TIDMMXCT TIDMTTM
RNS Number : 6262V
MaxCyte, Inc.
11 August 2022
MaxCyte Reports Second Quarter and Half-Year 2022 Financial
Results
45% Year-Over-Year Core Business Revenue Growth in Second
Quarter 2022
Raises 2022 Core Revenue Growth Guidance to Approximately
30%
ROCKVILLE, MD, August 11, 2022 - MaxCyte, Inc., (NASDAQ: MXCT;
LSE: MXCT), a leading commercial cell-engineering company focused
on providing enabling platform technologies to advance innovative
cell-based research as well as next-generation cell therapeutic
discovery, development and commercialization , today announced
financial results for the second quarter and six months ended June
30, 2022.
Second Quarter and Recent Highlights
á Total revenue of $9.6 million in the second quarter of 2022,
an increase of 35% over the second quarter of 2021 driven by strong
growth in the cell therapy market; core business revenues grew 45%
led by revenue from cell therapy customers which increased 61%,
with drug discovery revenues growing by 4%.
á Raising 2022 revenue guidance for core business revenue growth to approximately 30%.
á Expecting SPL Program-related revenue to be approximately $4 million for the full year.
á Total cash, cash equivalents and short-term investments were
$240.9 million as of June 30, 2022.
á Signed the Company's 17(th) SPL agreement in July 2022; LG
Chem licensed the use of MaxCyte's Flow Electroporation(R)
ExPERT(TM) platform to advance cellular research and development of
engineered cell-based therapies.
"We are pleased with these strong second quarter 2022 results,
with 45% year-over-year core business revenue growth, highlighted
by 61% growth in revenues from Cell Therapy customers. We remain
encouraged by the ongoing growth of our SPL portfolio with the
addition of LG Chem, our 17(th) SPL partner, and second SPL
agreement signed in 2022, as well as the continued progress of our
existing partnerships. Importantly, our LG Chem partnership
broadens the reach of our SPL portfolio into Asia," said Doug
Doerfler, President and CEO of MaxCyte.
"Overall, our optimism about the potential for the development
programs covered by our existing partners to generate growing
revenue in both pre-clinical research and clinical progress remains
high. Our ExPERT(TM) platform continues to be used to enable a
broad range of cell types and approaches targeting a wide array of
indications, and its adoption is increasing within the industry. We
are making ongoing investments to drive revenue growth, support and
expand the widening array of applications for our technology, while
also strengthening our team and expanding our ability to support
customers through in-house manufacturing and robust infrastructure.
These investments should allow us to take advantage of expanding
markets and support our partners as they move forward in
development and commercialization."
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,
---------------------- --- ------------------ ----
2022 2021 % 2022 2021 %
------------ -------- -------- -------- ---
(in thousands, except percentages)
Cell therapy $ 7,688 $ 4,766 61% $ 15,104 $ 9,494 59%
Drug discovery 1,916 1,838 4% 4,083 3,601 13%
Program-related 4 504 NM 2,008 508 295%
-------- ------- ------- -------
Total revenue $ 9,608 $ 7,108 35% $ 21,195 $ 13,603 56%
======== ======= ======= =======
Second Quarter 2022 Financial Results
Total revenue for the second quarter of 2022 was $9.6 million,
compared to $7.1 million in the second quarter of 2021,
representing growth of 35%.
Core business revenue was $9.6 million, including 61% revenue
growth from cell therapy customers and 4% from drug discovery
customers, compared to core business revenue of $6.6 million in the
same period last year.
We did not have any material SPL Program-related revenue in the
second quarter of 2022, as compared to $0.5 million in the second
quarter of 2021.
Gross profit for the second quarter of 2022 was $8.5 million
(88% gross margin), compared to $6.3 million (89% gross margin) in
the same period of the prior year.
Operating expenses for the second quarter of 2022 were $17.2
million, compared to operating expenses of $10.7 million in the
second quarter of 2021. The overall increase in operating expenses
was primarily driven by increased staff in field sales and science,
manufacturing, and lab teams to support our customers' and
partners' growth. The increase also included additional public
company-related, stock-based compensation, and marketing expenses
compared with the same period a year ago.
Second quarter 2022 net loss was $8.3 million compared to net
loss of $4.4 million for the same period in 2021. EBITDA, a
non-GAAP measure, was a loss of $8.2 million for the second quarter
of 2022, compared to a loss of $4.1 million for the second quarter
of the prior year. Stock-based compensation expense was $3.0
million for the second quarter versus $1.9 million for the same
period in the prior year.
