Cerus (CERS) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 performance with product revenue up 16% year-over-year to $46.0 million, driven by North American platelet business and growing INTERCEPT Fibrinogen Complex (IFC) adoption in the U.S.

• Net loss narrowed to $2.9 million ($0.02 per share) from $7.3 million in Q3 2023, with positive non-GAAP adjusted EBITDA of $4.4 million.

• Raised full-year 2024 product revenue guidance to $177–$179 million and IFC revenue guidance to $9–$10 million, reflecting strong demand and new BARDA funding.

• Secured a new BARDA contract worth up to $248 million to support INTERCEPT RBC program through regulatory approval and launch; regulatory submissions for LED Illuminator in Europe underway.

• Continued expansion of pathogen inactivation technology adoption in the U.S. and internationally, supported by clinical trial data and new BLA approvals for IFC.

Financial highlights

• Q3 2024 product revenue reached $46 million, up 16% year-over-year; total Q3 revenue was $50.7 million, up 7%; nine-month product revenue totaled $129.5 million, up 18%.

• Product gross profit was $26.2 million, up 20% year-over-year; gross margin improved to 56.9% from 54.9%.

• Operating expenses decreased 8% to $31.8 million; R&D expenses fell 17% to $14 million.

• Net loss narrowed by 60% to $2.9 million; positive adjusted EBITDA of $4.4 million for Q3.

• Cash and short-term investments at quarter-end were $75.6 million; positive operating cash flow of $4.1 million in Q3.

Outlook and guidance

• Raised full-year 2024 product revenue guidance to $177–$179 million (from $175–$178 million); IFC revenue guidance increased to $9–$10 million.

• Expects stable gross margins and continued leverage from operating expenses for the remainder of 2024.

• Targeting non-GAAP adjusted EBITDA breakeven for full-year 2024.

• Management believes available liquidity is sufficient for at least the next 12 months.

• Anticipates continued growth in global and U.S. total addressable markets, driven by platelet demand.