Financial Data and Key Metrics Changes - The company reported Q3 2024 revenues of $65 million, slightly below expectations, with total adjusted EBITDA of $13 million and an adjusted fully diluted EPS loss of $0.02 [7][40] - A GAAP noncash goodwill impairment charge of $154 million was taken, leading to a net loss of $176 million for the quarter [41][42] - Adjusted EBITDA margin was 20% for Q3 2024, with year-to-date adjusted EBITDA at $37.5 million and an adjusted EBITDA margin of 18% [43] Business Segment Data and Key Metrics Changes - The Nucleic Acid Production (NAP) segment generated $50 million in revenue, accounting for 77% of total revenue, with an adjusted EBITDA of $15 million and a segment margin of 31% [47] - The Biologics Safety Testing (BST) segment had revenues of $15 million, contributing 23% of total revenues, with an adjusted EBITDA of $11 million and a margin of 72% [48] Market Data and Key Metrics Changes - The global biologics market remains soft, impacting the BST segment, while the NAP segment faced muted demand in research and discovery products [8][40] - Revenue from China in the BST segment increased nearly 30% from Q2 2024, but still did not reach historical levels [54] Company Strategy and Development Direction - The company plans to acquire the DNA and RNA businesses of Officinae Bio to enhance its mRNA offerings and improve customer experience through AI and machine learning [28][30] - The focus remains on innovation, with 21 new products introduced in the NAP segment year-to-date, and partnerships with top-tier academic institutions to drive long-term value [19][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a frustrating year in terms of financial performance, citing global macro pressures affecting buying decisions and a challenging NAP market [49][51] - The company lowered its revenue guidance for 2024 to between $255 million and $265 million, reflecting a $15 million reduction from previous expectations [53] Other Important Information - The company ended Q3 with $578 million in cash and a net cash position of nearly $50 million, with gross debt at $529 million [44] - The acquisition of Officinae Bio is expected to close in early 2025, with no immediate impact on 2024 financial results [59] Q&A Session Summary Question: How much of the firm commitment is now left by Q4? - Approximately $14 million is expected to ship in Q4 related to fulfilling original expectations [63] Question: How much of the sequential decline in NAP is due to project push versus a weaker market? - The project push accounts for a couple of million dollars, with the remainder attributed to market conditions [64] Question: Can you discuss swing factors for Q4 related to the NAP business? - There is variability in orders, with no large drop-in orders seen this year, impacting revenue recognition [68] Question: What are the expectations for margin expansion next year? - Margin expansion will largely depend on revenue growth, with a significant portion of costs being fixed [73] Question: Is there any revenue associated with the acquisition for 2025? - The acquisition is primarily a software acquisition, with low single-digit millions in revenue expected from Officinae [65] Question: What is the outlook for the bioprocessing market? - The bioprocessing market is experiencing flat to mid- to high single-digit declines, impacting early-phase project starts [82]

Financial Performance - Quarterly revenue for Q3 2024 was $65.2 million, a 2.5% decrease compared to $66.9 million in Q3 2023[2][8] - Net loss for Q3 2024 was $(176.0) million, including a goodwill impairment of $154.2 million, compared to a net loss of $(15.1) million in Q3 2023[2][9] - Adjusted EBITDA for Q3 2024 was $12.7 million, up from $11.9 million in Q3 2023[2][9] - Revenue for the nine months ended September 30, 2024, was $202.8 million, representing a 5.6% decrease year-over-year[10] - Adjusted EBITDA for the nine months ended September 30, 2024, was $37,451 thousand, down from $44,775 thousand in the same period of 2023, reflecting a decrease of approximately 16.5%[16] - The company incurred stock-based compensation expenses of $13,050 thousand for the three months ended September 30, 2024, compared to $9,987 thousand for the same period in 2023, representing a 30.8% increase[17] - The company reported an adjusted net loss of $4,265 thousand for the three months ended September 30, 2024, compared to an adjusted net loss of $2,755 thousand for the same period in 2023[17] Revenue Guidance and Expectations - The company updated its full-year 2024 revenue guidance to a range of $255.0 million to $265.0 million[2][13] - Adjusted EBITDA margins for 2024 are now expected to be in the range of 16% to 18%[13] - Maravai's financial guidance for 2024 includes expectations for growth opportunities through both organic and inorganic means, particularly with the planned acquisition of Officinae Bio's DNA and RNA business[28] Product Development and Innovation - The company launched several innovative products, including CleanScribe™ RNA Polymerase and AccuRes™ Host Cell DNA Quantification Kits, enhancing its product offerings[3][5] Acquisitions and Integration - The company announced a definitive agreement to acquire the DNA and RNA business of Officinae Bio, expected to close in early 2025[4][5] - Maravai's future outlook includes continued focus on integration of acquisitions and retention payments related to MyChem and Alphazyme, with expected payments totaling $9.3 million and $20.0 million respectively[18] - Acquisition integration costs for the three months ended September 30, 2024, were $919 thousand, down from $3,268 thousand in the same period of 2023[17] Market Conditions and Challenges - The company is facing ongoing macroeconomic challenges that could impact customer spending and demand for its nucleic acid production and biologics safety testing products[30] - Maravai's recent reduction in force may affect its ability to attract and retain qualified personnel, which is critical for future growth[31] - The company is dependent on a limited number of customers for a significant portion of its revenue, which poses risks to its financial stability[35] - Maravai's reliance on a limited number of suppliers for raw materials could lead to supply chain disruptions if replacements are not found[36] - The company is exposed to risks related to potential regulatory changes that could impose stricter compliance requirements on its products[36] - Maravai's ability to generate sufficient cash flow to service its existing debt obligations is a key concern, especially in light of its current level of indebtedness[38] - The company may face significant future cash payments under the Tax Receivable Agreement, which could negatively impact its financial position[42] Governance and Shareholder Concerns - Maravai's organizational structure may confer certain benefits to specific shareholders that do not extend to all common shareholders, raising potential conflicts of interest[43] - The company acknowledges the risks associated with its controlled company status, which may affect governance and shareholder interests[46]

Company Overview - Maravai LifeSciences, Inc. is a global provider of life science reagents and services, focusing on supporting researchers and biotech innovators [3] - The company specializes in products that enable the development of drug therapies, diagnostics, and novel vaccines, as well as research on human diseases [3] - Maravai's offerings include nucleic acid synthesis and biologics safety testing, serving leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies [3] Upcoming Financial Results - Maravai plans to announce its third quarter 2024 financial and operating results after the market closes on November 7, 2024 [1] - A conference call and webcast will be held on the same day at 2:00 p.m. PT / 5:00 p.m. ET [1] - Participants can join the conference call by dialing specific phone numbers and referencing the Conference ID [2]

Core Insights - Maravai LifeSciences, Inc. is actively participating in several investor conferences in August and September 2024, highlighting its engagement with the investment community [1][2][3]. Conference Participation - On August 14, 2024, CEO Trey Martin will discuss the Critical Components of the Genomic Medicine Supply Chain at the UBS Genomic Medicine Conference in Dana Point, CA, at 11:00 a.m. PDT [2]. - On September 4, 2024, both CEO Trey Martin and CFO Kevin Herde will engage in a fireside chat at the Wells Fargo Healthcare Conference in Boston, MA, at 6:30 a.m. PDT [2]. - On September 5, 2024, Trey Martin and Kevin Herde will participate in another fireside chat at the Morgan Stanley Healthcare Conference in New York, NY, at 1:50 p.m. PDT [3]. Webcast Availability - Live webcasts of each presentation will be accessible on the Maravai LifeSciences Investor Relations website, with archived versions available post-event [4]. Company Overview - Maravai LifeSciences is a leading provider of life science reagents and services, focusing on drug therapies, diagnostics, and novel vaccines, and supports research on human diseases [5]. - The company specializes in nucleic acid synthesis and biologics safety testing, serving many top biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies globally [5].

