REG - MaxCyte, Inc. MaxCyte, Inc. - MXCR - Reports Q4 & FY 2023 Financial Results
13/03/2024 07:00
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RNS Number : 6063G MaxCyte, Inc. 13 March 2024
MaxCyte Reports Fourth Quarter and Full Year 2023 Financial Results and
Reiterates 2024 Guidance
ROCKVILLE, MD, March 13, 2024 - MaxCyte, Inc., (NASDAQ: MXCT; LSE: MXCT), a
leading, cell-engineering focused company providing enabling platform
technologies to advance the discovery, development, and commercialization of
next-generation cell therapeutics and innovative bioprocessing applications,
today announced its fourth quarter and full year ended December 31, 2023
financial results and reiterated its 2024 guidance.
Fourth Quarter and Full Year Highlights
· Total revenue of $15.7 million in the fourth quarter of 2023, an
increase of 26% over the fourth quarter of 2022.
· Core business revenue of $7.2 million in the fourth quarter of 2023,
a decline of 32% over the fourth quarter of 2022.
· Strategic Platform License (SPL) Program-related revenue was $8.5
million for the fourth quarter of 2023, an increase of 359% over the fourth
quarter of 2022.
· Total revenue of $41.3 million for the full year 2023, a decline of
7% over the full year 2022.
· Core business revenue of $29.8 million for the full year 2023, a
decrease of 25% over the full year 2022.
· SPL Program-related revenue was $11.5 million for the full year 2023,
an increase of 148% over the full year 2022.
· Ended the year with 23 active SPL agreements that allowed for over
160 potential programs, 16 of which were active programs currently in the
clinic (defined as programs with at least a cleared IND or equivalent) and 1
of which was an active program currently commercial. With the addition of
three SPLs signed in 2024, the total number of SPLs now stands at 26.
· Total cash, cash equivalents and investments were $211.2 million as
of December 31, 2023.
"In 2023, we navigated a challenging operating environment in our industry,
that included increased capital conservatism and pipeline portfolio
reevaluation among our customers. Our team adapted well to the changing
environment last year, and I am confident in our ability to execute across the
business this year," said Maher Masoud, President and CEO of MaxCyte.
"We are pleased with our accomplishments and progress in 2023, which included
supporting the recent FDA approval of CASGEVY(TM) by our client, Vertex
Pharmaceuticals. MaxCyte signed five new SPLs in 2023 and we have seen
continued momentum with three additional SPLs signed in January 2024. Our
pipeline of potential clients remains robust, and we look forward to further
expanding our portfolio of SPLs in 2024. The opportunity in front of us in the
cell therapy industry continues to strengthen, and we will focus on executing
in 2024 on our goal of being the industry's premier non-viral cell therapy
platform."
The following tables provide details regarding the sources of our revenue for
the periods presented.
Three Months Ended Year Ended
December 31, December 31,
(Unaudited)
2023 2022 % 2023 2022 %
(in thousands, except percentages)
Cell therapy $ 5,518 $ 7,544 (27%) $ 22,829 $ 30,546 (25%)
Drug discovery 1,644 3,026 (46%) 6,994 9,100 (23%)
Program-related 8,504 1,854 359% 11,465 4,616 148%
Total revenue $ 15,665 $ 12,424 26% $ 41,288 $ 44,262 (7%)
Three Months Ended Year Ended
December 31, December 31,
(Unaudited)
2023 2022 % 2023 2022 %
(in thousands, except percentages)
Instrument $ 2,330 $ 3,705 (37%) $ 8,317 $ 11,704 (29%)
PAs 2,163 3,721 (42%) 10,283 16,027 (36%)
Lease 2,406 2,813 (14%) 10,326 10,897 (5%)
Other 263 331 (21%) 897 1,018 (12%)
Total Core Revenue $ 7,162 $ 10,570 (32%) $ 29,823 $ 39,646 (25%)
In addition to revenue, management regularly reviews key business metrics to
evaluate our business, measure performance, identify trends affecting our
business, formulate financial projections and make strategic decisions. As of
the dates presented, these key metrics were as follows:
As of December 31, 2023
2023 2022 2021
Installed base of instruments (sold or leased) 683 616 502
Core Revenue Generated by SPL Clients as a % of Core Revenue 48% 42% 40%
Number of active SPLs 23 18 15
Total number of licensed potential programs (SPL clients only) >160 >125 >95
Total number of active licensed clinical programs under SPLs currently in the 16 16 15
clinic *
Total number of active licensed programs under SPLs currently commercial * 1 - -
Total potential pre-commercial milestones under SPLs >$1.95 billion >$1.55 billion >$1.25 billion
* Number of licensed clinical programs and commercial programs under SPLs are
by number of product candidates and not by indication.
