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 to
support innovative, cell-based research, today announced financial
results for the third quarter ended September 30, 2022.
Third Quarter Highlights
- Total revenue of
$10.6 million in the third quarter of 2022, an increase of 5% over
the third quarter of 2021.
- Core business
revenues grew 22% led by revenue from cell therapy customers which
increased 27%, with drug discovery revenues growing by 4%.
- Reiterating 2022
guidance for core business revenue growth to be approximately
30%.
- Expecting SPL
Program-related revenue to be approximately $4.0 million for the
full year.
- Total cash, cash
equivalents and short-term investments were $232.9 million as of
September 30, 2022.
“We reported another strong quarter, with 22%
year-over-year core business revenue growth, highlighted by 27%
growth in revenues from cell therapy customers. We continue to make
ongoing investments in the company to drive revenue growth and are
focused on increasing customer adoption of our ExPERT™ platform in
the industry, to enable a broad range of cell types and target a
wide array of indications. Our strong business performance
continues to validate our technology and our market leading
position in cell engineering, therapeutic discovery and development
and commercialization,” said Doug Doerfler, President and CEO of
MaxCyte.
“Overall, our SPL pipeline continues to be
robust and we are confident in the potential of our customers to
develop into future SPL partners with therapeutic programs to
generate revenue in clinical and commercial settings. With the
expansion into our new headquarters and manufacturing facility, we
have increased our in-house manufacturing and process development
capabilities to further support our partners as they move forward
in clinical development towards potential commercialization.”
The following table provides details regarding the sources of
our revenue for the periods presented.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
September 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
% |
|
(in thousands, except
percentages) |
|
|
|
|
|
|
|
|
|
Cell therapy |
$ |
7,898 |
|
|
$ |
6,226 |
|
|
|
27 |
% |
Drug discovery |
|
1,991 |
|
|
|
1,909 |
|
|
|
4 |
% |
Program-related |
|
754 |
|
|
|
2,004 |
|
|
|
(62 |
%) |
Total revenue |
$ |
10,643 |
|
|
$ |
10,139 |
|
|
|
5 |
% |
Third Quarter 2022 Financial
Results
Total revenue for the third quarter of 2022 was
$10.6 million, compared to $10.1 million in the third quarter of
2021, representing an increase of 5%.
Core business revenue (instruments and
disposables to cell therapy and drug discovery customers and
excluding program-related revenue) was $9.9 million, including 27%
revenue growth from cell therapy customers and 4% from drug
discovery customers, compared to core business revenue of $8.1
million in the same period last year.
Our SPL Program-related revenue was $0.8
million, compared to $2.0 million in the third quarter of 2021.
Gross profit for the third quarter of 2022 was
$9.3 million (87% gross margin), compared to $9.2 million (91%
gross margin) in the same period of the prior year.
Operating expenses for the third quarter of 2022
were $17.0 million, compared to operating expenses of $11.6 million
in the third quarter of 2021. The overall increase in operating
expenses was primarily driven by increased staff in field sales,
field science, and manufacturing, as well as product development
expenses to support our customers’ and partners’ growth. The
increase also included additional sales and marketing expenses,
stock-based compensation and occupancy expenses compared with the
same period a year ago.
Third quarter 2022 net loss was $6.4 million
compared to net loss of $2.7 million for the same period in 2021.
EBITDA, a non-GAAP measure, was a loss of $7.1 million for the
third quarter of 2022, compared to a loss of $2.4 million for the
third quarter of the prior year. Stock-based compensation expense
was $3.2 million for the third quarter versus $2.3 million for the
same period in the prior year.
Total cash, cash equivalents and short-term
investments were $232.9 million as of September 30, 2022, compared
to $255.0 million at December 31, 2021.
2022 Revenue Guidance
We expect core business revenue in 2022 to grow
approximately 30% compared to 2021. We continue to expect SPL
Program-related revenue to be approximately $4.0 million in
2022.