Revenue Performance - Revenue for the three months ended June 30, 2024, was $73,400,000, an increase from $68,914,000 in the same period last year, representing a growth of approximately 5.7%[14] - Total revenue for the six months ended June 30, 2024, was $147.939 million, with Nucleic Acid Production contributing $114.716 million and Biologics Safety Testing contributing $33.223 million[42] - For the three months ended June 30, 2024, total revenue was $73.400 million, with Nucleic Acid Production at $58.483 million and Biologics Safety Testing at $14.917 million[43] - The North America region generated $32.317 million in revenue for the three months ended June 30, 2024, with Nucleic Acid Production at $25.436 million and Biologics Safety Testing at $6.881 million[43] - Total revenue for the six months ended June 30, 2024, was $137.6 million, a decrease of 6.9% from $147.9 million for the same period in 2023[94] - Nucleic Acid Production revenue increased by 9.8% from $53.3 million in Q2 2023 to $58.5 million in Q2 2024, driven by higher demand for GMP CleanCap analogs and GMP mRNA[120] - Biologics Safety Testing revenue decreased by 4.7% from $15.6 million in Q2 2023 to $14.9 million in Q2 2024, primarily due to lower demand trends in China[120] Net Loss and Financial Position - Net loss attributable to Maravai LifeSciences Holdings, Inc. for the three months ended June 30, 2024, was $7,585,000, compared to a net loss of $6,541,000 for the same period last year, indicating a deterioration of about 15.9%[14] - For the six months ended June 30, 2024, the net loss was $37,172 thousand, compared to a net loss of $13,291 thousand for the same period in 2023, representing an increase in loss of approximately 179%[24] - The company reported a comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. of $7,585,000 for the three months ended June 30, 2024, compared to a comprehensive loss of $6,541,000 in the prior year[16] - The company reported a net loss of $14.5 million for the three months ended June 30, 2024, compared to a net loss of $11.9 million for the same period in 2023[94] - The company recorded a net loss of $37.2 million for the six months ended June 30, 2024, compared to a net loss of $13.3 million for the same period in 2023[151] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $82,912,000, up from $80,528,000 in the prior year, reflecting an increase of approximately 2.9%[14] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $40.6 million, compared to $35.4 million for the same period in 2023, reflecting a 14.8% increase[95] - Total operating expenses for the six months ended June 30, 2024, were $82.9 million, a 3.0% increase from $80.5 million in the same period last year[113] - Selling, general and administrative expenses increased by 14.6% to $40.6 million for the three months ended June 30, 2024, compared to $35.4 million in 2023[128] - Research and development expenses increased to $5,284,000 for the three months ended June 30, 2024, compared to $4,194,000 in the same period last year, marking a rise of about 26%[14] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period on June 30, 2024, were $573,171 thousand, down from $574,962 thousand at the beginning of the period[24] - Operating activities generated net cash of $8,967 thousand for the six months ended June 30, 2024, a significant decrease from $104,268 thousand in the same period of 2023[24] - Cash and cash equivalents stood at $573.2 million as of June 30, 2024, indicating a strong liquidity position[162] - Positive cash flow from operations was $9.0 million for the six months ended June 30, 2024[145] - Net cash provided by operating activities for the six months ended June 30, 2024 was $9.0 million, a significant decrease from $104.3 million for the same period in 2023[151] Research and Development - Research and development expenses increased to $5,284,000 for the three months ended June 30, 2024, compared to $4,194,000 in the same period last year, marking a rise of about 26%[14] - The company expects research and development costs to increase in future periods to support ongoing R&D efforts and meet customer needs[104] - Research and development expenses increased by 26.0% to $5.3 million for the three months ended June 30, 2024, compared to $4.2 million in 2023[128] Debt and Interest Expenses - Interest expense for the three months ended June 30, 2024, was $11,939,000, compared to $7,022,000 in the same period last year, representing an increase of approximately 69%[14] - Long-term debt as of June 30, 2024, was $522.523 million, slightly down from $524.147 million as of December 31, 2023[73] - The effective interest rate on the Term Loan was 8.33% per annum as of June 30, 2024[71] - Interest expense for the six months ended June 30, 2024, increased by 20.9% to $22.8 million compared to $18.9 million in the same period in 2023[140] Stockholder Equity and Shares - The weighted average number of Class A common shares outstanding for the three months ended June 30, 2024, was 135,842,000, compared to 131,864,000 in the same period last year, indicating an increase of approximately 3.0%[13] - The total stockholders' equity as of June 30, 2024, was $776,414,000, reflecting a slight decrease from $777,389,000 at the end of the previous quarter[18] - The total number of Class A shares increased to 141,489 thousand as of June 30, 2024, from 132,228 thousand as of December 31, 2023[19] Market and Operational Challenges - The company continues to face risks related to customer spending and demand for its products, as well as macroeconomic challenges impacting its operations[6] - Recent industry trends and uncertainties may lead to slower growth and potential revenue declines in 2024 due to reduced research and development spending by early-stage biotechnology companies[96] - The company is actively pursuing opportunities to expand its customer base both domestically and internationally[94] Acquisitions and Contingent Considerations - The company completed the acquisition of Alphazyme in January 2023, contributing all membership interests to Alphazyme Holdings[84] - The company completed the acquisition of Alphazyme in January 2023, with contingent payments of up to $75.0 million based on revenue targets, none of which were met for the first performance period[158] - The company may be required to make retention payments of $9.3 million to Alphazyme sellers and employees through December 31, 2025, contingent on continued employment[158]

