Rapid Micro Biosystems, Inc. (Nasdaq: RPID) (the “Company”), an
innovative life sciences technology company providing mission
critical automation solutions to facilitate the efficient
manufacturing and fast, safe release of healthcare products, today
announced its financial results for the fourth quarter and full
year ended December 31, 2022.
Recent Highlights
- Fourth quarter commercial revenue
(combined product and service) of $4.4 million
- Fourth quarter recurring commercial
revenue (combined consumables and service contracts) of
$2.9 million, representing growth of 28% from the prior year
period
- Increased cumulative customer
systems to 125 placed systems and 103 validated systems
- Sold 3 millionth consumable on a
cumulative basis
- Launched innovative RMBNucleus™
Mold Alarm software for the Growth Direct® system
- Cash, cash equivalents and
investments of $138.4 million on December 31, 2022
“While 2022 was a challenging year, we’re
pleased that our fourth quarter results were in line with or
slightly better than our guidance. As we move forward in 2023, our
highest priority remains accelerating Growth Direct system
placements,” said Robert Spignesi, President and CEO. “We are
encouraged with the progress we have made to improve execution and
will continue to advance the other key elements of our growth
strategy including driving margin improvement, investing in new
product development to further differentiate the Growth Direct
platform and prudently managing our cash.”
Fourth Quarter Financial
Results
Total revenue for the fourth quarter of 2022 was
$4.4 million, compared to $5.2 million in the fourth
quarter of 2021. A breakdown of fourth quarter revenue and key
metrics follows:
- Total commercial revenue was
$4.4 million in Q4 2022, compared to $4.9 million in Q4
2021.
- Product revenue (combined systems and
consumables) was $2.8 million in Q4 2022, compared to $2.9 million
in Q4 2021. Higher consumables revenue, which grew by 22%, was
offset by lower systems revenue due to one less system placement in
Q4 2022.
- Service revenue was $1.5 million in Q4
2022, compared to $2.0 million in Q4 2021. Higher revenue from
service contracts, which grew by 41%, was offset by lower
validation revenue in Q4 2022.
- Recurring commercial revenue was
$2.9 million in Q4 2022, compared to $2.3 million in Q4
2021, representing growth of 28%.
- Non-commercial revenue under the
Company’s contract with the U.S. Biomedical Advanced Research and
Development Authority (”BARDA”), which was completed in Q4 2021,
was $0.0 million in Q4 2022, compared to $0.4 million in the
prior-year period.
- Placed 2 new systems and completed
the validation of 3 customer systems in Q4 2022.
Total cost of commercial revenue was
$7.0 million in the fourth quarter of 2022, compared to $7.5
million in the fourth quarter of 2021. The decrease was due to one
less system placement and improved manufacturing volume leverage in
systems, partially offset by higher sales volume and unplanned
automated manufacturing line downtime in consumables as well as
higher headcount, travel-related and material costs in service to
support a larger number of systems under service contracts.
Total operating expenses were $14.7 million in
the fourth quarter of 2022, compared to $12.0 million in the fourth
quarter of 2021. The increase was mainly due to higher costs
associated with expanding our sales and marketing organizations and
supporting new product development activities. Operating expenses
in the fourth quarter of 2022 also included one-time costs of $1.0
million related to the unsolicited, non-binding proposal received
by the Company from Kennedy Lewis Investment Management LLC in June
and the strategic alternatives review process announced in August
and completed in December as well as $0.8 million in costs related
to the restructuring plan also announced in August.
Net loss for the fourth quarter of 2022 was
$16.4 million, compared to $14.6 million in 2021. The increase in
net loss was primarily due to higher operating expenses. Net loss
per share attributable to common shareholders for the fourth
quarter of 2022 was $0.39, compared to a net loss of $0.35 in
2021.
Cash, cash equivalents and investments were
$138.4 million and the Company had no debt outstanding as of
December 31, 2022.
Full Year 2022 Financial
Results
Total revenue for the full year was $17.1
million in 2022, compared to $23.2 million in 2021. A breakdown of
full year revenue and key metrics follows:
- Total commercial revenue was $17.1
million in 2022, compared to $21.6 million in
2021.
- Product revenue was $11.1 million in
2022, compared to $15.5 million in 2021.
- Service revenue was $6.1 million in
both 2022 and 2021.
- Recurring commercial revenue was $11.0
million in 2022, compared to $7.8 million in 2021.
- Non-commercial revenue under the
Company’s contract with BARDA was $0.0 in 2022, compared to $1.6
million in 2021.
- Placed 9 new systems and completed
the validation of 19 customer systems in 2022.
Total cost of commercial revenue was
$25.7 million in 2022, compared to $29.4 million in
2021.
Total operating expenses were $54.7 million
in 2022, compared to $39.5 million in 2021.
Net loss was $60.8 million in 2022, compared to
$73.5 million in 2021, and net loss per share attributable to
common shareholders was $1.43 in 2022, compared to $3.94 in
2021.
