MaxCyte Reports Fourth Quarter and Full Year 2023 Financial Results and Reiterates 2024 Guidance
ROCKVILLE, MD, March 12, 2024 — 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 its fourth quarter and full year ended December 31, 2023 financial results and reiterated its 2024 guidance.
Fourth Quarter and Full Year Highlights
- Total revenue of $15.7 million in the fourth quarter of 2023, an increase of 26% over the fourth quarter of 2022.
- Core business revenue of $7.2 million in the fourth quarter of 2023, a decline of 32% over the fourth quarter of 2022.
- Strategic Platform License (SPL) Program-related revenue was $8.5 million for the fourth quarter of 2023, an increase of 359% over the fourth quarter of 2022.
- Total revenue of $41.3 million for the full year 2023, a decline of 7% over the full year 2022.
- Core business revenue of $29.8 million for the full year 2023, a decrease of 25% over the full year 2022.
- SPL Program-related revenue was $11.5 million for the full year 2023, an increase of 148% over the full year 2022.
- Ended the year with 23 active SPL agreements that allowed for over 160 potential programs, 16 of which were active programs currently in the clinic (defined as programs with at least a cleared IND or equivalent) and 1 of which was an active program currently commercial. With the addition of three SPLs signed in 2024, the total number of SPLs now stands at 26.
- Total cash, cash equivalents and investments were $211.2 million as of December 31, 2023.
“In 2023, we navigated a challenging operating environment in our industry, that included increased capital conservatism and pipeline portfolio reevaluation among our customers. Our team adapted well to the changing environment last year, and I am confident in our ability to execute across the business this year,” said Maher Masoud, President and CEO of MaxCyte.
“We are pleased with our accomplishments and progress in 2023, which included supporting the recent FDA approval of CASGEVYTM by our client, Vertex Pharmaceuticals. MaxCyte signed five new SPLs in 2023 and we have seen continued momentum with three additional SPLs signed in January 2024. Our pipeline of potential clients remains robust, and we look forward to further expanding our portfolio of SPLs in 2024. The opportunity in front of us in the cell therapy industry continues to strengthen, and we will focus on executing in 2024 on our goal of being the industry’s premier non-viral cell therapy platform.”
The following tables provide details regarding the sources of our revenue for the periods presented.
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| December 31, (Unaudited) | December 31, | |||||||||||||||||||||||||||||||
| 2023 | 2022 | % | 2023 | 2022 | % | |||||||||||||||||||||||||||
| (in thousands, except percentages) | ||||||||||||||||||||||||||||||||
| Cell therapy | $ | 5,518 | $ | 7,544 | (27%) | $ | 22,829 | $ | 30,546 | (25%) | ||||||||||||||||||||||
| Drug discovery | 1,644 | 3,026 | (46%) | 6,994 | 9,100 | (23%) | ||||||||||||||||||||||||||
| Program-related | 8,504 | 1,854 | 359% | 11,465 | 4,616 | 148% | ||||||||||||||||||||||||||
| Total revenue | $ | 15,665 | $ | 12,424 | 26% | $ | 41,288 | $ | 44,262 | (7%) | ||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| December 31, (Unaudited) | December 31, | |||||||||||||||||||||||||||||||
| 2023 | 2022 | % | 2023 | 2022 | % | |||||||||||||||||||||||||||
| (in thousands, except percentages) | ||||||||||||||||||||||||||||||||
| Instrument | $ | 2,330 | $ | 3,705 | (37%) | $ | 8,317 | $ | 11,704 | (29%) | ||||||||||||||||||||||
| PAs | 2,163 | 3,721 | (42%) | 10,283 | 16,027 | (36%) | ||||||||||||||||||||||||||
| Lease | 2,406 | 2,813 | (14%) | 10,326 | 10,897 | (5%) | ||||||||||||||||||||||||||
| Other | 263 | 331 | (21%) | 897 | 1,018 | (12%) | ||||||||||||||||||||||||||
| Total Core Revenue | $ | 7,162 | $ | 10,570 | (32%) | $ | 29,823 | $ | 39,646 | (25%) | ||||||||||||||||||||||
In addition to revenue, management regularly reviews key business metrics to evaluate our business, measure performance, identify trends affecting our business, formulate financial projections and make strategic decisions. As of the dates presented, these key metrics were as follows:
| As of December 31, 2023 | ||||
| 2023 | 2022 | 2021 | ||
| Installed base of instruments (sold or leased) | 683 | 616 | 502 | |
| Core Revenue Generated by SPL Clients as a % of Core Revenue | 48% | 42% | 40% | |
| Number of active SPLs | 23 | 18 | 15 | |
| Total number of licensed potential programs (SPL clients only) | >160 | >125 | >95 | |
| Total number of active licensed clinical programs under SPLs currently in the clinic * | 16 | 16 | 15 | |
| Total number of active licensed programs under SPLs currently commercial * | 1 | - | - | |
| Total potential pre-commercial milestones under SPLs | >$1.95 billion | >$1.55 billion | >$1.25 billion | |
* Number of licensed clinical programs and commercial programs under SPLs are by number of product candidates and not by indication.
