CryoPort, Inc.

and only mode. After the speaker's presentation, there will be a question and answer session, and instructions will be provided at that time. As a reminder, this call is being recorded. I will now turn the call over to your host, Todd Frommer from KCSA Strategic Communications. Please go ahead, sir.

Thank you. 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 obligation 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 items 1A, risk factors, and elsewhere in our annual report on Form 10-K to be filed with the Securities and Exchange Commission, and those described from time to time in other reports which we file with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Mr. Gerald Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours.

Thank you, Todd. Good afternoon, ladies and gentlemen. With us this afternoon is our Chief Financial Officer, Robert Stavanovich, our Chief Scientific Officer, Dr. Mark Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. As a reminder, we have uploaded our first quarter 2025 in review document to our website. It can be found on the main page of the Crawford, Inc. website. This document provides a review of our 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 our website and download it. Before I review our results, I would like to highlight that due to our recently announced strategic partnership with DHL and the related sale of Cryo PDP to DHL, Cryo PDP's financials which were previously a part of Cryoport's life sciences services reportable segment, are now presented as discontinued operations. Accordingly, we have provided quarterly historical information on this basis for 2024 in our first quarter 2025 in review document. This information is intended to support financial modeling efforts for those needing this information. Please note that unless indicated, all revenue figures discussed today will refer to continuing operations. This includes our fiscal year 2025 revenue guidance first shared alongside our DHL transaction announcement. Now I'll provide a brief update on our business, and then we will take your questions. Proudport had a solid start to the year with $41 million of revenue from continuing operations for the first quarter, which represented 10% year-over-year growth and helped drive meaningful adjusted EBITDA improvement. Three things that excited us about the first quarter were, first, client engagement and life sciences services grew substantially, highlighting a new momentum in our business. Second, order patterns for our life sciences products continued to show signs of stabilization, and finally, our strategic partnership with DHL. Life Sciences Services revenue in total increased 17% year-over-year, which included our support of commercial cell and gene therapies, which grew 33% over last year. Life Sciences Services now account for 56% of total revenue, and it continues to be driven by the increasing development and commercialization of cell and gene therapies which we believe will persist even in the current economic environment. As of March 31st, Crowdfort supported 19 commercial therapies and 711 clinical trials, representing approximately 70% of cell and gene therapy trials. Subsequent to the quarter end, a new therapy from our customer of Beano Therapeutics was approved, bringing our total commercial therapies supported to 20. In the first quarter, six BLA-MAA filings occurred. Three filings were for new therapies, and three filings were for geographic expansion. Additionally, BMS received a supplemental approval from the European Commission to expand the label of Brianzi as a third-line treatment for relapsed or refractory follicular lymphoma. For the remainder of 2025, We anticipate up to an additional 17 application filings, four therapy approvals, and additional four approvals for label or geographic expansions or moves to earlier lines of treatment, all of which give us further confidence in our growth forecast. Our life sciences products business continues to show further signs of demand stabilization and grew 2% year over year. We are continuing to expand our product portfolio to capture new revenue streams with innovative products, including the MVE High Efficiency 800C, which was released in the first quarter and meets the needs of facilities that have limited space yet require high capacity and security. Another key milestone this quarter was the announcement of our strategic partnership with DHL Group. As a part of our strategic partnership, DHL acquired Cryo PDP for an enterprise value of $195 million, which we expect to close in the second or third quarter. We think this arrangement will enhance our positioning in AsiaPAC and EMEA and reshape our competitive profile within the industry by leveraging the global scale and capabilities of our new strategic partner, DHL. Our strategic shift is responsive to market changes driven by the evolution and progress of our industry and provides us with a strong infusion of capital, a substantial return on investment, and a strategic partnership that enables us to sharpen our focus on our core of the life sciences service offerings directed toward the rapidly growing regenerative medicine space. Consequently, We're confident in our organic growth outlook for the full year and are confirming our revenue guidance for fiscal year 2025 in the range of $165 million to $172 million, which at the midpoint represents a 7.5% growth relative to fiscal year 2024. Before we begin to take your questions, I want to briefly talk about global tariffs. In situations where tariffs may impact our businesses, such as potential increases in cost of raw materials such as electronics, aluminum, stainless steel, we have already taken steps to diversify our supply chain. In situations where we cannot mitigate tariff charges, we will implement surcharges. We have successfully taken a similar approach in the past. For example, during the supply chain challenges experienced during COVID, we were able to maintain solid financial margins. To be clear, we are beginning to see impact from tariffs on aluminum, and we will pass those costs through a surcharge as appropriate. We feel confident in our ability to manage potential future cost increases due to tariffs. More broadly, we do not expect tariffs to impact our core support of clinical trials or commercial therapies. Of course, we will continue to assess the situation and keep you updated as more information becomes available. In closing, we made meaningful progress during the first quarter in revenue generation, operational improvements, and with the DHL strategic partnership. With this progress to accelerate our growth, we remain focused on supporting the increasing number of commercial regenerative medicine products and the rollout around the world. We are also advancing our key initiatives such as IntegraCell Cryopreservation Solution, our global supply chain center network, and introducing new services and products in order to better serve our clients and open up new revenue streams. We remain confident that the actions we have underway and our momentum will lead us to a return to positive adjusted EBITDA during 2025. This concludes my prepared remarks, so now I will ask the operator to open the lines for your questions.