Fourth Quarter 2023 Financial Results
Total revenue for the fourth quarter of 2023 was $15.7 million, compared to
$12.4 million in the fourth quarter of 2022, representing growth of 26%.
Core business revenue (sales and leases of instrument and disposables to cell
therapy and drug discovery customers, excluding SPL Program-related revenue)
for the fourth quarter of 2023 was $7.2 million, compared to $10.6 million in
the fourth quarter of 2022, representing a decline of 32%.
Cell therapy revenue for the fourth quarter of 2023 was $5.5 million, compared
to $7.5 million in the fourth quarter of 2022, representing a decline of 27%.
Drug discovery revenue for the fourth quarter of 2023 was $1.6 million,
compared to $3.0 million in the fourth quarter of 2022, representing a decline
of 46%.
SPL Program-related revenue was $8.5 million in the fourth quarter of 2023, as
compared to $1.9 million in the fourth quarter of 2022.
Gross profit for the fourth quarter of 2023 was $14.1 million (90% gross
margin), compared to $10.9 million (88% gross margin) in the fourth quarter of
2022.
Operating expenses for the fourth quarter of 2023 were $22.2 million, compared
to operating expenses of $17.6 million in the fourth quarter of 2022.
Fourth quarter 2023 net loss was $5.3 million compared to net loss of $4.8
million for the same period in 2022. EBITDA, a non-GAAP measure, was a loss of
$7.0 million for the fourth quarter of 2023, compared to a loss of $5.8
million for the fourth quarter of 2022; stock-based compensation expense was
$3.6 million in the fourth quarter of 2023 compared to $3.1 million in the
fourth quarter of 2022.
Full Year 2023 Financial Results
Total revenue for 2023 was $41.3 million, compared to $44.3 million in 2022,
representing a decline of 7%.
Core business revenue (sales and leases of instruments and disposables to cell
therapy and drug discovery customers, excluding SPL Program-related revenue)
for 2023 was $29.8 million, compared to $39.6 million for 2022, representing a
decline of 25%.
Cell therapy revenue for 2023 was $22.8 million, compared to $30.5 million in
2022, representing a decline of 25%. Drug discovery revenue for 2023 was $7.0
million, compared to $9.1 million in 2022, representing a decline of 23%.
SPL Program-related revenue was $11.5 million in 2023, as compared to $4.6
million in 2022.
Gross profit for 2023 was $36.5 million (89% gross margin), compared to $39.2
million (88% gross margin) in the prior year.
Operating expenses for 2023 were $84.8 million, compared to operating expenses
of $66.5 million in 2022.
Full year 2023 net loss was $37.9 million compared to a loss of $23.6 million
in 2022. 2023 EBITDA was a loss of $44.1 million compared to a loss of $24.8
million in 2022; total stock-based compensation for 2023 was $14.0 million,
compared to $11.8 million for 2022.
Total cash, cash equivalents and investments were $211.2 million as of
December 31, 2023, compared to $227.3 million as of December 31, 2022.
2024 Revenue Guidance
Management is reiterating 2024 revenue guidance for core business revenue and
SPL Program-related revenue.
Management expects full year 2024 core business revenue to be flat to 5%
growth compared to 2023, and SPL Program-related revenue is expected to be
approximately $3 million. Our outlook for the full year does not include SPL
Program-related revenue from Vertex/CRISPR's CASGEVY(TM) and reflects a
difficult year-over-year comparison from a client milestone recognized in 2023
that was initially expected in 2024.
Management expects to end 2024 with $175 million in total cash, cash
equivalents and investments.
Webcast and Conference Call Details
MaxCyte will host a conference call today, March 12, 2024, at 4:30 p.m.
Eastern Time. Investors interested in listening to the conference call are
required to register online
(https://register.vevent.com/register/BI5e17563854b245ca9427ab0d91938acb) . A
live and archived webcast of the event will be available on the "Events"
section of the MaxCyte website at https://investors.maxcyte.com/
(https://investors.maxcyte.com/) .
About MaxCyte
At MaxCyte, we pursue cell engineering excellence to maximize the potential of
cells to improve patients' lives. We have spent more than 20 years honing our
expertise by building best-in-class platforms, perfecting the art of the
transfection workflow, and venturing beyond today's processes to innovate
tomorrow's solutions. Our ExPERT™ platform, which is based on our Flow
Electroporation® technology, has been designed to support the rapidly
expanding cell therapy market and can be utilized across the continuum of the
high-growth cell therapy sector, from discovery and development through
commercialization of next-generation, cell-based medicines. The ExPERT family
of products includes: four instruments, the ATx™, STx™, GTx™ and VLx™;
a portfolio of proprietary related processing assemblies or disposables; and
software protocols, all supported by a robust worldwide intellectual property
portfolio. By providing our partners with the right technology, as well as
scientific, technical and regulatory support, we aim to guide them on their
journey to transform human health. Learn more at maxcyte.com and follow us on
Twitter and LinkedIn.
