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Cytek Biosciences, Inc. (CTKB)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue was $57.5M, down 1.3% YoY but up 12% QoQ; gross margin expanded to 59% (61% non-GAAP). GAAP net income was $9.6M, boosted by $8.8M non-recurring, non-cash benefits; non-GAAP net income was $2.9M .
  • Services continued to scale with an 8% YoY increase in Q4 driven by a larger installed base; instruments saw regional divergence (APAC strength; U.S./EMEA softer) and some orders slipped into Q1 2025 .
  • FY25 revenue guidance introduced at $204–$212M (+2–6% YoY); management flagged NIH indirect cost cuts, new U.S. export controls, and potential tariffs as near-term headwinds; growth expected to be back-end loaded .
  • Strategic and operational positives: installed base reached 3,034 (667 placements in 2024), imaging revenue +14%, service gross margin at 57%, Singapore plant opened for cost/capacity/flexibility, and a fresh $50M 2025 buyback authorization following $21.6M of repurchases in 2024 .
  • Consensus estimate comparison: S&P Global consensus data could not be retrieved at this time; we therefore cannot quantify beats/misses vs Street for Q4 2024 (S&P Global data unavailable via tool at time of request).

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin expanded YoY to 59% (61% non-GAAP) on higher service mix and productivity; adjusted EBITDA rose to $12.5M (ex-investment income $10.2M) in Q4, demonstrating operating leverage as revenue scales .
    • APAC and “Rest of World” strength (China stimulus-related uptick; Canada/LatAm growth off low base), and services +8% YoY in Q4 highlight resilience outside softer U.S./EMEA instrument demand .
    • Management emphasized the flywheel: installed base (3,034) and unit placements (+8.5% in 2024) support service and reagent pull-through; “small percentage increases in revenue can translate into larger percentage increases in adjusted EBITDA” .

  • What Went Wrong

    • Top-line slightly contracted YoY in Q4 (-1.3%) as U.S./EMEA instruments softened and USD strength weighed (~$1.5M FX drag in Q4 per preliminary update); certain orders shifted to Q1 2025 .
    • U.S. academic/government demand remained pressured with elongated sales cycles; management later flagged three headwinds affecting 2025 setups: NIH indirect cost reductions, new export controls (notably impacting China exports), and tariff risk .
    • GAAP net income was aided by non-recurring, non-cash items (~$8.8M); excluding these, non-GAAP net income was $2.9M, down vs $5.5M in Q4 2023 due mainly to FX losses vs a prior-year gain .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($M)$58.2 $46.6 $51.5 $57.5
Gross Margin (%)57% 55% 56% 59%
Adjusted Gross Margin (%)59% 58% 60% 61%
Income from Operations ($M)$(0.1) $(8.5) $(4.2) $3.0 (incl. $2.6M non-recurring)
GAAP Net Income (Loss) ($M)$5.5 $(10.4) $0.9 $9.6 (incl. $8.8M non-recurring)
Adjusted EBITDA ($M)$9.9 $2.9 $7.6 $12.5

Notes:

  • Q4 2024 non-GAAP net income was $2.9M (excludes the $8.8M non-recurring benefits), vs $5.5M in Q4 2023 .
  • Services grew 8% YoY in Q4; product revenue decreased YoY (FX, U.S./EMEA softness, order timing) .
  • Consensus comparison: S&P Global consensus not retrievable; unable to show vs-estimates for Q4 2024 at this time.

Segment/Category (FY context):

  • FY 2024 product revenue $153.3M; service revenue $47.2M (total $200.5M) .
  • Q3 2024 product $39.5M; service $12.0M; total $51.5M .
  • Q2 2024 product $34.6M; service $12.0M; total $46.6M .

KPIs and Balance Sheet

  • Installed base 3,034; 2024 placements 667; Q4 placements: 164 FSP instruments and 49 Amnis/Guava .
  • Imaging revenue +14% in 2024; service gross margin 57% (vs 15% in 2022 pre-Luminex) .
  • Cash, equivalents, restricted cash, and marketable securities: $277.9M at 12/31/24 .
  • 2024 share repurchases: ~3.97M shares for ~$21.6M; new $50M 2025 authorization .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025N/A$204M–$212M (+2% to +6% YoY) Introduced

Management commentary: guidance assumes back-end-loaded 2025; headwinds include NIH indirect cost cuts, new export controls, tariff risk; APAC momentum and services growth expected to continue .

