Maravai LifeSciences(MRVI) - 2024 Q2 - Quarterly Report

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]