TIDMMXCT TIDMTTM
RNS Number : 8496S
MaxCyte, Inc.
09 November 2023
MaxCyte Reports Third Quarter 2023 Financial Results and
Reiterates Full Year 2023 Revenue Guidance
ROCKVILLE, MD, November 9, 2023 Ñ 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 financial results for the third quarter ended September
30, 2023.
Third Quarter and Recent Highlights
á Total revenue of $8.0 million in the third quarter of 2023, a
decrease of 25% compared to the third quarter of 2022.
á Core business revenue of $6.6 million in the third quarter of
2023, a decrease of 33% compared to the third quarter of 2022.
á SPL Program-related revenue of $1.4 million in the third
quarter of 2023, compared to $0.8 million in the third quarter of
2022.
á Gross profit of $7.2 million (90% gross margin), compared to
$9.3 million (87% gross margin) in the third quarter of 2022.
á Full year 2023 revenue guidance of approximately $34-$36
million total revenue and approximately $28-$30 million of core
revenue, and SPL Program-related revenue of approximately $6
million, all consistent with guidance previously provided on
October 4(th) .
á Total cash, cash equivalents and investments were $208.7
million as of September 30, 2023.
á We continue to expect to end the year with approximately $200
million in cash, cash equivalents and investments, which would be
unchanged from our initial outlook at the beginning of the
year.
ÒMaxCyteÕs third quarter revenue was at the higher end of our
preliminary revenue range we announced in October. We continue to
evaluate and address the industry challenges we have seen
throughout 2023, with performance in-line with the revised guidance
that we provided last month. Customers, particularly early-stage
customers, continue to reprioritize their spend and operate with
more cautionÑan operating environment we expect to persist at least
through the remainder of 2023,Ó said Doug Doerfler, President and
Chief Executive Officer at MaxCyte.
ÒDespite these challenges, we believe that the long-term
opportunity for the cell and gene therapy market is robust and
continue to make targeted investments that support the industry and
our partners in their development of high-potential complex cell
therapies through the clinical and commercial stages. This includes
further expansion of gene-editing modalities and indications such
as autoimmune disease, solid tumors, and rare diseases. We are
proud of our partnersÕ progress and success thus far and we look
forward to cell therapies supported by MaxCyteÕs platform entering
the market in the near, medium, and long term. Importantly, we
remain confident in our ability to expand our partnership portfolio
and support the market in enabling a growing set of next-generation
cell therapies. We are also excited about the prospects of the VLx
platform and expanding our market opportunity into bioprocessing
applications including rapid large-scale transiently expressed
protein production for preclinical and early clinical use.Ó
The following table provides details regarding the sources of
our revenue for the periods presented.
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ------- ------------------- -------
2023 2022 % 2023 2022 %
---------- ---------- ------ --------- -------- ------
(in thousands, except percentages)
Cell therapy $ 4,701 $ 7,898 ( 40 %) $ 17, 311 23,002 (25%)
Drug discovery 1,900 1,991 (5%) 5, 350 6, 074 ( 12 %)
Program-related 1,404 754 86% 2,962 2,762 7%
------ --------- -------- --------
Total revenue $ 8,005 $ 10 , 643 (25%) $ 25,623 $31, 838 ( 20 %)
====== ========= ======== ========
Third Quarter 2023 Financial Results
Total revenue for the third quarter of 2023 was $8.0 million,
compared to $10.6 million in the third quarter of 2022,
representing a decline of 25%.
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 2023 was $6.6
million, compared to $9.9 million in the third quarter of 2022,
representing a decline of 33%.
Cell therapy revenue for the third quarter of 2023 was $4.7
million, compared to $7.9 million in the third quarter of 2022,
representing a decline of 40%. Drug discovery revenue for the third
quarter of 2023 was $1.9 million, compared to $2.0 million in the
third quarter of 2022, representing a decline of 5%.
Strategic Platform License (SPL) Program-related revenue was
$1.4 million in the third quarter of 2023, as compared to $0.8
million in the third quarter of 2022.
Gross profit for the third quarter of 2023 was $7.2 million (90%
gross margin), compared to $9.3 million (87% gross margin) in the
third quarter of 2022.
Operating expenses for the third quarter of 2023 were $21.2
million, compared to operating expenses of $17.0 million in the
third quarter of 2022.
