Source - LSE Regulatory
RNS Number : 8496S
MaxCyte, Inc.
09 November 2023
 

 

 

 

 

MaxCyte Reports Third Quarter 2023 Financial Results and Reiterates Full Year 2023 Revenue Guidance

 

ROCKVILLE, MD, November 9, 2023 Ñ MaxCyte, Inc., (NASDAQ: MXCT; LSE: MXCT), a leading, cell-engineering focused company providing enabling platform technologies to advance the discovery, development and commercialization of next-generation cell therapeutics and innovative bioprocessing applications, today announced financial results for the third quarter ended September 30, 2023.

 

Third Quarter and Recent Highlights

á    Total revenue of $8.0 million in the third quarter of 2023, a decrease of 25% compared to the third quarter of 2022.

á    Core business revenue of $6.6 million in the third quarter of 2023, a decrease of 33% compared to the third quarter of 2022.

á    SPL Program-related revenue of $1.4 million in the third quarter of 2023, compared to $0.8 million in the third quarter of 2022.

á    Gross profit of $7.2 million (90% gross margin), compared to $9.3 million (87% gross margin) in the third quarter of 2022.

á    Full year 2023 revenue guidance of approximately $34-$36 million total revenue and approximately $28-$30 million of core revenue, and SPL Program-related revenue of approximately $6 million, all consistent with guidance previously provided on October 4th.

á    Total cash, cash equivalents and investments were $208.7 million as of September 30, 2023.

á    We continue to expect to end the year with approximately $200 million in cash, cash equivalents and investments, which would be unchanged from our initial outlook at the beginning of the year.

 

ÒMaxCyteÕs third quarter revenue was at the higher end of our preliminary revenue range we announced in October. We continue to evaluate and address the industry challenges we have seen throughout 2023, with performance in-line with the revised guidance that we provided last month. Customers, particularly early-stage customers, continue to reprioritize their spend and operate with more cautionÑan operating environment we expect to persist at least through the remainder of 2023,Ó said Doug Doerfler, President and Chief Executive Officer at MaxCyte.

 

ÒDespite these challenges, we believe that the long-term opportunity for the cell and gene therapy market is robust and continue to make targeted investments that support the industry and our partners in their development of high-potential complex cell therapies through the clinical and commercial stages. This includes further expansion of gene-editing modalities and indications such as autoimmune disease, solid tumors, and rare diseases. We are proud of our partnersÕ progress and success thus far and we look forward to cell therapies supported by MaxCyteÕs platform entering the market in the near, medium, and long term. Importantly, we remain confident in our ability to expand our partnership portfolio and support the market in enabling a growing set of next-generation cell therapies.  We are also excited about the prospects of the VLx platform and expanding our market opportunity into bioprocessing applications including rapid large-scale transiently expressed protein production for preclinical and early clinical use.Ó

 

The following table provides details regarding the sources of our revenue for the periods presented.




















 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 


 

September 30,

 

 

 

September 30,

 

 

 


    

2023

    

2022

 

%

 

2023

 

2022

 

%

 

(in thousands, except percentages)



  



  





  



  




Cell therapy


$

 4,701


$

 7,898


(40%)


$

17,311



23,002


(25%)


Drug discovery



 1,900



 1,991


(5%)



5,350



6,074


(12%)


Program-related



 1,404



 754


86%



2,962



2,762


7%


Total revenue


$

 8,005


$

10,643


(25%)



$ 25,623



$31,838


(20%)


 

Third Quarter 2023 Financial Results

 

Total revenue for the third quarter of 2023 was $8.0 million, compared to $10.6 million in the third quarter of 2022, representing a decline of 25%.

 

Core business revenue (sales and leases of instrument and disposables to cell therapy and drug discovery customers, excluding SPL Program-related revenue) for the third quarter of 2023 was $6.6 million, compared to $9.9 million in the third quarter of 2022, representing a decline of 33%.

 

Cell therapy revenue for the third quarter of 2023 was $4.7 million, compared to $7.9 million in the third quarter of 2022, representing a decline of 40%. Drug discovery revenue for the third quarter of 2023 was $1.9 million, compared to $2.0 million in the third quarter of 2022, representing a decline of 5%.

