BioLife Solutions Inc ((BLFS)) has held its Q4 earnings call. Read on for the main highlights of the call.
BioLife Solutions Inc. recently held its earnings call, which conveyed a positive sentiment overall. The company highlighted significant achievements in strategic portfolio reshaping, improved financial metrics, and a robust cash position. Despite some challenges, such as declines in specific platform revenues and ongoing operating losses, BioLife Solutions is optimistic about its growth prospects for 2025, particularly with record Cell Processing revenue and a strong growth outlook.
Strategic Portfolio Reshaping
BioLife Solutions strategically reshaped its portfolio in 2024, focusing on cell and gene therapies. The company divested non-core product lines, which has improved its financial profile. This strategic move positions BioLife Solutions to better capitalize on the growing demand in the cell and gene therapy market.
Improved Financial Metrics
The company reported a significant improvement in its financial metrics, with the GAAP gross margin doubling from 31% in 2023 to 62% in 2024. Additionally, BioLife Solutions achieved a positive adjusted EBITDA of $16 million, representing 19% of revenue, compared to a negative $5 million in 2023.
Strong Cash Position
BioLife Solutions ended 2024 with a strong cash position of $109 million, up from $45 million in 2023. The company also managed to pay down $5 million of principal on its bank debt, further strengthening its financial standing.
Record Cell Processing Revenue
The Cell Processing platform achieved record revenue of $20.3 million in Q4, marking a 7% increase over Q3 and a 37% year-over-year increase. For the full year, Cell Processing revenue totaled $74 million, reflecting a 12% increase compared to 2023.
2025 Growth Outlook
BioLife Solutions anticipates a revenue growth of 16% to 20% in 2025, with the Cell Processing platform expected to grow between 18% to 21%. The company is focused on deepening relationships with existing customers and exploring cross-sell opportunities to enhance revenue.
Decline in Evo and Thaw Platform Revenue
The Evo and Thaw platform experienced a revenue decline in Q4 2024, generating $2.4 million, which is an 8% decrease from the same period in 2023. This decline highlights a challenge that the company aims to address moving forward.
Ongoing Operating Losses
BioLife Solutions reported a GAAP operating loss of $2.1 million for Q4 2024. However, this is an improvement from the $7.6 million loss in the prior year, indicating progress in managing operating expenses.
Forward-Looking Guidance
During the earnings call, BioLife Solutions provided revenue guidance for 2025, projecting total revenues between $95.5 million and $99 million, representing a growth of 16% to 20% compared to 2024. The company expects the Cell Processing platform to significantly contribute to this growth, with anticipated revenue of $86.5 million to $89 million. The Evo and Thaw platform is expected to generate $9 million to $10 million, marking a 3% to 15% growth. BioLife Solutions also aims for adjusted gross margins in the mid-60s and anticipates expanding adjusted EBITDA margins in 2025.
In summary, BioLife Solutions Inc.’s earnings call reflected a positive sentiment with a focus on strategic growth and improved financial metrics. The company’s strong cash position and record Cell Processing revenue are key highlights, despite challenges in specific platform revenues and ongoing operating losses. Looking forward, BioLife Solutions is optimistic about its growth prospects in 2025, driven by its strategic focus and customer relationships.