Maravai LifeSciences(US:MRVI)2025-05-12 20:28Revenue Performance - Revenue for the three months ended March 31, 2025, was $46,850,000, a decrease of 27% compared to $64,179,000 for the same period in 2024[19] - Total revenue for the three months ended March 31, 2025, was $46.85 million, a decrease of 27% compared to $64.18 million for the same period in 2024[53][54] - Nucleic Acid Production revenue was $28.75 million, down 37% from $46.02 million in the prior year, while Biologics Safety Testing revenue was $18.10 million, a decrease of 0.35% from $18.16 million[53][54] - North America contributed $29.27 million to total revenue in Q1 2025, representing 62.4% of total revenue, compared to $33.37 million or 51.9% in Q1 2024[53][54] - Revenue from the Nucleic Acid Production segment was $28.8 million, while Biologics Safety Testing generated $18.1 million for the three months ended March 31, 2025[163] - Nucleic Acid Production revenue decreased by 37.5% from $46.0 million in Q1 2024 to $28.8 million in Q1 2025, primarily due to reduced demand for high-volume CleanCap products[200] - Biologics Safety Testing revenue remained relatively stable, decreasing slightly by 0.3% from $18.2 million in Q1 2024 to $18.1 million in Q1 2025[201] Financial Losses - The net loss attributable to Maravai LifeSciences Holdings, Inc. for Q1 2025 was $29,945,000, compared to a net loss of $12,078,000 in Q1 2024, representing a significant increase in losses[19] - For the three months ended March 31, 2025, the net loss attributable to Maravai LifeSciences Holdings, Inc. was $29,945,000, compared to a net loss of $12,078,000 for the same period in 2024, representing an increase of 148%[132] - The basic and diluted net loss per Class A common share for the three months ended March 31, 2025, was $(0.21), compared to $(0.09) for the same period in 2024, indicating a decline in per share performance[132] - For the three months ended March 31, 2025, the company reported a net loss of $52.9 million, compared to a net loss of $22.7 million for the same period in 2024[209] Operating Expenses - Total operating expenses increased to $96,012,000 for Q1 2025, up from $83,040,000 in Q1 2024, primarily due to a goodwill impairment of $12,435,000[19] - Total operating expenses increased by 15.6% to $96.0 million in Q1 2025, compared to $83.0 million in Q1 2024[197] - Selling, general and administrative expenses decreased by 3.2% to $39.6 million for the three months ended March 31, 2025, from $40.9 million in 2024[213] - Research and development expenses were $4.9 million for the three months ended March 31, 2025, slightly down from $5.0 million in the same period of 2024[165] - Research and development expenses slightly decreased by 2.9% to $4.9 million for the three months ended March 31, 2025[214] Goodwill and Impairments - The company recorded a goodwill impairment of $12.4 million for the TriLink reporting unit due to lower projected revenues and demand in research and discovery products[94][95] - For the three months ended March 31, 2025, the Company recorded total goodwill impairment of $12.4 million for the TriLink reporting unit within the Nucleic Acid Production segment[63] - The company recorded a goodwill impairment of $12.4 million for the TriLink reporting unit within its Nucleic Acid Production segment during Q1 2025[215] Cash and Assets - Cash and cash equivalents decreased to $285,053,000 as of March 31, 2025, down from $322,399,000 at the end of 2024[17] - The total assets of Maravai LifeSciences Holdings, Inc. were $959,751,000 as of March 31, 2025, a decrease from $1,008,244,000 at the end of 2024[17] - The fair value of money market funds as of March 31, 2025, is $283,530,000, with no Level 2 or Level 3 assets reported[102] Acquisitions - Maravai LifeSciences Holdings, Inc. made cash payments for acquisitions of a business totaling $18,628,000 in Q1 2025[27] - The Company completed the acquisition of assets from Molecular Assemblies for a total purchase consideration of $11.2 million, with $9.2 million paid in cash[77] - In February 2025, the company acquired Officinae Bio's DNA and RNA business for $15.1 million, which includes AI and machine learning capabilities[167] - The total purchase consideration for the acquisition of Officinae Bio was $15.1 million, including $9.9 million in cash and $4.8 million in contingent consideration[84][85] Debt and Liabilities - The total long-term debt as of March 31, 2025, is $294,939,000, down from $295,932,000 as of December 31, 2024[129] - Future principal maturities of the Company's debt obligations total $298,320,000 as of March 31, 2025[130] - The Company has a $600 million term loan facility maturing in October 2027 and a $167 million revolving credit facility maturing in October 2029[121] - The contingent consideration liability related to the acquisition of Alphazyme is $4,800,000 as of March 31, 2025[107] Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was (0.3)%, significantly lower than the U.S. federal statutory income tax rate of 21.0% due to a valuation allowance against deferred tax assets[135] - As of March 31, 2025, the Company had $3.3 million of unrecognized tax benefits, with an expectation to recognize $2.9 million in the next twelve months due to statute expiration[137] - The Company had no current liability under the Tax Receivable Agreement (TRA) as of March 31, 2025, and no payments were made to MLSH 1 or MLSH 2 pursuant to the TRA during the three months ended March 31, 2025[144][146] Segment Performance - Adjusted EBITDA for the Nucleic Acid Production segment was $(8,900,000), while the Biologics Safety Testing segment reported an Adjusted EBITDA of $12,671,000, leading to a total Adjusted EBITDA of $3,771,000[151] - Adjusted EBITDA for the total reportable segments was a loss of $3.8 million in Q1 2025, compared to a profit of $24.0 million in Q1 2024[204] - Adjusted EBITDA for the three months ended March 31, 2025, was $(10.5) million, a decrease from $7.8 million in 2024[209]