Technology
Cryoport Reports Third Quarter 2024 Financial Results
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Q3 2024 Life Sciences Services revenue up 9% year-over-year, including BioStorage/BioServices revenue up 12% year-over-year Supported a record total of 691 global clinical trials as of September 30, 2024Company reaffirmed full year 2024 revenue guidance of $225 to $235 million
NASHVILLE, Tenn., Nov. 7, 2024 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences industry, today announced financial results for its third quarter (Q3) and first nine months (9M) of 2024.
Jerrell Shelton, CEO of Cryoport, remarked, “Our Life Sciences Services business showed 9% growth during the third quarter, with BioStorage/BioServices revenue increasing by 12% compared to the third quarter of last year. The increase in our services revenue was coupled with a substantial improvement in gross margin to 46% for our services business.
“Reflecting on our performance through the third quarter, we are maintaining our full-year revenue forecast of $225 million to $235 million, anticipating continued growth in our services business while acknowledging the ongoing softness in product sales.
“We have been actively executing on our cost reduction and capital realignment strategies and we are currently on course to complete these adjustments by the year’s end. These actions are already showing positive results, as evidenced by the improvement in our gross margin, adjusted EBITDA and positive cash flow this quarter, moving us closer towards our objective of sustainable profitability. We believe that these measures will lead us to a return to positive adjusted EBITDA during 2025.
“We expect the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue for the near future, so we plan to further sharpen our focus on profitable growth and maintaining a strong balance sheet. We continue to be optimistic about our long-term business growth trajectory. We believe that we are strategically positioned to leverage the anticipated long-term growth in the Life Sciences and the Cell & Gene Therapy market through our comprehensive and integrated supply chain solutions.
“In October, we launched our IntegriCell™ Cryopreservation Solution with a new state-of-the-art facility on our Houston campus. This offering addresses yet another critical aspect in optimizing the supply chain for the development and commercialization of cell-based therapies through high quality, standardized, cryopreserved starting material,” Mr. Shelton concluded.
In tabular form, Q3 2024 and 9M 2024 revenue compared to Q3 2023 and 9M 2023, respectively, was as follows:
Cryoport, Inc. and Subsidiaries
Revenue
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)
2024
2023
% Change
2024
2023
% Change
Life Sciences Services
$ 39,278
$ 36,022
9 %
$ 114,104
$ 107,062
7 %
BioLogistics Solutions
35,302
32,486
9 %
103,076
97,093
6 %
BioStorage/BioServices
3,976
3,536
12 %
11,028
9,969
11 %
Life Sciences Products
$ 17,386
$ 20,135
-14 %
$ 54,749
$ 68,933
-21 %
Total Revenue
$ 56,664
$ 56,157
1 %
$ 168,853
$ 175,995
-4 %
BioStorage/BioServices revenue continues to grow double digits year-over-year, increasing 12%, as we continue to introduce our expanded capabilities to existing customers as well as add new customers into our global network, and as more allogeneic clinical and commercial therapies progress in the number of patients treated.
Revenue from commercially approved Cell & Gene therapies represented $6.1 million, or 11%, of total revenue for Q3 2024. During Q3 2024, one new therapy was approved by the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan, which was SanBio’s AKUUGO, an allogeneic treatment for the indication of improving chronic motor paralysis resulting from traumatic brain injury. In addition, the FDA approved Adaptimmune’s Tecelra for the treatment of adults with unresectable or metastatic synovial sarcoma, the first cell therapy targeting a solid tumor. Our total commercial therapy count was seventeen (17) as of September 30, 2024.
As of September 30, 2024, Cryoport supported a total of 691 global clinical trials, a net increase of 21 clinical trials over September 30, 2023, with 79 trials in Phase 3. The number of trials by phase and region are as follows:
Cryoport Supported Clinical Trials by Phase
Clinical Trials
September 30,
2022
2023
2024
Phase 1
268
275
295
Phase 2
295
314
317
Phase 3
80
81
79
Total
643
670
691
Cryoport Supported Clinical Trials by Region
Clinical Trials
September 30,
2022
2023
2024
Americas
496
516
531
EMEA
105
112
112
APAC
42
42
48
Total
643
670
691
During the third quarter, three (3) Biologics License Application (BLA)/Marketing Authorization Application (MAA) filings occurred, and one (1) BLA filing occurred in October. For the remainder of 2024, we anticipate up to an additional four (4) application filings and two (2) new therapy approvals, with another two (2) possible approvals of new therapies in January of 2025.
BioLogistics Solutions revenue rose 9% year over year during the third quarter as it continued to benefit from the ramp in temperature-controlled logistics revenue outside of the Cell & Gene therapy market, including biosimilars, antibodies, APIs and a growing number of Direct-to-Patient shipments.