Third quarter 2023 net loss was $11.3 million compared to net
loss of $6.4 million for the same period in 2022. EBITDA, a
non-GAAP measure, was a loss of $12.9 million for the third quarter
of 2023, compared to a loss of $7.1 million for the third quarter
of 2022. Stock-based compensation expense was $3.6 million for the
third quarter versus $3.2 million for the third quarter of
2022.
2023 Revenue Guidance
á Total revenue expected to be approximately $34 - 36 million for the year.
á Core revenue expected to be approximately $28 - 30 million for the year.
á SPL Program-related revenue expected to be approximately $6 million for the year.
Webcast and Conference Call Details
MaxCyte will host a conference call today, November 8, 2023, 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 ÒEventsÓ
section of the MaxCyte website at https://investors.maxcyte.com/
.
About MaxCyte
At MaxCyte, we pursue cell engineering excellence to maximize
the potential of cells to improve patientsÕ 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 todayÕs processes to innovate tomorrowÕs
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 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, tax, 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, including but not limited
to, statements regarding expected total revenue, core business
revenue and SPL Program-related revenue for the year ending
December 31, 2023, cash resources and investments at the end of
2023, reduced spend in the near term from early-stage customers,
longer-term growth of the cell therapy industry, expansion of the
companyÕs platform into bioprocessing applications, expansion of
and revenue from our SPLs and the progression of our customersÕ
programs into and through clinical trials and into
commercialization. The words "may," Òmight,Ó "will, " "could,"
"would," "should," "expect," "plan," "anticipate," "intend,"
"believe," Òexpect,Ó "estimate, " Òseek,Ó "predict," Òfuture,Ó
"project," Òprospect,Ó "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 timing and
outcome of our customersÕ ongoing and planned clinical trials; the
adequacy of our cash resources and availability of financing on
commercially reasonable terms; 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 market
acceptance and demand for our technology and 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, 2022, filed with the
Securities and Exchange Commission on March 15, 2023, as well as in
discussions of potential risks, uncertainties, and other important
factors in our most recent Quarterly report on Form 10-Q and 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 ÒSEC FilingsÓ on the
Investors page 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
ICR Consilium +44 (0)203 709 5700
Mary-Jane Elliott maxcyte@consilium-comms.com
Chris Welsh
MaxCyte, Inc.
Unaudited Consolidated Balance Sheets
September December
30, 31,
--------------- ---------------
2023 2022
--------------- ---------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 49,170,300 $ 11,064,700
Short-term investments, at amortized cost 141,070,100 216,274,900
Accounts receivable, net 8,166,700 11,654,600
Accounts receivable Ð TIA* Ñ 1,912,400
Inventory 12,532,800 8,580,800
Prepaid expenses and other current assets 3,399,500 2,778,800
-------------- --------------
Total current assets 214,339,400 252,266,200
Investments, non-current, at amortized cost 18,428,700 Ñ
Property and equipment, net 23,771,800 23,724,700
Right-of-use asset - operating leases 9,567,800 9,853,500
Other assets 619,400 809,000
-------------- --------------
Total assets $ 266,727,100 $ 286,653,400
============== ==============
Liabilities and stockholdersÕ equity
Current liabilities:
Accounts payable $ 446,600 $ 531,800
Accrued expenses and other 9,917,600 8,025,300
Operating lease liability, current 698,700 156,800
Deferred revenue, current portion 5,585,900 6,712,600
-------------- --------------
Total current liabilities 16,648,800 15,426,500
Operating lease liability, net of current
portion 15,383,400 15,938,100
Other liabilities 1,318,400 1,321,600
-------------- --------------
Total liabilities 33,350,600 32,686,200
-------------- --------------
StockholdersÕ equity
Preferred stock, $0.01 par value; 5,000,000
shares authorized and no shares issued and
outstanding at September 30, 2023 and December
31, 2022 Ñ Ñ
Common stock, $0.01 par value; 400,000,000
shares authorized, 103,548,943 and 102,397,913
shares issued and outstanding at September
30, 2023 and December 31, 2022, respectively 1,035,500 1,024,000
Additional paid-in capital 402,861,500 390,818,500
Accumulated deficit (170,520,500) (137,875,300)
-------------- --------------
Total stockholdersÕ equity 233,376,500 253,967,200
-------------- --------------
Total liabilities and stockholdersÕ
equity $ 266,727,100 $ 286,653,400
============== ==============
* Tenant improvement allowance (ÒTIAÓ)
MaxCyte, Inc.