 

Strategic Platform License (SPL) Program-related revenue was $1.4 million in the third quarter of 2023, as compared to $0.8 million in the third quarter of 2022.

 

Gross profit for the third quarter of 2023 was $7.2 million (90% gross margin), compared to $9.3 million (87% gross margin) in the third quarter of 2022.

 

Operating expenses for the third quarter of 2023 were $21.2 million, compared to operating expenses of $17.0 million in the third quarter of 2022.

 

Third quarter 2023 net loss was $11.3 million compared to net loss of $6.4 million for the same period in 2022. EBITDA, a non-GAAP measure, was a loss of $12.9 million for the third quarter of 2023, compared to a loss of $7.1 million for the third quarter of 2022. Stock-based compensation expense was $3.6 million for the third quarter versus $3.2 million for the third quarter of 2022.

 

2023 Revenue Guidance

á    Total revenue expected to be approximately $34 - 36 million for the year.

á    Core revenue expected to be approximately $28 - 30 million for the year.

á    SPL Program-related revenue expected to be approximately $6 million for the year.

 

Webcast and Conference Call Details

 

MaxCyte will host a conference call today, November 8, 2023, at 4:30 p.m. Eastern Time. Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the ÒEventsÓ section of the MaxCyte website at https://investors.maxcyte.com/.

 

About MaxCyte

 

At MaxCyte, we pursue cell engineering excellence to maximize the potential of cells to improve patientsÕ lives. We have spent more than 20 years honing our expertise by building best-in-class platforms, perfecting the art of the transfection workflow, and venturing beyond todayÕs processes to innovate tomorrowÕs solutions. Our ExPERTª platform, which is based on our Flow Electroporation¨ technology, has been designed to support the rapidly expanding cell therapy market and can be utilized across the continuum of the high-growth cell therapy sector, from discovery and development through commercialization of next-generation, cell-based medicines. The ExPERT family of products includes: four instruments, the ATxª, STxª, GTxª and VLxª; a portfolio of proprietary related processing assemblies or disposables; and software protocols, all supported by a robust worldwide intellectual property portfolio. By providing our partners with the right technology platform, as well as scientific, technical, and regulatory support, we aim to guide them on their journey to transform human health. Learn more at maxcyte.com and follow us on Twitter and LinkedIn.

 

Non-GAAP Financial Measures

 

This press release contains EBITDA, which is a non-GAAP measure defined as earnings, before interest, tax, depreciation and amortization.  MaxCyte believes that EBITDA provides useful information to management and investors relating to its results of operations. The companyÕs management uses this non-GAAP measure to compare the companyÕs performance to that of prior periods for trend analyses, and for budgeting and planning purposes. The company believes that the use of EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the companyÕs financial measures with other companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making.

 

Management does not consider EBITDA in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of EBITDA is that it excludes significant expenses that are required by GAAP to be recorded in the companyÕs financial statements. In order to compensate for these limitations, management presents EBITDA together with GAAP results. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.  A reconciliation table of net loss, the most comparable GAAP financial measure, to EBITDA is included at the end of this release. MaxCyte urges investors to review the reconciliation and not to rely on any single financial measure to evaluate the companyÕs business.

 

Forward-Looking Statements

 

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding expected total revenue, core business revenue and SPL Program-related revenue for the year ending December 31, 2023, cash resources and investments at the end of 2023, reduced spend in the near term from early-stage customers, longer-term growth of the cell therapy industry, expansion of the companyÕs platform into bioprocessing applications, expansion of and revenue from our SPLs and the progression of our customersÕ programs into and through clinical trials and into commercialization. The words "may," Òmight,Ó "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," Òexpect,Ó "estimate," Òseek,Ó "predict," Òfuture,Ó "project," Òprospect,Ó "potential," "continue," "target" and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, risks associated with the timing and outcome of our customersÕ ongoing and planned clinical trials; the adequacy of our cash resources and availability of financing on commercially reasonable terms; general market and economic conditions that may impact investor confidence in the biopharmaceutical industry and affect the amount of capital such investors provide to our current and potential partners; and market acceptance and demand for our technology and products. These and other risks and uncertainties are described in greater detail in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on  March 15, 2023, as well as in discussions of potential risks, uncertainties, and other important factors in our most recent Quarterly report on Form 10-Q and the other filings that we make with the Securities and Exchange Commission from time to time. These documents are available through the Investor Menu, Financials section, under ÒSEC FilingsÓ on the Investors page of our website at http://investors.maxcyte.com. Any forward-looking statements represent our views only as of the date of this press release and should not be relied upon as representing our views as of any subsequent date. We explicitly disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

