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Maravai LifeSciences(MRVI) - 2024 Q2 - Quarterly Report
MRVIMaravai LifeSciences(MRVI)2024-08-08 20:06
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Revenue Performance - Revenue for the three months ended June 30, 2024, was 73,400,000,anincreasefrom73,400,000, an increase from 68,914,000 in the same period last year, representing a growth of approximately 5.7%[14] - Total revenue for the six months ended June 30, 2024, was 147.939million,withNucleicAcidProductioncontributing147.939 million, with Nucleic Acid Production contributing 114.716 million and Biologics Safety Testing contributing 33.223million[42]−ForthethreemonthsendedJune30,2024,totalrevenuewas33.223 million[42] - For the three months ended June 30, 2024, total revenue was 73.400 million, with Nucleic Acid Production at 58.483millionandBiologicsSafetyTestingat58.483 million and Biologics Safety Testing at 14.917 million[43] - The North America region generated 32.317millioninrevenueforthethreemonthsendedJune30,2024,withNucleicAcidProductionat32.317 million in revenue for the three months ended June 30, 2024, with Nucleic Acid Production at 25.436 million and Biologics Safety Testing at 6.881million[43]−TotalrevenueforthesixmonthsendedJune30,2024,was6.881 million[43] - Total revenue for the six months ended June 30, 2024, was 137.6 million, a decrease of 6.9% from 147.9millionforthesameperiodin2023[94]−NucleicAcidProductionrevenueincreasedby9.8147.9 million for the same period in 2023[94] - Nucleic Acid Production revenue increased by 9.8% from 53.3 million in Q2 2023 to 58.5millioninQ22024,drivenbyhigherdemandforGMPCleanCapanalogsandGMPmRNA[120]−BiologicsSafetyTestingrevenuedecreasedby4.758.5 million in Q2 2024, driven by higher demand for GMP CleanCap analogs and GMP mRNA[120] - Biologics Safety Testing revenue decreased by 4.7% from 15.6 million in Q2 2023 to 14.9millioninQ22024,primarilyduetolowerdemandtrendsinChina[120]NetLossandFinancialPosition−NetlossattributabletoMaravaiLifeSciencesHoldings,Inc.forthethreemonthsendedJune30,2024,was14.9 million in Q2 2024, primarily due to lower demand trends in China[120] Net Loss and Financial Position - Net loss attributable to Maravai LifeSciences Holdings, Inc. for the three months ended June 30, 2024, was 7,585,000, compared to a net loss of 6,541,000forthesameperiodlastyear,indicatingadeteriorationofabout15.96,541,000 for the same period last year, indicating a deterioration of about 15.9%[14] - For the six months ended June 30, 2024, the net loss was 37,172 thousand, compared to a net loss of 13,291thousandforthesameperiodin2023,representinganincreaseinlossofapproximately17913,291 thousand for the same period in 2023, representing an increase in loss of approximately 179%[24] - The company reported a comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. of 7,585,000 for the three months ended June 30, 2024, compared to a comprehensive loss of 6,541,000intheprioryear[16]−Thecompanyreportedanetlossof6,541,000 in the prior year[16] - The company reported a net loss of 14.5 million for the three months ended June 30, 2024, compared to a net loss of 11.9millionforthesameperiodin2023[94]−Thecompanyrecordedanetlossof11.9 million for the same period in 2023[94] - The company recorded a net loss of 37.2 million for the six months ended June 30, 2024, compared to a net loss of 13.3millionforthesameperiodin2023[151]OperatingExpenses−TotaloperatingexpensesforthethreemonthsendedJune30,2024,were13.3 million for the same period in 2023[151] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were 82,912,000, up from 80,528,000intheprioryear,reflectinganincreaseofapproximately2.980,528,000 in the prior year, reflecting an increase of approximately 2.9%[14] - Selling, general and administrative expenses for the three months ended June 30, 2024, were 40.6 million, compared to 35.4millionforthesameperiodin2023,reflectinga14.835.4 million for the same period in 2023, reflecting a 14.8% increase[95] - Total operating expenses for the six months ended June 30, 2024, were 82.9 million, a 3.0% increase from 80.5millioninthesameperiodlastyear[113]−Selling,generalandadministrativeexpensesincreasedby14.680.5 million in the same period last year[113] - Selling, general and administrative expenses increased by 14.6% to 40.6 million for the three months ended June 30, 2024, compared to 35.4millionin2023[128]−Researchanddevelopmentexpensesincreasedto35.4 million in 2023[128] - Research and development expenses increased to 5,284,000 for the three months ended June 30, 2024, compared to 4,194,000inthesameperiodlastyear,markingariseofabout264,194,000 in the same period last year, marking a rise of about 26%[14] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period on June 30, 2024, were 573,171 thousand, down from 574,962thousandatthebeginningoftheperiod[24]−Operatingactivitiesgeneratednetcashof574,962 thousand at the beginning