Cytek Biosciences (CTKB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $46.6M, up 4% sequentially but down 6% year-over-year, driven by strong EMEA and APAC growth offsetting U.S. weakness, especially in academic and government segments.

• Service revenue grew 30% year-over-year in Q2, with service gross margins up 8 percentage points and double-digit growth worldwide.

• Net loss widened to $10.4M in Q2 2024 from $4.4M a year ago, mainly due to higher tax expense and foreign exchange losses.

• Operating expenses decreased year-over-year due to lower R&D and sales/marketing costs, though G&A expenses rose slightly.

• Launched Enhanced Small Particle detection module (ESP) for Aurora and Northern Lights instruments and repurchased $2.7M of stock under a new $50M program.

Financial highlights

• Product revenue declined 15% year-over-year in Q2 2024 to $34.6M, while service revenue grew 30% to $12.0M.

• GAAP gross margin was 55% in Q2 2024, down from 57% a year ago; adjusted gross margin was 58%, down from 60%.

• Operating expenses were $34M in Q2, down 9% year-over-year.

• Cash and marketable securities totaled $277.2M as of June 30, 2024.

• Adjusted EBITDA was $2.9M in Q2 2024, up from $1.5M in Q2 2023.

Outlook and guidance

• Full-year 2024 revenue guidance narrowed to $203M–$210M, representing 5%–9% growth over 2023, assuming stable FX rates.

• GAAP net loss expected in the $1M–$9M range for 2024; positive operational cash flow anticipated.

• Management expects expenses to remain relatively flat and will focus on new product development and revenue growth.

• Guidance assumes no China stimulus impact and continued elongated sales cycles in North America.