REG - MaxCyte, Inc. MaxCyte, Inc. - MXCR - Second Quarter and Half-Year Results
07/08/2024 07:00
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RNS Number : 4498Z MaxCyte, Inc. 07 August 2024
MaxCyte Reports Second Quarter and Half-Year 2024 Financial Results and
Updates Full Year 2024 Guidance
ROCKVILLE, MD, August 7, 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 financial results for the second quarter ended June 30,
2024, and updates its 2024 guidance.
Second Quarter and Recent Highlights
* Total revenue of $10.4 million in the second quarter of 2024, an increase of
15% over the second quarter of 2023.
* Core business revenue of $7.6 million in the second quarter of 2024, a decline
of 9% over the second quarter of 2023.
* Strategic Platform License (SPL) Program-related revenue was $2.9 million for
the second quarter of 2024, an increase of 279% over the second quarter of
2023.
* Five new SPL clients signed year-to-date. Legend Biotech signed in May, Be
Biopharma signed in March, and Wugen, Imugene, and Lion TCR signed in January.
The total number of SPL partners now stands at 28.
* Total cash, cash equivalents and investments were $199.8 million as of June
30, 2024.
"We are pleased by our second quarter results and our business performance in
the first half of 2024 and remain confident we will deliver our full year
guidance. We continue to drive commercial execution in cell therapy and
believe that we remain the premier cell engineering platform in the industry,"
said Maher Masoud, President and CEO at MaxCyte.
"Since the beginning of the year, MaxCyte has signed five new SPLs, which
includes recently signed Legend Biotech, along with Be Biopharma, in March
2024. Our total number of SPLs now stands at 28, highlighting the demand for
our platform and our continued expansion into a range of different
indications. As our clients continue to progress through the clinic, we
believe we continue to provide the best electroporation platform with the best
support for their programs. We remain excited by continued demand for our
platform and our role in enabling a growing set of next-generation cell
therapies."
The following table provides details regarding the sources of our revenue for
the periods presented.
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 % 2024 2023 %
(in thousands, except percentages)
Cell therapy $ 6,218 $ 6,637 (6%) $ 12,633 $ 12,611 0%
Drug discovery 1,357 1,652 (18%) 3,129 3,450 (9%)
Program-related 2,854 754 279% 6,008 1,558 286%
Total revenue $ 10,429 $ 9,043 15% $ 21,770 $ 17,619 24%
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 % 2024 2023 %
(in thousands, except percentages)
Instrument $ 1,762 $ 2,126 (17%) $ 3,690 $ 4,315 (14%)
PAs 2,974 3,293 (10%) 6,406 5,893 9%
Lease 2,610 2,667 (2%) 5,214 5,476 (5%)
Other 229 203 13% 452 377 20%
Total Core Revenue $ 7,575 $ 8,289 (9%) $ 15,762 $ 16,061 (2%)
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 June 30,
2024 2023
Installed base of instruments (sold or leased) 723 654
Three Months Ended June 30,
2024 2023
Core Revenue Generated by SPL Clients as % of Core Revenue 51% 49%
Second Quarter 2024 Financial Results
Total revenue for the second quarter of 2024 was $10.4 million, compared to
$9.0 million in the second quarter of 2023, representing growth of 15%.
Core business revenue (sales and leases of instrument and disposables to cell
therapy and drug discovery customers, excluding SPL Program-related revenue)
for the second quarter of 2024 was $7.6 million, compared to $8.3 million in
the second quarter of 2023, representing a decline of 9%.
Cell therapy revenue for the second quarter of 2024 was $6.2 million, compared
to $6.6 million in the second quarter of 2023, representing a decline of 6%.
Drug discovery revenue for the second quarter of 2024 was $1.4 million,
compared to $1.7 million in the second quarter of 2023, representing a decline
of 18%.
SPL Program-related revenue was $2.9 million in the second quarter of 2024, as
compared to $0.8 million in the second quarter of 2023, representing an
increase of 279% over the second quarter of 2023.
