REG - MaxCyte, Inc. MaxCyte, Inc. - MXCR - Third Quarter 2024 Financial Results
07/11/2024 07:00
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RNS Number : 2690L MaxCyte, Inc. 07 November 2024
MaxCyte Reports Third Quarter 2024 Financial Results and Updates Full Year
2024 Guidance
ROCKVILLE, MD, November 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, today announced its financial results for
the third quarter ended September 30, 2024, and updated its 2024 guidance.
Third Quarter and Recent Highlights
· Total revenue of $8.2 million in the third quarter of 2024, an
increase of 2% over the third quarter of 2023.
· Core business revenue of $8.1 million in the third quarter of 2024,
an increase of 23% over the third quarter of 2023.
· No material Strategic Platform License (SPL) Program-related revenue
was recorded in the third quarter of 2024, consistent with the Company's
expectations which reflected $6.0 million in SPL program-related revenue
received during the first two quarters of 2024.
· Six new SPL clients signed year-to-date. Kamau Therapeutics signed in
September, 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 29.
· Total cash, cash equivalents and investments were $196.6 million as
of September 30, 2024.
"I am pleased with MaxCyte's financial performance in the third quarter, and
confident in our outlook for the remainder of 2024. We believe our strong core
revenue growth and increasing demand for our platform was driven by
exceptional commercial execution, and the value proposition that MaxCyte holds
within the cell therapy industry. Coming out of a difficult 2023, this year we
have consistently delivered with three strong quarters of core revenue, along
with disciplined operational execution allowing us to maintain our healthy
cash balance sheet," said Maher Masoud, President and CEO at MaxCyte.
"So far in 2024, we have signed 6 new SPLs, which represents a record number
of new SPL clients in a single year for MaxCyte. Our most recently signed SPL,
Kamau Therapeutics, brings our total number of SPLs to 29. We are very excited
by our customers' progress on their programs and remain focused on providing
them with the best support possible in their development efforts. As we expand
our technology to more customers and programs, the ExPERT Platform supports a
growing number of technologies requiring multiple edits and steps, as well as
therapies in a range of new indications."
In addition to growing revenue, MaxCyte continues to prioritize its
investments towards those that it believes will provide the best return on
investment and long-term growth. The Company is also continuously evaluating
and executing on opportunities to reduce its cost structure and improve
operational focus and efficiency. As part of these efforts, the Company is
considering the costs and benefits of maintaining dual listings on AIM and
Nasdaq. A potential cancellation of the admission of its common stock from
trading on AIM would allow the Company to concentrate its efforts exclusively
on the NASDAQ exchange, where the vast majority of its trading volume now
occurs. Concentrating trading on a single exchange is expected to improve
liquidity and reduce the administrative costs associated with maintaining dual
listings. The Board is contemplating requesting shareholder approval to
implement this strategy at the 2025 Annual Meeting of Shareholders, although
no decision has been taken by the Board at this time in respect of any such
cancellation from admission to trading on AIM. The Company anticipates that
the 2025 Annual Meeting will be held between May and July 2025, subject to the
filing of a proxy statement with the Securities and Exchange Commission.
The following table provides details regarding the sources of the Company's
revenue for the periods presented.
Three Months Ended
September 30,
(Unaudited)
2024 2023 %
(in thousands, except percentages)
Cell therapy $ 6,511 $ 4,700 39%
Drug discovery 1,629 1,900 (14%)
Program-related 24 1,404 (98%)
Total revenue $ 8,164 $ 8,004 2%
Three Months Ended
September 30
(Unaudited)
2024 2023 %
(in thousands, except percentages)
Instrument $ 1,764 $ 1,672 6%
PAs 3,432 2,226 54%
Lease 2,528 2,444 3%
Other 416 258 61%
Total Core Revenue $ 8,140 $ 6,600 23%
In addition to revenue, management regularly reviews key business metrics to
evaluate the business, measure performance, identify trends affecting the
business, formulate financial projections and make strategic decisions. As of
the dates presented, some key metrics were as follows:
Three Months Ended September 30,
2024 2023
Installed base of instruments (sold or leased) 739 664
Core Revenue Generated by SPL Clients as a % of Core Revenue 53% 45%
Third Quarter 2024 Financial Results
Total revenue for the third quarter of 2024 was $8.2 million, compared to $8.0
million in the third quarter of 2023, representing growth of 2%.