Total cash, cash equivalents and short-term investments were
$240.9 million as of June 30, 2022.
First Half 2022 Financial Results
Total revenue for the first half of 2022 was $21.2 million,
compared to $13.6 million in the first half of 2021, representing
growth of 56%. Overall sales to the cell therapy (up 59%) and the
drug discovery (up 13%) markets were sources of strength in the
first half.
The Company recognized $2.0 million of program-related revenue
in the first half of 2022, as compared to $0.5 million in
program-related revenue in the first half of 2021.
Gross profit for the first half of 2022 was $19.0 million (90%
gross margin), compared to $12.1 million (89% gross margin) in the
same period of the prior year.
Operating expenses for the first half of 2022 were $31.9
million, compared to operating expenses of $22.9 million in the
first half of 2021. The overall increase in operating expenses was
primarily driven by increased staff in field sales and science,
manufacturing, and lab teams to support our customers' and
partners' growth. The increase also included additional stock-based
compensation, public company-related, and marketing expenses
compared with the same period a year ago.
First half 2022 net loss was $12.3 million compared to net loss
of $11.5 million for the same period in 2021. EBITDA was a loss of
$11.9 million for the first half of 2022, compared to a loss of
$10.5 million for the same period of the prior year. Stock-based
compensation expense was $5.4 million for the first half of 2022
versus $3.2 million for the same period in the prior year.
2022 Revenue Guidance
We expect core business revenue (instruments and disposables to
cell therapy and drug discovery customers and excluding
program-related revenue) in 2022 to grow approximately 30% compared
to 2021. We continue to expect SPL Program-related revenue to be
approximately $4 million in 2022.
Webcast and Conference Call Details
MaxCyte will host a conference call today, August 10, 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 commercial cell-engineering company focused
on providing enabling platform technologies to advance innovative
cell-based research as well as next-generation cell therapeutic
discovery, development and commercialization. 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(TM) 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(TM), STx(TM) GTx(TM)
and VLx(TM); 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(TM) 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 Adviser +1 415-937-5400
ir@maxcyte.com
Gilmartin Group
David Deuchler, CFA
US Media Relations
Seismic
Valerie Enes
Nominated Adviser and Joint Corporate Broker +1 408-497-8568
Panmure Gordon
Emma Earl / Freddy Crossley
Corporate Broking
Rupert Dearden +44 (0)20 7886 2500
UK IR Adviser
Consilium Strategic Communications +44 (0)203 709 5700
Mary-Jane Elliott maxcyte@consilium-comms.com
Chris Welsh
MaxCyte, Inc.
Unaudited Consolidated Balance Sheets
June 30, December 31,
-------------------- ---------------
2022 2021
-------------------- ---------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 109,168,400 $ 47,782,400
Short-term investments, at amortized cost 131,719,200 207,261,400
Accounts receivable 7,432,900 6,877,000
Accounts receivable - TIA* 475,600 -
Inventory 7,722,000 5,204,600
Prepaid expenses and other current assets 1,311,600 3,307,400
---------------- --------------
Total current assets 257,829,700 270,432,800
Property and equipment, net 20,596,100 7,681,200
Right of use asset - operating leases 10,430,300 5,689,300
Other assets 920,500 316,700
---------------- --------------
Total assets $ 289,776,600 $ 284,120,000
================ ==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ $2,456,300 $ 1,820,300
Accrued expenses and other 7,901,800 6,523,500
Operating lease liability, current 438,700 527,200
Deferred revenue, current portion 7,310,600 6,746,800
---------------- --------------
Total current liabilities 18,107,400 15,617,800
Operating lease liability, net of current portion 14,053,300 5,154,900
Other liabilities 393,000 450,200
---------------- --------------
Total liabilities 32,553,700 21,222,900
---------------- --------------
Stockholders' equity
Preferred stock, $0.01 par value; 5,000,000 shares authorized
and no shares issued and outstanding
at June 30, 2022 and December 31, 2021 - -
Common stock, $0.01 par value; 400,000,000 shares authorized,
101,661,288 and 101,202,705
shares issued and outstanding at June 30, 2022 and December 31,
2021, respectively 1,016,600 1,012,000
Additional paid-in capital 382,838,300 376,189,600
Accumulated deficit (126,632,000) (114,304,500)
---------------- --------------
Total stockholders' equity 257,222,900 262,897,100
---------------- --------------
Total liabilities and stockholders' equity $ 289,776,600 $ 284,120,000
================ ==============
* Tenant improvement allowance ("TIA")
MaxCyte, Inc.
