On August 6, 2024, Cytek Biosciences Inc (CTKB, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Cytek Biosciences Inc is a cell analysis solutions company advancing the next generation of cell analysis tools by leveraging novel technical approaches. Its core instruments, the Cytek Aurora and Northern Lights systems, are the first full-spectrum flow cytometers able to deliver high-resolution, high-content, and high-sensitivity cell analysis by utilizing the full spectrum of fluorescence signatures from multiple lasers to distinguish fluorescent tags on single cells. Its FSP platform addresses the inherent limitations of other technologies by providing a higher density of information with greater sensitivity, more flexibility, and increased efficiency, all at a lower cost for performance. Geographically, the company generates a majority of its revenue from the United States.
Performance Overview
For the second quarter of 2024, Cytek Biosciences Inc reported total revenue of $46.6 million, a 6% decrease compared to the second quarter of 2023. This decline was primarily attributed to weakness in the U.S. instrument market, which offset strong revenue growth in the EMEA and APAC regions. The company's gross profit for the quarter was $25.4 million, a 10% decrease from the same period last year, with a GAAP gross profit margin of 55%, down from 57% in Q2 2023.
“In the second quarter of 2024, we posted strong year over year double-digit revenue growth in EMEA and APAC as well as in our service business worldwide as compared to the second quarter of 2023. However, this performance was offset by a decline in our U.S. instrument sales, particularly among academic and government customers,” said Dr. Wenbin Jiang, CEO of Cytek Biosciences.
Financial Achievements and Challenges
Despite the revenue decline, Cytek Biosciences Inc managed to reduce its operating expenses by 9% to $34.0 million, down from $37.3 million in Q2 2023. This reduction was driven by decreased research and development expenses, which fell to $10.0 million from $12.1 million, and lower sales and marketing expenses, which decreased to $12.3 million from $14.4 million. However, general and administrative expenses increased slightly to $11.7 million from $10.8 million.
The company reported a net loss of $10.4 million for the second quarter of 2024, compared to a net loss of $4.4 million in the same period last year. Adjusted EBITDA improved to $2.9 million from $1.5 million in Q2 2023, reflecting adjustments for stock-based compensation, foreign currency exchange impacts, and acquisition-related expenses.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $46.6 million | $49.7 million |
| Gross Profit | $25.4 million | $28.2 million |
| Operating Expenses | $34.0 million | $37.3 million |
| Net Loss | $10.4 million | $4.4 million |
| Adjusted EBITDA | $2.9 million | $1.5 million |
Analysis and Outlook
Cytek Biosciences Inc's performance in Q2 2024 highlights the challenges faced in the U.S. market, particularly among academic and government customers. However, the company's strong growth in the EMEA and APAC regions and its ability to reduce operating expenses are positive indicators. The increase in adjusted EBITDA suggests that the company is making progress in improving its operational efficiency.
Looking ahead, Cytek Biosciences Inc has narrowed its 2024 revenue guidance to a range of $203 million to $210 million, representing growth of 5% to 9% over full year 2023. The company expects to report a net loss in the single-digit millions for the full year 2024 but anticipates generating positive cash flow from operations.
Investors and stakeholders can access the full details of the earnings report in the 8-K filing.
Explore the complete 8-K earnings release (here) from Cytek Biosciences Inc for further details.