Financial Highlights
Revenue
Total revenue for Q3 2024 was $56.7 million compared to $56.2 million for Q3 2023, a year-over-year increase of 1% or $0.5 million. Life Sciences Services revenue for Q3 2024 was $39.3 million compared to $36.0 million for Q3 2023, up 9.0% year-over-year and 3.3% sequentially, including BioStorage/BioServices revenue of $4.0 million, up 12.4% year-over-year and 12.9% sequentially. Life Sciences Products revenue for Q3 2024 was $17.4 million compared to $20.1 million for Q3 2023, down 13.7% year-over-year and 11.1% sequentially.Total revenue for 9M 2024 was $168.9 million compared to $176.0 million for 9M 2023. Life Sciences Services revenue for 9M 2024 was $114.1 million compared to $107.1 million for 9M 2023, including BioStorage/BioServices revenue of $11.0 million for 9M 2024 compared to $10.0 million for 9M 2023.Life Sciences Products revenue for 9M 2024 was $54.7 million compared to $68.9 million for 9M 2023.
Gross Margin
Total gross margin was 44.8% for Q3 2024 compared to 43.2% for Q3 2023. Gross margin for Life Sciences Services was 46.0% for Q3 2024 compared to 42.2% for Q3 2023. Gross margin for Life Sciences Products was 42.1% for Q3 2024 compared to 44.9% for Q3 2023.Total gross margin was 42.8% for 9M 2024 compared to 43.2% for 9M 2023. Gross margin for Life Sciences Services was 44.0% for 9M 2024 compared to 44.1% for 9M 2023. Gross margin for Life Sciences Products was 40.5% for 9M 2024 compared to 41.9% for 9M 2023.
Operating Costs and Expenses
Operating costs and expenses were $41.8 million for Q3 2024 compared to operating costs and expenses of $41.2 million for Q3 2023. Operating costs and expenses for 9M 2024 were $189.3 million compared to $121.4 million for 9M 2023. The operating costs and expenses for 9M 2024 include an impairment loss of $63.8 million recorded in Q2 2024, which is primarily related to the write off of remaining goodwill for MVE Biological Solutions.
Net Income (Loss)
Net income was $0.8 million for Q3 2024 compared to a net loss of $13.3 million for Q3 2023, which was primarily a result of increased gains on the extinguishment of debt. Net loss was $96.1 million for 9M 2024 compared to a net loss of $37.2 million for the same period in 2023, which was primarily a result of the impairment loss of $63.8 million recorded in Q2 2024.Net loss attributable to common stockholders was $1.2 million, or $0.02 per share, and $102.1 million, or $2.07 per share, for Q3 2024 and 9M 2024, respectively. This compares to a net loss attributable to common stockholders of $15.3 million, or $0.31 per share, and $43.2 million, or $0.89 per share, for Q3 2023 and 9M 2023, respectively.
Adjusted EBITDA
Adjusted EBITDA was a negative $2.4 million for Q3 2024, compared to a negative $3.1 million for Q3 2023. Adjusted EBITDA for 9M 2024 was a negative $13.9 million, compared to a negative $1.7 million for 9M 2023.
Cash, Cash equivalents, and Short-Term Investments
Cryoport held $272.7 million in cash, cash equivalents, and short-term investments as of September 30, 2024.
Convertible Debt repurchases
In Q3 2024, the Company announced that its Board of Directors had authorized a repurchase program to purchase up to $200.0 million of the Company’s common stock and/or convertible senior notes (the “2024 Repurchase Program”), which was in addition to the remaining amount under its 2022 repurchase program. The 2024 Repurchase Program became effective on August 1, 2024, and remains in effect through December 31, 2027. The Company has approximately $73.9 million in total of repurchase authorization available under its two Repurchase Programs as of September 30, 2024.During Q3 2024, the Company repurchased $175.0 million in aggregate principal amount of its Convertible Senior Notes due in 2026 for an aggregate repurchase price of $154.5 million.
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
Outlook
The Company reaffirms full year 2024 revenue guidance in the range of $225 million – $235 million. The Company’s 2024 guidance is dependent on its current business and expectations, which may be further impacted by, among other things, factors that are outside of our control, such as the global macroeconomic and geopolitical environment, supply chain constraints, inflationary pressures, and the effects of foreign currency fluctuations, as well as the other factors described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC.
Additional Information
Further information on Cryoport’s financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport’s financial performance are provided in the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2024, which is expected to be filed with the SEC on November 7, 2024. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport’s website at www.cryoportinc.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: In addition to the earnings release, a document titled “Cryoport Third Quarter 2024 in Review”, providing a review of Cryoport’s financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Thursday, November 7, 2024. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.
Cryoport management will host a conference call at 5:00 p.m. ET on November 7, 2024. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company’s reported results. A slide deck will accompany the call.
Conference Call Information
Date:
Thursday, November 7, 2024
Time:
5:00 p.m. ET
Dial-in numbers:
1-800-717-1738 (U.S.), 1-646-307-1865 (International)
Confirmation code:
Request the “Cryoport Call” or Conference ID: 1171580
Live webcast:
‘Investor Relations’ section at www.cryoportinc.com or click here.
Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.
The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company’s website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until November 14, 2024. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1171580#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for the Life Sciences with an emphasis on cell & gene therapies. Cryoport enables manufacturers, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers to conduct their respective business with products and services that are designed to derisk services and provide certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are “Enabling the Future of Medicine™” worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.
