Cryoport, Inc. (CYRX) Bundle
Understanding Cryoport, Inc. (CYRX) Revenue Streams
Understanding Cryoport, Inc.’s Revenue Streams
The revenue performance of Cryoport, Inc. for the nine months ended September 30, 2024, reflects a nuanced landscape influenced by its service and product segments.
Breakdown of Primary Revenue Sources
As of September 30, 2024, Cryoport's total revenue was $168.9 million, a decrease of 4.1% from $175.995 million in the same period in 2023. The revenue streams are categorized into two main segments: Life Sciences Services and Life Sciences Products.
| Revenue Source | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Life Sciences Services | $114,104 | $107,062 | $7,042 | 6.6% |
| Life Sciences Products | $54,749 | $68,933 | $(14,184) | (20.6%) |
| Total Revenue | $168,853 | $175,995 | $(7,142) | (4.1%) |
Year-over-Year Revenue Growth Rate
Examining the year-over-year growth rate, the Life Sciences Services segment saw a robust growth of 6.6%, primarily driven by BioLogistics Solutions and BioStorage/BioServices, which grew by 6.2% and 10.6%, respectively. Conversely, Life Sciences Products experienced a significant downturn, with a revenue decline of 20.6%.
Contribution of Different Business Segments to Overall Revenue
For the nine months ended September 30, 2024, the contribution of each segment to overall revenue is detailed below:
- Life Sciences Services: 67.7% of total revenue
- Life Sciences Products: 32.3% of total revenue
Analysis of Significant Changes in Revenue Streams
The decline in Life Sciences Products revenue, which fell from $68.9 million to $54.7 million, can be attributed to decreased demand for cryogenic systems, particularly in the APAC region and the Americas. This shift indicates a potential market contraction or changing customer needs within that segment. In contrast, the steady growth in Life Sciences Services reflects an increasing demand for temperature-controlled logistics, essential for the cell and gene therapy market.
Overall, the revenue performance highlights the importance of adapting to market changes and focusing on the growing service segment to mitigate the impacts of declining product sales.
A Deep Dive into Cryoport, Inc. (CYRX) Profitability
Profitability Metrics
Gross profit, operating profit, and net profit margins are critical indicators of a company's financial health. For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Total Revenue | $168,853,000 | $175,995,000 | $(7,142,000) | (4.1%) |
| Cost of Revenue | $(96,503,000) | $(99,924,000) | $3,421,000 | (3.4%) |
| Gross Profit | $72,350,000 | $76,071,000 | $(3,721,000) | (4.9%) |
| Operating Loss | $(111,921,000) | $(108,066,000) | $(3,855,000) | (3.6%) |
| Net Income (Loss) | $(96,079,000) | $(37,198,000) | $(58,881,000) | 135.2% |
The gross margin for the nine months ended September 30, 2024, was 42.8%, compared to 43.2% for the same period in 2023. The decrease in gross margin reflects the challenges faced within the Life Sciences Products segment, which saw a revenue drop of 20.6% year-over-year.
In terms of operational efficiency, the Life Sciences Services revenue increased by 6.6%, indicating a positive trend in demand for these services, while the Life Sciences Products revenue decreased significantly. The gross margin for Life Sciences Services was reported at 44.0%, slightly down from 44.1% in the prior year, while Life Sciences Products gross margin fell to 40.5% from 41.9%.
When comparing profitability ratios with industry averages, the company faces pressure from rising operational costs, reflected in the increase in selling, general, and administrative expenses (SG&A), which rose to $111,921,000 for the nine months ending September 30, 2024, up 3.6% from $108,066,000 in the previous year.
Overall, the trends in profitability highlight operational challenges amid fluctuating revenues and increased costs, necessitating strategic adjustments to enhance profitability moving forward.
Debt vs. Equity: How Cryoport, Inc. (CYRX) Finances Its Growth
Debt vs. Equity: How Cryoport, Inc. Finances Its Growth
As of September 30, 2024, the company reported a total long-term debt of $197.9 million and short-term debt of $1.4 million. The current portion of the long-term debt is approximately $14.3 million. This structure indicates a significant reliance on debt for financing growth activities.
The debt-to-equity ratio stands at approximately 0.62, which is below the industry average of 1.0, suggesting a more conservative approach to leveraging compared to peers.
Recent Debt Issuances and Refinancing Activity
In recent months, the company has engaged in substantial debt repurchases, including $10 million, $15 million, and $160 million in aggregate principal amount of the 2026 Senior Notes. The repurchase prices were $8.7 million, $12.9 million, and $141.6 million, respectively, resulting in a net gain on extinguishment of debt of $18.5 million for the nine months ended September 30, 2024.
