Cerus Corporation Announces Second Quarter 2024 Financial Results and Increases Full-Year 2024 Product Revenue Guidance Range
First Half of 2024 Product Revenue Increased 20% from Prior Year Period
Increasing Full-Year 2024
Total revenue for the three and six months ended
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||
|
Change |
|
Change |
||||||||||||||||||||||
2024 |
2023 |
$ |
% |
2024 |
2023 |
$ |
% |
||||||||||||||||||
Product Revenue |
$ |
45,079 |
$ |
38,853 |
$ |
6,226 |
|
16 |
% |
$ |
83,444 |
$ |
69,827 |
$ |
13,617 |
|
20 |
% |
|||||||
Government Contract Revenue |
|
5,440 |
|
8,875 |
|
(3,435 |
) |
-39 |
% |
|
10,470 |
|
16,377 |
|
(5,907 |
) |
-36 |
% |
|||||||
Total Revenue |
$ |
50,519 |
$ |
47,728 |
$ |
2,791 |
|
6 |
% |
$ |
93,914 |
$ |
86,204 |
$ |
7,710 |
|
9 |
% |
Recent highlights include:
-
Advanced efforts to expand the
U.S. manufacturing capacity forINTERCEPT Fibrinogen Complex (IFC). -
Achievement of 100% adoption of INTERCEPT platelets by
Canadian Blood Services , resulting in the pathogen inactivation of the majority of platelets inCanada . -
Narrowed GAAP net loss attributable to
Cerus Corporation to$5.8 million and generated non-GAAP adjusted EBITDA of$0.8 million for the second quarter. -
Generated positive operating cash flows for the second straight quarter of 2024 bringing year-to-date positive operating cash flows to
$2.4 million . -
Cash and cash equivalents and short-term investments were
$71.2 million atJune 30, 2024 . -
The Company is increasing its full-year 2024 annual product revenue guidance range from
$172-175 million to$175-178 million which includes$8-10 million for IFC. -
The Company continues to expect future improvements to GAAP net loss attributable to
Cerus Corporation for the full-year 2024 and remains committed to adjusted EBITDA breakeven for the full-year 2024.
“We are very pleased to post another strong quarter to continue our growth trajectory in 2024. North American sales in our platelet business led the way, including both organic
“We are also extremely pleased with our execution to date on key financial measures that we discussed at the beginning of the year, namely adjusted EBITDA and operating cash flows,” continued Greenman. “We will continue our efforts to improve on these metrics during the back half of 2024, which is expected to help further strengthen our financial position.”
Revenue
Product revenue during the second quarter of 2024 was
Second-quarter 2024 government contract revenue was
Product Gross Profit & Margin
Product gross profit for the second quarter of 2024 was
Operating Expenses
Total operating expenses for the second quarter of 2024 were
R&D expenses for the second quarter of 2024 were
SG&A expenses narrowed for the second quarter of 2024 and totaled
Net Loss Attributable to
Net loss attributable to
Non-GAAP Adjusted EBITDA
Non-GAAP adjusted EBITDA for the second quarter of 2024 was
Balance Sheet & Cash Flows
At
As of
For the second quarter of 2024, the Company generated positive cash flows of
Increasing 2024 Product Revenue Guidance
Given the strong performance in the first half and continued growing conviction around IFC demand, the Company expects full-year 2024 product revenue will be in the range of
Quarterly Conference Call
The Company will host a conference call at
A replay will be available on Cerus’ website approximately three hours after the call through
ABOUT
INTERCEPT and the INTERCEPT Blood System are trademarks of
Forward Looking Statements