Our corporate headquarters, located in Nashville, Tennessee, is complemented by over 50 global locations in 17 countries, with key sites in the United States, United Kingdom, France, the Netherlands, Belgium, Portugal, Germany, Japan, Australia, India, and China.
For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.x.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding Cryoport’s intentions, hopes, beliefs, expectations, representations, projections, plans, or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to Cryoport’s industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as Cryoport’s outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Cryoport operates, Cryoport’s plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, Cryoport’s expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of Cryoport’s clients. Forward-looking statements also include those related to Cryoport’s anticipation of continued growth in its services business and ongoing softness in product sales; Cryoport’s plans and expectations relating to its previously announced cost reduction and capital realignment strategies, including Cryoport’s plans to complete these adjustments by the year’s end and Cryoport’s belief that these measures will lead to a return to positive adjusted EBITDA during 2025; Cryoport’s expectations that the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue into the near future; and Cryoport’s belief that it is strategically positioned to leverage the anticipated long-term growth in the Cell & Gene therapy market through Cryoport’s comprehensive and integrated supply chain solutions. It is important to note that Cryoport’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in Cryoport’s cash flow, market acceptance risks, and technical development risks. Additional risks and uncertainties include difficulties, delays or Cryoport’s inability to successfully complete its planned cost reduction and capital realignment measures, which could reduce the benefits realized from such activities within the time periods currently anticipated. Cryoport’s business could be affected by other factors discussed in Cryoport’s SEC reports, including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and Cryoport cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Cryoport disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
Cryoport, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three Months Ended
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
(in thousands, except share and per share data)
2024
2023
2024
2023
Revenue
Life Sciences Services revenue
$ 39,278
$ 36,022
$ 114,104
$ 107,062
Life Sciences Products revenue
17,386
20,135
54,749
68,933
Total revenue
56,664
56,157
168,853
175,995
Cost of revenue:
Cost of services revenue
21,220
20,803
63,927
59,887
Cost of products revenue
10,059
11,088
32,576
40,037
Total cost of revenue
31,279
31,891
96,503
99,924
Gross margin
25,385
24,266
72,350
76,071
Operating costs and expenses:
Selling, general and administrative
37,654
36,023
111,921
108,066
Engineering and development
4,157
5,152
13,555
13,291
Impairment loss
–
–
63,809
–
Total operating costs and expenses:
41,811
41,175
189,285
121,357
Loss from operations
(16,426)
(16,909)
(116,935)
(45,286)
Other income (expense):
Investment income
3,059
2,848
8,468
7,962
Interest expense
(889)
(1,357)
(3,472)
(4,197)
Gain on extinguishment of debt, net
17,326
5,679
18,505
5,679
Other income (expense), net
(1,616)
(3,059)
(1,398)
242
Income (loss) before provision for income taxes
1,454
(12,798)
(94,832)
(35,600)
Provision for income taxes
(649)
(471)
(1,247)
(1,598)
Net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Paid-in-kind dividend on Series C convertible preferred stock
(2,000)
(2,000)
(6,000)
(6,000)
Net loss attributable to common stockholders
$ (1,195)
$ (15,269)
$ (102,079)
$ (43,198)
Net loss per share attributable to common stockholders – basic and diluted
$ (0.02)
$ (0.31)
$ (2.07)
$ (0.89)
Weighted average common shares outstanding – basic and diluted
49,417,757
48,904,102
49,261,717
48,660,646
Cryoport, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30,
December 31,
2024
2023
(in thousands)
(unaudited)
Current assets
Cash and cash equivalents
$ 44,665
$ 46,346
Short-term investments
228,001
410,409
Accounts receivable, net
43,461
42,074
Inventories
23,552
26,206
Prepaid expenses and other current assets
10,658
10,077
Total current assets
350,337
535,112
Property and equipment, net
88,281
84,858
Operating lease right-of-use assets
30,113
32,653
Intangible assets, net
175,815
194,382
Goodwill
54,057
108,403
Deposits
1,493
1,680
Deferred tax assets
1,669
656
Total assets
$ 701,765
$ 957,744
Current liabilities
Accounts payable and other accrued expenses
$ 25,194
$ 26,995
Accrued compensation and related expenses
11,275
11,409
Deferred revenue
1,091
1,308
Current portion of operating lease liabilities
5,834
5,371
Current portion of finance lease liabilities
470
286
Current portion of convertible senior notes, net
14,271
–
Current portion of notes payable
153
149
Current portion of contingent consideration
3,151
92
Total current liabilities
61,439
45,610
Convertible senior notes, net
183,628
378,553
Notes payable, net
1,238
1,335
Operating lease liabilities, net
26,466
29,355
Finance lease liabilities, net
1,306
954
Deferred tax liabilities
3,526
2,816
Other long-term liabilities
569
601
Contingent consideration, net
5,021
9,497
Total liabilities
283,193
468,721
Total stockholders’ equity
418,572
489,023
Total liabilities and stockholders’ equity
$ 701,765
$ 957,744
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 are included in this release: revenue at constant currency, revenue growth rate at constant currency, operating costs and expenses, excluding impairment loss, net income, excluding impairment loss, and adjusted EBITDA. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including revenue at constant currency, revenue growth rate at constant currency and adjusted EBITDA, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
We believe that revenue growth is a key indicator of how Cryoport is progressing from period to period, and we believe that the non-GAAP financial measures, revenue at constant currency and revenue growth rate at constant currency, are useful to investors in analyzing the underlying trends in revenue. Under GAAP, revenue received in local (non-U.S. dollar) currency is translated into U.S. dollars at the average exchange rate for the period presented. As a result, fluctuations in foreign currency exchange rates affect the results of our operations and the value of our foreign assets and liabilities, which in turn may adversely affect results of operations and cash flows and the comparability of period-to-period results of operations. When we use the term “constant currency,” it means that we have translated local currency revenue for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenue into U.S. dollars that we used to translate local currency revenue for the comparable reporting period of the prior year. Revenue growth rate at constant currency refers to the measure of comparing the current reporting period revenue at constant currency with the reported GAAP revenue for the comparable reporting period of the prior year.