Financial Data and Key Metrics Changes - The company reported $73 million in revenue for Q2 2024, with an adjusted EBITDA of $17 million and an adjusted fully diluted EPS of $0 for the quarter [4][24] - The GAAP net loss before non-controlling interests was $14 million for Q2 2024, compared to a net loss of $12 million for Q2 2023 [24] - The adjusted EBITDA margin was 23% in Q2 2024, up from 13% in Q2 2023 and 12% in Q1 2024 [24] Business Segment Data and Key Metrics Changes - The nucleic acid production segment generated $58 million in revenue for Q2 2024, with an adjusted EBITDA of $21 million and a margin of 36% [30] - The Biologic Safety Testing segment had revenues of $15 million in Q2 2024, with an adjusted EBITDA of $9 million and a margin of 63%, which is lower than recent trends [30] Market Data and Key Metrics Changes - The company noted a decline in the Biologic Safety Testing business in China, which accounted for over 80% of the segment's results, leading to unexpected drops in revenue [40] - The company expects the Biologic Safety Testing segment to grow in the low single digits for 2024, while the nucleic acid production segment is projected to be around $210 million at the midpoint of revenue guidance [32] Company Strategy and Development Direction - The company is focused on expanding its capabilities in mRNA production and has introduced significant new innovations to the market [36] - The company is committed to building a strong foundation for long-term, diversified, and sustainable growth [36] - The company is pursuing both organic investments and external partnerships, including collaborations with academic institutions [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamental strength of end markets and the value provided to customers for drug therapies, diagnostics, and vaccines [36] - The company anticipates a sequential decline in revenue in Q3, primarily in the nucleic acid production segment, due to high-volume orders in Q2 that are not expected to repeat [38] Other Important Information - The company ended Q2 2024 with $573 million in cash, up $11 million from Q1, and $530 million in long-term debt, resulting in a net cash position of $43 million [5][28] - The company published its third Environmental, Social, and Governance report, highlighting advancements in environmental disclosures and commitment to sustainable growth [22][23] Q&A Session Summary Question: Any one-timers or lumpy orders in NAP for Q2? - Management indicated that there were high-volume CleanCap orders in Q2, which are expected to decline sequentially in Q3 [38] Question: How much of the BST business is in China? - Over 80% of the BST results were impacted by a drop in China, which was unexpected [40] Question: What are the dynamics of pharma customers' R&D spend? - There has been a reprioritization of spending, with positive dynamics in mRNA program starts [42] Question: How is the pricing environment? - Pricing varies by program, and the company takes price opportunities when possible [46][49] Question: What is the status of Flanders 2 capacity? - The company is at the tail end of the capital cycle for Flanders 2 and is scaling labor and overhead as they fill the factory [56] Question: Have any Phase 2 or Phase 3 programs been incorporated into guidance? - Yes, the company has incorporated commitments for Phase 2/3 pivotal trials into its guidance [60]

Maravai LifeSciences' (MRVI) business, TriLink BioTechnologies, recently partnered with Johns Hopkins University to significantly enhance research in RNA therapeutics. This collaboration aims to accelerate therapeutic development through a new center within the Johns Hopkins Whiting School of Engineering, leveraging TriLink's cutting-edge RNA synthesis technology. Financial terms of the deal were not revealed. Investment and Technological Contribution TriLink BioTechnologies works as a best-in-class contrac ...

[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements, which are not historical facts and involve risks and uncertainties [Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements, which are not historical facts and involve risks and uncertainties - Forward-looking statements are based on management's current expectations, assumptions, and estimates, and are not guarantees of future performance[10](index=10&type=chunk) - Key risks include customer spending and demand, macroeconomic challenges, competition, product performance and quality, market acceptance, and the ability to implement strategic plans[11](index=11&type=chunk) - Other risks involve acquisitions, product liability, dependence on limited customers and suppliers, regulatory scrutiny, intellectual property protection, cyber-attacks, indebtedness, and the company's organizational structure including the Tax Receivable Agreement (TRA)[11](index=11&type=chunk)[15](index=15&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statement unless required by law[14](index=14&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Maravai LifeSciences Holdings, Inc., including balance sheets, statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202024%20(unaudited)%20and%20December%2031%2C%202023) The condensed consolidated balance sheets show a slight decrease in total assets and stockholders' equity from December 31, 2023, to March 31, 2024, while total liabilities also decreased Fair Value Measurements (March 31, 2024) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $561,691 | $574,962 | | Total current assets | $667,884 | $699,912 | | Total assets | $1,444,641 | $1,487,450 | | Total current liabilities | $59,022 | $87,468 | | Total liabilities | $667,252 | $697,566 | | Total stockholders' equity | $777,389 | $789,884 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) The company reported a significant increase in net loss for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to a decrease in revenue and an increase in total operating expenses Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Revenue | $64,179 | $79,025 | | Total operating expenses | $83,040 | $76,492 | | (Loss) income from operations | $(18,861) | $2,533 | | Loss before income taxes | $(22,409) | $(4,523) | | Net loss | $(22,680) | $(1,348) | | Net loss attributable to Maravai LifeSciences Holdings, Inc. | $(12,078) | $(67) | | Net loss per Class A common share, basic and diluted | $(0.09) | $0.00 | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) The condensed consolidated statements of comprehensive loss show a total comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. of **$(12.1) million** for the three months ended March 31, 2024, significantly higher than the **$(0.1) million** reported for the same period in 2023 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net loss | $(22,680) | $(1,348) | | Comprehensive loss attributable to non-controlling interests | $(10,602) | $(1,281) | | Total comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. | $(12,078) | $(67) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Stockholders' equity decreased from **$789.9 million** at December 31, 2023, to **$777.4 million** at March 31, 2024, primarily due to the net loss for the period, partially offset by stock-based compensation Stockholders' Equity (in thousands) | Metric | December 31, 2023 (in thousands) | March 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :---------------------------- | | Total Stockholders' Equity | $789,884 | $777,389 | | Net loss | N/A | $(22,680) | | Stock-based compensation | N/A | $12,057 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) The company experienced a net decrease in cash and cash equivalents of **$13.3 million** for the three months ended March 31, 2024, primarily driven by cash used in operating and investing activities, a significant shift from the prior year's positive operating cash flow Cash Flow Activity (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------- | :--------------------------------------------- | :--------------------------------------------- | | Operating activities | $(8,467) | $85,074 | | Investing activities | $(4,244) | $(69,730) | | Financing activities | $(560) | $(19,209) | | Net decrease in cash and cash equivalents | $(13,271) | $(3,865) | | Cash and cash equivalents, end of period | $561,691 | $628,273 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The notes provide detailed explanations of the company's business, accounting policies, and financial statement line items, covering revenue recognition, restructuring, fair value, inventory, debt, and segment reporting [1. Organization and Significant Accounting Policies](index=11&type=section&id=1.