Cytek Biosciences, Inc. (NASDAQ:CTKB) Q3 2023 Earnings Call Transcript

Unidentified Analyst : Got it. And then with the Guava manufacturing now transferred to Wuxi, I’m not sure if you guys talked about this, but how should we think about the gross margin impacts in 4Q and looking into ’24?

Patrik Jeanmonod: Yes, that’s a good question. So we completed the transition in Q3. So for those who don’t know, the Guava platform was still manufacturing with the DiaSorin organization, and we had to pay a premium for these instruments. So now these instruments are fully being manufactured within the Cytek environment. And the expectation is that the gross profit margin for these instruments will go up gradually as we move forward; first of all, because we have a better manufacturing process for this instrument, but we’re also looking at doing a cost down to improve the overall gross profit margin for those.

Unidentified Analyst : Got it. Super helpful. And then I was wondering if you guys could elaborate a little bit more about your recent Cytek Reveal Roadshow, just what kind of people were in the audience, what kind of feedback you got. And it sounds like you guys plan on doing more of these industry conferences and user meetings. How should we be thinking about the impact on OpEx heading into ’24?

Wenbin Jiang: Yes. Cytek Reveal is for Cytek customers, existing and also the new customers. And so far it’s very well received, and we are continuing with this process. I think Paul earlier mentioned, we welcome all the investment community to join to be part of that. And probably that’s a good place or venue for you to see firsthand how Cytek users feel about the technology we have provided.

Unidentified Analyst : Got it. That sounds very interesting. Thank you for the time.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.