Except for the historical statements contained herein, this press release contains forward-looking statements concerning Cerus’ products, prospects and expected results, including statements relating to: Cerus’ 2024 annual product revenue guidance and related expectation for product revenue growth for 2024; Cerus’ expectation for full-year 2024 non-GAAP adjusted EBITDA breakeven; Cerus’ expectations with respect to product revenue gross margin in 2024; Cerus’ expectation for the return to growth of its platelets and plasma business and increasing contribution from its
Use of Non-GAAP Financial Measures
We define adjusted EBITDA as net loss attributable to
Investors should note that
Supplemental Tables
|
Three Months Ended |
Six Months Ended |
|
|
|
|
2024 vs. 2023 |
2024 vs. 2023 |
Platelet Kit Growth |
|
|
|
17% |
28% |
International |
7% |
1% |
Worldwide |
14% |
20% |
|
|
|
Change in Calculated Number of Treatable Platelet Doses |
|
|
|
21% |
32% |
International |
11% |
5% |
Worldwide |
18% |
22% |
* Dose treatable calculation based on the number of kits sold and the product configuration (single, double, and triple dose kits)
REVENUE BY REGION (in thousands, except percentages) |
|||||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
Six Months Ended |
|
|
|
|
||||||||||||||
|
|
|
Change |
|
|
|
Change |
||||||||||||||||||
|
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||||||
|
$ |
30,796 |
|
$ |
24,477 |
|
$ |
6,319 |
|
|
26 |
% |
|
$ |
56,269 |
|
$ |
41,094 |
|
$ |
15,175 |
|
|
37 |
% |
|
|
13,725 |
|
|
13,533 |
|
|
192 |
|
|
1 |
% |
|
|
26,439 |
|
|
27,561 |
|
|
(1,122 |
) |
|
-4 |
% |
Other |
|
558 |
|
|
843 |
|
|
(285 |
) |
|
-34 |
% |
|
|
736 |
|
|
1,172 |
|
|
(436 |
) |
|
-37 |
% |
Total product revenue |
$ |
45,079 |
|
$ |
38,853 |
|
$ |
6,226 |
|
|
16 |
% |
|
$ |
83,444 |
|
$ |
69,827 |
|
$ |
13,617 |
|
|
20 |
% |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
|
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Product revenue |
$ |
45,079 |
|
$ |
38,853 |
|
$ |
83,444 |
|
$ |
69,827 |
|
||||
Cost of product revenue |
|
20,413 |
|
|
17,515 |
|
|
37,506 |
|
|
31,202 |
|
||||
Gross profit on product revenue |
|
24,666 |
|
|
21,338 |
|
|
45,938 |
|
|
38,625 |
|
||||
Government contract revenue |
|
5,440 |
|
|
8,875 |
|
|
10,470 |
|
|
16,377 |
|
||||
Operating expenses: |
||||||||||||||||
Research and development |
|
14,969 |
|
|
19,184 |
|
|
29,451 |
|
|
36,568 |
|
||||
Selling, general and administrative |
|
18,973 |
|
|
20,541 |
|
|
38,772 |
|
|
42,092 |
|
||||
Restructuring |
|
- |
|
|
2,128 |
|
|
- |
|
|
2,128 |
|
||||
Total operating expenses |
|
33,942 |
|
|
41,853 |
|
|
68,223 |
|
|
80,788 |
|
||||
Loss from operations |
|
(3,836 |
) |
|
(11,640 |
) |
|
(11,815 |
) |
|
(25,786 |
) |
||||
Total non-operating expense, net |
|
(1,995 |
) |
|
(1,593 |
) |
|
(3,632 |
) |
|
(3,011 |
) |
||||
Loss before income taxes |
|
(5,831 |
) |
|
(13,233 |
) |
|
(15,447 |
) |
|
(28,797 |
) |
||||
(Benefit from) provision for income taxes |
|
(56 |
) |
|
98 |
|
|
18 |
|
|
175 |
|
||||
Net loss |
|
(5,775 |
) |
|
(13,331 |
) |
|
(15,465 |
) |
|
(28,972 |
) |
||||
Net loss attributable to noncontrolling interest |
|
- |
|
|
(56 |
) |
|
(2 |
) |
|
(78 |
) |
||||
Net loss attributable to |
$ |
(5,775 |
) |
$ |
(13,275 |
) |
$ |
(15,463 |
) |
$ |
(28,894 |
) |
||||
Net loss per share attributable to |
|
|||||||||||||||
Basic and diluted |
$ |
(0.03 |
) |
$ |
(0.07 |
) |
$ |
(0.08 |
) |
$ |
(0.16 |
) |
||||
Weighted average shares outstanding: |
||||||||||||||||
Basic and diluted |
|
184,982 |
|
|
180,611 |
|
|
183,536 |
|
|
179,449 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