Gross profit for the second quarter of 2024 was $8.9 million (86% gross
margin), compared to $7.7 million (85% gross margin) in the second quarter of
2023.
Operating expenses for the second quarter of 2024 were $20.9 million, compared
to operating expenses of $20.7 million in the second quarter of 2023.
Second quarter 2024 net loss was $9.4 million compared to net loss of $10.5
million for the same period in 2023. EBITDA, a non-GAAP measure, was a loss of
$10.9 million for the second quarter of 2024, compared to a loss of $12.0
million for the second quarter of 2023; stock-based compensation expense was
$3.6 million in the second quarter of 2024 compared to $3.5 million in the
second quarter of 2023.
First Half 2024 Financial Results
Total revenue for the first half of 2024 was $21.8 million, compared to $17.6
million in the first half of 2023, representing growth of 24%.
Core business revenue (sales and leases of instrument and disposables to cell
therapy and drug discovery customers but excluding SPL Program-related
revenue) for the first half of 2024 was $15.8 million, compared to $16.1
million in the first half of 2023, representing a decline of 2%.
Cell therapy revenue for the first half of 2024 was $12.6 million, compared to
$12.6 million in the first half of 2023, representing flat growth. Drug
discovery revenue for the first half was $3.1 million, compared to $3.5
million in the first half of 2023, representing a decline of 9%.
SPL Program-related revenue was $6.0 million in the first half of 2024, as
compared to $1.6 million in program-related revenue in the first half of 2023.
Gross profit for the first half of 2024 was $18.9 million (87% gross margin),
compared to $15.2 million (87% gross margin) in the same period of the prior
year.
Operating expenses for the first half of 2024 were $43.1 million, compared to
operating expenses of $41.5 million in the first half of 2023.
First half 2024 net loss was $18.9 million compared to net loss of $21.4
million for the same period in 2023. EBITDA, a non-GAAP measure, was a loss of
$22.1 million for the first half of 2024, compared to a loss of $24.3 million
for the first half of 2023; stock-based compensation expense was $6.6 million
for the first half of 2024 compared to $6.8 million for the first half of
2023.
2024 Revenue Guidance
MaxCyte affirms 2024 revenue guidance for core business revenue and increases
SPL Program-related revenue guidance.
MaxCyte continues to expect full year 2024 core business revenue to be flat to
5% growth compared to 2023. SPL Program-related revenue is now expected to be
approximately $6 million. The outlook for the full year does not include SPL
Program-related revenue from Vertex/CRISPRÕs CASGEVY(TM).
MaxCyte now expects to end 2024 with at least $180 million in total cash, cash
equivalents and investments, up from an expected $175 million.
Webcast and Conference Call Details
MaxCyte will host a conference call today, August 6, 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/BI47963b9b87df44c581c469f20dcf69bf) . 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 ExPERTª 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 ATxª, STxª, GTxª and VLx ª; 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 platform, 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
(https://maxcyte.com/) and follow us on X
(https://twitter.com/MaxCyte_info) and LinkedIn
(https://www.linkedin.com/company/maxcyte-inc-/) .
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 companyÕs
management uses this non-GAAP measure to compare the companyÕs 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 companyÕs 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 companyÕs 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 companyÕs
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 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 CompanyÕs projected 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; and the amount and adequacy of our cash 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 Liberum
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.
