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, 2023.
Recent Highlights
- Strong fourth quarter 2023 revenue
growth of 45% compared to the fourth quarter of 2022.
- Placed six Growth Direct systems in
the fourth quarter; highest placements since the third quarter of
2021.
- Growth Direct systems now placed
with 100% of commercially approved CAR-T therapy
manufacturers.
- Announced expected availability of
new Rapid Sterility application for the Growth Direct® system by
mid-2024.
- Growth Direct platform selected by
Samsung Biologics to automate critical microbiology quality control
testing.
“We are pleased with our strong finish to 2023,”
said Robert Spignesi, President and CEO. “We exceeded our guidance
for both the fourth quarter and the year and delivered our
strongest quarter for system placements in over two years. We are
also pleased with the strong improvement in our fourth quarter
gross margin as the benefits of our actions to reduce product cost,
improve manufacturing efficiency and increase service productivity
continue to take hold. In 2024, we will continue to focus on our
top priorities which include accelerating Growth Direct system
placements, further improving our gross margin, successfully
launching our new, innovative Rapid Sterility application and
prudently managing our cash.”
Fourth Quarter Financial
Results
Total revenue for the fourth quarter of 2023
increased 45% to $6.3 million, compared to $4.4 million in the
fourth quarter of 2022. A breakdown of fourth quarter revenue and
key metrics follows:
- Product revenue (combined systems and consumables) increased
45% to $4.1 million in Q4 2023, compared to $2.8 million in Q4
2022. The increase was largely driven by the placement of four
additional systems in Q4 2023.
- Service revenue increased 45% to $2.2 million in Q4 2023,
compared to $1.5 million in Q4 2022. The increase was due to
increased validation activity as well as higher service contract
revenue compared to Q4 2022.
- Recurring revenue increased 13% to $3.3 million in Q4
2023, compared to $2.9 million in Q4 2022.
- Total cost of revenue decreased 7% despite a 45% increase in
total revenue, driving significant gross margin improvement.
- Placed six systems and completed
the validation of nine customer systems, increasing cumulative
customer systems to 141 placed systems and 121 validated
systems.
Total cost of revenue was $6.5 million in the
fourth quarter of 2023, compared to $7.0 million in the fourth
quarter of 2022. Gross margin percentage in the fourth quarter of
2023 was near breakeven (negative 3%) compared to negative 59% in
the fourth quarter of 2022. The gross margin percentage improvement
was driven by higher total revenue, higher production volumes and
actions taken by the Company to reduce product costs as well as
higher manufacturing efficiency and service productivity.
Total operating expenses decreased 18% to $12.0
million in the fourth quarter of 2023, compared to $14.7 million in
the fourth quarter of 2022. The decrease was largely due to costs
incurred in the fourth quarter of 2022 associated with the
strategic review process initiated by our Board of Directors in
that period, as well as cost savings in 2023 resulting from the
restructuring plan implemented in August 2022.
Net loss for the fourth quarter of 2023 was
$11.2 million, compared to $16.4 million in the fourth quarter of
2022. Net loss per share attributable to common shareholders for
the fourth quarter of 2023 was $0.26, compared to $0.39 in the
fourth quarter of 2022.
Cash, cash equivalents and investments were
$95.0 million at December 31, 2023, with no debt outstanding, which
the Company expects to provide cash runway at least into the second
half of 2026.
Full Year 2023
Financial Results
Total revenue for the full year was
$22.5 million in 2023, compared to $17.1 million in 2022.
A breakdown of full year revenue and key metrics follows:
- Product revenue increased 34% to $14.8 million in 2023,
compared to $11.1 million in 2022.
- Service revenue increased 27% to $7.7 million in 2023,
compared to $6.1 million in 2022.
- Recurring revenue increased 23% to $13.5 million in 2023,
compared to $11.0 million in 2022.
- Placed 16 systems and completed the
validation of 18 customer systems in 2023.
Total cost of revenue was $28.0 million in
2023, compared to $25.7 million in 2022.
Total operating expenses were $51.1 million
in 2023, compared to $54.7 million in 2022.
Net loss was $52.5 million in 2023,
compared to $60.8 million in 2022, and net loss per share
attributable to common shareholders was $1.22 in 2023, compared to
$1.43 in 2022.
Full Year 2024 Outlook
For the full year 2024, the Company expects
total revenue of at least $27.0 million, including the placement of
at least 20 systems.
Webcast Details
The Company will host a conference call before
the market opens today, March 1, 2024, at 8:30 a.m. EST to discuss
its fourth quarter and full year 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 X (formerly
known as 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 2024 revenue
guidance; expected placements of Growth Direct systems, anticipated
timing of such placements and the impact on the Company’s revenue;
expectations and goals with respect to continued improvement in
gross margins; expectations for the launch and availability of the
Rapid Sterility application for Growth Direct; and financial
position and cash runway.
