MaxCyte(MXCT) - 2024 Q1 - Quarterly Results

Executive Summary & Highlights Summarizes MaxCyte's strong Q1 2024 performance, strategic growth, and CEO insights First Quarter 2024 Highlights MaxCyte reported strong first-quarter 2024 results, with total revenue increasing 32% year-over-year, driven by a significant 292% rise in Strategic Platform License (SPL) Program-related revenue and 5% core business revenue growth. The company also added four new SPL clients year-to-date and maintained a strong cash position Key Revenue Metrics | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total revenue | $11,342 | $8,576 | 32% | | Core business revenue | $8,188 | $7,772 | 5% | | SPL Program-related revenue | $3,154 | $804 | 292% | - Four new SPL clients signed year-to-date, including Be Biopharma, Wugen, Imugene, and Lion TCR, bringing the total number of SPL partners to 27[4][5] - Total cash, cash equivalents and investments were $202.5 million as of March 31, 2024[5] CEO Commentary CEO Maher Masoud expressed satisfaction with the first quarter's strong performance, particularly highlighting the growth in SPL Program-related revenue and core revenue from cell therapy customers. He noted the company's momentum, the signing of four new SPLs, and the continued demand for MaxCyte's differentiated electroporation platform and scientific support - "We are pleased with our first quarter results across the business, which included strong SPL Program-related revenue and 5% year-over-year core revenue growth driven by commercial execution and growth in sales to cell therapy customers"[3] - "MaxCyte has gained momentum since the beginning of the year, with four newly signed SPLs year to date, including the most recent addition of Be Biopharma"[4] - The company continues to see strong demand for its platform and client progress in the clinic, aiming to drive the cell therapy industry forward by providing its differentiated electroporation platform and best-in-class scientific and technical support[4] Financial Performance - First Quarter 2024 Details MaxCyte's Q1 2024 financial results, including revenue, gross profit, operating expenses, and net loss Revenue Analysis MaxCyte's Q1 2024 revenue saw substantial growth, primarily driven by a significant increase in SPL Program-related revenue. Core business revenue also grew, with cell therapy revenue showing a positive trend, while drug discovery revenue remained stable Total Revenue Presents MaxCyte's total revenue for Q1 2024 and Q1 2023, showing significant year-over-year growth Total Revenue Performance | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :----------- | :--------------------- | :--------------------- | :--------- | | Total revenue | $11,342 | $8,576 | 32% | Core Business Revenue Details MaxCyte's core business revenue for Q1 2024 and Q1 2023, indicating steady growth Core Business Revenue Performance | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :------------------ | :--------------------- | :--------------------- | :--------- | | Core business revenue | $8,188 | $7,772 | 5% | Strategic Platform License (SPL) Program-Related Revenue Highlights substantial year-over-year growth in MaxCyte's SPL Program-related revenue for Q1 2024 SPL Program-Related Revenue Performance | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | SPL Program-related revenue | $3,154 | $804 | 292% | Revenue by Customer Type Breaks down MaxCyte's Q1 2024 revenue by customer type, distinguishing cell therapy and drug discovery segments Revenue by Customer Type Breakdown | Customer Type | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :------------ | :--------------------- | :--------------------- | :--------- | | Cell therapy | $6,415 | $5,975 | 7% | | Drug discovery | $1,773 | $1,797 | (1%) | Revenue by Product/Service Type Categorizes MaxCyte's Q1 2024 revenue by product and service types, including instruments, PAs, and leases Revenue by Product and Service Type | Product/Service Type | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :------------------- | :--------------------- | :--------------------- | :--------- | | Instrument | $1,928 | $2,189 | (12%) | | PAs | $3,432 | $2,600 | 32% | | Lease | $2,604 | $2,809 | (7%) | | Other | $224 | $174 | 29% | Gross Profit and Operating Expenses MaxCyte maintained a strong gross margin in Q1 2024, consistent with the prior year, while operating expenses increased due to investments in research and development, and sales and marketing Gross Profit and Operating Expenses Summary | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :-------------------- | :--------------------- | :--------------------- | | Gross profit | $9,939 | $7,576 | | Gross margin | 88% | 88% | | Operating expenses | $22,214 | $20,754 | Net Loss and Non-GAAP EBITDA The company reported a reduced net loss and improved non-GAAP EBITDA loss in Q1 2024 compared to the same period in 2023, indicating a positive trend in profitability metrics Net Loss and Non-GAAP EBITDA Summary | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | | Net loss | $(9,526) | $(10,882) | | EBITDA (non-GAAP) | $(11,164) | $(12,216) | | Stock-based compensation expense | $3,015 | $3,277 | Business Metrics & Strategic Developments Outlines MaxCyte's key operational metrics and strategic advancements, particularly in SPL partnerships and instrument installed base Key Business Metrics MaxCyte's key business metrics show an expanding installed base of instruments and a stable contribution of core revenue from SPL clients, reflecting continued adoption and strategic partnership value Operational Metrics | Metric | March 31, 2024 | March 31, 2023 | | :------------------------------------------ | :------------- | :------------- | | Installed base of instruments (sold or leased) | 708 | 633 | | Core Revenue Generated by SPL Clients as a % of Core Revenue | 53% | 52% | Strategic Platform License (SPL) Partnerships MaxCyte continued to expand its Strategic Platform License partnerships, adding four new clients in the first quarter of 2024, bringing the total number of SPL partners to 27 - Four new SPL clients signed year-to-date in 2024: Be Biopharma (April), Wugen, Imugene, and Lion TCR (January)[4][5] - The total number of SPL partners now stands at 27[5] Financial Guidance & Outlook Provides MaxCyte's financial projections for 2024, including revenue guidance and anticipated cash position 2024 Revenue Guidance MaxCyte affirmed its full-year 2024 core business revenue guidance and increased its guidance for SPL Program-related revenue, excluding any revenue from Vertex/CRISPR's CASGEVY™ - Full year 2024 core business revenue is expected to be flat to 5% growth compared to 2023[13] - SPL Program-related revenue is now expected to be approximately $5 million for the full year 2024[13] - The outlook for the full year does not include SPL Program-related revenue from Vertex/CRISPR's CASGEVY™[13] Cash Position Outlook MaxCyte anticipates ending 2024 with a robust cash position, expecting at least $175 million in total cash, cash equivalents, and investments - MaxCyte expects to end 2024 with at least $175 million in total cash, cash equivalents and investments[14] Company Information & Disclosures Offers background on MaxCyte, non-GAAP definitions, forward-looking statements, and investor contact information About MaxCyte MaxCyte is a cell-engineering focused company providing platform technologies, primarily its ExPERT™ platform based on Flow Electroporation® technology, to advance cell therapeutics from discovery to commercialization. The platform includes instruments, disposables, software, and comprehensive support - MaxCyte is 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[1][16] - The ExPERT™ platform, based on Flow Electroporation® technology, supports the rapidly expanding cell therapy market across discovery, development, and commercialization[16] - The ExPERT family of products includes four instruments (ATx™, STx™, GTx™, VLx™), proprietary processing assemblies, and software protocols, supported by a robust worldwide intellectual property portfolio[16] Non-GAAP Financial Measures This section defines EBITDA as a non-GAAP measure, explaining its use by management and investors for performance comparison and trend analysis. It also clarifies that EBITDA should not be considered in isolation or as a substitute for GAAP results due to its exclusion of significant GAAP expenses - EBITDA is a non-GAAP measure defined as earnings before interest income and expense, taxes, depreciation and amortization[17] - Management uses EBITDA for trend analyses, budgeting, and planning, believing it provides useful information for evaluating ongoing operating results and comparing performance with other companies[17] - EBITDA should not be considered in isolation or as an alternative to GAAP financial measures, as it excludes significant expenses required by GAAP[18] Forward-Looking Statements The press release contains forward-looking statements subject to substantial known and unknown risks, uncertainties, and assumptions, as detailed in the company's Form 10-K. Investors are cautioned not to