Unaudited Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Revenue $ 8,004,500 $ 10,642,800 $ 25,623,400 $ 31,837,900
Cost of goods
sold 793,400 1,368,900 3,168,900 3,551,900
----------------- ---------------- ------------------- -----------------
Gross profit 7,211,100 9,273,900 22,454,500 28,286,000
----------------- ---------------- ------------------- -----------------
Operating
expenses:
Research and
development 6,264,100 5,325,100 17,974,900 13,786,400
Sales and
marketing 7,046,900 4,506,700 19,779,100 13,276,000
General and
administrative 6,820,300 6,444,400 21,981,700 20,179,600
Depreciation and
amortization 1,032,500 709,800 2,922,100 1,654,300
----------------- ---------------- ------------------- -----------------
Total operating
expenses 21,163,800 16,986,000 62,657,800 48,896,300
----------------- ---------------- ------------------- -----------------
Operating loss (13,952,700) (7,712,100) (40,203,300) (20,610,300)
----------------- ---------------- ------------------- -----------------
Other income:
Other expense Ñ (116,000) Ñ (116,000)
Interest income 2,700,900 1,394,400 7,558,100 1,964,900
----------------- ---------------- ------------------- -----------------
Total other
income 2,700,900 1,278,400 7,558,100 1,848,900
----------------- ---------------- ------------------- -----------------
Net loss $ (11,251,800) $ (6,433,700) $ (32,645,200) $ (18,761,400)
================= ================ =================== =================
Basic and
diluted net
loss per share $ (0.11) $ (0.06) $ (0.32) $ (0.18)
================= ================ =================== =================
Weighted average
shares
outstanding,
basic and
diluted 103,449,715 101,806,173 103,121,997 101,555,065
================= ================ =================== =================
MaxCyte, Inc.
Unaudited Consolidated Statements of Cash Flows
Nine Months Ended September
30,
2023 2022
----------------------- -----------------------
Cash flows from operating activities:
Net loss $ (32,645,200) $ (18,761,400)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 3,069,300 1,778,300
Net book value of consigned equipment
sold 80,000 61,900
Loss on disposal of fixed assets 2,600 128,600
Stock-based compensation 10,404,500 8,633,800
Bad debt expense 221,000 Ñ
Amortization of discounts on investments (5,123,300) (1,158,400)
Changes in operating assets and liabilities:
Accounts receivable 3,266,900 (556,800)
Accounts receivable - TIA 1,912,400 (775,000)
Inventory (4,087,600) (2,880,700)
Prepaid expense and other current assets (620,700) 31,800
Right-of-use asset Ð operating
leases 285,700 (4,263,000)
Other assets 189,600 (873,100)
Accounts payable, accrued expenses and
other 1,519,800 1,156,100
Operating lease liability (12,800) 9,341,900
Deferred revenue (1,126,700) (455,000)
Other liabilities (3,200) (105,600)
------------------- -------------------
Net cash used in operating activities (22,667,700) (8,696,600)
------------------- -------------------
Cash flows from investing activities:
Purchases of investments (185,620,600) (213,541,400)
Maturities of investments 247,520,000 232,096,000
Purchases of property and equipment (2,785,200) (16,282,600)
Proceeds from sale of equipment 9,100 Ñ
------------------- -------------------
Net cash provided by investing activities 59,123,300 2,272,000
------------------- -------------------
Cash flows from financing activities:
Proceeds from exercise of stock options 1,650,000 1,662,500
------------------- -------------------
Net cash provided by financing activities 1,650,000 1,662,500
------------------- -------------------
Net increase (decrease) in cash and
cash equivalents 38,105,600 (4,762,100)
Cash and cash equivalents, beginning
of period 11,064,700 47,782,400
------------------- -------------------
Cash and cash equivalents, end of period $ 49,170,300 $ 43,020,300
=================== ===================
Unaudited Reconciliation of GAAP Net Loss to Non-GAAP EBITDA
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2023 2022 2023 2022
--------- --------- --------- ---------
(in thousands)
Net loss (GAAP) $(11,252) $ (6,434) $(32,645) $(18,761)
Depreciation and amortization expense 1,081 743 3,069 1,778
Interest income (2,701) (1,394) (7,558) (1,965)
Income taxes Ñ Ñ Ñ Ñ
-------- -------- -------- --------
EBITDA (Non-GAAP) $(12,871) $ (7,085) $(37,134) $(18,948)
======== ======== ======== ========
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