However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both period-over-period changes in non-GAAP constant currency revenue on the one hand and changes in revenue prepared in accordance with GAAP on the other. We caution the readers of this press release to follow a similar approach by considering revenue on constant currency period-over-period changes only in addition to, and not as a substitute for, or superior to, changes in revenue prepared in accordance with GAAP.
Operating costs and expenses, excluding impairment loss, is defined as operating costs and expenses, excluding impairment losses, if any. Net loss, excluding impairment loss, is defined as net loss, excluding impairment losses, if any. Management believes these measures, when read in conjunction with, and as supplemental to, the corresponding GAAP financial measures, provide a useful measure of Cryoport’s expenses and operating results, a meaningful comparison with historical results, and insight into Cryoport’s operating performance.
Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, cost reduction initiatives, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, net gain on extinguishment of debt, impairment loss, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events, as applicable.
Management believes that adjusted EBITDA provides a useful measure of Cryoport’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport’s ongoing operating performance. Further, management and the Company’s board of directors utilize adjusted EBITDA to gain a better understanding of Cryoport’s comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA, when read in conjunction with Cryoport’s GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport’s ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport’s underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport’s underlying business.
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP operating cost and expenses to Non-GAAP adjusted operating cost and expenses
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP operating costs and expenses
$ 41,811
$ 41,175
$ 189,285
$ 121,357
Non-GAAP adjustments to operating costs and expenses
Impairment loss
—
—
63,809
—
Non-GAAP adjusted operating costs and expenses
$ 41,811
$ 41,175
$ 125,476
$ 121,357
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to Non-GAAP adjusted net income (loss)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Non-GAAP adjustments to net income (loss)
Impairment loss
—
—
63,809
—
Non-GAAP adjusted net income (loss)
$ 805
$ (13,269)
$ (32,270)
$ (37,198)
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to adjusted EBITDA
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Non-GAAP adjustments to net income (loss):
Depreciation and amortization expense
7,836
6,911
22,863
20,038
Acquisition and integration costs
308
675
896
6,304
Cost reduction initiatives
568
—
1,116
—
Investment income
(3,059)
(2,848)
(8,468)
(7,962)
Unrealized loss on investments
3,535
2,336
2,593
2,300
Gain on insurance claim
—
—
—
(2,642)
Foreign currency (gain)/loss
(1,724)
710
(762)
114
Interest expense, net
889
1,357
3,472
4,197
Stock-based compensation expense
4,838
5,976
15,291
16,960
Gain on extinguishment of debt, net
(17,326)
(5,679)
(18,505)
(5,679)
Impairment loss
—
—
63,809
—
Change in fair value of contingent consideration
316
250
(1,329)
250
Other non-recurring costs
—
—
—
—
Income taxes
649
471
1,247
1,598
Adjusted EBITDA
$ (2,365)
$ (3,110)
$ (13,856)
$ (1,720)
Cryoport, Inc. and Subsidiaries
Total revenue by type for the three months ended September 30, 2024
(unaudited)
Life Sciences
Services
Life Sciences
Products
Total
(in thousands)
As Reported
$ 39,278
$ 17,386
$ 56,664
Non US-GAAP Constant Currency
39,193
17,340
56,532
FX Impact [$]
85
46
132
FX Impact [%]
0.2 %
0.3 %
0.2 %
Cryoport, Inc. and Subsidiaries
Total revenue by type for the nine months ended September 30, 2024
(unaudited)
Life Sciences
Services
Life Sciences
Products
Total
(in thousands)
As Reported
$ 114,104
$ 54,749
$ 168,853
Non US-GAAP Constant Currency
114,220
54,774
168,994
FX Impact [$]
(116)
(25)
(141)
FX Impact [%]
(0.1 %)
(0.0 %)
(0.1 %)
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SOURCE Cryoport, Inc.