Non-GAAP Financial Measures
This press release contains EBITDA, which is a non-GAAP measure defined as
earnings before interest income and expense, taxes, depreciation and
amortization. MaxCyte believes that EBITDA provides useful information to
management and investors relating to its results of operations. The company's
management uses this non-GAAP measure to compare the company's performance to
that of prior periods for trend analyses, and for budgeting and planning
purposes. The company believes that the use of EBITDA provides an additional
tool for investors to use in evaluating ongoing operating results and trends
and in comparing the company's financial measures with other companies, many
of which present similar non-GAAP financial measures to investors, and that it
allows for greater transparency with respect to key metrics used by management
in its financial and operational decision-making.
Management does not consider EBITDA in isolation or as an alternative to
financial measures determined in accordance with GAAP. The principal
limitation of EBITDA is that it excludes significant expenses that are
required by GAAP to be recorded in the company's financial statements. In
order to compensate for these limitations, management presents EBITDA together
with GAAP results. Non-GAAP measures should be considered in addition to
results prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results. A reconciliation table of net
loss, the most comparable GAAP financial measure, to EBITDA is included at the
end of this release. MaxCyte urges investors to review the reconciliation and
not to rely on any single financial measure to evaluate the company's
business.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These statements about us and our industry involve substantial
known and unknown risks, uncertainties, and assumptions, including those
described in Item 1A under the heading "Risk Factors" and elsewhere in our
report on Form 10-K, that may cause our actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. All
statements other than statements of historical facts contained in this press
release, including statements regarding our future results of operations or
financial condition, business strategy and plans and objectives of management
for future operations, are forward-looking statements. Forward-looking
statements include, but are not limited to, statements about the Company's
preliminary results of operations, including fourth quarter and full year
total revenue, core revenue, and SPL program revenue and statements about
possible or future results of operations or financial position. In some cases,
you can identify forward-looking statements because they contain words such as
"may," "might," "will," "could," "would," "should," "expect," "plan,"
"anticipate," "intend," "believe," "expect," "estimate," "seek," "predict,"
"future," "project," "potential," "continue," "contemplate," "target," the
negative of these words and similar words or expressions. These statements
are inherently uncertain, and investors are cautioned not to unduly rely on
these statements. The forward-looking statements contained in this press
release, include, without limitation, statements concerning the following:
our expected future growth and success of our business model; the size and
growth potential of the markets for our products, and our ability to serve
those markets, increase our market share, and achieve and maintain industry
leadership; our ability to expand our customer base and enter into additional
SPL partnerships; our expectation that our partners will have access to
capital markets to develop and commercialize their cell therapy programs; our
financial performance and capital requirements; the adequacy of our cash
resources and availability of financing on commercially reasonable terms; our
expectations regarding our ability to obtain and maintain intellectual
property protection for our products, as well as our ability to operate our
business without infringing the intellectual property rights of others; our
expectations regarding general market and economic conditions that may impact
investor confidence in the biopharmaceutical industry and affect the amount of
capital such investors provide to our current and potential partners; and our
use of available capital resources.
These and other risks and uncertainties are described in greater detail in
Item 1A , entitled "Risk Factors," in our Annual Report on Form 10-K for the
year ended December 31, 2023, filed with the Securities and Exchange
Commission on or about March 12, 2024, as well as in discussions of potential
risks, uncertainties, and other important factors in the other filings that we
make with the Securities and Exchange Commission from time to time. These
documents are available through the Investor Menu, Financials section, under
"SEC Filings" on the Investors page of our website at
http://investors.maxcyte.com (http://investors.maxcyte.com) . Any
forward-looking statements in this press release are based on our current
beliefs and opinions on the relevant subject based on information available to
us as of the date of such press release, and you should not rely on
forward-looking statements as predictions of future events. We undertake no
obligation to update any forward-looking statements made in this press release
to reflect events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events, except as
required by law.
