Yahoo Finance MaxCyte Inc (MXCT) Q1 2024 Earnings Call Transcript Highlights: Robust Revenue Growth and ...
Total Revenue: $11.3 million in Q1 2024, up 32% from $8.6 million in Q1 2023.
Core Revenue: $8.2 million in Q1 2024, a 5% increase from $7.8 million in the prior year quarter.
SPL Program Related Revenue: $3.2 million in Q1 2024, significantly higher than $0.8 million in Q1 2023.
Cell Therapy Revenue: $6.4 million, up 7% year-over-year.
Drug Discovery Revenue: $1.8 million, relatively flat year-over-year.
Instrument Revenue: $1.9 million, down from $2.2 million in Q1 2023.
Lease Revenue: $2.6 million, decreased from $2.8 million in Q1 2023.
Processing Assembly Revenue: $3.4 million, up from $2.6 million in Q1 2023.
Gross Margin: Stable at 88%, comparable to Q1 2023.
Operating Expenses: $22.2 million, increased from $20.8 million in Q1 2023.
Cash Position: $202.5 million in cash, cash equivalents, and investments; no debt.
2024 Revenue Guidance: Core revenue expected to grow 0-5% from 2023; SPL program related revenue forecast raised to approximately $5 million.
End-of-Year Cash Projection: Anticipated to be at least $175 million.
Release Date: May 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
MaxCyte Inc (NASDAQ:MXCT) reported a total revenue of $11.3 million for Q1 2024, a 32% increase year-over-year.
The company saw a return to growth in its cell therapy business and stable performance in drug discovery revenue.
MaxCyte Inc (NASDAQ:MXCT) achieved a significant regulatory pivotal milestone, leading to an increase in SPL program related revenue guidance for 2024.
The installed base of instruments expanded to 708, with successful execution against pipeline instrument opportunities.
MaxCyte Inc (NASDAQ:MXCT) signed four new SPLs in early 2024, demonstrating continued trust and expansion in its partnership base.
Negative Points
Instrument revenue decreased to $1.9 million from $2.2 million in the first quarter of 2023.
Lease revenue also saw a decline to $2.6 million from $2.8 million in the same period last year.
Despite positive developments, the company maintains a cautious outlook for the year, reflecting uncertainty in market conditions.
Operating expenses increased to $22.2 million from $20.8 million year-over-year, driven by growth in sales and marketing and R&D expenses.
The company noted that demand for processing assemblies (PAs) can be lumpy and unpredictable, which may affect revenue stability quarter-to-quarter.
Q & A Highlights
Q: Can you discuss the components of the revenue for the quarter, particularly the increase in PA revenues, and your expectations for PA revenues for the rest of the year? A: Maher Masoud, President and CEO of MaxCyte, noted that the increase in PA revenues was broad-based across the customer base, reflecting increased activity levels. However, he stated that while the company is cautiously optimistic, it is not yet ready to adjust revenue projections for the year. Douglas Swirsky, CFO, added that it's too early to determine if the increase in PA revenues is due to timing or if it will significantly exceed initial projections.
Q: How is the funding environment affecting customer activity, and are you seeing any changes in project prioritizations? A: Maher Masoud explained that there is a noticeable return of confidence in the market, evidenced by successful capital raises by some partners. This improved funding environment is leading to increased activity and a cautious optimism about the continuation of this trend. However, companies are still prioritizing their projects carefully.
Q: What does the instrument pipeline look like now compared to the end of last year? A: Maher Masoud indicated that the recovery seen in PA revenues might lead to increased instrument sales later in the year. Douglas Swirsky elaborated that while instrument revenue was not as strong as PA revenue this quarter, the company feels confident about the guidance provided based on detailed forecasts from the commercial team.
Q: Can you provide an update on the SPL pipeline and expectations for new agreements this year? A: Maher Masoud confirmed a healthy start to the year with several new SPL agreements and a robust pipeline for future agreements. He reiterated the company's comfort with signing three to five new SPLs annually but did not commit to additional agreements for the current year.
Q: Are there any emerging trends in the types of cell therapies or indications your partners are focusing on? A: Maher Masoud highlighted the diversity in cell types and indications among their partners, noting an expansion into more complex therapies and a variety of indications including autoimmune diseases and rare diseases. This trend reflects the evolving and maturing field of cell therapy.
Q: What impact did the unexpected regulatory pivotal milestone have on your financials, and does it change your projections for commercial approvals? A: Maher Masoud clarified that the unexpected milestone is a positive indication of the business model's strength but does not alter the projected timeline for commercial approvals set for around 2026 or 2027. The milestone underscores the potential for earlier clinical efficacy and benefits to both the company and its partners.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