Core business revenue (sales and leases of instrument and disposables to cell
therapy and drug discovery customers, excluding SPL Program-related revenue)
for the third quarter of 2024 was $8.1 million, compared to $6.6 million in
the third quarter of 2023, representing an increase of 23%.
Cell therapy revenue for the third quarter of 2024 was $6.5 million, compared
to $4.7 million in the third quarter of 2023, representing an increase of 39%.
Drug discovery revenue for the third quarter of 2024 was $1.6 million,
compared to $1.9 million in the third quarter of 2023, representing a decline
of 14%.
SPL Program-related revenue was immaterial in the third quarter of 2024, as
compared to $1.4 million in the third quarter of 2023, representing a decrease
of 98% over the third quarter of 2023.
Gross profit for the third quarter of 2024 was $6.2 million, compared to $7.2
million in the third quarter of 2023.
Gross margin for the third quarter of 2024 was 76%, compared to gross margin
of 90% in the third quarter of 2023. Non-GAAP adjusted gross margin was 85%
when excluding SPL program related revenue and reserves for excess and
obsolete inventory, compared to non-GAAP adjusted gross margin of 88% in the
third quarter of 2023.
Operating expenses for the third quarter of 2024 were $20.3 million, compared
to operating expenses of $21.2 million in the third quarter of 2023.
Third quarter 2024 net loss was $11.6 million compared to net loss of $11.3
million for the same period in 2023. EBITDA, a non-GAAP measure, was a loss of
$13.0 million for the third quarter of 2024, compared to a loss of $12.9
million for the third quarter of 2023; stock-based compensation expense was
$3.4 million in the third quarter of 2024 compared to $3.6 million in the
third quarter of 2023.
2024 Revenue Guidance
MaxCyte increases 2024 revenue guidance for core business revenue and affirms
SPL Program-related revenue guidance.
MaxCyte now expects full year 2024 core business revenue of at least 5% growth
compared to 2023. SPL Program-related revenue is expected to be approximately
$6 million. The outlook for the full year does not include SPL Program-related
revenue from Vertex/CRISPR's CASGEVY(TM).
MaxCyte now expects to end 2024 with approximately $185 million in total cash,
cash equivalents and investments.
Webcast and Conference Call Details
MaxCyte will host a conference call today, November 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/BIb302f599a53c437990675a87dd0cea22) . 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
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
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and follow us on X
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.
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.
This press release also contains Non-GAAP Gross Margin, which we define as
Gross Margin when excluding SPL program related revenue and reserves for
excess and obsolete inventory. The Company believes that the use of Non-GAAP
Gross Margin provides an additional tool to investors because it provides
consistency and comparability with past financial performance, as Non-GAAP
Gross Margin excludes non-core revenues and inventory reserves, which can vary
significantly between periods and thus affect comparability.
Management does not consider these Non-GAAP financial measures in isolation or
as an alternative to financial measures determined in accordance with GAAP.
The principal limitation of these Non-GAAP financial measures is that they
exclude significant revenues and expenses that are required by GAAP to be
recorded in the Company's financial statements. In order to compensate for
these limitations, management presents these Non-GAAP financial measures along
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. Reconciliation tables of net
loss, the most comparable GAAP financial measure, to EBITDA, and Gross Margin,
the most comparable GAAP financial measure, to Non-GAAP Gross Margin, are
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 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 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; the amount and adequacy of our cash resources; and our
plans with respect to potential cancellation of the admission of our common
stock from trading on the AIM exchange.