||||||
|
|
|||||
2024 |
2023 |
|||||
ASSETS |
(unaudited) |
|||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
12,402 |
|
$ |
11,647 |
|
Short-term investments |
|
58,792 |
|
|
54,205 |
|
Accounts receivable, net |
|
23,740 |
|
|
35,500 |
|
Current inventories |
|
36,290 |
|
|
39,868 |
|
Prepaid and other current assets |
|
3,806 |
|
|
3,221 |
|
Total current assets |
|
135,030 |
|
144,441 |
||
Non-current assets: |
||||||
Property and equipment, net |
|
7,781 |
|
8,640 |
||
Operating lease right-of-use assets |
|
9,581 |
|
10,713 |
||
|
|
1,316 |
|
1,316 |
||
Non-current inventories |
|
16,801 |
|
19,501 |
||
Other assets and restricted cash |
|
14,987 |
|
13,137 |
||
Total assets |
$ |
185,496 |
$ |
197,748 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable and accrued liabilities |
$ |
31,787 |
$ |
43,067 |
||
Debt – current |
|
18,782 |
|
20,000 |
||
Operating lease liabilities – current |
|
2,219 |
|
2,452 |
||
Deferred revenue – current |
|
1,096 |
|
2,002 |
||
Total current liabilities |
|
53,884 |
|
67,521 |
||
Non-current liabilities: |
||||||
Debt – non-current |
|
64,840 |
|
59,796 |
||
Operating lease liabilities – non-current |
|
12,851 |
|
13,751 |
||
Other non-current liabilities |
|
3,620 |
|
3,236 |
||
Total liabilities |
|
135,195 |
|
144,304 |
||
Stockholders' equity: |
|
49,509 |
|
52,650 |
||
Noncontrolling interest |
|
792 |
|
794 |
||
Total liabilities and stockholders' equity |
$ |
185,496 |
$ |
197,748 |
UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTED EBITDA (in thousands) |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
|
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net loss attributable to |
$ |
(5,775 |
) |
$ |
(13,275 |
) |
$ |
(15,463 |
) |
$ |
(28,894 |
) |
||||
Adjustments to net loss attributable to |
||||||||||||||||
Net loss attributable to noncontrolling interest |
|
- |
|
|
(56 |
) |
|
(2 |
) |
|
(78 |
) |
||||
(Benefit from) provision for income taxes |
|
(56 |
) |
|
98 |
|
|
18 |
|
|
175 |
|
||||
Total non-operating expense, net (i) |
|
1,995 |
|
|
1,593 |
|
|
3,632 |
|
|
3,011 |
|
||||
Loss from operations |
|
(3,836 |
) |
|
(11,640 |
) |
|
(11,815 |
) |
|
(25,786 |
) |
||||
Adjustments to loss from operations: |
||||||||||||||||
Operating depreciation and amortization |
|
1,127 |
|
|
1,164 |
|
|
2,344 |
|
|
2,170 |
|
||||
Government contract revenue (ii) |
|
(5,440 |
) |
|
(8,875 |
) |
|
(10,470 |
) |
|
(16,377 |
) |
||||
Direct expenses attributable to government contracts (iii) |
|
3,250 |
|
|
6,633 |
|
|
6,475 |
|
|
11,809 |
|
||||
Share-based compensation (iv) |
|
5,678 |
|
|
5,720 |
|
|
11,533 |
|
|
11,389 |
|
||||
Costs attributable to noncontrolling interest (v) |
|
- |
|
|
130 |
|
|
3 |
|
|
173 |
|
||||
Restructuring (vi) |
|
- |
|
|
2,128 |
|
|
- |
|
|
2,128 |
|
||||
Non-GAAP adjusted EBITDA |
$ |
779 |
|
$ |
(4,740 |
) |
$ |
(1,930 |
) |
$ |
(14,494 |
) |
i. Includes interest income/expense and foreign exchange gains/losses. |
||
ii. Represents revenue related to the cost reimbursement provisions under our government contracts. |
||
iii. Represents the direct expenses attributable to work supporting government contracts, which are reimbursed and reflect under government contract revenue in the condensed consolidated statement of operations. |
||
iv. Represents non-cash stock-based compensation. |
||
v. Represents costs associated with the noncontrolling interest in |
||
vi. Represents costs associated with the Company’s restructuring plan implemented in |
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