of the period[24] - Operating activities generated net cash of 8,967 thousand for the six months ended June 30, 2024, a significant decrease from 104,268thousandinthesameperiodof2023[24]−Cashandcashequivalentsstoodat104,268 thousand in the same period of 2023[24] - Cash and cash equivalents stood at 573.2 million as of June 30, 2024, indicating a strong liquidity position[162] - Positive cash flow from operations was 9.0millionforthesixmonthsendedJune30,2024[145]−NetcashprovidedbyoperatingactivitiesforthesixmonthsendedJune30,2024was9.0 million for the six months ended June 30, 2024[145] - Net cash provided by operating activities for the six months ended June 30, 2024 was 9.0 million, a significant decrease from 104.3millionforthesameperiodin2023[151]ResearchandDevelopment−Researchanddevelopmentexpensesincreasedto104.3 million for the same period in 2023[151] Research and Development - Research and development expenses increased to 5,284,000 for the three months ended June 30, 2024, compared to 4,194,000inthesameperiodlastyear,markingariseofabout264,194,000 in the same period last year, marking a rise of about 26%[14] - The company expects research and development costs to increase in future periods to support ongoing R&D efforts and meet customer needs[104] - Research and development expenses increased by 26.0% to 5.3 million for the three months ended June 30, 2024, compared to 4.2millionin2023[128]DebtandInterestExpenses−InterestexpenseforthethreemonthsendedJune30,2024,was4.2 million in 2023[128] Debt and Interest Expenses - Interest expense for the three months ended June 30, 2024, was 11,939,000, compared to 7,022,000inthesameperiodlastyear,representinganincreaseofapproximately697,022,000 in the same period last year, representing an increase of approximately 69%[14] - Long-term debt as of June 30, 2024, was 522.523 million, slightly down from 524.147millionasofDecember31,2023[73]−TheeffectiveinterestrateontheTermLoanwas8.33524.147 million as of December 31, 2023[73] - The effective interest rate on the Term Loan was 8.33% per annum as of June 30, 2024[71] - Interest expense for the six months ended June 30, 2024, increased by 20.9% to 22.8 million compared to 18.9millioninthesameperiodin2023[140]StockholderEquityandShares−TheweightedaveragenumberofClassAcommonsharesoutstandingforthethreemonthsendedJune30,2024,was135,842,000,comparedto131,864,000inthesameperiodlastyear,indicatinganincreaseofapproximately3.018.9 million in the same period in 2023[140] Stockholder Equity and Shares - The weighted average number of Class A common shares outstanding for the three months ended June 30, 2024, was 135,842,000, compared to 131,864,000 in the same period last year, indicating an increase of approximately 3.0%[13] - The total stockholders' equity as of June 30, 2024, was 776,414,000, reflecting a slight decrease from 777,389,000attheendofthepreviousquarter[18]−ThetotalnumberofClassAsharesincreasedto141,489thousandasofJune30,2024,from132,228thousandasofDecember31,2023[19]MarketandOperationalChallenges−Thecompanycontinuestofacerisksrelatedtocustomerspendinganddemandforitsproducts,aswellasmacroeconomicchallengesimpactingitsoperations[6]−Recentindustrytrendsanduncertaintiesmayleadtoslowergrowthandpotentialrevenuedeclinesin2024duetoreducedresearchanddevelopmentspendingbyearly−stagebiotechnologycompanies[96]−Thecompanyisactivelypursuingopportunitiestoexpanditscustomerbasebothdomesticallyandinternationally[94]AcquisitionsandContingentConsiderations−ThecompanycompletedtheacquisitionofAlphazymeinJanuary2023,contributingallmembershipintereststoAlphazymeHoldings[84]−ThecompanycompletedtheacquisitionofAlphazymeinJanuary2023,withcontingentpaymentsofupto777,389,000 at the end of the previous quarter[18] - The total number of Class A shares increased to 141,489 thousand as of June 30, 2024, from 132,228 thousand as of December 31, 2023[19] Market and Operational Challenges - The company continues to face risks related to customer spending and demand for its products, as well as macroeconomic challenges impacting its operations[6] - Recent industry trends and uncertainties may lead to slower growth and potential revenue declines in 2024 due to reduced research and development spending by early-stage biotechnology companies[96] - The company is actively pursuing opportunities to expand its customer base both domestically and internationally[94] Acquisitions and Contingent Considerations - The company completed the acquisition of Alphazyme in January 2023, contributing all membership interests to Alphazyme Holdings[84] - The company completed the acquisition of Alphazyme in January 2023, with contingent payments of up to 75.0 million based on revenue targets, none of which were met for the first performance period[158] - The company may be required to make retention payments of $9.3 million to Alphazyme sellers and employees through December 31, 2025, contingent on continued employment[158]