Maravai Lifesciences Holdings, Inc. · NASDAQ:MRVI
Maravai Lifesciences — Q4 2023 Earnings Presentation
31 slides from Maravai Lifesciences's earnings presentation, Feb 22, 2024
Slide 1: Q4 and Year-end 2023 Financial Results
NASDAQ: MRVI Q4 and Year-end 2023 Financial Results February 22, 2024
Slide 2: Agenda
Agenda 01 Welcome Deb Hart, Head of Investor Relations 02 Business Highlights Trey Martin, Chief Executive Officer 03 Financial Results Kevin Herde, Chief Financial Officer & Guidance 04 Q&A Session Trey Martin, Chief Executive Officer Kevin Herde, Chief Financial Officer Drew Burch, President, Nucl
Slide 3: Forward Looking Statements and Use of Non-GAAP Financial Measures
Forward Looking Statements and Use of Non-GAAP Financial Measures This presentation contains, and our officers and representatives may, from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Slide 4: Business Highlights
Q4 AND 2023 Business Highlights Trey Martin Chief Executive Officer 4 © 2024 Maravai LifeSciences
Slide 5: 2023 and Q4 financial highlights
2023 and Q4 financial highlights 2023 ADJUSTED 2023 REVENUE Q4 23 REVENUE EBITDA1 $289 M $65 M $74 M Q4 outperformance: CleanCap® and custom chemistry 1. Reconciliation provided on pages 29-31 5 © 2024 Maravai LifeSciences
Slide 6: Q4 2023 and FY 2023 business segment highlights
Q4 2023 and FY 2023 business segment highlights Nucleic Acid Production Biologics Safety Testing $59 M $225 M $15 M $64 M Q4 revenue 2023 revenue Q4 revenue 2023 revenue COVID CleanCap® COVID CleanCap® revenue of $18 M revenue of $61 M Base companywide non-COVID revenue1 of $228 M for 2023; $56 M in
Slide 7: History of Maravai LifeSciences as we enter 2024
History of Maravai LifeSciences as we enter 2024 Private, Pre-Pandemic IPO and Pandemic Response Maravai Today March 2014 September 2016 March 2020 January 2022 January 2023 Formed Maravai LifeSciences Acquired TriLink Acquired MockV Acquired Acquired with GTCR Biotechnologies Solutions MyChem Alpha
Slide 8: Maravai 3.0 – leading innovation to grow and diversify our base business
Maravai 3.0 – leading innovation to grow and diversify our base business BUSINESS SEGMENTS Nucleic Acid Production Biologics Safety Testing BRANDS TriLink Discovery TriLink Discovery 8 © 2024 Maravai LifeSciences
Slide 9: Broad and Growing mRNA Pipeline: Preclinical and Clinical Trials using CleanCap
Broad and Growing mRNA Pipeline: Preclinical and Clinical Trials using CleanCap® Preclinical and Clinical Trials Using CleanCap® Programs by Clinical Phase ~350 2% +100 3% 11% Preclinical ~250 +70 9% Phase 1 ~180 Phase 2 Phase 3 75% Marketed Feb 2022 Dec 2022 Dec 2023 Source: third party market stud
Slide 10: Broad and Growing mRNA Pipeline: Preclinical and Clinical Trials using CleanCap
Broad and Growing mRNA Pipeline: Preclinical and Clinical Trials using CleanCap® Programs by Modality Programs by disease/therapy 2% 10% mRNA Vaccine 16% 38% mRNA Therapeutic Cell Therapy Self-Amplifying RNA Other 34% Source: third party market study 10 © 2024 Maravai LifeSciences
Slide 11: Supplying key raw materials for rapidly growing Cell and Gene Therapy Market
Supplying key raw materials for rapidly growing Cell and Gene Therapy Market 50% more novel drugs approved in 2023 than in 20221 Maravai Critical Materials Gene therapy 55 FDA-approved innovative CleanCap® pDNA therapies containing active ingredients/molecules not previously approved1 mRNA 7 cell an
Slide 12: Nucleic Acid Production facilities poised to win in discovery and accelerate across development stages
Nucleic Acid Production facilities poised to win in discovery and accelerate across development stages Innovation and oligo & chemistry • Flanders 1 – Anticipate production of GMP-grade CleanCap® M6 by mid-year – Receiving inbound customer inquiries • Flanders 2 – Have first booking to produce late-
Slide 13: Global protection of CleanCap intellectual property
Global protection of CleanCap® intellectual property New New Patent in Patent in Canada China New patents re-enforce TriLink BioTechnologies’ strong global intellectual property protection Estate already includes U.S., E.U., Australia, Japan, Korea and Hong Kong 13 © 2024 Maravai LifeSciences
Slide 14: Product and partnership updates
Product and partnership updates TriLink BioTechnologies signed license for CleanCap® with FUJIFILM Toyama Chemical • Enables global customer access to CleanCap®, including M6, via an in-country CDMO in Japan Glen Research published Glen Report 35.2 • Announced three new phosphoramidite products: m6A
Slide 15: 2024 Revenue Guidance
2024 Revenue Guidance Anticipating greater product and customer diversification in 2024 2024 REVENUE Expanding customer base and product offering $265 to $285 M Targeting sustainable, durable growth Providing flexible, concierge customer experience 15 © 2024 Maravai LifeSciences
Slide 16: Financial Results
Q4 AND 2023 Financial Results Kevin Herde Chief Financial Officer 16 © 2024 Maravai LifeSciences
Slide 17: One-time year-end 2023 GAAP-based non-operating line items
One-time year-end 2023 GAAP-based non-operating line items • Non-cash, non-EBITDA, non-operating GAAP tax expense of $764 M – Establishes a full valuation allowance against our deferred tax assets – Result of shifting to a GAAP-based pre-tax loss in 2023 and assessing our forward-looking GAAP book i
Slide 18: Financial Overview
Financial Overview GAAP Net Income ($ M)1, 2 Quarterly Annual $491 M $87 M - $110 M - $138 M Q4 2022 Q4 2023 FY 2022 FY 2023 1. GAAP net income prior to amounts attributable to non-controlling interests. 2. A GAAP-based charge of $6M was incurred in Q4 2023 related to cost restructuring activities.
