MaxCyte’s Earnings Call: Growth Amidst Challenges

MaxCyte (MXCT) ((MXCT)) has held its Q4 earnings call. Read on for the main highlights of the call.

MaxCyte’s recent earnings call painted a picture of mixed fortunes, with significant core revenue growth and strategic expansion efforts. The company celebrated the acquisition of SeQure Dx and the expansion of its SPL portfolio, but faced challenges with an overall revenue decline and reduced instrument and SPL program-related revenues. Despite notable achievements, these financial setbacks present a balanced outlook for the company.

Core Revenue Growth in 2024

MaxCyte reported a commendable increase in core business revenue, reaching $32.5 million for the full year 2024, which is a 9% rise from 2023. Particularly noteworthy was the 36% growth in PA sales compared to the previous year, highlighting the strength of the company’s core operations.

Strategic Acquisition of SeQure Dx

The acquisition of SeQure Dx marked a significant strategic move for MaxCyte, enhancing its capabilities in the safety assessment of cell and gene therapy development. This acquisition not only provides cross-selling opportunities but has also been smoothly integrated into MaxCyte’s operations, positioning the company for future growth.

Expansion of SPL Portfolio

MaxCyte’s SPL portfolio saw substantial growth in 2024, with the signing of six new SPLs, bringing the total number of active SPL customers to 28. The company now supports 18 active clinical programs and one commercial program, with a pre-commercial milestone potential exceeding $220 million.

CASGEVY Progress

CASGEVY, a key product for MaxCyte, achieved regulatory approvals in multiple countries and secured a reimbursement agreement with NHS England, significantly expanding global patient access. The number of patients completing cell collection rose to approximately 50, up from about 30 in the previous quarter.

Overall Revenue Decline

Despite the positive developments, MaxCyte’s total revenue for 2024 was $38.6 million, marking a 6% decline from $41.3 million in 2023. The fourth quarter was particularly challenging, with total revenue dropping by 45% compared to Q4 2023.

Instrument Revenue Challenges

Instrument revenue faced hurdles, ending the year at $7.1 million, down from $8.3 million in 2023. This decline was attributed to customer caution regarding capital expenditure, reflecting broader economic uncertainties.

SPL Program-Related Revenue Decrease

SPL program-related revenue experienced a significant drop in 2024, totaling $6.1 million, down from $11.5 million in 2023. The fourth quarter saw a sharp decrease, with revenue plummeting to $0.1 million from $8.5 million in Q4 2023.

Forward-Looking Guidance

Looking ahead to 2025, MaxCyte projects core revenue growth between 8% and 15%, including at least $2 million from the SeQure Dx acquisition. The company anticipates SPL program-related revenue to be around $5 million, with expectations to maintain gross margins in the low to mid-80s percentage range. Despite a challenging macroeconomic environment, MaxCyte remains cautiously optimistic about potential improvements in the funding environment for their customers.

In summary, MaxCyte’s earnings call highlighted a mix of growth and challenges. While the company achieved significant core revenue growth and strategic expansion, it also faced revenue declines in other areas. The forward-looking guidance suggests cautious optimism, with expectations of continued growth and strategic focus in 2025.