BioLife Solutions, Inc.

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Q3 2024 Shareholder and Analyst Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. I will now turn the call over to Troy Wicherman, Chief Financial Officer of BioLife Solutions.

Thank you, Operator. Good afternoon, everyone, and thank you for joining the BioLife Solutions 2024 Third Quarter Earnings Conference Call. On the call with me today is Roderick DeGrief, CEO and Chairman of the Board. We will cover business highlights and financial performance for the quarter and provide an update on our full year 2024 revenue guidance. Earlier today, we issued a press release announcing our financial results and operational highlights for the third quarter of 2024, which is available at biolifesolutions.com. As a reminder, during this call, we will make forward-looking statements. These statements are subject to risks and uncertainties that can be found in our SEC filings. These statements speak only as of the date given, and we undertake no obligation to update them. We will also speak to non-GAAP or adjusted results. Reconciliations of GAAP to non-GAAP or adjusted financial metrics are included in the press release we issued this afternoon. Now, I'd like to turn the call over to Rod DeGroote, Chairman and CEO of BioLife.

Thanks, Troy. Good afternoon, and thank you for joining us for BioLife's third quarter 2024 earnings call. I'm pleased to report another strong quarter, marking our fourth consecutive period of sequential revenue growth and a strong rebound year over year. This further demonstrates our belief that the macro environment, as it relates to the bioproduction subsector in which we operate, is continuing to improve. Our cell processing platform revenue totaled 19 million, representing a sequential increase of 6% and up 43% compared to the third quarter of 2023. This is a high margin business, and we see that profitability directly reflected in our financial performance this quarter with continued margin expansion. Adjusted gross margin for Q3 came in at 54%, up from 44% in the same period last year. and we delivered an adjusted EBITDA margin of 20% compared to 6% last year. These results underscore the attractiveness of our market-leading self-processing portfolio as we continue to drive both top-line growth and margin expansion through our proprietary high-margin recurring revenue streams. Earlier today, we announced the strategic divestiture of our SciSafe biostorage business, which serves as yet another pivotal step in our evolution. I will discuss this in further detail momentarily, but I'm confident that with our streamlined structure and fortified balance sheet, BioLife is better positioned than ever to deliver long-term value for our shareholders. Looking ahead, based on the strength of our Q3 results combined with what we're seeing as the last quarter of the year unfolds, we have modestly increased our cell processing revenue guidance, which Troy will speak to later in the call. We believe that the momentum we've realized throughout this year both in terms of revenue growth and margin expansion, provides us with a solid jumping-off point from which to enter 2025. Staying focused on our self-processing revenue, our biopreservation media products, which account for the vast majority of the platform's revenue, had a strong quarter-over-quarter increase. This was somewhat offset by an expected timing-related sequential decline in other products. Historical biopreservation media revenue trends remain consistent this quarter, with our top 20 customers accounting for approximately 80% of media revenue. An estimated 60% of the biopreservation media revenue came from direct customers in the quarter, and of that amount, customers with approved therapies totaled approximately 40%. We believe our biopreservation media products are embedded in more than 70% of relevant commercially-sponsored CGT clinical trials, which provides an encouraging indicator for sustainable future growth. In Q3, the CGT regulatory environment continued the forward momentum that started last year, with our biopreservation media embedded in two newly approved therapies during the quarter. This brings us to a total of 17 unique therapies that incorporate our market-leading biopreservation media. Further, we see six additional product approvals, geographic expansions, or new indications occurring in the next 12 months. Looking strategically at the road ahead, we will continue to refocus our efforts and allocate our capital toward our proprietary, high-growth, high-margin cell processing portfolio of products. This morning's announcement of the sale of our SciSafe biostorage business and a $73 million all-cash transaction is a pivotal step in the evolution of biolife into a pure-play CGT tools provider, driven by our recurring reagents business. Not only does the divestiture fortify our balance sheet, it also frees up significant operational bandwidth, which will be redeployed to support the growth of our core cell processing products. During our recent strategic review, we determined that our biostorage business, which accounted for $16 million in Q3 year-to-date revenue, was furthest away from our core competencies and expertise. In addition, we believe the level of capital required for consolidation and future growth would be better allocated to supporting and expanding our self-processing product portfolio, specifically our biopreservation media products. As a result of a more streamlined product portfolio, we have consolidated all our sales and marketing efforts under Todd Berard, who has moved into the newly created role of Chief Commercial Officer. Todd, who has served as our Chief Marketing Officer, has been with BioLife for more than 10 years and has a deep understanding of the CGT market, our product line, as well as establish relationships with our larger key customers. Gary Richardson, who has been our Chief Revenue Officer for the last year and the original founder of SciSafe, will become the CEO of the now independent SciSafe. I would like to personally thank Gary and the entire SciSafe team for their contributions to BioLife over the last four years and wish them a bright and successful future. With that said, we realize the job is not done and we're committed to exiting the remaining freezer business. Although CBS generated positive adjusted EBITDA for the quarter and represents less than 13% of sales, it is drag on long-term margins. We are making steady progress and will provide updates as events warrant. Our vision is to evolve BioLife into a pure play CGT tools and reagents provider so we can fully leverage our core competencies and the distinct market leadership of our biopreservation media. We believe this approach represents the strongest path to delivering sustained shareholder value as we drive both revenue growth and profitability into 2025 and beyond. Now I'll turn the call over to Troy, who will provide a review of our Q3 financial results.