Rapid Micro Biosystems Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Guidance
- Strong financial performance in Q4 2023 with total revenue of $6.3 million, a 45% increase from Q4 2022.
- Revenue for 2023 reached $22.5 million, reflecting a 31% growth compared to 2022.
- Delivered $13.5 million in recurring revenue for 2023 and provided a revenue guidance of at least $27.0 million for 2024, targeting a 20% growth.
- Placed six Growth Direct systems in Q4, the highest since Q3 2021, with 100% of commercially approved CAR-T therapy manufacturers utilizing their systems.
- Announced the upcoming Rapid Sterility application for the Growth Direct system by mid-2024 and secured a partnership with Samsung Biologics for automation.
- Improved gross margin in Q4 2023 through cost reduction, manufacturing efficiency enhancements, and increased service productivity.
- Total operating expenses decreased by 18% in Q4 2023, contributing to a reduced net loss compared to Q4 2022.
- Cash, cash equivalents, and investments stood at $95.0 million at the end of 2023, with no outstanding debt, ensuring financial stability.
- Full-year 2023 results showed positive growth in product revenue, service revenue, and recurring revenue compared to 2022.
- Net loss decreased in 2023, reflecting improved financial performance and cost management strategies.
- 2024 outlook includes a revenue target of at least $27.0 million and the placement of a minimum of 20 systems to drive further growth.
- Negative gross margin in Q4 2023 despite improvements compared to Q4 2022.
- Net loss for Q4 2023 was $11.2 million, indicating ongoing financial challenges.
- Full-year 2023 net loss was $52.5 million, highlighting the need for sustained profitability.
- Operating expenses remained high in 2023, impacting overall financial performance.
- Limited information on specific cost reduction strategies and future growth plans beyond revenue targets for 2024.
Insights
The reported 45% increase in Q4 revenue and 31% annual growth for Rapid Micro Biosystems indicates a robust expansion trajectory, outpacing many industry peers. The company's ability to exceed its own guidance suggests effective management and operational efficiency. The significant improvement in gross margin, from negative 59% to near break-even, is particularly noteworthy as it reflects the successful implementation of cost-saving measures and increased manufacturing efficiency. Although the net loss remains substantial, the reduction from the previous year and the strong cash position with no debt enhances the company's financial stability and provides a solid foundation for future investments and growth initiatives.
The placement of Growth Direct systems with all commercially approved CAR-T therapy manufacturers is a strategic milestone, positioning Rapid Micro Biosystems as a key player in a high-growth biotech niche. The anticipated launch of the Rapid Sterility application could further solidify the company's market position by expanding its product offerings. Additionally, the selection by Samsung Biologics for automating critical microbiology quality control testing is a significant endorsement from a major industry player, likely to influence other potential clients favorably and potentially drive future revenue growth.
The adoption of Growth Direct systems represents a shift towards automation in quality control for healthcare product manufacturing, which is crucial for ensuring safety and efficacy. The increase in system placements indicates a growing market acceptance of the company's technology. The expected release of the Rapid Sterility application by mid-2024 could be a game-changer by potentially reducing the time needed for sterility testing, thus accelerating the release of healthcare products to the market. This innovation could provide a competitive edge and contribute to the company's long-term growth.
Reports fourth quarter 2023 total revenue of
Reports 2023 revenue of
Delivered 2023 recurring revenue of
Provides 2024 revenue guidance of at least
LOWELL, Mass., March 01, 2024 (GLOBE NEWSWIRE) -- 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
- 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 a45% 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
Total operating expenses decreased
Net loss for the fourth quarter of 2023 was
Cash, cash equivalents and investments were
Full Year 2023 Financial Results
Total revenue for the full year was
- 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
Total operating expenses were
Net loss was
Full Year 2024 Outlook
For the full year 2024, the Company expects total revenue of at least
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 Ended December 31, | Year Ended December 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 | |
FAQ
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