On November 8, 2023 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, reported financial results for the third quarter ended September 30, 2023 (Press release, MaxCyte, NOV 8, 2023, View Source [SID1234637267]).

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Third Quarter and Recent Highlights

● Total revenue of $8.0 million in the third quarter of 2023, a decrease of 25% compared to the third quarter of 2022.
● Core business revenue of $6.6 million in the third quarter of 2023, a decrease of 33% compared to the third quarter of 2022.
● SPL Program-related revenue of $1.4 million in the third quarter of 2023, compared to $0.8 million in the third quarter of 2022.
● Gross profit of $7.2 million (90% gross margin), compared to $9.3 million (87% gross margin) in the third quarter of 2022.
● Full year 2023 revenue guidance of approximately $34-$36 million total revenue and approximately $28-$30 million of core revenue, and SPL Program-related revenue of approximately $6 million, all consistent with guidance previously provided on October 4th.
● Total cash, cash equivalents and investments were $208.7 million as of September 30, 2023.
● We continue to expect to end the year with approximately $200 million in cash, cash equivalents and investments, which would be unchanged from our initial outlook at the beginning of the year.

"MaxCyte’s third quarter revenue was at the higher end of our preliminary revenue range we announced in October. We continue to evaluate and address the industry challenges we have seen throughout 2023, with performance in-line with the revised guidance that we provided last month. Customers, particularly early-stage customers, continue to reprioritize their spend and operate with more caution—an operating environment we expect to persist at least through the remainder of 2023," said Doug Doerfler, President and Chief Executive Officer at MaxCyte.

"Despite these challenges, we believe that the long-term opportunity for the cell and gene therapy market is robust and continue to make targeted investments that support the industry and our partners in their development of high-potential complex cell therapies through the clinical and commercial stages. This includes further expansion of gene-editing modalities and indications such as autoimmune disease, solid tumors, and rare diseases. We are proud of our partners’ progress and success thus far and we look forward to cell therapies supported by MaxCyte’s platform entering the market in the near, medium, and long term. Importantly, we remain confident in our ability to expand our partnership portfolio and support the market in enabling a growing set of next-generation cell therapies. We are also excited about the prospects of the VLx platform and expanding our market opportunity into bioprocessing applications including rapid large-scale transiently expressed protein production for preclinical and early clinical use."

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

Three Months Ended

Nine Months Ended

September 30,

September 30,

2023

2022

%

2023

2022

%

(in thousands, except percentages)

Cell therapy

$

4,701

$

7,898

(40%)

$

17,311

23,002

(25%)

Drug discovery

1,900

1,991

(5%)

5,350

6,074

(12%)

Program-related

1,404

754

86%

2,962

2,762

7%

Total revenue

$

8,005

$

10,643

(25%)

$

25,623

$

31,838

(20%)

Third Quarter 2023 Financial Results

Total revenue for the third quarter of 2023 was $8.0 million, compared to $10.6 million in the third quarter of 2022, representing a decline of 25%.

Core business revenue (sales and leases of instrument and disposables to cell therapy and drug discovery customers, excluding SPL Program-related revenue) for the third quarter of 2023 was $6.6 million, compared to $9.9 million in the third quarter of 2022, representing a decline of 33%.

Cell therapy revenue for the third quarter of 2023 was $4.7 million, compared to $7.9 million in the third quarter of 2022, representing a decline of 40%. Drug discovery revenue for the third quarter of 2023 was $1.9 million, compared to $2.0 million in the third quarter of 2022, representing a decline of 5%.

Strategic Platform License (SPL) Program-related revenue was $1.4 million in the third quarter of 2023, as compared to $0.8 million in the third quarter of 2022.

Gross profit for the third quarter of 2023 was $7.2 million (90% gross margin), compared to $9.3 million (87% gross margin) in the third quarter of 2022.

Operating expenses for the third quarter of 2023 were $21.2 million, compared to operating expenses of $17.0 million in the third quarter of 2022.

Third quarter 2023 net loss was $11.3 million compared to net loss of $6.4 million for the same period in 2022. EBITDA, a non-GAAP measure, was a loss of $12.9 million for the third quarter of 2023, compared to a loss of $7.1 million for the third quarter of 2022. Stock-based compensation expense was $3.6 million for the third quarter versus $3.2 million for the third quarter of 2022.

2023 Revenue Guidance

● Total revenue expected to be approximately $34 – 36 million for the year.
● Core revenue expected to be approximately $28 – 30 million for the year.
● SPL Program-related revenue expected to be approximately $6 million for the year.

Webcast and Conference Call Details

MaxCyte will host a conference call today, November 8, 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 View Source