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 second quarter ended
June 30, 2023.
Recent Highlights
- Second quarter total revenue
(combined product and service revenue) increased 30% to $5.0
million
- Second quarter recurring revenue
increased 44% to $3.6 million, including record consumable
revenue
- Placed two new systems and
completed validation of three new customer systems in the second
quarter
- Cash, cash equivalents and
investments of $113.3 million as of June 30, 2023
- Appointed Kirk Malloy, Ph.D. as
Chair of the Company's Board of Directors; Dr. Malloy has more than
25 years of senior management experience in life sciences tools and
diagnostics companies
"We were once again pleased with our commercial
execution in both products and services during the second quarter,"
said Robert Spignesi, President and CEO. "We delivered 30% total
revenue growth as our teams effectively navigated ongoing
macroeconomic uncertainty in the period. Additionally, we achieved
record consumable revenue and pull-through in the quarter, which
contributed to a 44% increase in recurring revenue, demonstrating
the strength of our business model."
Second Quarter
Financial Results
Total revenue for the second quarter of 2023
increased 30% to $5.0 million, from $3.9 million in the second
quarter of 2022. The Company placed two new Growth Direct® systems
and completed the validation of three new customer systems in the
second quarters of both 2023 and 2022. An increase in the
cumulative number of validated customer systems and higher
consumable revenue per average validated system in the period
resulted in higher service contract revenue and higher consumable
revenue compared to the prior year period. This also drove an
increase in recurring revenue of 44% to $3.6 million, compared to
$2.5 million in the second quarter last year.
Total cost of revenue was $6.9 million in
the second quarter of 2023, compared to $5.1 million in the
second quarter of 2022, representing an increase of 36%. The
increase was primarily due to higher shipments of consumables and
higher costs to support increased service activity.
Total operating expenses were $13.2 million
in the second quarter of 2023, compared to $12.9 million in
the second quarter of 2022.
Net loss for the second quarter of 2023 was
$14.0 million, compared to $13.1 million in the second quarter of
2022. The increase was primarily due to higher costs of revenue,
partially offset by higher revenue and increased interest income.
Net loss per share for the second quarter of 2023 was $0.33,
compared to $0.31 in the second quarter of 2022.
Cash, cash equivalents and investments were
$113.3 million, which the Company continues to expect to provide a
cash runway at least into 2026. The Company had no debt outstanding
as of June 30, 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.
Webcast Details
The Company will host a conference call before
the market opens today, August 4, 2023, at 8:30 a.m. ET to
discuss its second 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 revenue; the Company's
expectations regarding customers capital purchasing decisions and
the Company’s sales opportunities; expectations regarding the
Company’s improvements in commercial execution for both products
and services and enhanced sales and marketing processes;
expectations regarding the impact of macroeconomic uncertainty on
the Company; and the anticipated contribution of the members of the
Board of Directors to the Company’s operations, strategy and
growth.