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 significant
losses since inception; the Company’s ability to meet its publicly
announced guidance and other expectations about its business and
operations; the effectiveness of the Company’s sales and marketing
efforts; the Company’s ability to sell and place its products with
customers; the Company’s ability to develop new products and adapt
to technological change, including executing on the launch of the
Rapid Sterility application for Growth Direct; the Company’s
ability to establish and maintain its position as a leading
provider of automated microbial quality control testing;
competition within the Company’s industry; the Company’s ability to
maintain its manufacturing operations; the Company’s efforts to
improve gross margins for its products; 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; the impact of macroeconomic volatility on the
Company’s business and operations; 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 Consolidated
Statements of Operations(In thousands, except share and per
share amounts) |
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
4,112 |
|
|
$ |
2,844 |
|
|
$ |
14,805 |
|
|
$ |
11,056 |
|
Service revenue |
|
2,225 |
|
|
|
1,530 |
|
|
|
7,714 |
|
|
|
6,077 |
|
Total revenue |
|
6,337 |
|
|
|
4,374 |
|
|
|
22,519 |
|
|
|
17,133 |
|
Costs and operating
expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
4,699 |
|
|
|
5,257 |
|
|
|
20,060 |
|
|
|
18,477 |
|
Cost of service revenue |
|
1,810 |
|
|
|
1,718 |
|
|
|
7,944 |
|
|
|
7,196 |
|
Research and development |
|
3,318 |
|
|
|
3,403 |
|
|
|
12,820 |
|
|
|
12,866 |
|
Sales and marketing |
|
3,161 |
|
|
|
4,124 |
|
|
|
13,322 |
|
|
|
14,994 |
|
General and administrative |
|
5,537 |
|
|
|
7,132 |
|
|
|
24,936 |
|
|
|
26,819 |
|
Total costs and operating expenses |
|
18,525 |
|
|
|
21,634 |
|
|
|
79,082 |
|
|
|
80,352 |
|
Loss from operations |
|
(12,188 |
) |
|
|
(17,260 |
) |
|
|
(56,563 |
) |
|
|
(63,219 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income, net |
|
1,041 |
|
|
|
831 |
|
|
|
4,210 |
|
|
|
1,778 |
|
Other (expense) income, net |
|
(17 |
) |
|
|
(11 |
) |
|
|
(83 |
) |
|
|
59 |
|
Total other income, net |
|
1,024 |
|
|
|
820 |
|
|
|
4,127 |
|
|
|
1,837 |
|
Loss before income taxes |
|
(11,164 |
) |
|
|
(16,440 |
) |
|
|
(52,436 |
) |
|
|
(61,382 |
) |
Income tax expense (benefit) |
|
8 |
|
|
|
7 |
|
|
|
31 |
|
|
|
(576 |
) |
Net loss |
$ |
(11,172 |
) |
|
$ |
(16,447 |
) |
|
$ |
(52,467 |
) |
|
$ |
(60,806 |
) |
Net loss per share — basic and
diluted |
$ |
(0.26 |
) |
|
$ |
(0.39 |
) |
|
$ |
(1.22 |
) |
|
$ |
(1.43 |
) |
Weighted average common shares
outstanding — basic and diluted |
|
43,139,346 |
|
|
|
42,602,447 |
|
|
|
43,024,039 |
|
|
|
42,454,403 |
|
RAPID MICRO BIOSYSTEMS, INC.Unaudited Condensed
Consolidated Balance Sheets(In thousands) |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
24,285 |
|
$ |
27,064 |
Short-term investments |
|
67,768 |
|
|
81,584 |
Accounts receivable |
|
5,532 |
|
|
5,369 |
Inventory |
|
19,961 |
|
|
21,187 |
Prepaid expenses and other current assets |
|
2,869 |
|
|
3,372 |
Total current assets |
|
120,415 |
|
|
138,576 |
Property and equipment,
net |
|
12,832 |
|
|
13,818 |
Right-of-use assets |
|
6,240 |
|
|
7,063 |
Long-term investments |
|
2,911 |
|
|
29,790 |
Other long-term assets |
|
770 |
|
|
1,119 |
Restricted cash |
|
284 |
|
|
284 |
Total assets |
$ |
143,452 |
|
$ |
190,650 |
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,973 |
|
$ |
5,428 |
Accrued expenses and other current liabilities |
|
9,907 |
|
|
8,150 |
Deferred revenue |
|
5,974 |
|
|
4,706 |
Lease liabilities, short-term |
|
1,132 |
|
|
766 |
Total current liabilities |
|
18,986 |
|
|
19,050 |
Lease liabilities,
long-term |
|
6,214 |
|
|
7,202 |
Other long-term
liabilities |
|
263 |
|
|
229 |
Total liabilities |
|
25,463 |
|
|
26,481 |
Total stockholders’ equity |
|
117,989 |
|
|
164,169 |
Total liabilities and stockholders’ equity |
$ |
143,452 |
|
$ |
190,650 |
Investor Contact:
Michael Beaulieu, CFA
Vice President, Investor Relations and Corporate Communications
investors@rapidmicrobio.com
Media Contact:
media@rapidmicrobio.com
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