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Q1 2025 Highlights
Revenue was $111.0 million, compared to $105.5 million in Q1 2024.Net loss was $10.6 million, compared with net loss of $15.5 million in Q1 2024.Adjusted EBITDA1 was $15.3 million, compared to $18.9 million in Q1 2024.Cash provided by operating activities was $25.8 million, compared to cash used in operating activities of $3.0 million in Q1 2024.Free Cash Flow1 was positive $4.8 million, compared to negative $25.4 million in Q1 2024.
TORONTO, Nov. 7, 2024 /CNW/ – WildBrain Ltd. (“WildBrain” or the “Company”) (TSX: WILD), a global leader in kids’ and family entertainment, today reported its first quarter (“Q1 2025”) results for the period ended September 30, 2024.
Josh Scherba, WildBrain President and CEO, said: “We started Fiscal Year 2025 with strong growth in Global Licensing, led by our iconic brands—Peanuts, Strawberry Shortcake and Teletubbies. The work we’ve been doing to simplify our business and focus on our key brands, especially building new fandom and engagement for Strawberry and Teletubbies, is showing greenshoots in our results as consumers reengage with these beloved brands. In our production business, the pipeline continues to build, and that activity will fuel earnings growth later in this fiscal year, and more importantly, in Fiscal Year 2026 and beyond. We are harnessing momentum across our business and are well positioned to deliver growth in both revenue and profitability this fiscal year.”
Nick Gawne, WildBrain CFO, added: “As we announced in July, we are pleased to have successfully refinanced our debt, extended our maturity and repaid the convertible debentures. The strength in Global Licensing this quarter highlighted our strategy focusing on key franchises, and we continue to execute on our priorities of simplifying our business, reducing leverage over time and prioritizing on our high-growth areas of the business while managing our operating efficiency.”
Fiscal Year 2025 Outlook
The Company reaffirms its previously announced outlook for Fiscal Year 2025. We expect:
Revenue growth of approximately 10 to 15%, andAdjusted EBITDA growth of approximately 5 to 10%.
Q1 2025 Financial Highlights
Financial Highlights
(in millions of Cdn$)
Three Months Ended
September 30,
2024
2023
Revenue
$111.0
$105.5
Gross Margin
$52.7
$51.8
Gross Margin (%)
47 %
49 %
Adjusted EBITDA attributable to WildBrain
$15.3
$18.9
Net Income (Loss) attributable to WildBrain
$(10.6)
$(15.5)
Basic Earnings (Loss) per Share
$(0.05)
$(0.08)
Cash Provided by Operating Activities
$25.8
$(3.0)
Free Cash Flow
$4.8
$(25.4)
In Q1 2025, revenue increased 5% to $111.0 million, compared to $105.5 million in Q1 2024.
Content Creation and Audience Engagement revenue decreased 14% to $40.8 million in Q1 2025, compared to $47.2 million in Q1 2024. Production revenue was lower year-over-year as a result of fewer productions in the studios as compared to the prior year as well as timing of live action productions. Audience Engagement partially offset the drop in Content Creation revenues with growth in music licensing and YouTube network revenues.
Global Licensing revenue increased 27% to $62.9 million in Q1 2025, compared to $49.5 million in Q1 2024. Revenue in the quarter was driven by strong growth in Peanuts, growth within our global licensing agency, WildBrain CPLG, as well as strong growth in WildBrain’s owned brands, Strawberry Shortcake and Teletubbies.
Gross margin for Q1 2025 was 47%, compared to gross margin of 49% in Q1 2024. Gross margin for Q4 2024 was $52.7 million, an increase of $0.9 million, compared to $51.8 million for Q1 2024.
Cash provided by operating activities in Q1 2025 was $25.8 million, compared to $3.0 million cash used in operating activities in Q1 2024. Free Cash Flow was positive $4.8 million in Q1 2025, compared with Free Cash Flow of negative $25.4 million in Q1 2024.
Adjusted EBITDA declined 19% to $15.3 million in Q1 2025, compared with $18.9 million in Q1 2024. Higher gross margin dollars were offset by higher SG&A, reflecting the recovery of a previously reserved bad debt of $2.8 million in Q1 2024.
Q1 2025 net loss was $10.6 million compared to net loss of $15.5 million in Q1 2024. The change was primarily driven by higher gross margin dollars, offset by higher SG&A and higher interest costs.
1.
Free Cash Flow, Gross Margin, Adjusted EBITDA and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures – see below for further details.
Q1 2025 Conference Call
The Company will hold a conference call on November 8, 2024 at 10:00 a.m. ET to discuss the results.
To immediately join the call by phone on that date without operator assistance, please use the following URL to receive a toll-free automated instant call back connecting you into the conference:
https://link.meetingpanel.com/?id=11401
Alternatively, you may dial direct to be entered into the call by an operator, referencing conference ID 11401 at +1 888-510-2154 in North America or +1 437-900-0527 internationally.
If dialing in, please allow 10 minutes to be connected to the conference call.
Replay will be available after the call on +1 (888) 660-6345 or +1 (289) 819-1450, under passcode 11401#, until November 15, 2024.
