss for the three months ended March
31, 2023 was $5.6 million,
compared to a net loss of $13.4
million for the same period in 2022. Net loss for the first
quarter of 2022 was partially impacted by a $4.9 million non-cash expense related to an
unrealized loss on the mark-to-market value of certain securities
investments. Net loss attributable to common stockholders was
$7.6 million, or $0.16 per share for the three months ended
March 31, 2023. This compares to a
net loss attributable to common stockholders of $15.4 million, or $0.31 per share, for the three months ended
March 31, 2022. First quarter 2022
results include the $4.9 million
non-cash expense noted above.
Adjusted EBITDA was $2.9 million
for the first quarter of 2023, compared to $2.0 million for the first quarter of 2022. The
year-over-year change primarily reflects the impact of the fire at
our New Prague, Minnesota
manufacturing facility during the first quarter of 2022, partially
offset by increased investments in our growth initiatives during
the first quarter of 2023.
Cryoport held $522.6 million in
cash, cash equivalents, and short-term investments as of
March 31, 2023.
Outlook
The Company's revenue guidance of $270 - $290 million
for the full year 2023 is expected to be driven largely by our
ongoing support of global clinical trials, a growing number of
commercial cell and gene therapy products from our clients, the
expansion of cell and gene manufacturing capacity to meet patient
demand, and the demand for biostorage and cryogenic freezer
systems. Our 2023 guidance also assumes the launch of new
services and products, designed to further expand, and strengthen
our industry position.
The outlook for 2023 assumes a continued solid demand
environment based on a steady economic environment. The Company's
guidance is dependent on its current business and expectations,
which may be impacted by, among other things, factors that are
outside of our control, such as the global macroeconomic
environment, the ongoing effects and after effects of COVID-19
related shut downs/slowdowns globally, continued supply chain
constraints, inflationary pressures, the ongoing war between
Russia and Ukraine, economic uncertainty and the effects
of foreign currency fluctuations, as well as the other factors
described in the Company's filings with the Securities and Exchange
Commission ("SEC"), including in the "Risk Factors" section of its
most recently filed periodic reports on Form 10-K and Form 10-Q, as
well as in its subsequent filings with the SEC.
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures
above are detailed in the reconciliation tables included later in
the press release.
Additional Information
Further information on Cryoport's financial results is included
in the attached condensed consolidated balance sheets and
statements of operations, and additional explanations of Cryoport's
financial performance will be provided in the Company's quarterly
report on Form 10-Q for the three months ended March 31, 2023, which is expected to be filed
with the SEC on May 4, 2023.
Additionally, the full report will be available in the SEC Filings
section of the Investor Relations section of Cryoport's website at
www.cryoport.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: A document titled "Cryoport First
Quarter 2023 in Review", providing a
review of Cryoport's financial and operational performance and a general business
update, will be issued at 4:05 p.m. ET on
Thursday, May 4, 2023. The document is designed to be read
by investors before the questions and answers conference call and
will be accessible at:
http://ir.cryoport.com/events-and-presentations.
Cryoport management will host a conference call the same day at
5:00 pm ET. The conference call will
be in the format of a questions and answers session and will
address questions members of the investment community have
regarding the Company's reported results. A slide deck will
accompany the call.
Conference Call Information
Date:
|
Thursday, May 4,
2023
|
Time:
|
5:00 p.m. ET
|
Dial-in
numbers:
|
1-877-550-2105 (U.S.),
1-848-488-9190 (International)
|
Confirmation
code:
|
Request the "Cryoport
Call" or Conference ID: 3900921
|
Live
webcast:
|
'Investor Relations'
section at www.cryoport.com or click here.
Please allow 10 minutes
prior to the call to visit this site to download and install any
necessary audio software.
|
The questions and answers call will be recorded and available
approximately three hours after completion of the live event in the
Investor Relations section of the Company's website at
www.cryoport.com for a limited time. To access the replay of
the questions and answers click here. A dial-in replay of the
call will also be available to those interested, until May 11, 2023. To access the replay, dial
1-800-645-7964 (United States) or
1-757-849-6722 (International) and enter replay entry code:
3054#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in
temperature-controlled supply chain solutions for the life sciences
industry supporting life-saving cell and gene therapies across the
research, clinical and commercial spectrum. With 48 strategic
locations covering the Americas, EMEA (Europe, the Middle
East and Africa) and APAC
(Asia Pacific), Cryoport's global
platform provides mission-critical solutions, services, and
products to the biopharma/pharma, animal health, and reproductive
medicine industries worldwide. In addition to its standard setting
supply chain solutions, Cryoport is one of the world's largest
manufacturers of cryogenic systems and one of the largest life
science focused specialty couriers.