Webcast and Conference Call
Details
MaxCyte will host a conference call today, November 9, 2022, at
4:30 p.m. Eastern Time. Investors interested in listening to the
conference call are required to register online. A live and
archived webcast of the event will be available on the “Events”
section of the MaxCyte website at
https://investors.maxcyte.com/.
About MaxCyte
MaxCyte is a leading, cell-engineering focused
company providing enabling platform technologies to advance the
discovery, development and commercialization of next-generation
cell therapeutics and to support innovative, cell-based research.
Over the past 20 years, we have developed and commercialized our
proprietary Flow Electroporation® technology, which facilitates
complex engineering of a wide variety of cells. 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.
Non-GAAP Financial Measures
This press release contains EBITDA, which is a
non-GAAP measure defined as earnings, before interest, tax,
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, including but
not limited to, statements regarding our revenue guidance for the
year ending December 31, 2022, and expectations regarding adoption
of the ExPERT™ platform, expansion of and revenue from our SPL
Programs and the progression of our customers’ programs into and
through clinical trials. The words "may," “might,” "will," "could,"
"would," "should," "expect," "plan," "anticipate," "intend,"
"believe," “expect,” "estimate," “seek,” "predict," “future,”
"project," "potential," "continue," "target" and similar words or
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Any forward-looking statements in this press
release are based on management's current expectations and beliefs
and are subject to a number of risks, uncertainties and important
factors that may cause actual events or results to differ
materially from those expressed or implied by any forward-looking
statements contained in this press release, including, without
limitation, risks associated with the impact of COVID-19 on our
operations; the timing of our customers’ ongoing and planned
clinical trials; the adequacy of our cash resources and
availability of financing on commercially reasonable terms; and
general market and economic conditions may impact investor
confidence in the biopharmaceutical industry affecting the amount
of capital such investors provide to our current and potential
partners resulting in decreased demand for our products. These and
other risks and uncertainties are described in greater detail in
the section entitled "Risk Factors" in our Annual Report on Form
10-K for the year ended December 31, 2021, filed with the
Securities and Exchange Commission on March 22, 2022, 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 under the “SEC filings” page of the Investors section of
our website at http://investors.maxcyte.com. Any forward-looking
statements represent our views only as of the date of this press
release and should not be relied upon as representing our views as
of any subsequent date. We explicitly disclaim any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise. No representations or
warranties (expressed or implied) are made about the accuracy of
any such forward-looking statements.
MaxCyte Contacts:
US IR AdviserGilmartin
GroupDavid Deuchler, CFA+1 415-937-5400jr@maxcyte.com
US Media RelationsSeismic
Collaborative, A Spectrum Science CompanyValerie Enes+1
408-497-8568valerie@teamseismic.com
Nominated Adviser and Joint Corporate
BrokerPanmure GordonEmma Earl / Freddy