Fourth Quarter 2023 Financial Results
Total revenue for the fourth quarter of 2023 was $15.7 million, compared to $12.4 million in the fourth quarter of 2022, representing growth of 26%.
Core business revenue (sales and leases of instrument and disposables to cell therapy and drug discovery customers, excluding SPL Program-related revenue) for the fourth quarter of 2023 was $7.2 million, compared to $10.6 million in the fourth quarter of 2022, representing a decline of 32%.
Cell therapy revenue for the fourth quarter of 2023 was $5.5 million, compared to $7.5 million in the fourth quarter of 2022, representing a decline of 27%. Drug discovery revenue for the fourth quarter of 2023 was $1.6 million, compared to $3.0 million in the fourth quarter of 2022, representing a decline of 46%.
SPL Program-related revenue was $8.5 million in the fourth quarter of 2023, as compared to $1.9 million in the fourth quarter of 2022.
Gross profit for the fourth quarter of 2023 was $14.1 million (90% gross margin), compared to $10.9 million (88% gross margin) in the fourth quarter of 2022.
Operating expenses for the fourth quarter of 2023 were $22.2 million, compared to operating expenses of $17.6 million in the fourth quarter of 2022.
Fourth quarter 2023 net loss was $5.3 million compared to net loss of $4.8 million for the same period in 2022. EBITDA, a non-GAAP measure, was a loss of $7.0 million for the fourth quarter of 2023, compared to a loss of $5.8 million for the fourth quarter of 2022; stock-based compensation expense was $3.6 million in the fourth quarter of 2023 compared to $3.1 million in the fourth quarter of 2022.
Full Year 2023 Financial Results
Total revenue for 2023 was $41.3 million, compared to $44.3 million in 2022, representing a decline of 7%.
Core business revenue (sales and leases of instruments and disposables to cell therapy and drug discovery customers, excluding SPL Program-related revenue) for 2023 was $29.8 million, compared to $39.6 million for 2022, representing a decline of 25%.
Cell therapy revenue for 2023 was $22.8 million, compared to $30.5 million in 2022, representing a decline of 25%. Drug discovery revenue for 2023 was $7.0 million, compared to $9.1 million in 2022, representing a decline of 23%.
SPL Program-related revenue was $11.5 million in 2023, as compared to $4.6 million in 2022.
Gross profit for 2023 was $36.5 million (89% gross margin), compared to $39.2 million (88% gross margin) in the prior year.
Operating expenses for 2023 were $84.8 million, compared to operating expenses of $66.5 million in 2022.
Full year 2023 net loss was $37.9 million compared to a loss of $23.6 million in 2022. 2023 EBITDA was a loss of $44.1 million compared to a loss of $24.8 million in 2022; total stock-based compensation for 2023 was $14.0 million, compared to $11.8 million for 2022.
Total cash, cash equivalents and investments were $211.2 million as of December 31, 2023, compared to $227.3 million as of December 31, 2022.
2024 Revenue Guidance
Management is reiterating 2024 revenue guidance for core business revenue and SPL Program-related revenue.
Management expects full year 2024 core business revenue to be flat to 5% growth compared to 2023, and SPL Program-related revenue is expected to be approximately $3 million. Our outlook for the full year does not include SPL Program-related revenue from Vertex/CRISPR’s CASGEVYTM and reflects a difficult year-over-year comparison from a client milestone recognized in 2023 that was initially expected in 2024.
Management expects to end 2024 with $175 million in total cash, cash equivalents and investments.
