Maravai LifeSciences reports Q4 and full year 2023 financial results

Maravai LifeSciences Holdings, Inc. reported financial results for the fourth quarter and full year ended December 31, 2023, together with other business updates. Recent highlights include:

Financial:

• Quarterly revenue of $74.1 million, Net loss of $(110.0) million, following a valuation adjustment to certain deferred tax assets, and Adjusted EBITDA margin of 28%;
• Annual revenue of $288.9 million, Net loss of $(138.4) million, and Adjusted EBITDA margin of 23%; and
• Introduced full year 2024 revenue guidance range of $265.0 million to $285.0 million.

“We closed out a challenging 2023 with better than forecasted demand for our Nucleic Acid Production products, including for CleanCap and custom chemistry,” said Trey Martin, Chief Executive Officer of Maravai. “Thanks to our team’s strong execution, the cost reductions we implemented in the fourth quarter and our revenue outperformance, we delivered a 28% adjusted EBITDA margin in the fourth quarter.”

Martin continued, “Maravai remains focused on expanding our product portfolio, advancing our market leadership in the mRNA space, and accelerating the introduction of innovations that support our customers’ rapidly evolving needs. We see continued pipeline progression among our customers’ development programs and are excited for our base business opportunities in 2024.”

Fourth quarter 2023 financial results
Revenue for the fourth quarter was $74.1 million, representing a 64% decrease over the same period in the prior year and was driven by the following:

• Nucleic Acid Production revenue was $58.8 million for the fourth quarter, representing a 69% decrease year-over-year. This includes an estimated $18.4 million of Covid-19 related CleanCap revenue for the fourth quarter, which was $105.2 million lower than the same period in the prior year. 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 $40.5 million for the fourth quarter, which was $25.2 million lower than the same period in the prior year as we saw challenging industry conditions, customers continuing to focus on capital conservation and heightened competition in certain areas.
• Biologics Safety Testing revenue was $15.3 million for the fourth quarter, representing a 1% decrease year-over-year.

Net loss and Adjusted EBITDA (non-GAAP) were $(110.0) million and $20.5 million, respectively, for the fourth quarter of 2023, compared to net income and Adjusted EBITDA (non-GAAP) of $87.4 million and $129.8 million, respectively, for the fourth quarter of the prior year.

Full year 2023 financial results
Revenue for the year ended December 31, 2023, was $288.9 million, representing a 67% decrease over the same period in the prior year and was driven by the following:

• Nucleic Acid Production revenue was $224.8 million for the year ended December 31, 2023, representing a 72% decrease year-over-year. This includes an estimated $60.8 million of Covid-19 related CleanCap revenue for the year ended December 31, 2023, which was $539.0 million lower than the prior year as CleanCap demand from Covid-19 vaccine manufacturers decreased for the reasons discussed above. Base Nucleic Acid Production revenue was $164.0 million for the year ended December 31, 2023, which was $49.3 million lower than the prior year for the reasons cited above.
• Biologics Safety Testing revenue was $64.2 million for the year ended December 31, 2023, representing an 8% decrease year-over-year.

Net loss and Adjusted EBITDA (non-GAAP) were $(138.4) million and $65.3 million, respectively, for the year ended December 31, 2023, compared to net income and Adjusted EBITDA (non-GAAP) of $490.7 million and $637.8 million, respectively, for the prior year.

Financial guidance for 2024
Maravai’s financial guidance for the full year 2024 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.

Revenue for 2024 is projected to be in the range of $265.0 million to $285.0 million.

Adjusted EBITDA (non-GAAP) margins are expected to be in the range of 23% to 25%.

As it relates to forward-looking Adjusted EBITDA margin, Maravai cannot provide guidance for the most directly comparable GAAP measure or a reconciliation of this non-GAAP financial measure because it is unable to provide a meaningful or accurate calculation or estimation of certain significant reconciling items without unreasonable effort.
MB Bureau