For more information, visit www.cryoport.com or follow @cryoport
on Twitter at www.twitter.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely
historical, including statements regarding the Company's
intentions, hopes, beliefs, expectations, representations,
projections, plans or predictions of the future, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, those related to the
Company's industry, business, long-term growth prospects, including
expected growth in all of the Company's markets, plans, strategies,
acquisitions, future financial results and financial condition,
such as the Company's outlook and guidance for full year 2023
revenue and the related assumptions and factors expected to drive
revenue, projected growth trends in the markets in which the
Company operates, the Company's plans and expectations regarding
the launch of new products and services, such as the expected
timing and benefits of such products and services launches, the
Company's belief that it is well positioned to support the expected
growth of the cell and gene therapy market, and anticipated
regulatory filings or approvals with respect to the products of the
Company's clients. It is important to note that the Company's
actual results could differ materially from those in any such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, risks and
uncertainties associated with the effect of changing economic
conditions, including as a result of the COVID-19 pandemic and its
variants, supply chain constraints, inflationary pressures, the
ongoing war between Russia and
Ukraine and the effects of foreign
currency fluctuations, trends in the products markets, variations
in the Company's cash flow, market acceptance risks, and technical
development risks. The Company's business could be affected by a
number of other factors discussed in the Company's SEC reports,
including in the "Risk Factors" section of its most recently filed
periodic reports on Form 10-K and Form 10-Q, as well as in its
subsequent filings with the SEC. The forward-looking statements
contained in this press release speak only as of the date hereof
and the Company cautions investors not to place undue reliance on
these forward-looking statements. Except as required by law, the
Company disclaims any obligation, and does not undertake to update
or revise any forward-looking statements in this press release.
Cryoport, Inc. and
Subsidiaries
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
(unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
(in thousands,
except share and per share data)
|
2023
|
2022
|
Revenues:
|
|
|
Services
revenues
|
$
35,836
|
$
32,910
|
Product
revenues
|
26,981
|
19,392
|
Total
revenues
|
62,817
|
52,302
|
Cost of
revenues:
|
|
|
Cost of services
revenues
|
19,076
|
18,718
|
Cost of product
revenues
|
16,669
|
11,243
|
Total cost of
revenues
|
35,745
|
29,961
|
Gross
Margin
|
27,072
|
22,341
|
Operating costs and
expenses:
|
|
|
Selling, general and
administrative
|
33,241
|
26,622
|
Engineering and
development
|
3,876
|
3,538
|
Total operating
costs and expenses:
|
37,117
|
30,160
|
Loss from
operations
|
(10,045)
|
(7,819)
|
Other income
(expense):
|
|
|
Investment
income
|
2,467
|
1,264
|
Interest
expense
|
(1,509)
|
(1,491)
|
Other income (expense),
net
|
4,005
|
(5,017)
|
Loss before provision
for income taxes
|
(5,082)
|
(13,063)
|
Provision for income
taxes
|
(492)
|
(341)
|
Net
loss
|
$
(5,574)
|
$
(13,404)
|
Paid-in-kind dividend
on Series C convertible preferred stock
|
(2,000)
|
(2,000)
|
Net loss
attributable to common stockholders
|
$
(7,574)
|
$
(15,404)
|
Net loss per share
attributable to common stockholders - basic and
diluted
|
$
(0.16)
|
$
(0.31)
|
Weighted average common
shares outstanding - basic and diluted
|
48,362,501
|
49,660,579
|
Cryoport, Inc. and
Subsidiaries
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
March
31,
|
December
31,
|
|
2023
|
2022
|
(in
thousands)
|
(unaudited)
|
|
Current
assets:
|
|
|
Cash and
cash equivalents
|
$
38,538
|
$
36,595
|
Short-term
investments
|
484,076
|
486,728
|
Accounts
receivable, net
|
45,574
|
43,858
|
Inventories
|
26,487
|
27,678
|
Prepaid
expenses and other current assets
|
9,959
|
9,317
|
Total
current assets
|
604,634
|
604,176
|
Property
and equipment, net
|
71,259
|
63,603
|
Operating
lease right-of-use assets
|
30,270
|
26,877
|
Intangible
assets, net
|
188,175
|
191,009
|
Goodwill
|
151,616
|
151,117
|
Deposits
|
1,218
|
1,017
|
Deferred
tax assets
|
937
|
947
|
Total
assets
|
$
1,048,109
|
$
1,038,746
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable and other accrued expenses
|
$
25,860
|
$
28,046
|
Accrued
compensation and related expenses
|
10,450
|
8,458
|
Deferred
revenue
|
1,009
|
439
|
Current portion
of operating lease liabilities
|
4,089
|
3,720
|
Current portion
of finance lease liabilities
|
114
|
128
|
Current portion
of notes payable
|
61
|
60
|
Total current
liabilites
|
41,583
|
40,851
|
Convertible
senior notes , net
|
407,349
|
406,708
|
Notes payable,
net
|
364
|
355
|
Operating lease
liabilities, net
|
27,841
|
24,721
|
Finance lease
liabilities, net
|
202
|
216
|
Deferred tax
liability
|
5,110
|
4,929
|
Other long-term
liabilities
|
368
|
451
|
Contingent
consideration
|
4,774
|
4,677
|
Total liabilities
|
487,591
|
482,908
|
Total stockholders' equity
|
560,518
|
555,838
|
Total liabilities and stockholders' equity
|
$
1,048,109
|
$
1,038,746
|
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on
the basis of U.S. generally accepted accounting principles (GAAP),
the following non-GAAP measures of financial performance as defined
in Regulation G of the Securities Exchange Act of 1934 are included
in this release: revenue at constant currency, revenue growth rate
at constant currency and adjusted EBITDA. Non-GAAP financial
measures are not calculated in accordance with GAAP, are not based
on any comprehensive set of accounting rules or principles and may
be different from non-GAAP financial measures presented by other
companies. Non-GAAP financial measures, including revenue at
constant currency, revenue growth rate at constant currency and
adjusted EBITDA, should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP.