Earnings Call Themes & Trends

TopicQ2 2024 (Prior-2)Q3 2024 (Prior-1)Q4 2024 (Current)Trend
AI/Tech/Software (Cytek Cloud, SpectroPanel)Launched ESP module; >11,000 Cloud users; SpectroPanel algorithm launched to automate high-parameter panel design >13,600 Cloud users; SpectroPanel adoption driving reagent orders >16,000 Cloud users; Cloud seen as loyalty/reagent flywheel Improving adoption and monetization
Supply chain/manufacturingNew Singapore facility noted; fixed costs reflected, minimal margin downside expected Continued execution; no new negatives Singapore facility opened to access low-cost mfg, capacity, flexibility Positive capacity/flexibility
Tariffs/macro/FXU.S. market softness; elongated sales cycles (academic/gov’t); EMEA/APAC strength Sequential U.S. improvement; EMEA/APAC double-digit growth Headwinds in 2025: NIH indirect cost cuts, new export controls, tariffs; FX affected Q4 Macro headwinds intensifying into 2025; FX/tariffs risk
Product performanceNorthern Lights strongest in Q2; product rev down YoY in U.S. 164 instruments sold; product +14% QoQ Q4: 164 FSP + 49 Amnis/Guava; imaging +14% FY; Northern Lights +12% units in 2024 Healthy mix; imaging & NL growth
Regional trendsEMEA +52% YoY; APAC +27% YoY; U.S. -29% YoY (Q2) EMEA +33% YoY; APAC +32% YoY; U.S. -9% YoY (Q3) APAC strong (China uptick); U.S./EMEA softer; RoW up (Canada/LatAm) APAC outperformance persists
Regulatory/clinicalChina approval (TBNK reagents) for Northern Lights CLC; clinical positioning Clinical use in China/EU reiterated Continued clinical emphasis; U.S. clinical pathway includes 510(k) and LDT collaboration Steady progress
R&D execution and OpExR&D/OpEx declining YoY; EBITDA improved OpEx disciplined; EBITDA higher G&A included $2.6M benefit; excluding, OpEx flat with Q3 & prior-year; R&D lower YoY Cost control intact

Management Commentary

  • “Small percentage increases in revenue can translate into larger percentage increases in adjusted EBITDA... 2024 provides a good example” — CEO Wenbin Jiang .
  • “APAC grew 21%, driven by strong growth in China... U.S. and EMEA declined... Other international markets... grew strongly off a small base” — CFO Bill McCombe (Q4 regional performance) .
  • “In January, the Biden administration introduced new export controls... and [there are] wide-ranging tariffs... these factors may create headwinds for our instrument revenues” — CFO on 2025 risk factors .
  • “We now have over 16,000 users [on Cytek Cloud]... we believe Cytek Cloud is an important factor in earning the loyalty of our users to the Cytek brand” — CEO on bioinformatics/software stickiness .
  • “We recently opened a new manufacturing facility in Singapore... to increase capacity and enhance global supply flexibility” — Company press release .

Q&A Highlights

  • NIH exposure estimated at ~5% of 2024 revenue; impact uncertain; company is “third-month” weighted in quarterly revenue cadence .
  • Tariff/export control mitigation: diversified manufacturing across U.S., Singapore, and China; potential pass-through subject to magnitude and quote timing .
  • Services growth drivers: installed base expansion; time-and-materials demand; expectation for continued solid growth in 2025, no split in guidance .
  • Capital allocation and M&A: active buyback; open to M&A in adjacent areas with rapid positive EBITDA contribution and synergies (sales, R&D, G&A, manufacturing) .
  • Mix/placements: Northern Lights unit growth +12% in 2024; Aurora CS and imaging showed good growth; reagent demand tied to total unit volume .

Estimates Context

  • We attempted to retrieve S&P Global consensus estimates for Q4 2024 and FY 2025; data could not be accessed at this time via our tool (S&P Global service limit reached). As a result, we cannot quantify revenue/EPS beats or misses versus consensus for Q4 2024.
  • Preliminary management update (Jan 15, 2025) indicated Q4 revenue of $57–$58M (11–13% QoQ; flat to -2% YoY), with ~$1.5M FX headwind; actual Q4 came in at $57.5M .
  • Implication: Without official consensus figures, we focus on operational drivers and YoY/QoQ dynamics; investors should cross-check Street models for updates post-call (S&P Global data unavailable via tool at time of request).

Key Takeaways for Investors

  • Q4 execution showed strong QoQ recovery and margin expansion; services and international (APAC, RoW) continue to offset softer U.S./EMEA instruments; 2025 growth expected to skew to 2H .
  • Non-recurring benefits inflated GAAP net in Q4; underlying non-GAAP net income was $2.9M. Adjusted EBITDA tracked strongly, signaling operating leverage as volumes normalize .
  • Macro/policy risk is nontrivial: NIH indirect cost changes, export controls, and potential tariffs could pressure U.S.-centric instruments; diversified manufacturing and mix provide partial buffers .
  • Strategic flywheel: installed base growth (+8.5% placements in 2024), 16k Cloud users, and improving service economics (57% service GM) support recurring revenue resilience and reagent pull-through .
  • Balance sheet strength ($277.9M cash & investments) and ongoing buyback underpin capital flexibility for M&A and investment in service network/IT automation; expect disciplined OpEx control .
  • Watch list: U.S. academic/government demand trajectory, FX, timing of China orders, and cadence of order conversion in seasonally weak Q1 ahead of back-end loaded 2025 profile .

Appendix: Additional Data Points

  • Constant-currency Q4 revenue: $58.6M (vs reported $57.5M), +1.4% YoY on CC basis .
  • FY 2024 total revenue: $200.5M (+3.9% YoY); adjusted gross margin 59% (flat YoY); adjusted EBITDA $22.4M; ex-investment income $14.4M .
  • Share repurchases in 2024: ~3.97M shares, ~$21.6M; 2025 $50M authorization in place .