CrossleyCorporate BrokingRupert Dearden+44 (0)20 7886 2500
UK IR AdviserConsilium Strategic
CommunicationsMary-Jane Elliott / Chris Welsh+44 (0)203
709 5700maxcyte@consilium-comms.com
MaxCyte, Inc.Unaudited Consolidated
Balance Sheets
|
September 30, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
43,020,300 |
|
|
$ |
47,782,400 |
|
Short-term investments, at
amortized cost |
|
189,865,300 |
|
|
|
207,261,400 |
|
Accounts receivable |
|
7,433,800 |
|
|
|
6,877,000 |
|
Accounts receivable –
TIA* |
|
775,000 |
|
|
|
— |
|
Inventory |
|
7,911,600 |
|
|
|
5,204,600 |
|
Prepaid expenses and other
current assets |
|
3,275,600 |
|
|
|
3,307,400 |
|
Total current
assets |
|
252,281,600 |
|
|
|
270,432,800 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
22,988,200 |
|
|
|
7,681,200 |
|
Right of use asset - operating
leases |
|
9,952,300 |
|
|
|
5,689,300 |
|
Other assets |
|
1,189,800 |
|
|
|
316,700 |
|
Total
assets |
$ |
286,411,900 |
|
|
$ |
284,120,000 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
2,086,900 |
|
|
$ |
1,820,300 |
|
Accrued expenses and
other |
|
8,232,400 |
|
|
|
6,523,500 |
|
Operating lease liability,
current |
|
152,200 |
|
|
|
527,200 |
|
Deferred revenue, current
portion |
|
6,291,800 |
|
|
|
6,746,800 |
|
Total current
liabilities |
|
16,763,300 |
|
|
|
15,617,800 |
|
|
|
|
|
|
|
Operating lease liability, net
of current portion |
|
14,871,800 |
|
|
|
5,154,900 |
|
Deferred revenue, net of
current portion |
|
344,600 |
|
|
|
450,200 |
|
Total
liabilities |
|
31,979,700 |
|
|
|
21,222,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
Preferred stock, $0.01 par
value; 5,000,000 shares authorized and no shares issued and
outstanding at September 30, 2022 and December 31, 2021 |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value;
400,000,000 shares authorized, 101,904,313 and 101,202,705 shares
issued and outstanding at September 30, 2022 and
December 31, 2021, respectively |
|
1,019,000 |
|
|
|
1,012,000 |
|
Additional paid-in
capital |
|
386,478,900 |
|
|
|
376,189,600 |
|
Accumulated deficit |
|
(133,065,700 |
) |
|
|
(114,304,500 |
) |
Total stockholders’
equity |
|
254,432,200 |
|
|
|
262,897,100 |
|
Total liabilities and
stockholders’ equity |
$ |
286,411,900 |
|
|
$ |
284,120,000 |
|
* Tenant improvement allowance (“TIA”)
MaxCyte, Inc.Unaudited Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
10,642,800 |
|
|
$ |
10,139,100 |
|
|
$ |
31,837,900 |
|
|
$ |
23,742,100 |
|
Cost of goods sold |
|
1,368,900 |
|
|
|
943,800 |
|
|
|
3,551,900 |
|
|
|
2,421,500 |
|
Gross
profit |
|
9,273,900 |
|
|
|
9,195,300 |
|
|
|
28,286,000 |
|
|
|
21,320,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
5,325,100 |
|
|
|
2,746,900 |
|
|
|
13,786,400 |
|
|
|
12,027,200 |
|
Sales and marketing |
|
4,506,700 |
|
|
|
3,211,500 |
|
|
|
13,276,000 |
|
|
|
8,913,500 |
|
General and
administrative |
|
6,444,400 |
|
|
|
5,346,700 |
|
|
|
20,179,600 |
|
|
|
12,645,800 |
|
Depreciation and
amortization |
|
709,800 |
|
|
|
333,100 |
|
|
|
1,654,300 |
|
|
|
967,500 |
|
Total operating
expenses |
|
16,986,000 |
|
|
|
11,638,200 |
|
|
|
48,896,300 |
|
|
|
34,554,000 |
|
Operating
loss |
|
(7,712,100 |
) |
|
|
(2,442,900 |
) |
|
|
(20,610,300 |
) |
|
|
(13,233,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense |
|
(116,000 |
) |
|
|
(289,000 |
) |
|
|
(116,000 |
) |
|
|
(1,044,400 |
) |
Interest income |
|
1,394,400 |
|
|
|
51,500 |
|
|
|
1,964,900 |
|
|
|
70,000 |
|
Total other income
(expense) |
|
1,278,400 |
|
|
|
(237,500 |
) |
|
|