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 Science
Jordan Vines
+1 540-629-3137
jvines@spectrumscience.com (mailto:jvines@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 Healthcare
Mary-Jane Elliott
Chris Welsh
+44 (0)203 709 5700
maxcyte@icrhealthcare.com (mailto:maxcyte@icrhealthcare.com)
MaxCyte, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except share and per share amounts)
As of
September 30, 2024 December 31, 2023
Assets
Current assets:
Cash and cash equivalents $ 36,958 $ 46,506
Short-term investments, at amortized cost 116,874 121,782
Accounts receivable, net 4,560 5,778
Inventory 10,393 12,229
Prepaid expenses and other current assets 4,124 3,899
Total current assets 172,909 190,194
Investments, non-current, at amortized cost 42,797 42,938
Property and equipment, net 20,967 23,513
Right-of-use asset - operating leases 10,888 11,241
Other assets 1,051 388
Total assets $ 248,612 $ 268,274
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,865 $ 743
Accrued expenses and other 8,196 11,269
Operating lease liability, current 907 774
Deferred revenue, current portion 6,653 5,069
Total current liabilities 17,621 17,855
Operating lease liability, net of current portion 17,412 17,969
Other liabilities 277 283
Total liabilities 35,310 36,107
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares - -
issued and outstanding at September 30, 2024 and December 31, 2023
Common stock, $0.01 par value; 400,000,000 shares authorized, 105,300,380 and 1,053 1,040
103,961,670 shares issued and outstanding at September 30, 2024 and
December 31, 2023, respectively
Additional paid-in capital 418,505 406,925
Accumulated deficit (206,256) (175,798)
Total stockholders' equity 213,302 232,167
Total liabilities and stockholders' equity $ 248,612 $ 268,274
MaxCyte, Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended September 30 Nine Months Ended September 30
2024 2023 2024 2023
Revenue $ 8,164 $ 8,004 $ 29,934 $ 25,623
Cost of goods sold 1,928 793 4,819 3,169
Gross profit 6,236 7,211 25,115 22,454
Operating expenses:
Research and development 5,316 6,264 17,613 17,975
Sales and marketing 6,207 7,046 20,188 19,778
General and administrative 7,745 6,820 22,487 21,982
Depreciation and amortization 1,021 1,033 3,123 2,922
Total operating expenses 20,289 21,163 63,411 62,657
Operating loss (14,053) (13,952) (38,296) (40,203)
Other income:
Interest income 2,496 2,701 7,838 7,558
Total other income 2,496 2,701 7,838 7,558
Net loss $ (11,557) $ (11,251) $ (30,458) $ (32,645)
Basic and diluted net loss per share $ (0.11) $ (0.11) $ (0.29) $ (0.32)
Weighted average shares outstanding, basic and diluted 105,109,603 103,449,715 104,614,679 103,121,997
MaxCyte, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Nine months ended September 30,
2024 2023
Cash flows from operating activities:
Net loss $ (30,458) $ (32,645)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 3,258 3,069
Non-cash lease expense 353 286
Net book value of consigned equipment sold 35 80
Loss on disposal of fixed assets 462 2
Stock-based compensation 9,949 10,405
Credit loss (recovery) expense (130) 221
Change in excess/obsolete inventory reserve 834 -
Amortization of discounts on investments (5,052) (5,123)
Changes in operating assets and liabilities:
Accounts receivable 1,348 3,571
Accounts receivable - TIA - 1,912
Inventory 835 (4,088)
Prepaid expense and other current assets (225) (924)
Other assets (732) 190
Accounts payable, accrued expenses and other (1,420) 1,520
Operating lease liability (424) (13)
Deferred revenue 1,584 (1,127)
Other liabilities (6) (3)
Net cash used in operating activities (19,789) (22,667)
Cash flows from investing activities:
Purchases of investments (118,339) (185,621)
Maturities of investments 128,440 247,520
Purchases of property and equipment (1,504) (2,785)
Proceeds from sale of equipment - 9
Net cash provided by investing activities 8,597 59,123
Cash flows from financing activities:
Proceeds from exercise of stock options 1,379 1,650
Proceeds from issuance of common stock under employee stock purchase plan 265 -
Net cash provided by financing activities 1,644 1,650
Net (decrease) increase in cash and cash equivalents (9,548) 38,106
Cash and cash equivalents, beginning of period 46,506 11,064
Cash and cash equivalents, end of period $ 36,958 $ 49,170
Unaudited Reconciliation of Net Loss to EBITDA
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Net loss $ (11,557) $ (11,251) $ (30,458) $ (32,645)
Depreciation and amortization expense 1,066 1,081 3,258 3,069
Interest income (2,496) (2,701) (7,838) (7,558)
Income taxes - - - -
EBITDA $ (12,987) $ (12,871) $ (35,038) $ (37,134)
Unaudited Reconciliation of Gross Margin to Non-GAAP Adjusted Gross Margin
(in thousands, except for percentages)
Three months ended September 30, 2024 Three months ended September 30, 2023
GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
Revenue $ 8,164 $ (24) $ 8,140 $ 8,004 $ (1,404) $ 6,600
Cost of Goods Sold 1,928 (697) 1,231 793 - 793
Gross Margin $ 6,236 $ 673 $ 6,909 $ 7,211 $ (1,404) $ 5,807
Gross Margin % 76% 85% 90% 88%
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