Debt vs. Equity Funding Strategy
The company has balanced its financing strategy by issuing convertible senior notes, with the total carrying value of these notes at $197.9 million. The interest expense incurred in connection with the convertible senior notes was approximately $3.8 million for the nine months ended September 30, 2024. In addition, the company has a repurchase authorization of $73.9 million under its active repurchase programs.
| Debt Type | Principal Amount | Carrying Value | Interest Expense |
|---|---|---|---|
| 2025 Senior Notes | $14.3 million | $14.3 million | $2.2 million |
| 2026 Senior Notes | $186.2 million | $183.6 million | $2.6 million |
| Convertible Senior Notes | $197.9 million | $197.9 million | $3.8 million |
| Short-term Debt | $1.4 million | $1.4 million | $0.014 million |
This strategic mix of debt and equity funding allows the company to leverage its capital structure effectively while maintaining a manageable level of risk relative to its equity base.
Assessing Cryoport, Inc. (CYRX) Liquidity
Assessing Cryoport, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
| Current Assets | Current Liabilities | Current Ratio |
|---|---|---|
| $288.9 million | $200.5 million | 1.44 |
Quick Ratio: The quick ratio is assessed using the formula:
| Quick Assets | Current Liabilities | Quick Ratio |
|---|---|---|
| $44.7 million (cash and cash equivalents) + $228.0 million (short-term investments) | $200.5 million | 0.68 |
Analysis of Working Capital Trends
Working capital has shown a positive trend with a total of $288.9 million as of September 30, 2024, compared to $228.0 million in the previous year. This reflects an increase of $60.9 million, indicating improved liquidity.
Cash Flow Statements Overview
Operating Cash Flow:
| Period | Cash Flow from Operating Activities |
|---|---|
| Nine Months Ended September 30, 2024 | ($10.8 million) |
| Nine Months Ended September 30, 2023 | ($3.2 million) |
Investing Cash Flow:
| Period | Cash Flow from Investing Activities |
|---|---|
| Nine Months Ended September 30, 2024 | $173.3 million |
| Nine Months Ended September 30, 2023 | $50.8 million |
Financing Cash Flow:
| Period | Cash Flow from Financing Activities |
|---|---|
| Nine Months Ended September 30, 2024 | ($163.5 million) |
| Nine Months Ended September 30, 2023 | ($23.7 million) |
Potential Liquidity Concerns or Strengths
The company has cash and cash equivalents of $44.7 million and short-term investments of $228.0 million, indicating a solid liquidity position. However, the net cash used in operating activities has increased to ($10.8 million), highlighting potential concerns about sustaining operations without further financing.
The management acknowledges the need for additional capital to fund operations and potential acquisitions until sustained profitable operations are achieved .
Is Cryoport, Inc. (CYRX) Overvalued or Undervalued?
Valuation Analysis
To assess whether the company is overvalued or undervalued, we will analyze key financial ratios, stock price trends, dividend yield, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The current P/E ratio stands at –, indicating a negative earnings situation due to recent financial losses. The trailing twelve months (TTM) earnings per share (EPS) is –.
Price-to-Book (P/B) Ratio
The P/B ratio is calculated at 1.95, with the book value per share reported at $4.64 and the current stock price at approximately $9.05.
Enterprise Value-to-EBITDA (EV/EBITDA)
The EV/EBITDA ratio is –, as the company reported a negative EBITDA of – for the latest fiscal periods.
Stock Price Trends
Over the last 12 months, the stock price has experienced fluctuations:
- 12 months ago: $13.50
- 6 months ago: $11.00
- 3 months ago: $8.50
- Current stock price: $9.05
Dividend Yield and Payout Ratios
The company does not currently pay a dividend, resulting in a dividend yield of 0%. The payout ratio is also – due to the absence of dividends.
Analyst Consensus
Analyst ratings are as follows:
- Buy: 2
- Hold: 5
- Sell: 1
The consensus rating is a Hold.
| Valuation Metric | Current Value |
|---|---|
| P/E Ratio | – |
| P/B Ratio | 1.95 |
| EV/EBITDA | – |
| 12-Month Stock Price Range | $8.50 - $13.50 |
| Current Stock Price | $9.05 |
| Dividend Yield | 0% |
| Payout Ratio | – |
| Analyst Consensus | Hold |
Key Risks Facing Cryoport, Inc. (CYRX)
Key Risks Facing Cryoport, Inc.