 

MaxCyte Contacts:

 

US IR Adviser 

Gilmartin Group 

David Deuchler, CFA 

+1 415-937-5400 

ir@maxcyte.com 

 

US Media Relations

Seismic

Valerie Enes

 

Nominated Adviser and Joint Corporate Broker 

Panmure Gordon 

Emma Earl / Freddy Crossley 

Corporate Broking 

Rupert Dearden 

 

+1 408-497-8568

 

 

 

+44 (0)20 7886 2500 

UK IR Adviser

ICR Consilium

Mary-Jane Elliott

Chris Welsh

 

 

+44 (0)203 709 5700

maxcyte@consilium-comms.com

 

 

 

 

 

MaxCyte, Inc.

Unaudited Consolidated Balance Sheets

 

 

September 30, 

 

December 31, 

 

    

2023

    

2022

 

 

 

(Unaudited)




Assets







Current assets:



  



  

Cash and cash equivalents


$

 49,170,300


$

 11,064,700

Short-term investments, at amortized cost



141,070,100



 216,274,900

Accounts receivable, net



8,166,700



 11,654,600

Accounts receivable Ð TIA*



Ñ



 1,912,400

Inventory



12,532,800



 8,580,800

Prepaid expenses and other current assets



3,399,500



 2,778,800

Total current assets



 214,339,400



 252,266,200

 



 



 

Investments, non-current, at amortized cost



  18,428,700 



Ñ

Property and equipment, net



23,771,800



 23,724,700

Right-of-use asset - operating leases



9,567,800



 9,853,500

Other assets



 619,400



809,000

Total assets


$

 266,727,100


$

 286,653,400

 


 

 


 

 

Liabilities and stockholdersÕ equity



  



  

Current liabilities:



  



  

Accounts payable


$

446,600


$

 531,800

Accrued expenses and other



9,917,600



 8,025,300

Operating lease liability, current



698,700



 156,800

Deferred revenue, current portion



5,585,900



 6,712,600

Total current liabilities



 16,648,800



 15,426,500

 



 



 

Operating lease liability, net of current portion



15,383,400



 15,938,100

Other liabilities



1,318,400



 1,321,600

Total liabilities



 33,350,600



 32,686,200

 



 



 

StockholdersÕ equity



  



  

Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares issued and outstanding at September 30, 2023 and December 31, 2022



 Ñ



 Ñ

Common stock, $0.01 par value; 400,000,000 shares authorized, 103,548,943 and 102,397,913 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively



1,035,500



 1,024,000

Additional paid-in capital



402,861,500



 390,818,500

Accumulated deficit



 (170,520,500)



 (137,875,300)

Total stockholdersÕ equity



 233,376,500



 253,967,200

Total liabilities and stockholdersÕ equity


$

 266,727,100


$

 286,653,400

* Tenant improvement allowance (ÒTIAÓ)

 

 

MaxCyte, Inc.

Unaudited Consolidated Statements of Operations

 

 



Three Months Ended September 30,

 

Nine Months Ended September 30,

 


2023

 

2022

 

2023

 

2022

Revenue


$

      8,004,500


$

   10,642,800


$

   25,623,400


$

  31,837,900

Cost of goods sold



       793,400



   1,368,900



   3,168,900



    3,551,900

Gross profit


 

     7,211,100


 

9,273,900


 

22,454,500


 

28,286,000

 













Operating expenses:



   



   



   



   

Research and development



    6,264,100



    5,325,100



  17,974,900



   13,786,400

Sales and marketing



    7,046,900



     4,506,700



   19,779,100



    13,276,000

General and administrative



6,820,300



6,444,400



21,981,700



   20,179,600

Depreciation and amortization



     1,032,500



         709,800



     2,922,100



     1,654,300

Total operating expenses

 