Unaudited Consolidated Statements of Operations
Three Months Ended June 30, Six Months Ended June 30,
------------------------------- ------------------------------
2022 2021 2022 2021
---------------- ------------- -------------- --------------
Revenue $ 9,607,800 $ 7,108,100 $ 21,195,100 $ 13,602,900
Cost of goods sold 1,120,400 784,500 2,183,000 1,477,600
------------ ------------ ------------- -------------
Gross profit 8,487,400 6,323,600 19,012,100 12,125,300
------------ ------------ ------------- -------------
Operating expenses:
Research and development 4,696,000 3,203,900 8,461,200 9,280,300
Sales and marketing 4,930,600 2,912,900 8,769,300 5,702,000
General and administrative 7,102,600 4,301,100 13,735,100 7,298,900
Depreciation and amortization 497,100 322,900 944,500 634,400
------------ ------------ ------------- -------------
Total operating expenses 17,226,300 10,740,800 31,910,100 22,915,600
------------ ------------ ------------- -------------
Operating loss (8,738,900) (4,417,200) (12,898,000) (10,790,300)
------------ ------------ ------------- -------------
Other income (expense):
Interest and other expense - (13,200) - (755,500)
Interest income 478,700 8,600 570,500 18,400
------------ ------------ ------------- -------------
Total other income (expense) 478,700 (4,600) 570,500 (737,100)
------------ ------------ ------------- -------------
Net loss $ (8,260,200) $ (4,421,800) $ (12,327,500) $ (11,527,400)
============ ============ ============= =============
Basic and diluted net loss per share $ (0.08) $ (0.05) $ (0.12) $ (0.14)
============ ============ ============= =============
Weighted average shares outstanding,
basic and diluted 101,427,430 84,706,516 101,547,583 82,865,526
============ ============ ------------- -------------
MaxCyte, Inc.
Unaudited Consolidated Statements of Cash Flows
Six Months Ended June 30,
------------------------------------------
2022 2021
-------------------- -----------------
Cash flows from operating activities:
Net loss $ (12,327,500) $ (11,527,400)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 1,035,000 641,400
Net book value of consigned equipment sold 51,400 13,900
Loss on disposal of fixed assets - 19,800
Fair value adjustment of liability classified warrant - 358,200
Stock-based compensation 5,435,200 3,225,000
Amortization of discounts on short-term investments (206,100) 1,900
Non-cash interest expense - 5,400
Changes in operating assets and liabilities:
Accounts receivable (555,900) (547,300)
Accounts receivable - TIA (475,600) -
Inventory (2,639,500) (182,300)
Prepaid expense and other current assets 1,995,800 (342,700)
Right of use asset - operating leases (4,741,000) 554,400
Right of use asset - finance lease - 47,600
Other assets (603,800) (1,670,200)
Accounts payable, accrued expenses and other 939,900 (992,400)
Operating lease liability 8,809,900 (584,000)
Deferred revenue 563,800 1,911,800
Other liabilities (57,200) 38,000
---------------- -------------
Net cash used in operating activities (2,775,600) (9,028,900)
---------------- -------------
Cash flows from investing activities:
Purchases of short-term investments (131,547,700) (35,963,100)
Maturities of short-term investments 207,296,000 16,000,000
Purchases of property and equipment (12,804,800) (1,271,100)
Proceeds from sale of equipment - 4,600
---------------- -------------
Net cash provided by (used in) investing activities 62,943,500 (21,229,600)
---------------- -------------
Cash flows from financing activities:
Net proceeds from issuance of common stock - 51,808,900
Principal payments on notes payable - (4,922,400)
Proceeds from exercise of stock options 1,218,100 2,089,300
Principal payments on finance leases - (49,300)
---------------- -------------
Net cash provided by financing activities 1,218,100 48,926,500
---------------- -------------
Net increase in cash and cash equivalents 61,386,000 18,668,000
Cash and cash equivalents, beginning of period 47,782,400 18,755,200
---------------- -------------
Cash and cash equivalents, end of period $ 109,168,400 $ 37,423,200
================ =============
Unaudited Reconciliation of Net Loss to EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
2022 2021 2022 2021
--------- --------- ---------- ----------
(in thousands)
Net loss $ (8,260) $ (4,422) $ (12,328) $ (11,527)
Depreciation and amortization expense 548 333 1,035 641
Interest (income) expense, net (479) (6) (571) 379
Income taxes - - - -
-------- -------- --------- ---------
EBITDA $ (8,191) $ (4,095) $ (11,864) $ (10,507)
======== ======== ========= =========
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