Slide 19: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA ($ M)1 Quarterly Annual $638M $130M $65M $21M Q4 2022 Q4 2023 FY 2022 FY 2023 28% Adjusted EBITDA Margin in Q4 2023 23% Adjusted EBITDA Margin for 2023 1. Reconciliation provided on page 29 19 © 2024 Maravai LifeSciences
Slide 20: Earnings Per Share ($)
Earnings Per Share ($) Q4 and FY 2023 EPS1,2,3 Basic EPS Diluted EPS Adjusted EPS Basic EPS Diluted EPS Adjusted EPS $0.01 $0.03 ($0.80) ($0.80) ($0.90) ($0.90) Q4 2023 FY 2023 1. Basic EPS (GAAP) equals Net Income attributable to our Class A shares divided by the weighted average Class A shares. 2.
Slide 21: 2023 Year-end balance sheet, cash flow and financial highlights
2023 Year-end balance sheet, cash flow and financial highlights Cash Long-Term Net Cash2 Gross Debt $575 M $533 M $42 M Adjusted Free Cash Flow1 CFFO3 CCFI4 Cap Ex $8 M in Q4; $13 M in 2023 $126 M $122 M $53 M (Adjusted EBITDA less Capital Expenditures) Fully Diluted Net Interest Stock-based Shares
Slide 22: Nucleic Acid Production financial highlights
Nucleic Acid Production financial highlights Quarterly Annual REVENUE REVENUE $59 M $225 M • 80% of total Maravai revenue • 78% of total Maravai revenue • $24 M of Adjusted EBITDA1 • $83 M of Adjusted EBITDA1 • CleanCap® from COVID-19 = $18 M • CleanCap® from COVID-19 = $61 M 1. Reconciliation provi
Slide 23: Biologics Safety Testing financial highlights
Biologics Safety Testing financial highlights Quarterly Annual REVENUE REVENUE $15 M $64 M • 20% of total Maravai revenue • 22% of total Maravai revenue • $12 M of Adjusted EBITDA1 • $47 M of Adjusted EBITDA1 1. Reconciliation provided on page 29 23 © 2024 Maravai LifeSciences
Slide 24: 2024 Guidance
2024 Guidance 2024 REVENUE 2024 ADJUSTED EBITDA $265 to MARGIN1 $285 M 23% - 25% Other 2024 Model Assumptions • Interest expense, net of interest income, between $25 million and $30 million; • Depreciation and amortization between $40 million and $50 million; • Stock-based compensation, which we sho
Slide 25: Closing Commentary
Q4 AND 2023 Closing Commentary Trey Martin Chief Executive Officer 25 © 2024 Maravai LifeSciences
Slide 26: In closing – Maravai 3.0
In closing – Maravai 3.0 z Continued innovation in biologics, Putting our cash flow to work with Building a strong foundation for mRNA, gene editing, and cell and investments to bolster our market long-term, sustainable growth of gene therapy, building our product position and provide customers our
Slide 27: Q&A
Q&A 27 © 2024 Maravai LifeSciences
Slide 28: Thank you
Thank you maravdali LifeSciences
Slide 29: Non-GAAP reconciliations
Non-GAAP reconciliations Net (Loss) Income to Adjusted EBITDA Three Months Ended Year Ended This presentation contains financial measures that have not been In thousands calculated in accordance with accounting principles generally December 31, December 31, 2023 2022 2023 2022 accepted in the U.S. (
Slide 30: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Net Income and Adjusted Fully Diluted Earnings Per Share Three Months Ended Year Ended These non-GAAP measures are supplemental measures of In thousands, except per share amounts operating performance that are not prepared in accordance with December 31, December 31
Slide 31: Explanatory notes to reconciliations
Explanatory notes to reconciliations Explanatory Notes to Reconciliations (1) Refers to the change in estimated fair value of contingent consideration related to completed acquisitions. (2) Refers to incremental costs incurred to execute and integrate completed acquisitions, and retention payments i
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