Celularity Inc (CELU)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 net revenue was approximately $14.8 million, up roughly 280% year-over-year; this materially exceeded the company’s prior Q1 guidance of $10.25–$11.5 million. Bold beat on top-line versus internal expectations, driven by biomaterials momentum and expanded access channels .
• Management initiated full-year 2024 net revenue guidance of $50–$56 million during its May 21 Investor & R&D Day, highlighting confidence in commercial execution and new products, with a stated mission to drive to profitability within 12–18 months .
• No S&P Global consensus EPS or revenue estimates were available for Q1 2024 for comparison; result framing relies on Celularity’s 8-K 2.02 and Investor Day commentary (S&P Global data unavailable) .
• Potential stock catalysts: device-pathway 510(k) filings (CTW H1’25; FUSE H2’25; CPM H2’26), broader distribution partnerships (Arthrex, Versea) and progress in placental-derived cell platforms (PT‑CD16VS) presented at AACR/ASCO .

What Went Well and What Went Wrong

What Went Well

• Revenue inflection: “Our Q1 year-over-year revenues rose 280%… revenue skyrocketed to $14.8 million,” underscoring biomaterials adoption and expanded reimbursement/access channels .
• Commercial reach: Robust multi-channel distribution with 40+ wound care/general surgery reps, 100+ reps in ophthalmology (Versea), and 1,000+ in orthopedics (Arthrex) to accelerate uptake of Biovance 3L, Interfyl, Synflex and ocular products .
• Regulatory de-risking: Progress toward device designation via Q-Sub and targeted 510(k) submissions (CTW H1’25, FUSE H2’25, CPM H2’26), enabling indication-driven education and potentially faster commercialization .

What Went Wrong

• Limited financial transparency: Q1 2024 figures were “unaudited and preliminary,” with no finalized EPS, margins, or GAAP details disclosed in the 8-K, constraining estimate comparison and profitability analysis .
• Data inconsistency: The Investor Day slide shows Q1 2024 net revenue entirely under “BioBanking,” while management described biomaterials as the primary growth driver; this discrepancy warrants caution when segment mix referencing .
• Reimbursement volatility: Management acknowledged the “moving target” in tissue repair reimbursement, reinforcing execution risk despite current national/commercial coverage for three products .

Financial Results

Revenue vs. Prior Periods and YoY/Guidance Context

Notes:

• Q4 2023 slide deck shows $12.5M total net revenue (preliminary); 8-K Item 2.02 states “approximately $12.1M” (preliminary); we anchor on the 8-K and note slide variance .
• Q1 2024 net revenue materially exceeded prior Q1 guidance of $10.25–$11.5M (see Guidance Changes) .

EPS and Margins

Notes:

• EPS/margins unavailable: Company indicated Q1 2024 and Q4 2023 results were unaudited/preliminary with no full financials finalized in the 8-K; no EPS/margins disclosed .
• S&P Global consensus unavailable for Q1 2024.

Segment Mix (Company-Reported Net Revenue)

Important discrepancy: Management remarks emphasized biomaterials as the growth driver in Q1 2024, while slide categorization shows all Q1 net revenue under BioBanking. Treat the slide mix cautiously and prioritize management narrative for qualitative attribution .

Guidance Changes

Earnings Call Themes & Trends

Note: No formal Q1 2024 earnings call transcript was found; themes reflect the May 21, 2024 Analyst/Investor Day transcript and slide deck, plus prior quarter disclosures.

Management Commentary

• “We have demonstrated a significant revenue growth rate… with a 280% Q1 year-over-year increase in revenue.”
• “Our revenue has skyrocketed to $14.8 million… this is due to the fact that we’ve been able to… create therapeutics we’ve monetized and delivered to patients… [with] access.”
• On reimbursement: “Three of our products have national coverage… excellent commercial coverage… leads to access… we’re evolving with changes… bullish on continuing to help patients.”
• On profitability: “It is my hope that in the very foreseeable future, this company will go from cash consumptive to cash flow neutral to cash flow positive… mission to drive… profitability in the next 12 to 18 months.”
• FY24 guidance: “Early in the year, we indicated… total revenues for 2024 to be in the $50 million to $56 million range.”

Q&A Highlights

• Reimbursement/coverage: Management affirmed attractive U.S. coverage dynamics and evidence-based approach; three products have national coverage, supporting patient access .
• Bone repair approach (FUSE): Placental-derived scaffold signals osteoconduction and recruitment, aiming for additive bone formation and better integration vs. resorption/mismatch issues .
• Senescence targeting: NK cells can target senescent hematopoietic stem cells via stress ligands; bone marrow homing suggests feasibility .
• Profitability trajectory: Aim for cash flow neutrality/positivity within 12–18 months; resource deployment focused on high-probability success areas .
• FY24 guidance reiterated/initiated: $50–$56M net revenues; potential upside from banking and device pipeline .

Estimates Context

• S&P Global consensus EPS and revenue estimates for Q1 2024 were unavailable for CELU at the time of analysis; the company furnished preliminary net revenue in an 8-K 2.02 and provided qualitative guidance at Investor Day. Values retrieved from S&P Global were unavailable due to data limitations .
• Implication: Street models (where they exist) will likely need to reflect the stronger-than-anticipated Q1 revenue and updated FY24 guidance range; lack of disclosed Q1 EPS/margins precludes a comprehensive revision preview.

Key Takeaways for Investors

• Strong top-line execution: Q1 net revenue ~$14.8M and ~280% YoY growth significantly outpaced earlier Q1 guidance, indicating robust demand and effective channel expansion; treat as a positive momentum signal for biomaterials adoption .
• 2024 setup: Newly initiated FY net revenue guidance ($50–$56M) creates an anchor for expectations; near-term device regulatory milestones (CTW/FUSE/CPM) are notable catalysts .
• Watch reimbursement dynamics: Management’s coverage commentary is constructive, but tissue repair reimbursement remains fluid; sustained national/commercial coverage across three products is supportive of continued volume growth .
• Data gap risk: Absence of finalized EPS/margins for Q1 notably limits profitability visibility; monitor subsequent filings for GAAP details and gross margin trajectory .
• Segment mix requires validation: Slide data vs. management remarks diverge on Q1 mix; upcoming filings should clarify revenue composition (biomaterials vs. biobanking) .
• Platform optionality: Universal engager (PT‑CD16VS) and senescence-targeting programs broaden optionality beyond biomaterials; successful preclinical-to-clinical translation could be a medium-term value driver .
• Trading lens: Near-term upside tied to confirming Q1 strength in formal filings, maintaining reimbursement coverage, and visible progress on 510(k) timelines; any guidance raise or disclosure of improving margins would be stock-positive .

Appendix: Additional Relevant Disclosures Read

• 8-K 2.02 (May 21, 2024): Preliminary net revenue ~$14.8M (Q1 2024) and ~$12.1M (Q4 2023); Investor & R&D Day presentation furnished as Exhibit 99.1 .
• Investor & R&D Day (May 21, 2024): Full transcript and slides covering revenue growth, distribution footprint, 510(k) timelines, and preclinical platform results – –.
• Press releases: ASCO T-cell platform data (June 3, 2024) –; Q1/FY24 net sales expectations (Feb 1, 2024) .