Full Year 2023 Outlook
For the full year 2023, the Company expects
commercial revenue of at least $22.0 million, including the
placement of at least 15 new systems.
Webcast DetailsThe Company will
host a conference call before the market opens today, March 3,
2023, at 8:30 a.m. EST to discuss its fourth quarter and full year
2022 financial results. The live call is accessible on the
Company’s website at investors.rapidmicrobio.com and will be
archived and available for replay for one year.
About Rapid Micro
Biosystems
Rapid Micro Biosystems is an innovative life
sciences technology company providing mission critical automation
solutions to facilitate the efficient manufacturing and fast, safe
release of healthcare products such as biologics, vaccines, cell
and gene therapies, and sterile injectables. The Company’s flagship
Growth Direct system automates and modernizes the antiquated,
manual microbial quality control (“MQC”) testing workflows used in
the largest and most complex pharmaceutical manufacturing
operations across the globe. The Growth Direct system brings the
quality control lab to the manufacturing floor, unlocking the power
of MQC automation to deliver the faster results, greater accuracy,
increased operational efficiency, better compliance with data
integrity regulations, and quicker decision making that customers
rely on to ensure safe and consistent supply of important
healthcare products. The Company is headquartered and has U.S.
manufacturing in Lowell, Massachusetts, with global locations in
Lexington, Massachusetts, Switzerland, Germany, and the
Netherlands. For more information, please visit
www.rapidmicrobio.com or follow the Company on Twitter at
@rapidmicrobio or on LinkedIn.
Forward-Looking Statements
This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking statements, including, but not limited
to, statements regarding the Company’s full year 2022 revenue
outlook range and expected future revenue and growth; expected
placements of Growth Direct systems, anticipated timing of such
placements and the impact on the Company’s commercial revenue; the
Company's expectations regarding customers capital purchasing
decisions and the Company’s sales opportunities; expectations for
the RMBNucleus Mold Alarm; the projected cost savings resulting
from the Company’s organizational restructuring plan; expectations
regarding the Company’s improvements in commercial execution and
enhanced sales and marketing processes; the Company's Board of
Directors’ review of strategic alternatives; and customer interest
in and adoption of the Company's Growth Direct microbial quality
control platform.
In some cases, you can identify forward-looking
statements by terminology such as “outlook,” “aim,” “anticipate,”
“assume,” “believe,” “contemplate,” “continue,” “could,” “due,”
“estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,”
“predict,” “potential,” “positioned,” “seek,” “should,” “target,”
“will,” “would” and other similar expressions that are predictions
of or indicate future events and future trends, or the negative of
these terms or other comparable terminology, although not all
forward-looking statements contain these words. Forward-looking
statements involve known and unknown risks, uncertainties and
assumptions which may cause actual results to differ materially
from any results expressed or implied by any forward-looking
statement, including, but not limited to, the Company’s
organizational restructuring plan, including a reduction in
workforce, that may not result in the anticipated savings, could
result in total costs and expenses that are greater than expected
and could disrupt the Company’s business; the Company’s significant
losses since inception; the Company’s ability to meet its publicly
announced guidance and other expectations about its business and
operations; the Company’s limited experience in marketing and sales
and the effectiveness of its sales processes; the Company’s need to
develop new products and adapt to technological changes; the
Company’s ability to establish and maintain its position as a
leading provider of automated microbial quality control testing;
the Company’s ability to maintain its manufacturing facility; risks
related to third-parties; the Company’s ability to retain key
management and other employees; risks related to regulatory and
intellectual property matters; risks related to supply chain
disruptions and the impact of inflation; risks related to the
exploration of strategic alternatives; the impact of macroeconomic
volatility and the coronavirus pandemic on the Company’s business
and operations, including further delays in placements and
validation of new systems; and the other important factors outlined
under the caption “Risk Factors” in the Company’s Annual Report on
Form 10-K filed with the Securities and Exchange Commission (“SEC”)
on March 24, 2022, as such factors may be updated from time to time
in its other filings with the SEC, which are available on the SEC's
website at www.sec.gov and the Investor Relations page of its
website at investors.rapidmicrobio.com. Although the Company
believes that the expectations reflected in its forward-looking
statements are reasonable, it cannot guarantee future results. The
Company has no obligation, and does not undertake any obligation,
to update or revise any forward-looking statement made in this
press release to reflect changes since the date of this press
release, except as may be required by law.