The audio and transcript will also be archived on our website approximately three business days following the event.
For more information, please contact:
Investor Relations: Kathleen Persaud – VP, Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089
Media: Shaun Smith – Sr. Director, Global Communications & Public Relations, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations through the wonder of storytelling. As a leader in 360° franchise management, we are experts in content creation, audience engagement and global licensing, cultivating and growing love for our own and partner brands around the world. With approximately 14,000 half-hours of kids’ and family content in our library—one of the world’s most extensive—we are home to such treasured franchises as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Inspector Gadget and Degrassi. WildBrain’s mission is to create exceptional entertainment experiences that captivate and delight fans both young and young at heart.
Our studios produce such award-winning series as The Snoopy Show; Snoopy in Space; Camp Snoopy; Strawberry Shortcake: Berry in the Big City; Sonic Prime; Chip and Potato; Teletubbies Let’s Go! and many more. Enjoyed in more than 150 countries on over 500 platforms, our content is everywhere kids and families view entertainment, including YouTube, where our network has garnered over 1.5 trillion minutes of watch time. Our television group owns and operates some of Canada’s most-loved family entertainment channels. WildBrain CPLG, our leading consumer-products and location-based entertainment agency, represents our owned and partner properties in every major territory worldwide.
WildBrain is headquartered in Canada with offices worldwide and trades on the Toronto Stock Exchange (TSX: WILD). Visit us at wildbrain.com.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects WildBrain’s current assumptions and expectations regarding future events as at the time they are made. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond WildBrain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to: changes in general economic, business and political conditions. WildBrain undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Non-IFRS Measures
In addition to the results reported in accordance with IFRS as issued by the International Accounting Standards Board, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-GAAP financial measures are provided to enhance the user’s understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a consistent basis for comparison between periods. The following discussion explains the Company’s use of certain non-GAAP financial measures, which are Adjusted EBITDA, Adjusted EBITDA attributable to the Shareholders of the Company, Gross Margin and Free Cash Flow.
Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative measure to net income or loss, or other measures as determined in accordance with GAAP, or as an indicator of the Company’s financial performance or a measure of liquidity and cash flows.
“Adjusted EBITDA” means earnings (loss) before net finance costs, income taxes, amortization of property & equipment and right-of-use and intangible assets, amortization of acquired and library content, equity-settled share-based compensation expense, changes in fair value of embedded derivatives, gain/loss on foreign exchange, reorganization, development and other expenses, impairment of certain investments in film and television programs/acquired and library content/P&E/intangible assets/goodwill, and also includes adjustments for other identified charges, as specified in the accompanying tables. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that certain lenders, investors and analysts use Adjusted EBITDA to measure a company’s ability to service debt and meet other payment obligations, and as a common valuation measurement in the media and entertainment industry. Further, certain of our debt covenants use Adjusted EBITDA in the calculation. The most comparable GAAP measure is earnings before income taxes.
“Adjusted EBITDA attributable to the Shareholders of the Company” means Adjusted EBITDA excluding the portion of Adjusted EBITDA attributable to non-controlling interests.
“Gross Margin” means revenue less direct production costs and expense of film and television produced. Gross Margin is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Gross Margin may not be comparable to similar measures presented by other issuers. Management believes Gross Margin is a useful measure of profitability before considering operating and other expenses and can be used to assess the Company’s ability to generate positive net earnings and cash flows. The most comparable GAAP measure is gross profit.
“Free Cash Flow” means operating cash flow less distributions to non-controlling interests, changes in interim production financing, cash interest paid on our long-term debt, bank indebtedness, and lease liabilities, and principal repayments on our lease liabilities. Free Cash Flow does not have a standardized meaning prescribed by GAAP; accordingly, Free Cash Flow may not be comparable to similar measures presented by other issuers. Management believes Free Cash Flow is a useful measure of the Company’s ability to repay debt, finance strategic business acquisitions and investments, pay dividends, and repurchase shares. The most comparable GAAP measure is cash from operating activities.
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SOURCE WildBrain Ltd.
Technology
Tucows Reports Financial Results for Third Quarter 2024
Published
55 mins agoon
November 7, 2024By
TORONTO, Nov. 7, 2024 /PRNewswire/ – Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the third quarter ended September 30, 2024. All figures are in U.S. dollars.
“Tucows finished the third quarter of 2024 with strong year-over-year growth of revenue, gross profit and adjusted EBITDA. We have focused on generating revenue and margin gains, and as importantly, we have implemented cost controls across all of our businesses, said Elliot Noss, Tucows President and CEO. In our Ting business, we recently undertook a second reduction in workforce as part of a capital efficiency plan and operational pivot towards maximizing penetration and contribution of existing network footprints. We also continued to deleverage the business with payments on the syndicated debt using cash flow from Wavelo and Tucows Domains.”
Financial Results
Consolidated net revenue for the third quarter of 2024 increased 6.1% to $92.3 million from $87.0 million for the third quarter of 2023, driven primarily by year-over-year revenue gains from Ting and Domains.