Webcast and Conference Call Details
MaxCyte will host a conference call today, March 12, 2024, 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 patients’ 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 today’s processes to innovate tomorrow’s solutions. Our ExPERT™ 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 ATx™, STx™, GTx™ and VLx™; 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 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 income and expense, taxes, depreciation and amortization. MaxCyte believes that EBITDA provides useful information to management and investors relating to its results of operations. The company’s management uses this non-GAAP measure to compare the company’s 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 company’s 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 company’s 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 company’s 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. These statements about us and our industry involve substantial known and unknown risks, uncertainties, and assumptions, including those described in Item 1A under the heading “Risk Factors” and elsewhere in our report on Form 10-K, that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements include, but are not limited to, statements about the Company’s preliminary results of operations, including fourth quarter and full year total revenue, core revenue, and SPL program revenue and statements about possible or future results of operations or financial position. In some cases, you can identify forward-looking statements because they contain words such as "may," “might,” "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," “expect,” "estimate," “seek,” "predict," “future,” "project," "potential," "continue," “contemplate,” "target,” the negative of these words and similar words or expressions. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements contained in this press release, include, without limitation, statements concerning the following: our expected future growth and success of our business model; the size and growth potential of the markets for our products, and our ability to serve those markets, increase our market share, and achieve and maintain industry leadership; our ability to expand our customer base and enter into additional SPL partnerships; our expectation that our partners will have access to capital markets to develop and commercialize their cell therapy programs; our financial performance and capital requirements; the adequacy of our cash resources and availability of financing on commercially reasonable terms; our expectations regarding our ability to obtain and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing the intellectual property rights of others; our expectations regarding 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 our use of available capital resources.
These and other risks and uncertainties are described in greater detail in Item 1A , entitled "Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on or about March 12, 2024, as well as in discussions of potential risks, uncertainties, and other important factors in 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 in this press release are based on our current beliefs and opinions on the relevant subject based on information available to us as of the date of such press release, and you should not rely on forward-looking statements as predictions of future events. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
MaxCyte Contacts:
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
Corporate Broking
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
MaxCyte, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
| Year ended December 31, | ||||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 46,506 | $ | 11,065 | ||
| Short-term investments, at amortized cost | 121,782 | 216,275 | ||||
| Accounts receivable, net | 5,778 | 11,175 | ||||
| Accounts receivable – TIA* | - | 1,912 | ||||
| Inventory | 12,229 | 8,581 | ||||
| Prepaid expenses and other current assets | 3,899 | 3,258 | ||||
| Total current assets | 190,194 | 252,266 | ||||
| Investments, non-current, at amortized cost | 42,938 | — | ||||
| Property and equipment, net | 23,513 | 23,725 | ||||
| Right-of-use asset - operating leases | 11,241 | 9,853 | ||||
| Other assets | 388 | 809 | ||||
| Total assets | $ | 268,274 | $ | 286,653 | ||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 743 | $ | 292 | ||
| Accrued expenses and other | 11,269 | 8,265 | ||||
| Operating lease liability, current | 774 | 157 | ||||
| Deferred revenue, current portion | 5,069 | 6,713 | ||||
| Total current liabilities | 17,855 | 15,427 | ||||
