CryoPort, Inc.

Good afternoon and welcome to Cryoport's third quarter 2022 earnings conference call. All participants will start in a listen-only mode. As a reminder, this call is being recorded. I would now like to turn the call over to your host, Todd Fromer from KCSA Strategic Communications. Please go ahead.

Thank you, operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligations to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events, and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors, and elsewhere in our annual report on Form 10-K filed with the Securities and Exchange Commission, and those described from time to time in other reports which we filed with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Mr. Gerald Shelton, Chief Executive Officer of Crowdport. Jerry, the floor is yours.

Thank you, Todd. Good afternoon, ladies and gentlemen. We appreciate your joining our earnings call today. With us this afternoon is our Chief Financial Officer, Robert Stavanovich, our Chief Scientific Officer, Dr. Mark Zawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. As a reminder, we have uploaded our third quarter in-review document to our website. It can be found under Investor Relations in the Events and Presentations section. This document provides a review of our recent financial and operational performance, and a general business outlook. If you've not had a chance to read it, I would encourage you to go to the website and download it. I will provide a brief update on the business, and then we will move on to answering your questions. Last quarter, I began the call with, quote, reflecting strong demand across all business units and geographies, we delivered another solid quarter with second quarter revenue increasing 14% or 18% on a constant currency basis. Unfortunately, this quarter, I must report that like many companies that operate globally, we experienced a convergence of macro economic pressures that impacted our third quarter revenue. They were wide ranging and abrupt in their impact. For the third quarter, we are reporting total revenue of $60.5 million, an increase of 7% compared to $56.7 million for the third quarter of 2021. With all the aforementioned factors in mind, we have re-evaluated our guidance. Our guidance for the full year 2022 is now in the range of $232 million to $238 million, with a decrease of approximately 10% from previous guidance. We also are reevaluating our aspirational goal of $650 million to $750 million in total revenue by the end of 2025, given all the exchanges, all the changes that have occurred since we provided you that goal. We reached these conclusions after deliberate consideration of potential impact of pressures on MBE biological solutions and cryo-PDP as these business units have greater international exposure than Crawford Systems or CrowdGene. Short-term issues aside, the one thing we know is that we have a solid company that is healthy with $350 million of cash and manned by highly motivated people who believe in our mission to serve our target markets, which are dynamic, growing, and nascent. Despite these headwinds impacting our second half of 2022 performance, we remain positive given the outlook of our target markets, and we are working diligently to further advance our leadership position in the essential supply chain platform company serving our life sciences market. Crowdport has never been stronger and never had so many business development initiatives underway. The foregoing initiatives and the others that have been publicly disclosed are focused on further strengthening our business and positioning us in the dynamic and growing markets we serve. The commitment of our team is resolute and its commitment to deliver solutions that support life-saving cell and gene therapy is second to none. Our markets remain solid and we expect Crowdport to continue to grow and prosper despite any short-term headwinds. We remain confident in Crowdport's long-term growth prospects, and our ability to increase shareholder value through good times and bad. As a team, we will continue to move forward. We will not accept excuses for any internal or external issues that affect our performance. We will make the necessary near-term strategic adjustments that are needed to weather these times and come out a much stronger, much more efficient organization because of our efforts. Our attitudes, esprit, Actions, teamwork, and dedication are of ultimate importance and will see us through any short-term obstacles as we continue to position ourselves to take advantage of opportunities in 2023 and for the long-term growth. Now we will be happy to open the lines for any questions you may have. Operator?