%20Organization%20and%20Significant%20Accounting%20Policies) Maravai LifeSciences Holdings, Inc. provides critical products for drug development, diagnostics, and vaccines, operating through two segments: Nucleic Acid Production and Biologics Safety Testing - Maravai LifeSciences Holdings, Inc. provides critical products for drug, therapeutic, diagnostic, and vaccine development, and human disease research[31](index=31&type=chunk) - The company operates two principal businesses: Nucleic Acid Production (mRNA, oligonucleotides, CleanCap® technology, enzymes) and Biologics Safety Testing (host cell protein, bioprocess impurity detection, viral clearance kits, custom antibody/assay development)[32](index=32&type=chunk) - Revenue is recognized when control of promised goods or services is transferred to a customer or distributor, with most contracts having a single performance obligation[42](index=42&type=chunk)[43](index=43&type=chunk) Revenue by Segment and Region (Three Months Ended March 31, 2024 vs. 2023) | Region / Segment | 2024 Nucleic Acid Production (in thousands) | 2024 Biologics Safety Testing (in thousands) | 2024 Total Revenue (in thousands) | 2023 Nucleic Acid Production (in thousands) | 2023 Biologics Safety Testing (in thousands) | 2023 Total Revenue (in thousands) | | :----------------- | :---------------------------------------- | :----------------------------------------- | :-------------------------------- | :---------------------------------------- | :----------------------------------------- | :-------------------------------- | | North America | $26,278 | $7,093 | $33,371 | $33,415 | $7,093 | $40,508 | | Europe, Middle East, Africa | $4,740 | $4,625 | $9,365 | $4,421 | $4,571 | $8,992 | | Asia Pacific | $14,911 | $6,225 | $21,136 | $23,551 | $5,821 | $29,372 | | Latin and Central America | $87 | $220 | $307 | $64 | $89 | $153 | | **Total Revenue** | **$46,016** | **$18,163** | **$64,179** | **$61,451** | **$17,574** | **$79,025** | [2. Restructuring](index=19&type=section&id=2.%20Restructuring) In November 2023, the company initiated a Cost Realignment Plan, including a **15% workforce reduction** and lease terminations, largely completed in Q1 2024, resulting in a restructuring benefit of **$(1.2) million** - A Cost Realignment Plan was implemented in November 2023, involving a **15% workforce reduction** and lease terminations, substantially completed in Q1 2024[79](index=79&type=chunk) Restructuring Charges (Benefit) by Segment (Three Months Ended March 31, 2024) | Category | Nucleic Acid Production (in thousands) | Corporate (in thousands) | Total (in thousands) | | :-------------------------- | :----------------------------------- | :----------------------- | :------------------- | | Severance and Other Employee Costs (Reversals) | $(15) | $68 | $53 | | Stock-Based Compensation Benefit | $(815) | $(416) | $(1,231) | | Professional Fee Reversals and Other | $(20) | $(14) | $(34) | | **Total** | **$(850)** | **$(362)** | **$(1,212)** | Accrued Restructuring Costs Activity (Three Months Ended March 31, 2024) | Metric | Balance as of December 31, 2023 (in thousands) | Charges (benefit) (in thousands) | Non-cash benefit (in thousands) | Cash payments (in thousands) | Balance as of March 31, 2024 (in thousands) | | :-------------------------- | :------------------------------------------- | :------------------------------- | :------------------------------ | :--------------------------- | :------------------------------------------ | | Severance and Other Employee Costs | $2,543 | $53 | — | $(2,106) | $490 | | Stock-Based Compensation Expense (Benefit) | — | $(1,231) | $1,231 | — | — | | Professional Fees and Other | $271 | $(34) | — | $(226) | $11 | | **Total** | **$2,814** | **$(1,212)** | **$1,231** | **$(2,332)** | **$501** | [3. Fair Value Measurements](index=20&type=section&id=3.%20Fair%20Value%20Measurements) The company measures certain financial assets and liabilities at fair value, primarily money market funds (Level 1) and an interest rate cap (Level 2), with contingent consideration from the Alphazyme acquisition as a Level 3 liability Fair Value Measurements (March 31, 2024) | Asset/Liability | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------------ | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Money market funds | $404,202 | — | — | $404,202 | | Interest rate cap | — | $8,100 | — | $8,100 | | Current portion of contingent consideration | — | — | $131 | $131 | | Contingent consideration, non-current | — | — | $1,872 | $1,872 | | **Total Assets** | **$404,202** | **$8,100** | **—** | **$412,302** | | **Total Liabilities** | **—** | **—** | **$2,003** | **$2,003** | - Contingent consideration from the Alphazyme acquisition (January 2023) is a Level 3 liability, valued at **$2.0 million** as of March 31, 2024, with no change in fair value during the quarter[82](index=82&type=chunk)[83](index=83&type=chunk) [4. Balance Sheet Components](index=21&type=section&id=4.%20Balance%20Sheet%20Components) Inventory decreased slightly to **$49.8 million** as of March 31, 2024, while accrued expenses significantly decreased to **$35.4 million** from **$60.2 million**, primarily due to reduced MyChem Retention Payments and restructuring costs Inventory (in thousands) | Category | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :---------------- | :------------- | :---------------- | | Raw materials | $17,070 | $19,338 | | Work-in-process | $12,525 | $12,680 | | Finished goods | $20,251 | $19,379 | | **Total inventory** | **$49,846** | **$51,397** | Accrued Expenses and Other Current Liabilities (in thousands) | Category | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :---------------------------------------- | :------------- | :---------------- | | Employee related | $9,855 | $12,905 | | Accrued interest payable | $8,960 | $9,202 | | Operating lease liabilities, current portion | $6,970 | $6,780 | | Professional services | $2,879 | $2,277 | | Customer deposits | $1,974 | $2,156 | | Accrued property and equipment | $1,602 | $632 | | Sales and use tax liability | $852 | $1,001 | | Accrued restructuring costs | $501 | $2,814 | | Accrued MyChem Retention Payments, current portion | — | $19,446 | | Other | $1,812 | $3,024 | | **Total** | **$35,405** | **$60,237** | [5. Government Assistance](index=21&type=section&id=5.