unduly rely on these statements, and the company undertakes no obligation to update them unless required by law - The press release contains "forward-looking statements" subject to substantial known and unknown risks, uncertainties, and assumptions, including those described in the company's Form 10-K[19][20] - Forward-looking statements include projections for full-year total revenue, core revenue, SPL program revenue, future growth, market potential, customer expansion, and financial performance[19] - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of the press release, except as required by law[22] Investor Relations & Media Contacts Provides contact information for MaxCyte's investor relations and media advisors in both the US and UK, including specific individuals and their contact details - * US IR Adviser: Gilmartin Group, David Deuchler, CFA, +1 415-937-5400, ir@maxcyte.com * US Media Relations: Spectrum Seismic Collaborative, Valerie Enes, +1 408-497-8568, venes@spectrumscience.com * Nominated Adviser and Joint Corporate Broker: Panmure Gordon, Emma Earl / Freddy Crossley, Rupert Dearden, +44 (0)20 7886 2500 * UK IR Adviser: ICR Consilium, Mary-Jane Elliott, Chris Welsh, +44 (0)203 709 5700, maxcyte@consilium-comms.com[23] Condensed Consolidated Financial Statements Presents MaxCyte's unaudited condensed consolidated financial statements for Q1 2024, including balance sheets, statements of operations, cash flows, and non-GAAP reconciliation Condensed Consolidated Balance Sheets The unaudited condensed consolidated balance sheets present MaxCyte's financial position as of March 31, 2024, and December 31, 2023, detailing assets, liabilities, and stockholders' equity. Key changes include a decrease in cash and cash equivalents and an increase in short-term investments Condensed Consolidated Balance Sheet Highlights | (in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------------ | :------------- | :---------------- | | Assets | | | | Cash and cash equivalents | $22,249 | $46,506 | | Short-term investments, at amortized cost | $135,264 | $121,782 | | Total current assets | $178,674 | $190,194 | | Total assets | $257,930 | $268,274 | | Liabilities and stockholders' equity | | | | Total current liabilities | $13,477 | $17,855 | | Total liabilities | $31,571 | $36,107 | | Total stockholders' equity | $226,359 | $232,167 | | Total liabilities and stockholders' equity | $257,930 | $268,274 | Condensed Consolidated Statements of Operations For the three months ended March 31, 2024, MaxCyte reported total revenue of $11.3 million, an increase from $8.6 million in the prior year. The net loss improved to $9.5 million from $10.9 million in Q1 2023, despite an increase in operating expenses Condensed Consolidated Statements of Operations Summary | (in thousands) | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | | Revenue | $11,342 | $8,576 | | Cost of goods sold | $1,403 | $1,000 | | Gross profit | $9,939 | $7,576 | | Operating expenses | $22,214 | $20,754 | | Operating loss | $(12,275) | $(13,178) | | Interest income | $2,749 | $2,296 | | Net loss | $(9,526) | $(10,882) | | Basic and diluted net loss per share | $(0.09) | $(0.11) | Condensed Consolidated Statements of Cash Flows MaxCyte experienced a net decrease in cash and cash equivalents of $24.3 million in Q1 2024, primarily due to net cash used in operating activities ($10.6 million) and investing activities ($14.4 million), which included significant purchases of investments Condensed Consolidated Statements of Cash Flows Summary | (in thousands) | Q1 2024 | Q1 2023 | | :------------------------------------------ | :------ | :------ | | Net cash used in operating activities | $(10,564) | $(4,324) | | Net cash (used in) provided by investing activities | $(14,396) | $29,637 | | Net cash provided by financing activities | $703 | $1,456 | | Net (decrease) increase in cash and cash equivalents | $(24,257) | $26,769 | | Cash and cash equivalents, end of period | $22,249 | $37,833 | Reconciliation of GAAP Net Loss to Non-GAAP EBITDA The reconciliation shows that MaxCyte's non-GAAP EBITDA loss improved to $(11.2) million in Q1 2024 from $(12.2) million in Q1 2023, after adjusting for depreciation and amortization expense and interest income GAAP Net Loss to Non-GAAP EBITDA Reconciliation | (in thousands) | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | | Net loss | $(9,526) | $(10,882) | | Depreciation and amortization expense | $1,111 | $962 | | Interest income | $(2,749) | $(2,296) | | Income taxes | — | — | | EBITDA | $(11,164) | $(12,216) |