1,848,900 |
|
|
|
(974,400 |
) |
Net loss |
$ |
(6,433,700 |
) |
|
$ |
(2,680,400 |
) |
|
$ |
(18,761,400 |
) |
|
$ |
(14,207,800 |
) |
Basic and diluted net
loss per share |
$ |
(0.06 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.16 |
) |
Weighted average
shares outstanding, basic and diluted |
|
101,806,173 |
|
|
|
95,662,968 |
|
|
|
101,555,065 |
|
|
|
87,178,217 |
|
MaxCyte, Inc.Unaudited Consolidated
Statements of Cash Flows
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from
operating activities: |
|
|
|
|
|
Net loss |
$ |
(18,761,400 |
) |
|
$ |
(14,207,800 |
) |
|
|
|
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
1,778,300 |
|
|
|
1,007,400 |
|
Net book value of consigned equipment sold |
|
61,900 |
|
|
|
39,200 |
|
Loss on disposal of fixed assets |
|
128,600 |
|
|
|
18,500 |
|
Fair value adjustment of liability classified warrant |
|
— |
|
|
|
645,400 |
|
Stock-based compensation |
|
8,633,800 |
|
|
|
5,510,400 |
|
Amortization of discounts on short-term investments |
|
(1,158,400 |
) |
|
|
(39,500 |
) |
Non-cash interest expense |
|
— |
|
|
|
5,400 |
|
|
|
|
|
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(556,800 |
) |
|
|
(786,200 |
) |
Accounts receivable - TIA |
|
(775,000 |
) |
|
|
— |
|
Inventory |
|
(2,880,700 |
) |
|
|
(300,200 |
) |
Prepaid expense and other current assets |
|
31,800 |
|
|
|
(2,538,900 |
) |
Right of use asset – operating leases |
|
(4,263,000 |
) |
|
|
858,000 |
|
Right of use asset – finance lease |
|
— |
|
|
|
63,500 |
|
Other assets |
|
(873,100 |
) |
|
|
(284,200 |
) |
Accounts payable, accrued expenses and other |
|
1,156,100 |
|
|
|
(431,350 |
) |
Operating lease liability |
|
9,341,900 |
|
|
|
(734,700 |
) |
Deferred revenue |
|
(455,000 |
) |
|
|
1,482,800 |
|
Other liabilities |
|
(105,600 |
) |
|
|
(27,100 |
) |
Net cash used in operating
activities |
|
(8,696,600 |
) |
|
|
(9,719,350 |
) |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Purchases of short-term
investments |
|
(213,541,400 |
) |
|
|
(202,867,700 |
) |
Maturities of short-term
investments |
|
232,096,000 |
|
|
|
22,000,000 |
|
Purchases of property and
equipment |
|
(16,282,600 |
) |
|
|
(2,712,050 |
) |
Proceeds from sale of
equipment |
|
— |
|
|
|
4,600 |
|
Net cash provided by (used in) investing activities |
|
2,272,000 |
|
|
|
(183,575,150 |
) |
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Net proceeds from issuance of
common stock |
|
— |
|
|
|
236,077,300 |
|
Principal payments on notes
payable |
|
— |
|
|
|
(4,922,400 |
) |
Proceeds from exercise of
stock options |
|
1,662,500 |
|
|
|
2,424,000 |
|
Principal payments on finance
leases |
|
— |
|
|
|
(66,100 |
) |
Net cash provided by financing activities |
|
1,662,500 |
|
|
|
233,512,800 |
|
Net increase in cash and cash
equivalents |
|
(4,762,100 |
) |
|
|
40,218,300 |
|
Cash and cash equivalents,
beginning of period |
|
47,782,400 |
|
|
|
18,755,200 |
|
Cash and cash equivalents, end
of period |
$ |
43,020,300 |
|
|
$ |
58,973,500 |
|
Unaudited Reconciliation of Net Loss to
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(6,434 |
) |
|
$ |
(2,680 |
) |
|
$ |
(18,761 |
) |
|
$ |
(14,208 |
) |
Depreciation and amortization
expense |
|
743 |
|
|
|
366 |
|
|
|
1,778 |
|
|
|
1,007 |
|
Interest (income) expense,
net |
|
(1,394 |
) |
|
|
(52 |
) |
|
|
(1,965 |
) |
|
|
329 |
|
Income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
EBITDA |
$ |
(7,085 |
) |
|
$ |
(2,366 |
) |
|
$ |
(18,948 |
) |
|
$ |
(12,871 |
) |
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