Maravai LifeSciences Reports Second Quarter 2023 Financial Results

SAN DIEGO, Aug. 07, 2023 (GLOBE NEWSWIRE) -- Maravai LifeSciences Holdings, Inc. (Maravai) ( MRVI), a global provider of life science reagents and services to researchers and biotech innovators, today reported financial results for the second quarter ended June 30, 2023, together with other business updates. Recent highlights include:

• Quarterly revenue of $68.9 million, Net loss of $(11.9) million, and Adjusted EBITDA margin of 13.2%;
• Completed planned leadership transition with the appointment of Trey Martin as CEO effective July 27, 2023, Carl Hull will continue to serve as Executive Chair of the Board of Directors;
• Appointed medical technology expert Dr. John DeFord to the Board of Directors;
• Took occupancy of a new 32,000-square-foot facility in San Diego, California, expanding TriLink’s cGMP-grade mRNA manufacturing capabilities to serve late-phase drug developers;
• Expanded Alphazyme Research and Development facility in Jupiter, Florida, adding an additional 4,100 square feet for the development of critical enzymes;
• Hosted Congressman Scott Peters at Maravai’s San Diego Wateridge RNA manufacturing facility and discussed future pandemic preparedness; and
• Updated financial guidance for the full year 2023.
  

“The team executed well in a dynamic, challenging macro environment. In the wake of broader economic uncertainty and lower levels of venture and private equity-backed investment activity, key customers across the industry have become more focused on capital preservation and strategic prioritization of their programs. As a result, we have seen changes in customer spending priorities, including increasingly constrained research and development budgets and elongated decision-making processes,” said Trey Martin, Chief Executive Officer of Maravai. “Given these trends and near-term market uncertainties, we are taking a more conservative view of our financial guidance for the full year.”

Martin added “At Maravai, our team is determined to meet our customers’ needs through product innovation and value-added service expertise to help deliver novel vaccines, therapeutics, and diagnostics across the globe. We are dedicated to bringing the miracles of science to life, growing our business and creating long-term value for our shareholders.”

Revenue for the Second Quarter 2023

Revenue for the Six Months Ended June 30, 2023

Second Quarter 2023 Financial Results

Revenue for the second quarter was $68.9 million, representing a 72% decrease over the same period in the prior year and was driven by the following:

• Nucleic Acid Production revenue was $53.3 million for the second quarter, representing a 76% decrease year-over-year. This includes an estimated $11.6 million of COVID-19 related CleanCap revenue for the second quarter, which was $166.1 million lower than the same period in the prior year as CleanCap demand from COVID-19 vaccine manufacturers has decreased since its peak in the second quarter of 2022 as the pandemic subsided and as a result of unused inventory of Maravai products that customers have on hand. Base Nucleic Acid Production revenue was $41.7 million for the second quarter, which was $5.9 million lower than the same period in the prior year.
• Biologics Safety Testing revenue was $15.6 million for the second quarter, representing a 10% decrease year-over-year.

Net loss and Adjusted EBITDA (non-GAAP) were $(11.9) million and $9.1 million, respectively, for the second quarter of 2023, compared to net income and Adjusted EBITDA (non-GAAP) of $156.7 million and $188.5 million, respectively, for the second quarter of the prior year.

Six Months Ended June 30, 2023 Financial Results

Revenue for the six months ended June 30, 2023 was $147.9 million, representing a 70% decrease over the same period in the prior year and was driven by the following:

• Nucleic Acid Production revenue was $114.7 million for the six months ended June 30, 2023, representing a 74% decrease year-over-year. This includes an estimated $27.5 million of COVID-19 related CleanCap revenue for the six months ended June 30, 2023, which was $322.2 million lower than the same period in the prior year as CleanCap demand from COVID-19 vaccine manufacturers decreased for the reasons discussed above. Base Nucleic Acid Production revenue was $87.2 million for the six months ended June 30, 2023, which was $12.0 million lower than the same period in the prior year.
• Biologics Safety Testing revenue was $33.2 million for the six months ended June 30, 2023, representing a 13% decrease year-over-year.

Net loss and Adjusted EBITDA (non-GAAP) were $(13.3) million and $32.9 million, respectively, for the six months ended June 30, 2023, compared to net income and Adjusted EBITDA (non-GAAP) of $303.6 million and $375.5 million, respectively, for the same period of the prior year.

Updated Financial Guidance for 2023

Maravai’s financial guidance for the full year 2023 is based on expectations for its existing business and does not include the financial impact of potential new acquisitions, if any, or items that have not yet been identified or quantified. This guidance is subject to a number of risks, uncertainties and other factors, including those identified in “Forward-looking Statements” below.

Total revenue for 2023 is now projected to be in the range of $300.0 million to $325.0 million.

Adjusted EBITDA (non-GAAP) is now expected to be in the range of $70.0 million to $80.0 million.

Adjusted fully diluted EPS (non-GAAP) is now expected to be in the range of $0.04 to $0.08 per share. Adjusted fully diluted EPS (non-GAAP) is based on the assumption that all the units of Maravai Topco Holdings, LLC (paired with the corresponding shares of Class B common stock) are converted to shares of Class A common stock. The net income included in the Adjusted fully diluted EPS (non-GAAP) has been adjusted to eliminate the net income attributable to non-controlling interest as a result of the assumed full conversion of the units of Maravai Topco Holdings, LLC (paired with the corresponding shares of Class B common stock) for shares of Class A common stock and is further adjusted for certain items that management does not believe directly reflect Maravai’s core operations. All such adjustments have been tax effected at the assumed statutory tax rate of 24%.

Maravai cannot provide guidance for the most closely comparable GAAP measures or reconciliations for the non-GAAP financial measures included in the updated 2023 guidance above because it is unable to provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including net income attributable to noncontrolling interest, variations in effective tax rate, expenses to be incurred for acquisition activities, and the diluted weighted average number of shares of Class A common stock outstanding for the applicable period from potential proforma exchanges of outstanding Maravai Topco Holdings, LLC units (paired with shares of Class B common stock) for shares of Class A common stock. Thus, Maravai is unable to present quantitative reconciliations of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available. However, 2023 interest expense is now expected to be in the range of $16.0 million to $18.0 million, 2023 depreciation and amortization is expected to be in the range of $38.0 million to $40.0 million, and 2023 stock-based compensation is expected to be in the range of $34.0 million to $38.0 million.