MaxCyte Inc is a commercial cell engineering company focused on providing enabling platform technologies to advance the discovery, development, and commercialization of next-generation cell therapeutics and to support cell-based research and development. The company has developed and commercialized a proprietary Flow Electroporation platform, which facilitates the complex engineering of a wide variety of cells. The revenue is generated from the sale and licensing of the company's instruments, as well as sales of single-use disposable processing assemblies.
Performance Overview
MaxCyte Inc (MXCT, Financial) reported total revenue of $10.4 million for Q2 2024, a 15% increase from $9.0 million in Q2 2023. However, the company posted a net loss of $9.4 million, an improvement from the $10.5 million net loss in the same period last year. The company's earnings per share (EPS) was -$0.09, beating the analyst estimate of -$0.12.
Revenue Breakdown
| Revenue Source | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Cell therapy | $6,218 | $6,637 | (6%) |
| Drug discovery | $1,357 | $1,652 | (18%) |
| Program-related | $2,854 | $754 | 279% |
| Total revenue | $10,429 | $9,043 | 15% |
Financial Achievements and Challenges
MaxCyte's gross profit for Q2 2024 was $8.9 million, with an 86% gross margin, compared to $7.7 million and an 85% gross margin in Q2 2023. Despite the increase in revenue, the company faced challenges in its core business revenue, which declined by 9% to $7.6 million. Cell therapy revenue also saw a 6% decline, while drug discovery revenue dropped by 18%. However, the significant increase in program-related revenue by 279% helped offset these declines.
Key Metrics and Financial Statements
MaxCyte's operating expenses for Q2 2024 were $20.9 million, slightly up from $20.7 million in Q2 2023. The company's EBITDA, a non-GAAP measure, was a loss of $10.9 million, an improvement from the $12.0 million loss in Q2 2023. The company ended the quarter with $37.5 million in cash and cash equivalents and $119.8 million in short-term investments.
Commentary and Future Outlook
"We are pleased by our second quarter results and our business performance in the first half of 2024 and remain confident we will deliver our full year guidance. We continue to drive commercial execution in cell therapy and believe that we remain the premier cell engineering platform in the industry," said Maher Masoud, President and CEO at MaxCyte.
MaxCyte has signed five new strategic platform licenses (SPLs) since the beginning of the year, including a recent agreement with Legend Biotech. The total number of SPLs now stands at 28, indicating strong demand for the company's platform.
Analysis
MaxCyte's performance in Q2 2024 highlights both its strengths and challenges. The significant increase in program-related revenue is a positive indicator of the company's expanding client base and the growing adoption of its platform. However, the declines in core business revenue and cell therapy revenue suggest areas that need attention. The company's ability to manage operating expenses and improve EBITDA losses are positive signs for future financial stability.
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Explore the complete 8-K earnings release (here) from MaxCyte Inc for further details.