We believe that revenue growth is a key indicator of how
Cryoport is progressing from period to period and we believe that
the non-GAAP financial measures, revenue at constant currency and
revenue growth rate at constant currency, are useful to investors
in analyzing the underlying trends in revenue. Under GAAP, revenues
received in local (non-U.S. dollar) currency are translated into
U.S. dollars at the average exchange rate for the period presented.
As a result, fluctuations in foreign currency exchange rates affect
the results of our operations and the value of our foreign assets
and liabilities, which in turn may adversely affect results of
operations and cash flows and the comparability of period-to-period
results of operations. When we use the term "constant currency," it
means that we have translated local currency revenues for the
current reporting period into U.S. dollars using the same average
foreign currency exchange rates for the conversion of revenues into
U.S. dollars that we used to translate local currency revenues for
the comparable reporting period of the prior year. Revenue growth
rate at constant currency refers to the measure of comparing the
current reporting period revenue at constant currency with the
reported GAAP revenue for the comparable reporting period of the
prior year.
However, we also believe that data on constant currency
period-over-period changes have limitations, particularly as the
currency effects that are eliminated could constitute a significant
element of our revenue and could significantly impact our
performance. We therefore limit our use of constant currency
period-over-period changes to a measure for the impact of currency
fluctuations on the translation of local currency revenue into U.S.
dollars. We do not evaluate our results and performance without
considering both period-over-period changes in non-GAAP constant
currency revenue on the one hand and changes in revenue prepared in
accordance with GAAP on the other. We caution the readers of this
press release to follow a similar approach by considering revenue
on constant currency period-over-period changes only in addition
to, and not as a substitute for, or superior to, changes in revenue
prepared in accordance with GAAP.
Adjusted EBITDA is defined as net loss adjusted for interest
expense, income taxes, depreciation and amortization expense,
stock-based compensation expense, acquisition and integration
costs, investment income, unrealized (gain)/loss on investments,
foreign currency (gain)/loss, gain on insurance claim and charges
or gains resulting from non-recurring events.
Management believes that adjusted EBITDA provides a useful
measure of Cryoport's operating results, a meaningful comparison
with historical results and with the results of other companies,
and insight into Cryoport's ongoing operating performance. Further,
management and the Company's board of directors utilize adjusted
EBITDA to gain a better understanding of Cryoport's comparative
operating performance from period to period and as a basis for
planning and forecasting future periods. Management believes
adjusted EBITDA, when read in conjunction with Cryoport's GAAP
financials, is useful to investors because it provides a basis for
meaningful period-to-period comparisons of Cryoport's ongoing
operating results, including results of operations, against
investor and analyst financial models, helps identify trends in
Cryoport's underlying business and in performing related trend
analyses, and it provides a better understanding of how management
plans and measures Cryoport's underlying business.
Cryoport, Inc. and
Subsidiaries
|
|
|
Reconciliation of
GAAP net loss to adjusted EBITDA
|
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(in
thousands)
|
2023
|
2022
|
GAAP net
loss
|
$
(5,574)
|
$
(13,404)
|
Non-GAAP adjustments to
net loss:
|
|
|
Depreciation and amortization expense
|
6,404
|
5,365
|
Acquisition and integration costs
|
1,257
|
257
|
Investment income
|
(2,467)
|
(1,264)
|
Unrealized (gain) loss on investments
|
(1,424)
|
4,908
|
Gain
on insurance claim
|
(2,642)
|
-
|
Foreign currency loss
|
157
|
160
|
Interest expense, net
|
1,509
|
1,491
|
Stock-based compensation expense
|
5,184
|
4,125
|
Income taxes
|
492
|
341
|
Adjusted
EBITDA
|
$
2,896
|
$
1,979
|
Cryoport, Inc. and
Subsidiaries
|
|
|
|
|
Total revenues by
market at constant currency for the three months ended March 31,
2023
|
(unaudited)
|
|
|
|
|
|
|
Biopharma/
Pharma
|
Animal
Health
|
Reproductive
Medicine
|
Total
|
|
(in
thousands)
|
|
|
|
|
|
Non US-GAAP Constant
Currency
|
$
52,284
|
$
9,133
|
$
2,841
|
$
64,258
|
|
As Reported
|
51,122
|
8,863
|
2,832
|
62,817
|
|
FX Impact
[$]
|
(1,162)
|
(270)
|
(9)
|
(1,441)
|
|
FX Impact
[%]
|
(2.3 %)
|
(3.0 %)
|
(0.3 %)
|
(2.3 %)
|
|
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SOURCE Cryoport, Inc.