| Operating lease liability, net of current portion | 17,969 | 15,938 | ||||
| Other liabilities | 283 | 1,320 | ||||
| Total liabilities | 36,107 | 32,685 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ equity | ||||||
| Preferred stock, $0.01 par value; 5,000,000 shares authorized and no shares issued and outstanding at December 31, 2023 and December 31, 2022 | — | — | ||||
| Common stock, $0.01 par value; 400,000,000 shares authorized, 103,961,670 and 102,397,913 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 1,040 | 1,024 | ||||
| Additional paid-in capital | 406,925 | 390,819 | ||||
| Accumulated deficit | (175,798) | (137,875) | ||||
| Total stockholders’ equity | 232,167 | 253,968 | ||||
| Total liabilities and stockholders’ equity | $ | 268,274 | $ | 286,653 | ||
* Tenant improvement allowance (“TIA”)
MaxCyte, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2023 (Unaudited) | 2022 (Unaudited) | 2023 | 2022 | |||||||||
| Revenue | $ | 15,666 | $ | 12,424 | $ | 41,288 | $ | 44,261 | ||||
| Cost of goods sold | 1,573 | 1,547 | 4,742 | 5,098 | ||||||||
| Gross profit | 14,093 | 10,877 | 36,546 | 39,163 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 5,842 | 5,728 | 23,817 | 19,514 | ||||||||
| Sales and marketing | 7,196 | 5,377 | 26,975 | 18,653 | ||||||||
| General and administrative | 8,087 | 5,649 | 30,068 | 25,829 | ||||||||
| Depreciation and amortization | 1,063 | 873 | 3,985 | 2,528 | ||||||||
| Total operating expenses | 22,188 | 17,627 | 84,845 | 66,524 | ||||||||
| Operating loss | (8,095) | (6,750) | (48,299) | (27,361) | ||||||||
| Other income and expense: | ||||||||||||
| Other expense | — | (11) | — | (127) | ||||||||
| Interest income | 2,818 | 1,952 | 10,376 | 3,917 | ||||||||
| Total other income | 2,818 | 1,941 | 10,376 | 3,790 | ||||||||
| Net loss | $ | (5,277) | $ | (4,809) | $ | (37,923) | $ | (23,571) | ||||
| Basic and diluted net loss per share | $ | (0.05) | $ | (0.05) | $ | (0.37) | $ | (0.23) | ||||
| Weighted average shares outstanding, basic and diluted | 103,703,240 | 102,120,812 | 103,268,502 | 101,702,664 | ||||||||
MaxCyte, Inc.
Consolidated Statements of Cash Flows
(in thousands)
| Year ended December 31, | ||||||
| 2023 | 2022 | |||||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (37,923) | $ | (23,571) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization | 4,171 | 2,698 | ||||
| Non-cash lease expense | 395 | 767 | ||||
| Net book value of consigned equipment sold | 94 | 76 | ||||
| Loss on disposal of fixed assets | 30 | 139 | ||||
| Stock-based compensation | 13,979 | 11,752 | ||||
| Bad debt expense | 171 | — | ||||
| Change in excess/obsolete inventory reserve | 697 | — | ||||
| Amortization of discounts on investments | (7,120) | (2,667) | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | 5,226 | (4,569) | ||||
| Accounts receivable - TIA | 1,912 | (1,912) | ||||
| Inventory | (4,534) | (3,493) | ||||
| Prepaid expense and other current assets | (641) | 320 | ||||
| Other assets | 421 | (492) | ||||
| Accounts payable, accrued expenses and other | 3,252 | (150) | ||||
| Operating lease liability | (133) | 5,482 | ||||
| Deferred revenue | (1,644) | (34) | ||||
| Other liabilities | (39) | 871 | ||||
| Net cash used in operating activities | (21,686) | (14,783) | ||||
| Cash flows from investing activities: | ||||||
| Purchases of investments | (255,095) | (290,942) | ||||
| Maturities of investments | 313,770 | 284,596 | ||||
| Purchases of property and equipment | (3,700) | (18,477) | ||||
| Proceeds from sale of equipment | 9 | — | ||||
| Net cash provided by (used in) investing activities | 54,984 | (24,823) | ||||
| Cash flows from financing activities: | ||||||
| Proceeds from exercise of stock options | 1,874 | 2,888 | ||||
| Proceeds from issuance of common stock under employee stock purchase plan | 269 | — | ||||
| Net cash provided by financing activities | 2,143 | 2,888 | ||||
| Net increase (decrease) in cash and cash equivalents | 35,441 | (36,718) | ||||
| Cash and cash equivalents, beginning of year | 11,065 | 47,783 | ||||
| Cash and cash equivalents, end of year | $ | 46,506 | $ | 11,065 | ||
Unaudited Reconciliation of Net Loss to EBITDA
(in thousands)
(Unaudited)
| Three Months Ended | Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| (in thousands) | ||||||||||||
| Net loss | $ | (5,277) | $ | (4,809) | $ | (37,923) | $ | (23,571) | ||||
| Depreciation and amortization expense | 1,102 | 920 | 4,171 | 2,698 | ||||||||
| Interest income | (2,818) | (1,952) | (10,376) | (3,917) | ||||||||
| Income taxes | — | — | — | — | ||||||||
| EBITDA | $ | (6,993) | $ | (5,841) | $ | (44,128) | $ | (24,790) | ||||
