Second Quarter and Half-Year Results

MaxCyte, Inc.
10 August 2023
 

 

 

 

 

MaxCyte Reports Second Quarter and Half-Year 2023 Financial Results and Updates Full Year 2023 Guidance

 

ROCKVILLE, MD, August 10, 2023 — MaxCyte, Inc., (NASDAQ: MXCT; LSE: MXCT), a leading commercial cell-engineering company focused on providing enabling platform technologies to advance innovative cell-based research as well as next-generation cell therapeutic discovery, development and commercialization, today announced financial results for the second quarter and six months ended June 30, 2023.

 

Second Quarter and Recent Highlights

á    Total revenue of $9.0 million in the second quarter of 2023, a decrease of 6% compared to the second quarter of 2022.

á    Core business revenue of $8.3 million in the second quarter of 2023, a decrease of 14% compared to the second quarter of 2022.

á    We now expect core revenue for 2023 to be comparable to 2022 and Strategic Platform License ("SPL") program-related revenue expectations remain unchanged at approximately $6 million for the year.

á    Five SPL partnerships signed year-to-date. Lyell Immunopharma and ViTToria Biotherapeutics announced in July, and Prime Medicine announced in August. The total number of SPL partnerships now stands at 23.

á    Total cash, cash equivalents and short-term investments were $216.1 million as of June 30, 2023.

 

"2023 has been a challenging year across the life sciences industry. An evolving funding environment continues to result in the prioritization of internal pipeline assets by companies, impacting the timing of research and early clinical development projects. Despite this, we remain positive on our ability to successfully deliver on our long-term financial and strategic goals and are encouraged by our continued momentum in signing new clinical partnerships. We believe these partnerships reflect the value of MaxCyteÕs premier cell engineering technology and support, underlining the key role we play in enabling a growing set of next-generation cell therapies," said Doug Doerfler, President and Chief Executive Officer at MaxCyte.

 

"So far this year MaxCyte has signed five strategic partnerships, bringing the total number to 23. Our most recently signed partnerships highlight our expansion into autologous modalities across a range of indications including genetic diseases, lymphoma, and solid tumors. Moving forward, we will continue to make the necessary investments into key aspects of our technology and support offering, including our applications lab, and process development capabilities, which we believe enable us to provide invaluable support to our partners as they advance through the clinic and towards commercialization."

 

 

 

 

 

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




















 

Three Months Ended

 

 

 

Six Months Ended

 

 

 


 

June 30,

 

 

 

June 30,

 

 

 


    

2023

    

2022

 

%

 

2023

    

2022

 

%

 

(in thousands, except percentages)



  



  





  



  




Cell therapy


$

 6,637


$

 7,688


(14%)


$

 12,611


$

 15,104


(17%)


Drug discovery



 1,652



 1,916


(14%)



 3,450



 4,083


(16%)


Program-related



 754



 4


NM



 1,558



 2,008


(22%)


Total revenue


$

 9,043


$

 9,608


(6%)


$

 17,619


$

 21,195


(17%)


 

Second Quarter 2023 Financial Results

 

Total revenue for the second quarter of 2023 was $9.0 million, compared to $9.6 million in the second quarter of 2022, representing a decline of 6%.

 

Core business revenue (sales and leases of instrument and disposables to cell therapy and drug discovery customers, excluding program-related revenue) for the second quarter of 2023 was $8.3 million, compared to $9.6 million in the second quarter of 2022, representing a decline of 14%.

 

Cell therapy revenue for the second quarter of 2023 was $6.6 million, compared to $7.7 million in the second quarter of 2022, representing a decline of 14%. Drug discovery revenue for the second quarter of 2023 was $1.7 million, compared to $1.9 million in the second quarter of 2022, representing a decline of 14%.

 

SPL Program-related revenue was $0.8 million in the second quarter of 2023, as compared to no material SPL Program-related revenue in the second quarter of 2022.

 

Gross profit for the second quarter of 2023 was $7.7 million (85% gross margin), compared to $8.5 million (88% gross margin) in the same period of the prior year.

 

Operating expenses for the second quarter of 2023 were $20.7 million, compared to operating expenses of $17.2 million in the second quarter of 2022.

 

Second quarter 2023 net loss was $10.5 million compared to net loss of $8.3 million for the same period in 2022. EBITDA, a non-GAAP measure, was a loss of $12.0 million for the second quarter of 2023, compared to a loss of $8.2 million for the second quarter of the prior year. Stock-based compensation expense was $3.5 million for the second quarter versus $3.0 million for the same period in the prior year.

 

First Half 2023 Financial Results

 

Total revenue for the first half of 2023 was $17.6 million, compared to $21.2 million in the first half of 2022, representing a decline of 17%.

 

Core business revenue (sales and leases of instrument and disposables to cell therapy and drug discovery customers but excluding program-related revenue) for the first half was $16.1 million, compared to $19.2 million in the first half of 2022, representing a decline of 16%.

 

Cell therapy revenue for the first half of 2023 was $12.6 million, compared to $15.1 million in the first half of 2022, representing a decline of 17%. Drug discovery revenue for the first half was $3.5 million, compared to $4.1 million in the second quarter of 2022, representing a decline of 16%.

 

SPL Program-related revenue was $1.6 million in the first half of 2023, as compared to $2.0 million in program-related revenue in the first half of 2022.

 

Gross profit for the first half of 2023 was $15.2 million (87% gross margin), compared to $19.0 million (90% gross margin) in the same period of the prior year.

 

Operating expenses for the first half of 2023 were $41.5 million, compared to operating expenses of $31.9 million in the first half of 2022.