%20Government%20Assistance) TriLink Biotechnologies, LLC received **$1.4 million** in Q1 2024 reimbursements under a Cooperative Agreement with the U.S. Department of Defense (now HHS) to expand mRNA vaccine manufacturing capacity, with a **$2.8 million** receivable as of March 31, 2024 - TriLink Biotechnologies, LLC has a Cooperative Agreement with the U.S. Department of Defense (now HHS/BARDA) to advance domestic manufacturing capabilities for mRNA vaccines and therapeutics[86](index=86&type=chunk) - The agreement provides **$38.8 million** or **50%** of construction and validation costs for the Flanders San Diego Facility, with a **10-year** conditional priority access for the U.S. Government[88](index=88&type=chunk) Government Assistance Reimbursements (in thousands) | Period | Reimbursements Received (in thousands) | | :----- | :---------------------- | | Q1 2024 | $1,421 | | Q1 2023 | $8,028 | - As of March 31, 2024, a receivable of **$2.8 million** was recorded for government assistance[90](index=90&type=chunk) [6. Commitments and Contingencies](index=22&type=section&id=6.%20Commitments%20and%20Contingencies) The company has unconditional purchase obligations totaling **$3.6 million** for the remaining nine months of 2024, with **$1.9 million** purchased under these obligations during Q1 2024 - Unconditional purchase obligations totaled **$1.9 million** for the three months ended March 31, 2024[92](index=92&type=chunk) - Future minimum commitments under these obligations are **$3.6 million** for the nine months ending December 31, 2024[92](index=92&type=chunk) [7. Long-Term Debt](index=22&type=section&id=7.%20Long-Term%20Debt) The company's long-term debt primarily consists of a **$600.0 million** Term Loan facility maturing in October 2027, with an interest rate of **8.31%** per annum as of March 31, 2024, and an interest rate cap agreement in place - The Credit Agreement includes a **$600.0 million** Term Loan facility (maturing October 2027) and a **$180.0 million** Revolving Credit Facility[94](index=94&type=chunk) - As of March 31, 2024, the Term Loan interest rate was **8.31%** per annum[94](index=94&type=chunk) - An interest rate cap agreement with a notional amount of **$500.0 million** is in place, expiring January 19, 2025, to manage variable interest rate risk[102](index=102&type=chunk)[103](index=103&type=chunk) Long-Term Debt (in thousands) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------- | :------------- | :---------------- | | Term Loan | $531,760 | $533,120 | | Unamortized debt issuance costs | $(8,427) | $(8,973) | | **Total long-term debt** | **$523,333** | **$524,147** | | Less: current portion | $(5,440) | $(5,440) | | **Total long-term debt, less current portion** | **$517,893** | **$518,707** | Aggregate Future Principal Maturities of Debt Obligations (in thousands) | Year | Amount (in thousands) | | :--- | :----- | | 2024 (remaining nine months) | $4,080 | | 2025 | $5,440 | | 2026 | $5,440 | | 2027 | $516,800 | | **Total** | **$531,760** | [8. Net Loss Per Class A Common Share Attributable to Maravai LifeSciences Holdings, Inc.](index=23&type=section&id=8.%20Net%20Loss%20Per%20Class%20A%20Common%20Share%20Attributable%20to%20Maravai%20LifeSciences%20Holdings%2C%20Inc.) The company reported a basic and diluted net loss per Class A common share of **$(0.09)** for the three months ended March 31, 2024, compared to **$0.00** for the same period in 2023, with dilutive equity instruments excluded due to the net loss Net Loss Per Class A Common Share (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to Maravai LifeSciences Holdings, Inc. | $(12,078) | $(67) | | Weighted average Class A common shares outstanding | 132,333 | 131,739 | | Net loss per Class A common share, basic and diluted | $(0.09) | $0.00 | Potentially Dilutive Securities Excluded from EPS Calculation (in thousands) | Security | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Restricted stock units | 2,343 | 3,195 | | Stock options | 4,142 | 4,528 | | Shares estimated to be purchased under the employee stock purchase plan | 7 | 26 | | Shares of Class B common stock | 119,094 | 131,789 | | **Total** | **125,586** | **139,538** | [9. Income Taxes](index=24&type=section&id=9.%20Income%20Taxes) The company's income tax expense was **$271 thousand** for Q1 2024, resulting in an effective tax rate of **(1.2)%**, primarily due to a valuation allowance against deferred tax assets, contrasting with a tax benefit in Q1 2023 Income Tax Expense (Benefit) and Effective Tax Rate (in thousands, except percentages) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Loss before income taxes | $(22,409) | $(4,523) | | Income tax expense (benefit) | $271 | $(3,175) | | Effective tax rate | (1.2)% | 70.2% | - The effective tax rate of **(1.2)%** for Q1 2024 was primarily due to a valuation allowance against deferred tax assets[111](index=111&type=chunk) - Topco LLC's operating agreement requires cash distributions to owners for tax liabilities, computed based on an assumed income tax rate of **46.7%** (potentially **54.1%**)[113](index=113&type=chunk) - No tax distributions were paid to owners during Q1 2024, compared to **$17.4 million** in Q1 2023 (including **$9.1 million** to the Company)[115](index=115&type=chunk) [10. Related Party Transactions](index=25&type=section&id=10.%20Related%20Party%20Transactions) The company is party to a Tax Receivable Agreement (TRA) with MLSH 1 and MLSH 2, requiring payment of **85%** of certain tax benefits, with a current TRA liability of **$7.1 million** as of March 31, 2024 - The company has a Tax Receivable Agreement (TRA) with MLSH 1 and MLSH 2, obligating it to pay **85%** of certain realized tax benefits[117](index=117&type=chunk) - As of March 31, 2024, the current TRA liability was **$7.1 million**, based on estimated taxable income for 2023[118](index=118&type=chunk)[121](index=121&type=chunk) - The non-current TRA liability of **$665.3 million** was derecognized as of December 31, 2023, as it was not probable that the company would realize the remaining tax benefits[119](index=119&type=chunk) - No payments were made under the TRA during the three months ended March 31, 2024 or 2023[121](index=121&type=chunk) [11. Segments](index=26&type=section&id=11.