On November 9, 2023, Cytek Biosciences Inc (CTKB, Financial) released its earnings report for the third quarter of 2023. Despite a challenging macroeconomic environment, the company reported a total revenue of $48.0 million, a 19% increase compared to the same period last year. This growth includes approximately $6.8 million from the product line acquired from Luminex. Excluding acquisition-related revenue, organic revenue saw a modest increase of 2% year-over-year, totaling $41.2 million.
Financial Performance and Challenges
CTKB's growth in the third quarter was primarily driven by its reagent portfolio and services, which are expected to be key growth drivers moving forward. However, the company faced extended sales cycles and order delays, which are anticipated to continue into the fourth quarter. As a result, full-year revenue from the organic business is expected to be approximately flat compared to the previous year, with an additional $25 million to $30 million in revenue contributions from the Luminex acquisition.
Strategic Pillars and Product Development
CTKB remains committed to its four strategic pillars: instruments, applications, bioinformatics, and clinical. The company placed 119 instruments from its organic portfolio in Q3, resulting in an installed base of 1,997 Cytek instruments. The reagents and kits segment continues to perform strongly, and the company is set to launch Cytek Orion, a new smart cocktail reagent mixer, in Q4. The Cytek Cloud platform is also gaining traction, with more than 2 users per installed Cytek instrument on average.
Financial Details
Gross profit for Q3 2023 was $27.2 million, a slight increase from the previous year's $26.9 million, with a gross profit margin of 57%. Operating expenses rose to $33.6 million, a 32% increase from Q3 2022, primarily due to increased headcount and related expenses. The net loss after tax for Q3 2023 was $6.5 million, compared to a net income of $1.6 million in the same quarter last year. Adjusted EBITDA was positive at $3.7 million, although lower than the $7.3 million in Q3 2022.
Outlook and Analyst Engagement
CTKB has adjusted its full-year revenue outlook to $188 million to $192 million, with organic revenue expected to be flat and contributions from the Luminex acquisition estimated between $25 million to $30 million. The company continues to monitor global market conditions and is focused on improving operational efficiencies. CTKB is also actively engaging with analysts and investors through various flow cytometry events and encourages participation to gain insights into the company's technology and user experiences.
In conclusion, Cytek Biosciences Inc (CTKB, Financial) is navigating a challenging macroeconomic landscape with a focus on strategic growth areas and operational efficiency. The company's commitment to innovation and market leadership in flow cytometry remains strong, as evidenced by its continued investment in product development and customer engagement.
Explore the complete 8-K earnings release (here) from Cytek Biosciences Inc for further details.
