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 first quarter ended
March 31, 2023.
Recent Highlights
- First quarter
total revenue (combined product and service revenue) increased 21%
to $5.0 million
- First quarter recurring revenue
increased 22% to $3.3 million
- Placed three new systems and
completed validation of two new customer systems in the first
quarter
- Cash, cash equivalents and
investments of $122.1 million at March 31, 2023
- Appointed Michael Wysocki as Senior
Vice President, Sales and Marketing
"We are pleased with our solid first quarter
performance and are reaffirming our full year 2023 total revenue
guidance," said Robert Spignesi, President and CEO. "Our first
quarter system placements were above expectations and included a
multi-system placement at a new, large biopharma customer. In
addition, recurring revenue grew over 20% in the quarter.
Accelerating Growth Direct® system placements remains our highest
priority for 2023, and we believe that our teams are executing
well despite macroeconomic uncertainty. We are also advancing our
initiatives to drive gross margin improvement and the development
of impactful new products."
First Quarter Financial
Results
Total revenue for the first quarter of 2023
increased 21% to $5.0 million, from $4.2 million in the first
quarter of 2022. The increase was primarily due to the placement of
three Growth Direct® systems in the quarter compared to two system
placements in the prior-year period. Recurring revenue, which
consists of consumables and service contract revenue, increased 22%
to $3.3 million in the first quarter, compared to $2.7 million in
the first quarter last year. The Company completed the validation
of two new customer systems in the first quarter of 2023 compared
to nine in the prior-year period.
Total cost of revenue was $6.8 million in
the first quarter of 2023, compared to $6.1 million in the
first quarter of 2022, representing an increase of 12%. The
increase was primarily due to both higher system and consumable
volumes in the first quarter this year.
Total operating expenses were $13.1 million
in the first quarter of 2023, essentially flat compared to the
prior year.
Net loss for the first quarter of 2023 was $13.9
million, compared to $14.9 million in the first quarter of 2022.
The decrease in net loss was primarily due to increased interest
income. Net loss per share for the first quarter of 2023 was $0.32,
compared to $0.35 in the first quarter of 2022.
Cash, cash equivalents and investments were
$122.1 million, which the Company continues to expect to provide
cash runway at least into 2026. The Company had no debt outstanding
as of March 31, 2023.
Full Year 2023
Outlook
The Company is reaffirming its prior full year
2023 outlook for revenue of at least $22.0 million, representing
growth of approximately 30%, and the placement of at least 15
systems.
Appointment of Senior Vice President,
Sales and Marketing
In a separate press release issued yesterday,
the Company announced the appointment of Michael Wysocki as Senior
Vice President, Sales and Marketing. For full details regarding
this announcement, please refer to that press release on the
Company’s website at investors.rapidmicrobio.com.
Webcast Details
The Company will host a conference call before
the market opens today, May 5, 2023, at 8:30 a.m. ET to discuss its
first quarter 2023 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 2023 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; expectations regarding the
development of new products; 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 10, 2023, 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 Condensed Consolidated Statements of
Operations(in thousands, except share and per
share amounts)
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
Product revenue |
$ |
3,324 |
|
|
$ |
2,563 |
|
Service revenue |
|
1,711 |
|
|
|
1,597 |
|
Total revenue |
|
5,035 |
|
|
|
4,160 |
|
Costs and operating expenses: |
|
|
|
Cost of product revenue |
|
4,981 |
|
|
|
4,358 |
|
Cost of service revenue |
|
1,844 |
|
|
|
1,726 |
|
Research and development |
|
3,153 |
|
|
|
3,525 |
|
Sales and marketing |
|
3,462 |
|
|
|
3,456 |
|
General and administrative |
|
6,467 |
|
|
|
6,094 |
|
Total costs and operating expenses |
|
19,907 |
|
|
|
19,159 |
|
Loss from operations |
|
(14,872 |
) |
|
|
(14,999 |
) |
Other income (expense): |
|
|
|
Interest income, net |
|
1,003 |
|
|
|
108 |
|
Other expense, net |
|
(11 |
) |
|
|
(16 |
) |
Total other income (expense), net |
|
992 |
|
|
|
92 |
|
Loss before income taxes |
|
(13,880 |
) |
|
|
(14,907 |
) |
Income tax expense |
|
7 |
|
|
|
23 |
|
Net loss |
|
(13,887 |
) |
|
|
(14,930 |
) |
Net loss per share — basic and diluted |
$ |
(0.32 |
) |
|
$ |
(0.35 |
) |
Weighted average common shares outstanding — basic and diluted |
|
42,812,580 |
|
|
|
42,197,887 |
|
RAPID MICRO BIOSYSTEMS,
INC.Unaudited Condensed Consolidated Balance
Sheets(in thousands)
|
March 31,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
24,410 |
|
$ |
27,064 |
Short-term investments |
|
75,276 |
|
|
81,584 |
Accounts receivable |
|
5,510 |
|
|
5,369 |
Inventory |
|
20,944 |
|
|
21,187 |
Prepaid expenses and other current assets |
|
3,005 |
|
|
3,372 |
Total current assets |
|
129,145 |
|
|
138,576 |
Property and equipment, net |
|
13,509 |
|
|
13,818 |
Right-of-use assets, net |
|
6,825 |
|
|
7,063 |
Long-term investments |
|
22,462 |
|
|
29,790 |
Other long-term assets |
|
1,056 |
|
|
1,119 |
Restricted cash |
|
284 |
|
|
284 |
Total assets |
$ |
173,281 |
|
$ |
190,650 |
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,287 |
|
$ |
5,428 |
Accrued expenses and other current liabilities |
|
6,104 |
|
|
8,150 |
Deferred revenue |
|
5,496 |
|
|
4,706 |
Lease liabilities, short-term |
|
773 |
|
|
766 |
Total current liabilities |
|
13,660 |
|
|
19,050 |
Lease liabilities, long-term |
|
6,940 |
|
|
7,202 |
Other long-term liabilities |
|
238 |
|
|
229 |
Total liabilities |
|
20,838 |
|
|
26,481 |
Total stockholders’ equity |
|
152,443 |
|
|
164,169 |
Total liabilities and stockholders’ equity |
$ |
173,281 |
|
$ |
190,650 |
Investor Contact:
Michael Beaulieu, CFA
Vice President, Investor Relations and Corporate Communications
investors@rapidmicrobio.com
Media
media@rapidmicrobio.com
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