Cytek Biosciences, Inc.

Welcome to SITAC's third quarter 2022 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. I would now like to hand the call over to Paul Goodson, Investor Relations. Please go ahead.

Thank you, operator. Earlier today, SciTech Biosciences released financial results for the quarter ended September 30th, 2022. If you haven't received this news release or if you'd like to be added to the company's distribution list, please send an email to investors at scitechbio.com. Joining me today from SciTech are Wenbin Zhang, CEO, and Patrick Jean-Meneau, Chief Financial Officer. Before we begin, I'd like to remind you that management will make statements during the call. that are forward-looking statements within the meaning of the federal securities laws, including statements regarding CITAC's business plans, strategies, opportunities, and financial projections. These statements are based on the company's current expectations and inherently involve significant risks and uncertainties that could cause actual results or events to differ materially from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward Looking Statements in the press release CITEC issued today and in CITEC's filings with the SEC. This call will also include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles. Reconciliation to the most directly comparable GAAP financial measure may be found in today's earnings release submitted to the SEC. Except as required by law, SCITEC disclaims any duty to update any forward-looking statements, whether because of new information, future events, or changes in its expectations. This conference call contains time-sensitive information and is accurate only as of the live broadcast November 9, 2022. With that, I would like to turn the call over to Wen Bin.

Thanks, Paul. and welcome everyone joining the call today. I want to start by again thanking our team at SciTech for their dedication and execution as we close out the third quarter of 2022. On today's call, I will begin with a recap of our progress this year and discuss how SciTech continues to advance toward our mission and vision. And then I will turn the call over to Patrick for a more detailed look at our financial results and outlook. Our results this quarter demonstrate the success of our efforts to operate our business efficiently and effectively in a challenging macro environment. We achieved the continued improvement across growth margins, net income, and adjusted EBITDA, all while further growing our sales across the globe, diversifying our revenue base, and executing on our broader strategy. Although macro factors continue to impact the broader industry, I'm proud of our team's achievements and demonstrated ability to adapt to the evolving environment and I'm confident for the remainder of 2022 and beyond. As we look at the industry landscape, DICUS continues to stand apart in the field as we provide our customers with an end-to-end solution consisting of instruments reagents software and application services our unique portfolio of comprehensive solutions positions us as a leader in the sector and we are proud of the demonstrated value we provide to our customers this year we have consistently highlighted our comprehensive suite of products and services, which has led to a further diversification of our revenue stream beyond the sale of instruments. As we have said previously, beyond our original suite of instruments, which continue to see solid demand, we expect our reagents and sales sources to contribute considerably to our future enterprise revenue growth. I'm pleased to say that our installed base of instruments continue to achieve robust growth in the field. During the third quarter, we placed 142 instruments, bringing our total installed base to 1,501 instruments as of the end of Q3. Furthermore, these placements reflect our core strategy to achieve growth across the range of users. from high-dimensional cell analysis users to entry-level users. Since first being introduced in 2017, our cell analysis systems have gained a widespread adoption across the globe with use in more than 40 countries. Along those lines, I want to take a moment to speak to how our strategy of expanding our global penetration has demonstrated results for our company. In last year's third quarter, sales within the U.S. accounted for 70% of our company's revenue, while the EMEA and the APAC regions were only 18% and 8%, respectively. Now, in line with our expansion efforts, in this past quarter, our EMEA sales grew to account for one quarter of our overall revenue. Further, our APEC region sales as a percent of total grew by 10 points, now representing 18% of CITEX overall sales. Clearly, our strategy is yielding results, and I look forward to this continued progress to expand our presence globally. In addition to continuing to grow our instrument base and overall revenue, I want to again acknowledge our team's successful efforts this quarter and throughout the whole of 2022 in operating in the face of challenging macro conditions and achieve strong results. This quarter, our growth margins were over 66% and adjusted growth margin over 68%, both expanding over the prior year. And on top of that, We reported a net income of $1.6 million, and our adjusted EBITDA grew significantly from last year's third quarter. And importantly, as we continue to see increased scale in our reagent business, as well as other high margin offerings, I'm confident in our ability to continue to consistently achieve strong and stable margins. I want to reiterate. These achievements are the result of the diligent efforts of our entire team throughout SciTech, not by accident. It is this focus on efficient and effective operations that I believe sets us apart in the field and that positions us for further success as we move ahead. For example, as we have discussed previously, our team is able to withstand micro-pressures by leveraging our global workforce in order to manage through inflationary and supply chain pressures. Furthermore, our intentional strategy to maintain a path inventory buffer provides a further mitigation of potential supply chain disruption to insulate our operations from constraints. In all, we continue to be focused on execution, and I remain confident in the SciTech team's demonstrated ability to manage through this environment and continue to succeed despite the ongoing challenges. At the end of April, we announced the appointment of Todd Garland as our Chief Commercial Officer. And now, only six months into the role, Todd has been instrumental in our company's recent success. Among his many areas of focus, Todd has developed an execution plan for our European sales strategy. We've demonstrated results already and more to come. More recently, just last week, we announced the appointment of Chris Williams as our Chief Operating Officer to lead and execute CITEX global operation strategy to scale up our capability to support our mission as a full solution provider to our customers. Prior to joining SciTech, Chris was the VP of Engineering, Technology, Operations, and Innovations for Thermo Fisher's Pharma Services Group. And before that, he was VP and the General Manager for Single Use Technologies, and the VP and the General Manager for Bioprocess Equipment and Automation, both at Thermo Fisher Scientific. I want to take a moment to welcome Chris to our team at SciTech. He joins us as an important time for our company as we are on the growth trajectory that requires the ability to scale. Around those lines, our focus is on ensuring that this growth is conducted efficiently as we target markets with large scale and automation and the process improvements are critical components of this. We are confident that Chris is the right person to help lead us forward and make the most of our growth opportunities. And we are excited for what comes next for our organization. As we continue to grow our offerings and the base of instruments, regions and services, our technology has now been validated by 881 peer-reviewed publications as of the end of the quarter. This quarter alone, there were 112 peer-reviewed publications mentioning SciTech. I'm very proud of this accomplishment, which speaks to the momentum of our platform and validates the use of our offerings in the scientific community. Of note, one paper on HIV published in Nature by researchers at Scripps Research Institute showed how a slower immunization process holds promise for difficult vaccine targets. In a second Nature paper, researchers from NYU Medical School showed how gut bacteria direct T cells to adopt distinct functions in the adaptive immune system. Microbiome research is rapidly growing, and we are pleased that our FFT platform provides insights into this promising area. As you can see, these papers and many others demonstrate the proven real-world applications of our technology and services to the scientific community. In all, once again, I'm pleased with the progress our team has made this quarter and throughout 2022. As we continue to push forward a cadence of new products and applications, we remain deeply focused on providing a complete cell analysis solution to our customers. We look forward to continuing to provide our novel FSP platform to these customers as they push the bounds of scientific discovery and the clinical progress. With that, I will now turn the call over to Patrick. for more details around our financials.