MAXCYTE, INC. Q3 FY2024 earnings call

• MaxCyte reported $8.2 million total revenue in Q3, with core revenue exceeding internal expectations. Increased expectations for core revenue growth in 2024 due to business trends. - Instrument install base grew 739, instrument revenue $1.8 million; PA revenue $3.4 million, up 54% YOY. - Signed 6 new Strategic Platform Licenses in 2024, including Kamau Therapeutics in September, reaching a record number. Confident in cell and gene therapy market trends. - Limited visibility on CASGEVY-related commercial milestone revenue, but optimistic about other customers' therapies. - Promoted Ali Soleymannezhad to Chief Commercial Officer, hired Head of Engineering Jeremy Kolenbrander. Disciplined with spending, focusing on high-value projects. - Appointed Cynthia Collins to the Board, leveraging her biotechnology expertise.

Total revenue in the third quarter of 2024 was $8.2 million, an increase of 2% compared to the third quarter of 2023. Core revenue was $8.1 million, up 23% year-over-year. Instrument revenue was $1.8 million, up from $1.7 million in the prior year quarter, impacted by customer caution on capital equipment spending but showing year-over-year growth. Lease revenue was $2.5 million, stable compared to the prior year. PA revenue was $3.4 million, up 54% year-over-year and sequentially, driven by broad-based customer demand. 53% of core revenue in the third quarter was contributed by SPL customers.

• Increased core revenue guidance to at least 5% growth compared to 2023. - Expect SPL Program-related revenue of approximately $6 million in 2024, with no additional milestone payments this year. - Ending 2024 with $185 million in cash equivalents and investments, up from prior expectations.

• Customer caution on capital equipment spending continues to impact instrument revenue. - Funding environment largely unchanged, customers in cell and gene therapy operating cautiously, especially on capital equipment.

Q: Focus on PAs and write-down related to inventory.

A: Maher mentions PA strength due to market improvement, hired Head of Engineering for product development improvements. Doug explains deferred income related to leases is stable.

Q: SPLs and future guidance.

A: Maher states 3%-5% SPL growth is sustainable, not a one-off.

Q: Guidance and fourth quarter.

A: Maher explains raised guidance based on disciplined modeling, confident in meeting 5%+ core growth, mid-80s non-GAAP gross margins expected.

Q: CASGEVY and ex-vivo vs in-vivo.

A: Maher talks about CASGEVY launch support, ex-vivo editing complexity driving need for MaxCyte's technology.

Q: SPL timing and customer switching.

A: Maher mentions 12-18 months for SPL signing, customers switching to MaxCyte due to differentiated platform.