Cytek Biosciences Reports $200.5M Revenue and $6M Net Loss for Fiscal Year 2024

Cytek Biosciences, Inc. reported total revenue of $200.5 million for the fiscal year ended December 31, 2024, a 4% increase compared to $193.0 million in 2023. This growth was driven by a 30% increase in service revenue to $47.2 million, offset by a 2% decrease in product revenue to $153.3 million. The company attributed the decrease in product revenue to lower average selling prices, despite an 8.5% increase in unit volumes for spectral and imaging products. The company reported a net loss of $6.0 million for 2024, a significant improvement from the $12.1 million net loss reported in 2023.

Significant changes compared to the previous fiscal year included a decrease in research and development expenses by $4.7 million (11%) to $39.4 million, primarily due to streamlining efforts. Sales and marketing expenses remained relatively flat year-over-year at $49.1 million. General and administrative expenses decreased by $0.9 million (2%) to $43.1 million, partially offset by higher stock compensation expense. A one-time benefit of $7.3 million related to a change in estimate of the royalty settlement liability with Becton, Dickinson and Company positively impacted interest income (expense), net.

In February 2023, Cytek completed the acquisition of certain assets of Luminex Corporation's flow cytometry and imaging business for $44.9 million. This acquisition expanded Cytek's product portfolio and customer base. Further, in May 2024, the company launched its Enhanced Small Particle (ESP) Detection Option for its Cytek Aurora and Northern Lights systems, expanding its capabilities in small particle research. The company also noted the registration or approval of its Northern Lights-CLC system for clinical use in the European Union and China.

As of December 31, 2024, Cytek employed 648 people, including 164 in research and development, 244 in sales and marketing, and 177 in manufacturing and operations. The company identified material weaknesses in its internal control over financial reporting, primarily related to control environment and control activities. A remediation plan is underway, including augmenting its workforce and improving control design and implementation. The company also noted that it had approximately $277.9 million in cash and cash equivalents and short-term investments as of December 31, 2024.

Cytek's outlook anticipates continued investment in research and development, commercial infrastructure, and geographic expansion. The company expects recurring revenue to increase significantly as its installed base grows. However, the company also highlighted several risks, including competition, reliance on a limited number of suppliers, and the potential impact of changes in government regulations and macroeconomic conditions, such as inflation and currency fluctuations. The company also noted that it does not intend to pay dividends in the foreseeable future.