Yahoo Finance Cerus Corp (CERS) Q1 2024 Earnings: Revenue Surpasses Estimates, Net Loss Narrows
Total Revenue: $43.4 million, up 13% year-over-year, surpassing estimates of $41.14 million.
Product Revenue: $38.4 million, a 24% increase from the previous year, highlighting strong growth in the platelets and plasma business.
Government Contract Revenue: $5.0 million, a decrease of 33% from the previous year, reflecting the completion of specific clinical trials.
Net Loss: $9.7 million, or -$0.05 per share, improving from a net loss of $15.6 million, or -$0.09 per share year-over-year, and meeting the estimated EPS of -$0.05.
Operating Expenses: Reduced to $34.3 million, down 12% from the previous year, as a result of cost optimization efforts.
Product Gross Margin: Relatively stable at 55.4%, slightly down from 55.8% in the previous year.
Cash Position: Ended the quarter with $72.2 million in cash and short-term investments, an increase from $65.9 million at the end of the previous quarter.
Cerus Corp (NASDAQ:CERS) released its 8-K filing on May 2, 2024, detailing its financial performance for the first quarter ended March 31, 2024. The company, a leader in blood transfusion safety with its INTERCEPT Blood System, reported a significant 24% increase in product revenue compared to the prior year, alongside a narrowed net loss.
Financial Performance Overview
The first quarter saw Cerus Corp achieve total revenue of $43.4 million, a 13% increase from $38.5 million in the same quarter last year. This figure surpassed the analyst estimates of $41.14 million. Product revenue, which makes up the bulk of total revenue, rose to $38.4 million from $31.0 million, marking a 24% year-over-year increase. However, government contract revenue decreased by 33% to $5.0 million, reflecting the completion of certain research and development activities.
Despite these gains, Cerus reported a net loss of $9.7 million, or $0.05 per share, which aligns with analyst expectations. This marks an improvement from a net loss of $15.6 million, or $0.09 per share, in the first quarter of 2023. The company's product gross margin remained stable at approximately 55.4%, and total operating expenses were reduced by 12% to $34.3 million, reflecting cost optimization efforts.
Operational Highlights and Future Outlook
Cerus Corp continued to advance its clinical and product development initiatives during the quarter. Notably, the U.S. ReCePI Phase 3 clinical trial for the INTERCEPT Blood System for Red Blood Cells met its primary endpoint, and the FDA approved an extended shelf life for INTERCEPT Platelet Processing Sets. The company also reiterated its full-year 2024 product revenue guidance, expecting it to be in the range of $172 million to $175 million.
President and CEO William "Obi" Greenman highlighted the significant progress made in clinical milestones and commercial growth, particularly in North America. The adoption by Canadian Blood Services and growth in the U.S. INTERCEPT Fibrinogen Complex business were key contributors to the quarter's success.
Financial Health and Investments
As of March 31, 2024, Cerus reported having $72.2 million in cash and cash equivalents and short-term investments, an increase from $65.9 million at the end of 2023. The company also generated positive operating cash flows of $2.0 million during the quarter, a significant improvement from the $8.5 million used in the prior year period.
The balance sheet remains robust with total assets of $189.1 million and total liabilities of $138.9 million. The company's efforts to manage costs and optimize its financial strategy are evident in its improved cash flow and reduced net loss.
Conclusion
Cerus Corp's first quarter of 2024 demonstrates a solid start to the year, marked by revenue growth and strategic advancements in its product offerings. The company's focus on enhancing the safety and availability of blood transfusions continues to drive its financial and operational performance. With a strong commitment to achieving its full-year guidance and a pipeline of promising developments, Cerus is well-positioned for sustained growth.
For more detailed information, investors and stakeholders are encouraged to review the full earnings report and join the upcoming quarterly conference call.
Explore the complete 8-K earnings release (here) from Cerus Corp for further details.
This article first appeared on GuruFocus.