 

 21,163,800

 

 

   16,986,000

 

 

   62,657,800

 

 

   48,896,300

Operating loss


 

(13,952,700)


 

 (7,712,100)


 

 (40,203,300)


 

(20,610,300)

 













Other income:



   



   







Other expense



           Ñ



  (116,000)



             Ñ



       (116,000)

Interest income



  2,700,900



     1,394,400



     7,558,100



      1,964,900

Total other income

 

 

     2,700,900

 

 

     1,278,400

 

 

     7,558,100

 

 

     1,848,900

Net loss


$

 (11,251,800)


$

  (6,433,700)


$

(32,645,200)


$

 (18,761,400)

Basic and diluted net loss per share

 

$

      (0.11)

 

$

       (0.06)

 

$

        (0.32)

 

$

           (0.18)

Weighted average shares outstanding,
basic and diluted


 

103,449,715


 

101,806,173


 

103,121,997


 

101,555,065

 

 



 

MaxCyte, Inc.

Unaudited Consolidated Statements of Cash Flows

 



Nine Months Ended September 30,

 


2023

 

2022

Cash flows from operating activities:



  



  

Net loss


$

 (32,645,200)


$

 (18,761,400)








Adjustments to reconcile net loss to net cash used in operating activities:







Depreciation and amortization



    3,069,300



      1,778,300

Net book value of consigned equipment sold



          80,000



             61,900

Loss on disposal of fixed assets



              2,600



         128,600

Stock-based compensation


10,404,500


       8,633,800

Bad debt expense



          221,000



 Ñ

Amortization of discounts on investments


    (5,123,300)


    (1,158,400)








Changes in operating assets and liabilities:





Accounts receivable



   3,266,900



       (556,800)

Accounts receivable - TIA


  1,912,400


       (775,000)

Inventory



  (4,087,600)



    (2,880,700)

Prepaid expense and other current assets


      (620,700)


            31,800

Right-of-use asset Ð operating leases



      285,700



    (4,263,000)

Other assets


     189,600

  

       (873,100)

Accounts payable, accrued expenses and other



   1,519,800



      1,156,100

Operating lease liability


         (12,800)


      9,341,900

Deferred revenue



   (1,126,700)



       (455,000)

Other liabilities



           (3,200)



       (105,600)

Net cash used in operating activities



 (22,667,700)



    (8,696,600)






Cash flows from investing activities:



   



   

Purchases of investments


(185,620,600)


(213,541,400)

Maturities of investments



 247,520,000



  232,096,000

Purchases of property and equipment


   (2,785,200)


 (16,282,600)

Proceeds from sale of equipment



              9,100



 Ñ

Net cash provided by investing activities



 59,123,300



       2,272,000








Cash flows from financing activities:


   


   

Proceeds from exercise of stock options



   1,650,000



      1,662,500

Net cash provided by financing activities



    1,650,000



      1,662,500

Net increase (decrease) in cash and cash equivalents



38,105,600



    (4,762,100)

Cash and cash equivalents, beginning of period



11,064,700



    47,782,400

Cash and cash equivalents, end of period


$

 49,170,300


$

43,020,300

Unaudited Reconciliation of GAAP Net Loss to Non-GAAP EBITDA

 

 















Three Months Ended

 

Nine Months Ended



September 30,

 

September 30,



2023

    

2022

    

2023

    

2022


(in thousands)


  



  



  



  


Net loss (GAAP)

$

(11,252)


$

(6,434)


$

(32,645)


$

(18,761)


Depreciation and amortization expense


1,081



 743



 3,069



 1,778


Interest income


 (2,701)



 (1,394)



 (7,558)



 (1,965)


Income taxes


 Ñ



 Ñ



 Ñ



 Ñ


EBITDA (Non-GAAP)

$

(12,871)


$

 (7,085)


$

(37,134)


$

(18,948)


 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
QRTDVLFBXFLLFBX
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJBell logo

Related Charts

Maxcyte INC (MXCT)

+5.00p (+1.39%)
delayed 17:43PM