CryoPort Inc (CYRX)

[H2R]

Q3 2022: Headwinds - Ukraine, China Covid Policies, Inflation

Third quarter revenue of $60.5 million; nine months 2022 revenue reaches $176.9 million; Cryoport Systems' revenue up 25% year-over-year

$530 million in cash and short-term investments

Supporting a record 643 global clinical trials; 61 net new trials added (year-over-year)

Entered strategic relationship with Takeda's BioLife Plasma Services for apheresis collection and leukopak production

Record number of new products and offerings slated to be released by Cryoport in 2023

The bad news:

Like many companies that operate globally, we were subject to macroeconomic headwinds during the third quarter and expect some of these pressures will extend into the fourth quarter. Specifically, during the third quarter, we experienced a convergence of macroeconomic pressures that impacted revenue including: a negative foreign exchange impact of $2.6 million due to the increased strength of the U.S. dollar against certain foreign currencies; recurring COVID lockdowns in China; supply chain related issues; the Russia/Ukraine war and its ripple effect throughout Europe; and industry capacity limitations, which interfered with cell and gene therapy commercial revenue acceleration.

The good news:


Not the best of quarters and the headwinds will still be there for a couple of quarters at least (Ukraine, China policy). Yet, a solid foundation and a growth funnel that's looking excellent.

I will add to my position slowly and check the next quarter for more visibility in the 2023 guidance and for the revised aspirational goals of the company.

Best of luck with your investments!