%20Segments) The company operates in two reportable segments: Nucleic Acid Production and Biologics Safety Testing, with Adjusted EBITDA as the key performance measure, which decreased substantially year-over-year for Q1 2024 - The company operates in two reportable segments: Nucleic Acid Production and Biologics Safety Testing[124](index=124&type=chunk) - Adjusted EBITDA is the primary profit or loss measure used by the Chief Operating Decision Maker (CODM) to allocate resources and assess segment performance[123](index=123&type=chunk) Revenue and Adjusted EBITDA by Segment (in thousands) | Segment | Three Months Ended March 31, 2024 Revenue (in thousands) | Three Months Ended March 31, 2023 Revenue (in thousands) | Three Months Ended March 31, 2024 Adjusted EBITDA (in thousands) | Three Months Ended March 31, 2023 Adjusted EBITDA (in thousands) | | :------------------------ | :---------------------------------------- | :---------------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Nucleic Acid Production | $46,016 | $61,451 | $10,088 | $27,873 | | Biologics Safety Testing | $18,163 | $17,574 | $13,926 | $13,746 | | **Total Reportable Segments** | **$64,179** | **$79,025** | **$24,014** | **$41,619** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended March 31, 2024, compared to the same period in 2023 [Overview](index=28&type=section&id=Overview) Maravai LifeSciences is a leading life sciences company providing critical products for drug therapies, diagnostics, vaccines, and research, operating through Nucleic Acid Production and Biologics Safety Testing segments - Maravai LifeSciences provides critical products for biopharmaceutical development, including complex nucleic acids and antibody-based products[129](index=129&type=chunk) - The company's strategy involves acquiring businesses and accelerating their growth through capital infusions and industry expertise[130](index=130&type=chunk) - Revenue for Q1 2024 was **$64.2 million**, with Nucleic Acid Production at **$46.0 million** and Biologics Safety Testing at **$18.2 million**[133](index=133&type=chunk) - Selling, general and administrative expenses were **$40.9 million**, and research and development expenses were **$5.0 million** for Q1 2024[134](index=134&type=chunk)[135](index=135&type=chunk) [Trends and Uncertainties](index=29&type=section&id=Trends%20and%20Uncertainties) The company faces headwinds from lower investment in early-stage biotechnology and declines in capital markets, leading to reduced R&D spending, alongside economic contraction in Asia impacting revenue - Recent industry trends, including lower investment in early-stage biotechnology and capital market declines, are causing a reduction in R&D spending[136](index=136&type=chunk) - Economic contraction in Asia, especially China, is negatively impacting revenue from those markets[137](index=137&type=chunk) [How We Assess Our Business](index=29&type=section&id=How%20We%20Assess%20Our%20Business) The company assesses its business performance using revenue and non-GAAP measures like Adjusted EBITDA and Adjusted Free Cash Flow, which exclude certain non-cash and non-recurring items for a clearer view of core operating performance - Key measures for assessing business performance are revenue and Adjusted EBITDA[138](index=138&type=chunk) - Adjusted EBITDA is defined as net loss adjusted for interest, taxes, depreciation, amortization, and stock-based compensation, plus other non-cash and non-recurring items[139](index=139&type=chunk) - Adjusted Free Cash Flow is defined as Adjusted EBITDA less capital expenditures[139](index=139&type=chunk) - Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures and have limitations, not reflecting all expenditures, working capital changes, or income taxes[141](index=141&type=chunk)[142](index=142&type=chunk) [Components of Results of Operations](index=30&type=section&id=Components%20of%20Results%20of%20Operations) This section details the components of the company's results of operations, including revenue from Nucleic Acid Production and Biologics Safety Testing, cost of revenue, and operating expenses such as SG&A and R&D - Revenue is generated from two segments: Nucleic Acid Production (highly modified nucleic acids) and Biologics Safety Testing (biologics safety and impurity tests, assay development services)[144](index=144&type=chunk)[145](index=145&type=chunk) - Cost of revenue includes manufacturing costs, personnel, materials, labor, overhead, packaging, delivery, and allocated facilities/IT costs[146](index=146&type=chunk) - Selling, general and administrative expenses cover commercial sales, marketing, executive, finance, legal, HR functions, professional services, and allocated costs[147](index=147&type=chunk) - Research and development costs include salaries, benefits, contracted services, supplies, and allocated facilities costs[149](index=149&type=chunk) - Restructuring costs for Q1 2024 primarily reflect a stock-based compensation benefit from forfeited awards due to the Cost Realignment Plan[151](index=151&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) For Q1 2024, total revenue decreased by **18.8%** to **$64.2 million**, primarily due to a **25.1%** decrease in Nucleic Acid Production revenue, leading to a net loss of **$22.7 million**, a significant increase from the prior year Consolidated Results of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (%) | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Revenue | $64,179 | $79,025 | (18.8)% | | Total operating expenses | $83,040 | $76,492 | 8.6% | | (Loss) income from operations | $(18,861) | $2,533 | (844.6)% | | Loss before income taxes | $(22,409) | $(4,523) | 395.4% | | Net loss | $(22,680) | $(1,348) | 1582.5% | | Net loss attributable to Maravai LifeSciences Holdings, Inc. | $(12,078) | $(67) | * | | Net loss per Class A common share, basic and diluted | $(0.09) | $0.00 | | Revenue by Segment (in thousands, except percentages) | Segment | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (%) | 2024 % of Revenue | 2023 % of Revenue | | :------------------------ | :-------------------------------- | :-------------------------------- | :--------- | :---------------- | :---------------- | | Nucleic Acid Production | $46,016 | $61,451 | (25.1)% | 71.7% | 77.8% | | Biologics Safety Testing | $18,163 | $17,574 | 3.4% | 28.3% | 22.2% | | **Total revenue** | **$64,179** | **$79,025** | **(18.8)%**| **100.0%** | **100.0%** | - The decrease in Nucleic Acid Production revenue was primarily due to lower demand for CleanCap analogs from COVID-19 vaccine manufacturers and non-recurring large GMP services projects[162](index=162&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA for Q1 2024 was **$7.8 million**, a significant decrease from **$23.8 million** in the prior year, and Adjusted Free Cash Flow also decreased substantially to **$3.6 million** from **$22.7 million** Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(22,680) | $(1,348) | | Add: Amortization | 6,869 | 6,765 | | Depreciation | 4,786 | 2,080 | | Interest expense | 10,864 | 11,833 | | Interest income | $(7,210) | $(6,045) | | Income tax expense (benefit) | 271 | $(3,175) | | EBITDA | $(7,100) | $10,110 | | Acquisition integration costs | 2,498 | 2,464 | | Stock-based compensation | 12,057 | 5,987 | | Merger and acquisition related expenses | 30 | 3,291 | | Acquisition related tax adjustment | $(113) | $(173) | | Tax Receivable Agreement liability adjustment | — | 1,436 | | Restructuring costs | 19 | — | | Other | 404 | 683 | | **Adjusted EBITDA** | **$7,795** | **$23,798** | Adjusted