Unaudited Consolidated Balance Sheets
(in thousands, except share and per share amounts)
June 30, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $ 37,513 $ 46,506
Short-term investments, at amortized cost 119,817 121,782
Accounts receivable, net 4,581 5,778
Inventory 11,159 12,229
Prepaid expenses and other current assets 2,577 3,899
Total current assets 175,647 190,194
Investments, non-current, at amortized cost 42,481 42,938
Property and equipment, net 21,720 23,513
Right-of-use asset - operating leases 11,008 11,241
Other assets 640 388
Total assets $ 251,496 $ 268,274
Liabilities and stockholdersÕ equity
Current liabilities:
Accounts payable $ 953 $ 743
Accrued expenses and other 7,076 11,269
Operating lease liability, current 878 774
Deferred revenue, current portion 3,368 5,069
Total current liabilities 12,275 17,855
Operating lease liability, net of current portion 17,650 17,969
Other liabilities 310 283
Total liabilities 30,235 36,107
Commitments and contingencies
StockholdersÕ equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares — —
issued and outstanding at June 30, 2024 and December 31, 2023
Common stock, $0.01 par value; 400,000,000 shares authorized, 104,824,124 and 1,048 1,040
103,961,670 shares issued and outstanding at June 30, 2024 and
December 31, 2023, respectively
Additional paid-in capital 414,912 406,925
Accumulated deficit (194,699) (175,798)
Total stockholdersÕ equity 221,261 232,167
Total liabilities and stockholdersÕ equity $ 251,496 $ 268,274
MaxCyte, Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Revenue $ 10,429 $ 9,043 $ 21,770 $ 17,619
Cost of goods sold 1,488 1,376 2,891 2,376
Gross profit 8,941 7,667 18,879 15,243
Operating expenses:
Research and development 5,619 5,664 12,297 11,711
Sales and marketing 6,617 6,436 13,981 12,732
General and administrative 7,639 7,663 14,742 15,161
Depreciation and amortization 1,034 977 2,102 1,890
Total operating expenses 20,909 20,740 43,122 41,494
Operating loss (11,968) (13,073) (24,243) (26,251)
Other income:
Interest income 2,593 2,561 5,342 4,857
Total other income 2,593 2,561 5,342 4,857
Net loss $ (9,375) $ (10,512) $ (18,901) $ (21,394)
Basic and diluted net loss per share $ (0.09) $ (0.10) $ (0.18) $ (0.21)
Weighted average shares outstanding, 104,639,239 103,063,606 104,364,498 102,955,422
basic and diluted
MaxCyte, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Six Months ended June 30,
2024 2023
Cash flows from operating activities:
Net loss $ (18,901) $ (21,394)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 2,192 1,988
Non-cash lease expense 233 190
Net book value of consigned equipment sold 21 66
Loss on disposal of fixed assets 361 -
Stock-based compensation 6,579 6,796
Credit loss (recovery) expense (130) 230
Change in excess/obsolete inventory reserve 137 -
Amortization of discounts on investments (3,665) (3,641)
Changes in operating assets and liabilities:
Accounts receivable 1,327 3,990
Accounts receivable - TIA - 1,912
Inventory 833 (2,542)
Prepaid expense and other current assets 1,322 724
Other assets (321) 212
Accounts payable, accrued expenses and other (3,497) (1,039)
Operating lease liability (215) 112
Deferred revenue (1,701) (2,020)
Other liabilities 27 (13)
Net cash used in operating activities (15,398) (14,429)
Cash flows from investing activities:
Purchases of investments (79,353) (104,955)
Maturities of investments 85,440 163,320
Purchases of property and equipment (1,098) (2,065)
Proceeds from sale of equipment — 9
Net cash provided by investing activities 4,989 56,309
Cash flows from financing activities:
Proceeds from exercise of stock options 1,151 1,613
Proceeds from issuance of common stock under employee stock purchase plan 265 -
Net cash provided by financing activities 1,416 1,613
Net (decrease) increase in cash and cash equivalents (8,993) 43,493
Cash and cash equivalents, beginning of period 46,506 11,064
Cash and cash equivalents, end of period $ 37,513 $ 54,557
Unaudited Reconciliation of Net Loss to EBITDA
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
(in thousands)
Net loss $ (9,375) $ (10,512) $ (18,901) $ (21,394)
Depreciation and amortization expense 1,081 1,026 2,192 1,988
Interest income (2,593) (2,561) (5,342) (4,857)
Income taxes — — — —
EBITDA $ (10,887) $ (12,047) $ (22,051) $ (24,263)
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