MaxCyte Contacts:
US IR Adviser
Gilmartin Group
David Deuchler, CFA
+1 415-937-5400
ir@maxcyte.com (mailto:ir@maxcyte.com)
US Media Relations
Spectrum Seismic Collaborative
Valerie Enes
+1 408-497-8568
venes@spectrumscience.com (mailto:venes@spectrumscience.com)
Nominated Adviser and Joint Corporate Broker
Panmure Gordon
Emma Earl / Freddy Crossley
Corporate Broking
Rupert Dearden
+44 (0)20 7886 2500
UK IR Adviser
ICR Consilium
Mary-Jane Elliott
Chris Welsh
+44 (0)203 709 5700
maxcyte@consilium-comms.com (mailto:maxcyte@consilium-comms.com)
MaxCyte, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
Year ended December 31,
2023 2022
Assets
Current assets:
Cash and cash equivalents $ 46,506 $ 11,065
Short-term investments, at amortized cost 121,782 216,275
Accounts receivable, net 5,778 11,175
Accounts receivable - TIA* - 1,912
Inventory 12,229 8,581
Prepaid expenses and other current assets 3,899 3,258
Total current assets 190,194 252,266
Investments, non-current, at amortized cost 42,938 -
Property and equipment, net 23,513 23,725
Right-of-use asset - operating leases 11,241 9,853
Other assets 388 809
Total assets $ 268,274 $ 286,653
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 743 $ 292
Accrued expenses and other 11,269 8,265
Operating lease liability, current 774 157
Deferred revenue, current portion 5,069 6,713
Total current liabilities 17,855 15,427
Operating lease liability, net of current portion 17,969 15,938
Other liabilities 283 1,320
Total liabilities 36,107 32,685
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares - -
issued and outstanding at December 31, 2023 and December 31, 2022
Common stock, $0.01 par value; 400,000,000 shares authorized, 103,961,670 and 1,040 1,024
102,397,913 shares issued and outstanding at December 31, 2023 and December
31, 2022, respectively
Additional paid-in capital 406,925 390,819
Accumulated deficit (175,798) (137,875)
Total stockholders' equity 232,167 253,968
Total liabilities and stockholders' equity $ 268,274 $ 286,653
* Tenant improvement allowance ("TIA")
MaxCyte, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
(Unaudited) (Unaudited)
Revenue $ 15,666 $ 12,424 $ 41,288 $ 44,261
Cost of goods sold 1,573 1,547 4,742 5,098
Gross profit 14,093 10,877 36,546 39,163
Operating expenses:
Research and development 5,842 5,728 23,817 19,514
Sales and marketing 7,196 5,377 26,975 18,653
General and administrative 8,087 5,649 30,068 25,829
Depreciation and amortization 1,063 873 3,985 2,528
Total operating expenses 22,188 17,627 84,845 66,524
Operating loss (8,095) (6,750) (48,299) (27,361)
Other income and expense:
Other expense - (11) - (127)
Interest income 2,818 1,952 10,376 3,917
Total other income 2,818 1,941 10,376 3,790
Net loss $ (5,277) $ (4,809) $ (37,923) $ (23,571)
Basic and diluted net loss per share $ (0.05) $ (0.05) $ (0.37) $ (0.23)
Weighted average shares outstanding, 103,703,240 102,120,812 103,268,502 101,702,664
basic and diluted
MaxCyte, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Year ended December 31,
2023 2022
Cash flows from operating activities:
Net loss $ (37,923) $ (23,571)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 4,171 2,698
Non-cash lease expense 395 767
Net book value of consigned equipment sold 94 76
Loss on disposal of fixed assets 30 139
Stock-based compensation 13,979 11,752
Bad debt expense 171 -
Change in excess/obsolete inventory reserve 697 -
Amortization of discounts on investments (7,120) (2,667)
Changes in operating assets and liabilities:
Accounts receivable 5,226 (4,569)
Accounts receivable - TIA 1,912 (1,912)
Inventory (4,534) (3,493)
Prepaid expense and other current assets (641) 320
Other assets 421 (492)
Accounts payable, accrued expenses and other 3,252 (150)
Operating lease liability (133) 5,482
Deferred revenue (1,644) (34)
Other liabilities (39) 871
Net cash used in operating activities (21,686) (14,783)
Cash flows from investing activities:
Purchases of investments (255,095) (290,942)
Maturities of investments 313,770 284,596
Purchases of property and equipment (3,700) (18,477)
Proceeds from sale of equipment 9 -
Net cash provided by (used in) investing activities 54,984 (24,823)
Cash flows from financing activities:
Proceeds from exercise of stock options 1,874 2,888
Proceeds from issuance of common stock under employee stock purchase plan 269 -
Net cash provided by financing activities 2,143 2,888
Net increase (decrease) in cash and cash equivalents 35,441 (36,718)
Cash and cash equivalents, beginning of year 11,065 47,783
Cash and cash equivalents, end of year $ 46,506 $ 11,065
Unaudited Reconciliation of Net Loss to EBITDA
(in thousands)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
(in thousands)
Net loss $ (5,277) $ (4,809) $ (37,923) $ (23,571)
Depreciation and amortization expense 1,102 920 4,171 2,698
Interest income (2,818) (1,952) (10,376) (3,917)
Income taxes - - - -
EBITDA $ (6,993) $ (5,841) $ (44,128) $ (24,790)
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