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 public health crises 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 June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
Product revenue |
$ |
3,169 |
|
|
$ |
2,440 |
|
|
$ |
6,493 |
|
|
$ |
5,003 |
|
Service revenue |
|
1,833 |
|
|
|
1,420 |
|
|
|
3,544 |
|
|
|
3,017 |
|
Total revenue |
|
5,002 |
|
|
|
3,860 |
|
|
|
10,037 |
|
|
|
8,020 |
|
Costs and operating expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
4,689 |
|
|
|
3,235 |
|
|
|
9,670 |
|
|
|
7,593 |
|
Cost of service revenue |
|
2,205 |
|
|
|
1,846 |
|
|
|
4,049 |
|
|
|
3,572 |
|
Research and development |
|
3,233 |
|
|
|
2,965 |
|
|
|
6,386 |
|
|
|
6,490 |
|
Sales and marketing |
|
3,201 |
|
|
|
3,484 |
|
|
|
6,663 |
|
|
|
6,940 |
|
General and administrative |
|
6,728 |
|
|
|
6,404 |
|
|
|
13,195 |
|
|
|
12,498 |
|
Total costs and operating expenses |
|
20,056 |
|
|
|
17,934 |
|
|
|
39,963 |
|
|
|
37,093 |
|
Loss from operations |
|
(15,054 |
) |
|
|
(14,074 |
) |
|
|
(29,926 |
) |
|
|
(29,073 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income, net |
|
1,073 |
|
|
|
264 |
|
|
|
2,076 |
|
|
|
372 |
|
Other (expense) income, net |
|
(29 |
) |
|
|
107 |
|
|
|
(40 |
) |
|
|
91 |
|
Total other income (expense), net |
|
1,044 |
|
|
|
371 |
|
|
|
2,036 |
|
|
|
463 |
|
Loss before income taxes |
|
(14,010 |
) |
|
|
(13,703 |
) |
|
|
(27,890 |
) |
|
|
(28,610 |
) |
Income tax expense (benefit) |
|
6 |
|
|
|
(613 |
) |
|
|
13 |
|
|
|
(590 |
) |
Net loss |
|
(14,016 |
) |
|
|
(13,090 |
) |
|
|
(27,903 |
) |
|
|
(28,020 |
) |
Net loss per share — basic and diluted |
$ |
(0.33 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.65 |
) |
|
$ |
(0.66 |
) |
Weighted average common shares outstanding — basic and diluted |
|
43,059,937 |
|
|
|
42,494,055 |
|
|
|
42,936,941 |
|
|
|
42,346,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAPID MICRO BIOSYSTEMS,
INC.Unaudited Condensed Consolidated Balance
Sheets(in thousands)
|
|
|
|
|
June 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
28,680 |
|
$ |
27,064 |
Short-term investments |
|
77,393 |
|
|
81,584 |
Accounts receivable |
|
3,456 |
|
|
5,369 |
Inventory |
|
20,940 |
|
|
21,187 |
Prepaid expenses and other current assets |
|
2,278 |
|
|
3,372 |
Total current assets |
|
132,747 |
|
|
138,576 |
Property and equipment, net |
|
13,126 |
|
|
13,818 |
Right-of-use assets, net |
|
6,585 |
|
|
7,063 |
Long-term investments |
|
7,247 |
|
|
29,790 |
Other long-term assets |
|
956 |
|
|
1,119 |
Restricted cash |
|
284 |
|
|
284 |
Total assets |
$ |
160,945 |
|
$ |
190,650 |
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,363 |
|
$ |
5,428 |
Accrued expenses and other current liabilities |
|
7,685 |
|
|
8,150 |
Deferred revenue |
|
4,565 |
|
|
4,706 |
Lease liabilities, short-term |
|
802 |
|
|
766 |
Total current liabilities |
|
14,415 |
|
|
19,050 |
Lease liabilities, long-term |
|
6,655 |
|
|
7,202 |
Other long-term liabilities |
|
247 |
|
|
229 |
Total liabilities |
|
21,317 |
|
|
26,481 |
Total stockholders’ equity |
|
139,628 |
|
|
164,169 |
Total liabilities and stockholders’ equity |
$ |
160,945 |
|
$ |
190,650 |
|
|
|
|
|
|
|
|
|
|
|
|
RAPID MICRO BIOSYSTEMS,
INC.Unaudited Cash, Cash Equivalents and
Investments(in thousands)
|
|
|
|
|
June 30,2023 |
|
December 31,2022 |
Cash and cash equivalents |
$ |
28,680 |
|
$ |
27,064 |
Short-term investments |
|
77,393 |
|
|
81,584 |
Long-term investments |
|
7,247 |
|
|
29,790 |
Cash, cash equivalents and investments |
$ |
113,320 |
|
$ |
138,438 |
Investor Contact
Michael Beaulieu, CFA
Vice President, Investor Relations and Corporate Communications
investors@rapidmicrobio.com
Media
media@rapidmicrobio.com
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