Gross profit for the third quarter of 2024 increased 32.4% to $22.2 million from $16.8 million from the third quarter of 2023. The increase in gross profit was driven primarily by large gross margin gains from Ting, as well as gains from Domains. The increase continues to be partially offset by network depreciation from the Ting network.
Net loss for the third quarter of 2024 was $22.3 million, or a loss of $2.03 per share, compared with net loss of $22.8 million, or $2.09 per share, for the third quarter of 2023. The decreased loss was primarily driven by increases in revenue and gross profit, as well as by a decrease in operating expenses.
Adjusted EBITDA1 for the third quarter of 2024 increased 94.3% to $8.7 million from $4.5 million for the third quarter of 2023. The year-over-year increase was primarily due to growth of revenues from Domains and Ting, and cost management in the Ting business.
Cash equivalents, restricted cash and restricted cash equivalents at the end of the third quarter of 2024 were $91.1 million compared with $52.2 million at the end of the second quarter of 2024 and $122.4 million at the end of the third quarter of 2023.
Summary Financial Results
(In Thousands of US Dollars, Except Per Share Data)
3 Months ended September 30
9 Months ended September 30
2024 (unaudited)
2023 (unaudited)
% Change
2024 (unaudited)
2023 (unaudited)
% Change
Net Revenues
92,297
86,971
6 %
269,177
252,379
7 %
Gross Profit
22,188
16,753
32 %
61,314
48,846
26 %
Income Earned on Sale of Transferred Assets, net
3,853
4,312
(11 %)
10,831
12,971
(16) %
Net Income (Loss)
(22,297)
(22,772)
2 %
(67,385)
(72,823)
7 %
Basic earnings (Loss) per common share
(2.03)
(2.09)
3 %
(6.15)
(6.71)
8 %
Adjusted EBITDA¹
8,688
4,472
94 %
22,068
12,897
71 %
Net cash provided by (used in) operating activities
(4,564)
(6,936)
34 %
(14,950)
(13,774)
(9) %
1. This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.
Summary of Revenues, Gross Profit and Adjusted EBITDA
(In Thousands of US Dollars)
Revenue
Gross Margin
Adj. EBITDA¹
3 Months ended
September 30
3 Months ended
September 30
3 Months ended
September 30
2024
(unaudited)
2023
(unaudited)
2024
(unaudited)
2023
(unaudited)
2024
(unaudited)
2023
(unaudited)
Ting Internet Services:
Fiber Internet Services
15,310
12,855
10,989
7,986
(5,070)
(12,176)
Wavelo Platform Services:
Platform Services
10,075
10,697
10,012
10,355
Other Professional Services
7
377
7
149
Total Wavelo Platform
Services
10,082
11,074
10,019
10,504
3,429
4,207
Tucows Domain Services:
Wholesale
Domain Services
49,871
47,657
9,691
9,597
Value Added Services
5,175
4,252
4,666
3,715
Total Wholesale
55,046
51,909
14,357
13,312
Retail
9,669
9,179
5,453
5,063
Total Tucows Domain
Services
64,715
61,088
19,810
18,375
11,529
10,913
Corporate:
Mobile Services and Eliminations
2,190
1,954
(1,134)
(611)
(1,200)
1,528
Network Expenses:
Network, other costs
n/a
n/a
(6,864)
(7,322)
n/a
n/a
Network, depreciation of property and equipment
n/a
n/a
(9,414)
(9,138)
n/a
n/a
Network, amortization of intangible assets
n/a
n/a
(366)
(378)
n/a
n/a
Network, impairment
n/a
n/a
(852)
(2,663)
n/a
n/a
Total Network Expenses
n/a
n/a
(17,496)
(19,501)
n/a
n/a
Total
92,297
86,971
22,188
16,753
8,688
4,472
1 This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.
Notes:
1. Adjusted EBITDA
Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.
The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted EBITDA is calculated before certain recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.
The Company’s adjusted EBITDA definition excludes depreciation, impairment and loss on disposition of property and equipment, amortization of intangible assets, income tax provision, interest expense (net), accretion of contingent consideration, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions, loss on debt extinguishment and costs that are not indicative of on-going performance (profitability), including acquisition and transition costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.
The following table reconciles income before provision for income taxes to Adjusted EBITDA (dollars in thousands):
3 Months ended September 30
9 Months ended September 30
2024
(unaudited)
2023
(unaudited)
2024
(unaudited)
2023
(unaudited)
Net income (Loss) for the period
(22,297)
(22,772)
(67,385)
(72,823)
Less:
Provision (recovery) for income taxes
3,074
(822)
6,068
(5,557)
Depreciation of property and equipment
9,526
9,275
29,686
26,770
Impairment of property and equipment
852
2,663
905
4,679
Amortization of intangible assets
1,209
2,620
4,089
8,101
Interest expense, net
13,095
10,739
37,527
29,120
Loss on debt extinguishment
–
–
–
14,680
Stock-based compensation
1,808
2,308
5,383
6,606
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities
(197)
340
357
254
Acquisition and transition costs*
1,618
121
5,438
1,067
Adjusted EBITDA
$8,688
$4,472
$22,068
$12,897
* Acquisition and other costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.