Free Cash Flow (in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------ | :-------------------------------- | :-------------------------------- | | Adjusted EBITDA | $7,795 | $23,798 | | Capital expenditures | $(4,244) | $(1,145) | | **Adjusted Free Cash Flow** | **$3,551** | **$22,653** | [Operating Expenses](index=36&type=section&id=Operating%20Expenses) Total operating expenses increased by **8.6%** to **$83.0 million** for Q1 2024, driven by a **13.8%** increase in cost of revenue and higher SG&A and R&D expenses Operating Expenses (in thousands, except percentages) | Expense Category | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (%) | 2024 % of Revenue | 2023 % of Revenue | | :------------------------ | :-------------------------------- | :-------------------------------- | :--------- | :---------------- | :---------------- | | Cost of revenue | $38,335 | $33,676 | 13.8% | 59.7% | 42.6% | | Selling, general and administrative | $40,885 | $38,671 | 5.7% | 63.7% | 48.9% | | Research and development | $5,032 | $4,145 | 21.4% | 7.9% | 5.3% | | Restructuring | $(1,212) | — | * | (1.9)% | —% | | **Total operating expenses** | **$83,040** | **$76,492** | **8.6%** | **129.4%** | **96.8%** | - Cost of revenue increased by **$4.7 million**, or **13.8%**, primarily due to lower direct labor and overhead expense absorption, increased supplies and materials, and higher facilities costs[175](index=175&type=chunk) - Selling, general and administrative expenses increased by **$2.2 million**, or **5.7%**, driven by higher stock-based compensation (**$4.4 million**) and depreciation (**$2.5 million**), partially offset by lower professional service fees and personnel costs[177](index=177&type=chunk) - Research and development expenses increased by **$0.9 million**, or **21.4%**, mainly due to higher professional service fees for external analytic studies and increased personnel costs[178](index=178&type=chunk)[180](index=180&type=chunk) [Other Income (Expense)](index=38&type=section&id=Other%20Income%20(Expense)) Total other expense decreased by **49.7%** to **$3.5 million** for Q1 2024, primarily due to the absence of a Tax Receivable Agreement liability adjustment, a **$1.2 million** increase in interest income, and a **$1.0 million** decrease in interest expense Other Income (Expense) (in thousands, except percentages) | Category | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (%) | 2024 % of Revenue | 2023 % of Revenue | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | :---------------- | :---------------- | | Interest expense | $(10,864) | $(11,833) | (8.2)% | (16.9)% | (15.0)% | | Interest income | $7,210 | $6,045 | 19.3% | 11.2% | 7.7% | | Change in payable to related parties pursuant to the Tax Receivable Agreement | — | $(1,436) | * | —% | (1.8)% | | Other income | $106 | $168 | (36.9)% | 0.2% | 0.2% | | **Total other expense** | **$(3,548)** | **$(7,056)** | **(49.7)%**| **(5.5)%** | **(8.9)%** | - The decrease in other expense was primarily due to the absence of a **$1.4 million** Tax Receivable Agreement liability adjustment in the prior year, a **$1.2 million** increase in interest income, and a **$1.0 million** decrease in interest expense[182](index=182&type=chunk) [Relationship with GTCR, LLC ("GTCR")](index=38&type=section&id=Relationship%20with%20GTCR%2C%20LLC%20(%22GTCR%22)) Investment entities affiliated with GTCR, LLC control approximately **56%** of the company's voting power and are party to a Tax Receivable Agreement (TRA) with a current liability of **$7.1 million** - GTCR-affiliated entities control approximately **56%** of the company's common stock voting power[183](index=183&type=chunk) - The company is party to a Tax Receivable Agreement (TRA) with MLSH 1 and MLSH 2, requiring payment of **85%** of certain tax benefits[185](index=185&type=chunk) - As of March 31, 2024, the current TRA liability was **$7.1 million**[186](index=186&type=chunk) - The non-current TRA liability of **$665.3 million** was derecognized as of December 31, 2023, as it was not probable that the company would realize the remaining tax benefits[187](index=187&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company had **$561.7 million** in cash and cash equivalents but reported a net loss of **$22.7 million** and negative cash flow from operations of **$8.5 million**, though existing resources are expected to be sufficient for future needs - As of March 31, 2024, cash and cash equivalents were **$561.7 million**, with retained earnings of **$273.7 million**[189](index=189&type=chunk) - The company reported a net loss of **$22.7 million** and negative cash flow from operations of **$8.5 million** for Q1 2024[189](index=189&type=chunk) - Existing cash, operational cash flow, and credit facilities are expected to be sufficient to satisfy cash requirements over the next **12 months** and beyond[191](index=191&type=chunk) - The company's Credit Agreement includes a **$600.0 million** Term Loan and a **$180.0 million** Revolving Credit Facility, with an interest rate of **8.31%** on the Term Loan as of March 31, 2024[197](index=197&type=chunk) - The current liability under the TRA was **$7.1 million** as of March 31, 2024, with the non-current portion of **$665.3 million** derecognized due to the improbability of realizing future tax benefits[192](index=192&type=chunk)[206](index=206&type=chunk) Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------- | :-------------------------------- | :-------------------------------- | | Operating activities | $(8,467) | $85,074 | | Investing activities | $(4,244) | $(69,730) | | Financing activities | $(560) | $(19,209) | | **Net decrease in cash and cash equivalents** | **$(13,271)** | **$(3,865)** | [Contractual Obligations and Commitments](index=42&type=section&id=Contractual%20Obligations%20and%20Commitments) As of March 31, 2024, the company's total contractual obligations and commitments amounted to **$639.1 million**, primarily debt obligations (**$531.8 million**), operating leases (**$63.0 million**), and finance leases (**$33.7 million**), with a current TRA payment of **$7.1 million** due within one year Contractual Obligations and Commitments as of March 31, 2024 (in thousands) | Obligation | Total (in thousands) | 1 year (in thousands) | 2 - 3 years (in thousands) | 4 - 5 years (in thousands) | 5+ years (in thousands) | | :------------------------ | :------ | :----- | :---------- | :---------- | :------- | | Operating leases | $62,996 | $10,313 | $19,962 | $17,311 | $15,410 | | Finance leases | $33,693 | $3,352 | $7,008 | $7,435 | $15,898 | | Debt obligations | $531,760| $5,440 | $10,880 | $515,440 | — | | TRA payments | $7,069 | $7,069 | — | — | — | | Unconditional purchase obligations | $3,585 | $3,585 | — | — | — | | **Total** | **$639,103**| **$29,759**| **$37,850** | **$540,186**| **$31,308**| - Contingent consideration of up to **$75.0 million** for the Alphazyme acquisition is not included in the table due to uncertainty regarding target achievement and payment timing[220](index=220&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements