Cytek Biosciences, Inc. reported a notable increase in revenue for the third quarter and the first nine months of 2024, driven by growth in service revenue and higher product sales in specific regions. For the three months ended September 30, 2024, total revenue reached $51.5 million, a 7% increase from $48.0 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $143.0 million, up 6% from $134.8 million in the prior year. The growth was attributed to a 25% increase in service revenue, which rose to $12.0 million, while product revenue saw a modest 3% increase to $39.5 million.

Despite the revenue growth, the company reported a net income of $941,000 for the third quarter of 2024, a significant improvement from a net loss of $6.5 million in the same quarter of 2023. For the nine-month period, the net loss narrowed to $15.7 million from $17.7 million in the previous year. The improvement in profitability was linked to reduced operational losses and lower interest expenses.

Cytek's gross profit for the third quarter was $29.0 million, compared to $27.2 million in the same quarter of 2023, reflecting a gross margin of 56%, slightly down from 57% year-over-year. The company’s total current assets as of September 30, 2024, were $390.2 million, with cash and cash equivalents at $162.3 million, down from $167.6 million at the end of 2023.

Strategically, Cytek completed the acquisition of assets from Luminex Corporation in February 2023, enhancing its flow cytometry capabilities. The company also launched the Aurora CS cell sorter, expanding its product offerings. In addition, Cytek has initiated a share repurchase program, with $35.4 million remaining under the plan as of September 30, 2024, after repurchasing 2.2 million shares during the quarter.

Research and development expenses decreased to $9.9 million for the third quarter, down from $11.2 million in 2023, while sales and marketing expenses slightly increased to $12.4 million. The company continues to focus on expanding its commercial infrastructure and workforce to support growth in instrument sales and reagent offerings.

As of September 30, 2024, Cytek had identified material weaknesses in its internal controls over financial reporting, prompting ongoing remediation efforts. The company remains committed to enhancing its operational and financial controls to support its growth trajectory.