 

First half 2023 net loss was $21.4 million compared to net loss of $12.3 million for the same period in 2022. EBITDA was a loss of $24.3 million for the first half of 2023, compared to a loss of $11.9 million for the same period of the prior year. Stock-based compensation expense was $6.8 million for the first half of 2023 versus $5.4 million for the same period in the prior year.

 

2023 Revenue Guidance

 

We now expect core revenue for 2023 to be comparable to 2022 and Strategic Platform License ("SPL") program-related revenue expectations remain unchanged at approximately $6 million for the year.

 

Webcast and Conference Call Details

 

MaxCyte will host a conference call today, August 9, 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 "Events" 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, as well as 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 growth, core business revenue growth and SPL program-related revenue for the year ending December 31, 2023, expansion of and revenue from our SPLs and the progression of our customersÕ programs into and through clinical trials. The words "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "expect," "estimate," "seek," "predict," "future," "project," "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 "SEC Filings" 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

Consilium Strategic Communications

Mary-Jane Elliott

Chris Welsh

 

 

+44 (0)203 709 5700

maxcyte@consilium-comms.com

 

 

 


 

 




 

MaxCyte, Inc.

Unaudited Consolidated Balance Sheets

 

 

 

June 30, 

 

December 31, 

 

    

2023

    

2022

 

 

 

(Unaudited)




Assets







Current assets:



  



  

Cash and cash equivalents


$

 54,556,900


$

 11,064,700

Short-term investments, at amortized cost



161,552,100



 216,274,900

Accounts receivable



7,607,800



 11,654,600

Accounts receivable Ð TIA*





 1,912,400

Inventory



11,020,300



 8,580,800

Prepaid expenses and other current assets



1,881,900



 2,778,800

Total current assets



 236,619,000



 252,266,200

 



 



 

Property and equipment, net



24,324,600



 23,724,700

Right of use asset - operating leases



9,663,200



 9,853,500

Other assets



 597,300



809,000

Total assets


$

 271,204,100


$

 286,653,400

 


 

 


 

 

Liabilities and stockholdersÕ equity



  



  

Current liabilities:



  



  

Accounts payable


$

1,602,800


$

 531,800

Accrued expenses and other



6,410,800



 8,025,300

Operating lease liability, current



498,600



 156,800

Deferred revenue, current portion



4,692,600



 6,712,600

Total current liabilities



 13,204,800



 15,426,500

 



 



 

Operating lease liability, net of current portion



15,708,100



 15,938,100

Other liabilities



1,308,400



 1,321,600

Total liabilities



 30,221,300



 32,686,200

 



 



 

 



  



  

StockholdersÕ equity



  



  

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



 —



 —

Common stock, $0.01 par value; 400,000,000 shares authorized, 103,134,585 and 102,397,913 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively



1,031,400



 1,024,000

Additional paid-in capital



399,220,100



 390,818,500

Accumulated deficit



 (159,268,700)



 (137,875,300)

Total stockholdersÕ equity



 240,982,800



 253,967,200

Total liabilities and stockholdersÕ equity


$

 271,204,100


$

 286,653,400

* Tenant improvement allowance ("TIA")

 

 

 

 

 

 

MaxCyte, Inc.

Unaudited Consolidated Statements of Operations

 

 

 

 



 

MaxCyte, Inc.

Unaudited Consolidated Statements of Cash Flows

 









 

 

    

Six Months Ended June 30, 

 

 

2023

    

2022

    

Cash flows from operating activities:



  



  


Net loss


$

 (21,393,400)


$

 (12,327,500)










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








Depreciation and amortization



 1,987,900



1,035,000


Net book value of consigned equipment sold



 65,800



51,400


Stock-based compensation



 6,795,700



5,435,200


Bad debt expense



 230,200 




Amortization of discounts on short-term investments



 (3,641,600)



(206,100)










Changes in operating assets and liabilities:








Accounts receivable



 3,816,600



 (555,900)


Accounts receivable - TIA



 1,912,400



 (475,600)


Inventory



 (2,541,700)



 (2,639,500)


Prepaid expense and other current assets



 896,900



 1,995,800


Right of use asset Ð operating leases



 190,300



 (4,741,000)


Other assets



       211,700  



 (603,800)


Accounts payable, accrued expenses and other



  (1,039,000)



 939,900


Operating lease liability



 111,800



 8,809,900


Deferred revenue



 (2,020,000)



 563,800


Other liabilities



 (13,200)



 (57,200)


Net cash used in operating activities





 (2,775,600)










Cash flows from investing activities:



  



  


Purchases of short-term investments



 (104,955,600)



 (131,547,700)


Maturities of short-term investments



 163,320,000



 207,296,000


Purchases of property and equipment



 (2,065,000)



 (12,804,800)


Proceeds from sale of equipment






Net cash provided by investing activities



 56,308,500



 62,943,500










Cash flows from financing activities:



  



  


Proceeds from exercise of stock options



 1,613,300



 1,218,100


Net cash provided by financing activities



 1,613,300



 1,218,100


Net increase in cash and cash equivalents



 43,492,200



 61,386,000


Cash and cash equivalents, beginning of period



 11,064,700



 47,782,400


Cash and cash equivalents, end of period


$

 54,556,900


$

 109,168,400
















 

 

 



 

Unaudited Reconciliation of Net Loss to EBITDA

 

 

 















Three Months Ended

 

Six Months Ended



June 30,

 

June 30,



2023

    

2022

    

2023

    

2022


(in thousands)


  



  



  



  


Net loss

$

(10,512)


$

(8,260)


$

(21,393)


$

(12,328)


Depreciation and amortization expense


1,026



 548



 1,988



 1,035


Interest income


 (2,562)



 (479)



 (4,857)



 (571)


Income taxes


 —



 —



 —



 —


EBITDA

$

(12,047)


$

 (8,191)


$

(24,263)


$

(11,864)


 

 

 

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
 
 
UK 100