rely on significant estimates for right-of-use assets, lease liabilities, TRA payable, deferred tax assets, and valuation of goodwill and intangible assets, with no material changes since the 2023 Annual Report - Significant estimates include the measurement of right-of-use assets and lease liabilities, the payable to related parties pursuant to the Tax Receivable Agreement, the realizability of net deferred tax assets, and the valuation of goodwill and intangible assets[39](index=39&type=chunk) - No material changes to critical accounting policies or estimates have occurred since the Annual Report on Form 10-K for the fiscal year ended December 31, 2023[223](index=223&type=chunk) [Recent Accounting Pronouncements](index=43&type=section&id=Recent%20Accounting%20Pronouncements) The company is evaluating the impact of recently issued accounting pronouncements, ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes), on its consolidated financial statements and disclosures - ASU 2023-07 (Segment Reporting) improves segment disclosure requirements, effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024[75](index=75&type=chunk)[77](index=77&type=chunk) - ASU 2023-09 (Income Taxes) improves income tax disclosures, effective for annual periods beginning after December 15, 2024[78](index=78&type=chunk) - The company is currently evaluating the impact of adopting these new standards[77](index=77&type=chunk)[78](index=78&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk on its variable rate long-term debt and foreign currency risk, with an interest rate cap agreement hedging a portion of the interest rate risk [Interest Rate Risk](index=43&type=section&id=Interest%20Rate%20Risk) The company is exposed to interest rate risk from its variable rate long-term debt, with **$531.8 million** outstanding as of March 31, 2024, partially mitigated by an interest rate cap agreement - Primary exposure to interest rate risk is from variable rate long-term debt, with **$531.8 million** outstanding as of March 31, 2024[225](index=225&type=chunk)[227](index=227&type=chunk) - An interest rate cap agreement with a **$500.0 million** notional amount is in place to hedge a portion of this risk, expiring January 19, 2025[226](index=226&type=chunk) - A hypothetical **100 basis point** increase or decrease in interest rates would change interest expense by approximately **$1.3 million** for the three months ended March 31, 2024[227](index=227&type=chunk) [Foreign Currency Risk](index=43&type=section&id=Foreign%20Currency%20Risk) All of the company's revenue and most expenses are denominated in U.S. dollars, limiting current foreign currency risk, despite **48%** of Q1 2024 revenue being international - All revenue is denominated in U.S. dollars, even though approximately **48.0%** of Q1 2024 revenue was from international sales[229](index=229&type=chunk) - The majority of expenses are denominated in U.S. dollars, limiting current foreign currency exchange rate fluctuations[229](index=229&type=chunk) - The company has not entered into any hedging arrangements for foreign currency risk but will reassess as international operations expand[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of the company's disclosure controls and procedures as of March 31, 2024, concluding they were effective, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 31, 2024[230](index=230&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended March 31, 2024[231](index=231&type=chunk) [PART II - OTHER INFORMATION](index=45&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part contains other information including legal proceedings, risk factors, sales of equity securities, defaults, other information, exhibits, and signatures [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its business, operating results, cash flows, or financial condition - The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition[234](index=234&type=chunk) - Litigation can have an adverse impact due to defense and settlement costs, and diversion of management resources[234](index=234&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[235](index=235&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - No unregistered sales of equity securities[236](index=236&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - No defaults upon senior securities[237](index=237&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) Kurt Oreshack, Executive Vice President, General Counsel and Secretary, adopted a Rule 10b5-1 trading plan on March 1, 2024, for the sale of up to **25,000 shares** of Class A common stock by February 28, 2025 - Kurt Oreshack adopted a Rule 10b5-1 trading plan on March 1, 2024, to sell up to **25,000 shares** of Class A common stock by February 28, 2025[238](index=238&type=chunk) - No other directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2024[239](index=239&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, equity grant notices, employment agreements, CEO/CFO certifications, and XBRL interactive data files - Exhibits include organizational documents (Amended and Restated Certificate of Incorporation, Bylaws), equity grant notices, employment agreements, CEO/CFO certifications (Sarbanes-Oxley Act Section 302 and 18 U.S.C. Section 1350), and XBRL interactive data files[241](index=241&type=chunk) [Signatures](index=47&type=section&id=Signatures) The Quarterly Report on Form 10-Q was duly signed on behalf of Maravai LifeSciences Holdings, Inc. by Kevin Herde, Chief Financial Officer, on May 9, 2024 - The report was signed by Kevin Herde, Chief Financial Officer, on

Financial Performance - Q1 2024 revenue reached $64 million[23] - Nucleic Acid Production (NAP) revenue was $46 million, representing 72% of total revenue[11, 57] - Biologics Safety Testing (BST) revenue was $18 million, accounting for 28% of total revenue[29, 77] - Adjusted EBITDA for Q1 2024 was $8 million[6] - The company reported a GAAP Net Loss of $23 million[37] - Adjusted loss per share was $(0.02)[11] Financial Position - The company holds a strong cash position of $562 million[13] - Net cash stands at $30 million[13] - Long-term debt is $532 million[30] - Adjusted Free Cash Flow was $4 million in Q1 2024[30, 75] Innovation and Expansion - The company is expanding resources to build credibility and long-term opportunity, including mRNA catalog refresh with 21 new products[15] - Cygnus Technologies kits are now used in all 21 FDA-approved CAR-T Cell and Gene Therapies for lot release[41]

Exhibit 99.1 MARAVAI LIFESCIENCES REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS Continued Focus on Product Portfolio Expansion, Market Leadership and Scientific Innovation SAN DIEGO, Calif., — May 8, 2024 — Maravai LifeSciences Holdings, Inc. (Maravai) (NASDAQ: MRVI), a global provider of life science reagents and services to researchers and biotech innovators, today reported financial results for the first quarter ended March 31, 2024, together with other business updates. Financial Highlights: Partnerships ...