Overview of Internal and External Risks
The financial health of the company is influenced by a variety of internal and external risks. These include:
- Industry Competition: The logistics and supply chain industry for life sciences is highly competitive. Major players include Thermo Fisher Scientific and FedEx, which could impact market share and pricing.
- Regulatory Changes: Changes in regulations, particularly in the healthcare and pharmaceutical sectors, can affect operational capabilities and compliance costs.
- Market Conditions: Economic downturns can reduce demand for services, particularly in the bio-pharma sector.
Operational, Financial, or Strategic Risks
Recent earnings reports highlight several risks:
- Revenue Volatility: For the nine months ended September 30, 2024, total revenue decreased by $7.1 million, or 4.1%, compared to the same period in 2023, falling from $175.9 million to $168.9 million.
- Impairment Loss: A significant impairment loss of $63.8 million was recorded, primarily related to goodwill.
- Increased Operating Losses: The company reported a net loss of $96.1 million for the nine months ended September 30, 2024, compared to a loss of $37.2 million in the prior year.
Mitigation Strategies
To address these risks, the company has implemented several strategies:
- Investment in Infrastructure: Increased SG&A expenses by 3.6% to build competencies and infrastructure.
- Focus on R&D: Continued investment in research and development to enhance service offerings and operational efficiencies.
- Strategic Partnerships: Collaborating with key industry players to bolster market presence and mitigate competitive pressures.
| Risk Factor | Description | Impact | Mitigation Strategy |
|---|---|---|---|
| Industry Competition | Presence of major competitors affecting pricing and market share | Potential revenue decrease | Investment in infrastructure and strategic partnerships |
| Regulatory Changes | Changes in healthcare regulations impacting operations | Increased compliance costs | Proactive compliance and legal reviews |
| Market Conditions | Economic downturns affecting demand | Reduced customer spending | Diversification of services and markets |
| Revenue Volatility | Fluctuations in revenue impacting financial stability | Increased operational risk | Focus on stable revenue streams and service offerings |
| Impairment Loss | Significant impairment of goodwill affecting net income | Negative impact on shareholder equity | Regular assessment of asset values |
Future Growth Prospects for Cryoport, Inc. (CYRX)
Future Growth Prospects for Cryoport, Inc. (CYRX)
Analysis of Key Growth Drivers
The company is well-positioned for future growth, driven by several key factors:
- Product Innovations: The launch of the IntegriCell™ facility in Houston in October 2024 aims to enhance supply chain solutions for cell and gene therapies. This innovative platform integrates apheresis collection, cryopreservation, and distribution.
- Market Expansions: The company supports a growing number of clinical trials, totaling 691 globally as of September 30, 2024, with 79 in phase 3, reflecting a 16 trial increase from year-end 2023.
- Acquisitions: Continued exploration of strategic acquisitions to enhance capabilities and market presence.
Future Revenue Growth Projections and Earnings Estimates
Future revenue growth is projected as follows:
| Period | Projected Revenue (in millions) | Growth Rate (%) |
|---|---|---|
| 2024 | $168.9 | -4.1% |
| 2025 | $180.0 | 6.6% |
| 2026 | $200.0 | 11.1% |
Strategic Initiatives or Partnerships That May Drive Future Growth
The strategic initiatives include:
- Partnerships: Collaborations with biotech firms to expand service offerings in cell and gene therapy.
- Technology Investments: Significant investments in logistics technology, particularly the Cryoportal® 2 Logistics Management Platform launched in May 2023.
Competitive Advantages That Position the Company for Growth
Key competitive advantages include:
- Market Leadership: The company maintains a leading position in the advanced temperature-controlled supply chain sector for cell and gene therapies.
- Strong Brand Recognition: Established reputation among clients and stakeholders in the life sciences sector.
- Robust Infrastructure: A global logistics network that allows for efficient service delivery and support for clinical trials.
Financial Performance Indicators
The following table summarizes recent financial performance metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Total Revenue | $168.9 million | $176.0 million | -4.1% |
| Life Sciences Services Revenue | $114.1 million | $107.1 million | 6.6% |
| Gross Margin | 42.8% | 43.2% | -0.4% |
| Net Loss | ($96.1 million) | ($37.2 million) | 157.0% |
As of September 30, 2024, the company had cash and cash equivalents of $44.7 million and working capital of $288.9 million, indicating sufficient liquidity to support ongoing growth initiatives.
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Updated on 16 Nov 2024
Resources:
- Cryoport, Inc. (CYRX) Financial Statements – Access the full quarterly financial statements for Q3 2023 to get an in-depth view of Cryoport, Inc. (CYRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cryoport, Inc. (CYRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.