Management Commentary
Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, November 7, 2024, management’s pre-recorded audio commentary (and transcript), discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials.
Following management’s prepared commentary, for the subsequent seven days, until Thursday, November 14, 2024, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions in an audio recording and transcript to the Company’s website at http://www.tucows.com/investors/financials, on Tuesday, November 26, 2024, at approximately 4 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly.
About Tucows
Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (https://tucows.com).
Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries.
This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.
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SOURCE Tucows Inc.
Technology
Strengthening Canada’s leadership in telecommunications technology: A new partnership with Ericsson
Published
55 mins agoon
November 7, 2024By
The $634.8 million project aims to advance 5G technology and boost R&D and wireless networking technologies in Canada
OTTAWA, ON, Nov. 7, 2024 /CNW/ – In today’s globalized world, Canadians increasingly depend on fast and reliable wireless services in every facet of their lives. That is why the Government of Canada is investing in innovative solutions that will enhance Canada’s telecommunications industry.
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, finalized an investment of $79.1 million under the Strategic Innovation Fund to support Ericsson’s $634.8 million project to advance 5G technologies for next-generation telecommunications networks. The project will also involve R&D work for cloud-based wireless technologies and architectures, as well as artificial intelligence and quantum computing solutions to meet the needs of customers. This work will be performed at Ericsson’s facilities in Ottawa, Ontario, and Saint-Laurent, Quebec.
This partnership will bring economic benefits to the Ottawa and Montréal regions, stimulate Canada’s 5G ecosystem and drive growth in the entire tech sector. The project is also expected to create 1,200 co-op student positions and more than 190 jobs and to sustain 2,400 jobs in Canada, primarily in well-paying R&D positions. And each job created in this sector creates 1.3 new jobs in the broader economy. The government is making sure that Canada remains at the forefront of telecommunications technology to meet the demands of the future.
Quotes
“Fast, reliable and effective wireless telecommunications are essential to the modern economy. That is why our government is investing in next-generation technologies through its partnership with Ericsson, a global leader in this field with 71 years of deep roots in Canada. This investment will help secure Canada’s position at the forefront of cutting-edge telecommunications development and deployment.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
“Along with being a global leader in the telecommunications sector, Ericsson has also been an outstanding member of the Kanata business community, with deep historical ties to Canada. I am pleased to see this relationship between Ericsson and Canada being strengthened with this investment, which will bolster our economy and contribute to the creation of more than 190 excellent new jobs and the maintenance of 2,400 positions for Canadian workers.”
– The Honourable Jenna Sudds, Minister of Families, Children and Social Development
“Digitalization is an incredible opportunity, and our partnership with the Canadian government, through the Strategic Innovation Fund, will accelerate the advancement of key technologies including 5G, artificial intelligence and quantum computing. This collaboration will not only bolster Canada’s leadership in digital infrastructure but also benefit the entire region. By enhancing our R&D efforts in Ottawa and Montréal, we aim to stimulate Canada’s 5G ecosystem and contribute to the prosperity of the entire tech sector.”
– Börje Ekholm, President and CEO of the Ericsson Group
Quick facts
LM Ericsson, Ericsson Canada Inc.’s parent company, was founded in Sweden in 1876, and Ericsson Canada Inc. has been in operation in Canada since 1953.LM Ericsson has played a significant role in Canada’s innovation ecosystem for over 70 years, having invested over $7.2 billion in R&D over that period.The Ericsson project highlighted today will enable Canada to support the development of international wireless telecommunications industry standards necessary for the future generation of telecommunications hardware, software and services.The next generation of 5G wireless technology is expected to add $40 billion annually to Canada’s economy in the next four years.The information and communications technology sector plays an essential role in Canada’s economy and provides Canadians with good middle-class jobs. Each new job created by an investment in this sector creates 1.3 new jobs in the broader Canadian economy. Every dollar spent in this sector adds almost two dollars to our economy.The Strategic Innovation Fund (SIF) provides major investments in innovative projects that will help grow Canada’s economy for the well-being of all Canadians. SIF covers all sectors of the economy and is available to for-profit and not-for-profit organizations, with the goal of supporting the Canadian innovation network.
Associated links
Strengthening Canada’s position as a global tech leader while growing our economy and creating jobsEricsson Canada Inc.What is 5G?
Stay connected
Find more services and information on the Innovation, Science and Economic Development Canada website.
Follow Innovation, Science and Economic Development Canada on social media.
X (Twitter): @ISED_CA | Facebook: Canadian Innovation | Instagram: @cdninnovation | LinkedIn: Innovation, Science and Economic Development Canada
SOURCE Innovation, Science and Economic Development Canada
WILDBRAIN REPORTS Q1 2025 RESULTS
Tucows Reports Financial Results for Third Quarter 2024
Strengthening Canada’s leadership in telecommunications technology: A new partnership with Ericsson
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