RAPID MICRO BIOSYSTEMS,
INC.Unaudited Consolidated Statements of
Operations(In thousands, except share and per
share amounts)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
2,844 |
|
|
$ |
2,882 |
|
|
$ |
11,056 |
|
|
$ |
15,512 |
|
Service revenue |
|
1,530 |
|
|
|
1,973 |
|
|
|
6,077 |
|
|
|
6,125 |
|
Non-commercial revenue |
|
— |
|
|
|
353 |
|
|
|
— |
|
|
|
1,595 |
|
Total revenue |
|
4,374 |
|
|
|
5,208 |
|
|
|
17,133 |
|
|
|
23,232 |
|
Costs and operating expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
5,257 |
|
|
|
5,534 |
|
|
|
18,477 |
|
|
|
23,434 |
|
Cost of service revenue |
|
1,718 |
|
|
|
1,925 |
|
|
|
7,196 |
|
|
|
5,922 |
|
Cost of non-commercial revenue |
|
— |
|
|
|
335 |
|
|
|
— |
|
|
|
1,617 |
|
Research and development |
|
3,403 |
|
|
|
2,855 |
|
|
|
12,866 |
|
|
|
9,781 |
|
Sales and marketing |
|
4,124 |
|
|
|
3,355 |
|
|
|
14,994 |
|
|
|
11,815 |
|
General and administrative |
|
7,132 |
|
|
|
5,760 |
|
|
|
26,819 |
|
|
|
17,895 |
|
Total costs and operating expenses |
|
21,634 |
|
|
|
19,764 |
|
|
|
80,352 |
|
|
|
70,464 |
|
Loss from operations |
|
(17,260 |
) |
|
|
(14,556 |
) |
|
|
(63,219 |
) |
|
|
(47,232 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income (expense), net |
|
831 |
|
|
|
(19 |
) |
|
|
1,778 |
|
|
|
(2,608 |
) |
Change in fair value of preferred stock warrant liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19,643 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,100 |
) |
Other income (expense), net |
|
(11 |
) |
|
|
4 |
|
|
|
59 |
|
|
|
(850 |
) |
Total other income (expense), net |
|
820 |
|
|
|
(15 |
) |
|
|
1,837 |
|
|
|
(26,201 |
) |
Loss before income taxes |
|
(16,440 |
) |
|
|
(14,571 |
) |
|
|
(61,382 |
) |
|
|
(73,433 |
) |
Income tax (benefit) expense |
|
7 |
|
|
|
34 |
|
|
|
(576 |
) |
|
|
91 |
|
Net loss |
|
(16,447 |
) |
|
|
(14,605 |
) |
|
|
(60,806 |
) |
|
|
(73,524 |
) |
Accretion of redeemable convertible preferred stock to redemption
value |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,761 |
) |
Cumulative redeemable convertible preferred stock dividends |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,747 |
) |
Net loss attributable to common stockholders — basic and
diluted |
$ |
(16,447 |
) |
|
$ |
(14,605 |
) |
|
$ |
(60,806 |
) |
|
$ |
(78,032 |
) |
Net loss per share attributable to Class A and Class B common
stockholders — basic and diluted |
$ |
(0.39 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1.43 |
) |
|
$ |
(3.94 |
) |
Weighted average common shares outstanding — basic and diluted |
|
42,602,447 |
|
|
|
41,858,094 |
|
|
|
42,454,403 |
|
|
|
19,783,539 |
|
RAPID MICRO BIOSYSTEMS,
INC.Unaudited Condensed Consolidated Balance
Sheets(In thousands)
|
December 31, |
|
2022 |
|
2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
27,064 |
|
$ |
178,387 |
Short-term investments |
|
81,584 |
|
|
15,110 |
Accounts receivable |
|
5,369 |
|
|
5,005 |
Inventory |
|
21,187 |
|
|
15,671 |
Prepaid expenses and other current assets |
|
3,372 |
|
|
3,951 |
Total current assets |
|
138,576 |
|
|
218,124 |
Property and equipment, net |
|
13,818 |
|
|
11,304 |
Right-of-use assets |
|
7,063 |
|
|
— |
Long-term investments |
|
29,790 |
|
|
9,966 |
Other long-term assets |
|
1,119 |
|
|
1,491 |
Restricted cash |
|
284 |
|
|
284 |
Total assets |
$ |
190,650 |
|
$ |
241,169 |
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
5,428 |
|
$ |
3,944 |
Accrued expenses and other current liabilities |
|
8,150 |
|
|
10,917 |
Deferred revenue |
|
4,706 |
|
|
3,305 |
Lease liabilities, short-term |
|
766 |
|
|
— |
Total current liabilities |
|
19,050 |
|
|
18,166 |
Deferred rent, long-term |
|
— |
|
|
813 |
Lease liabilities, long-term |
|
7,202 |
|
|
— |
Other long-term liabilities |
|
229 |
|
|
1,210 |
Total liabilities |
|
26,481 |
|
|
20,189 |
Total stockholders’ equity |
|
164,169 |
|
|
220,980 |
Total liabilities and stockholders’ equity |
$ |
190,650 |
|
$ |
241,169 |
Investor Contact:
Michael Beaulieu, CFA
Vice President, Investor Relations and Corporate Communications
investors@rapidmicrobio.com
Media
media@rapidmicrobio.com
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