NASDAQ:MXCT MaxCyte Q1 2024 Earnings Report $2.55 -0.10 (-3.77%) As of 04:00 PM Eastern Earnings HistoryForecast MaxCyte EPS ResultsActual EPS-$0.09Consensus EPS -$0.14Beat/MissBeat by +$0.05One Year Ago EPSN/AMaxCyte Revenue ResultsActual Revenue$11.34 millionExpected Revenue$7.75 millionBeat/MissBeat by +$3.59 millionYoY Revenue GrowthN/AMaxCyte Announcement DetailsQuarterQ1 2024Date5/7/2024TimeN/AConference Call DateTuesday, May 7, 2024Conference Call Time4:30PM ETUpcoming EarningsMaxCyte's Q1 2025 earnings is scheduled for Wednesday, May 7, 2025, with a conference call scheduled at 4:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by MaxCyte Q1 2024 Earnings Call TranscriptProvided by QuartrMay 7, 2024 ShareLink copied to clipboard.There are 12 speakers on the call. Operator00:00:00Welcome to the MaxSight First Quarter 20 24 Earnings Conference Call. Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Eric Abdow, Investor Relations. Operator00:00:28Please go ahead. Speaker 100:00:32Good afternoon, everyone. Thank you for participating in today's call. On the MAX site, we have Maher Masood, President and Chief Executive Officer and Douglas Swirsky, Chief Financial Officer. Earlier today, Maxite's financial results for the Q1 ended March 31, 2024. A copy of the press release is also available on our company's website. Speaker 100:00:55Before we begin, I need to read the following statement. Statements or comments on this call may be filed within the meaning of federal securities laws. Any statements contained in this call that relate to expectations or predictions of future events, results or performance are forward looking statements. Actual results may differ materially from those expressed or implied in any forward looking statements due to a variety of factors, which are discussed in detail on our SEC filings. The company has no obligation to publicly update any forward looking statements, future events or otherwise. Speaker 100:01:32With that, I will turn the call over to Har. Speaker 200:01:37Thank you, Eric. Good afternoon and thank you for joining MagSafe's Q1 2024 earnings call. We reported $11,300,000 of total revenue in the first quarter, including $8,200,000 and $5,200,000 of SBL program related revenue. We reported the same results in our core business, which is consistent with our plan, along with SPL program related revenue, and are also thrilled with our progress in signing new SPLs, with 4 in 2024, including BBI Pharma most recently. Following the Q1, we remain on track for the year and are confident in the trajectory of the overall business. Speaker 200:02:16The operating environment has remained largely unchanged from our last earnings call. We think the environment has improved as evidenced by the capital markets activity in the Q1. And prospective SLP partners raised capital in recent months. Over the past couple of years, we saw cell therapy programs and deprioritized other programs, resulting in variable levels of demand for our instruments and PAs in 2023. Though there are fewer new cell therapy programs throughout the industry today due to deprioritization, we believe this has resulted in an industry focus on assets that are further along or have a higher probability of making it to the clinic. Speaker 200:02:55Additionally, MaxSight's late stage preclinical and early stage clinical customers who have their programs over the past years continue to utilize our platform for their lead time. We are becoming increasingly optimistic on the market outlook for cell therapy developers and continue to assess industry demand levels based on direct conversations with our existing and existing customers. The timeframe from when a customer secures funding to when they make research and clinical spending decisions can take time, And our business is not directly funded by the FDA's approval of funding in any given quarter. General trends in the nonviral cell therapy market continue to bode well for the use of our More complex cell therapies across a variety of different indications with multiple engineering steps, which MaxSight's electroporation technology is well equipped to deliver. Looking specifically at the quarter, the core business performed as expected across cell therapy and drug discovery. Speaker 200:03:48We saw return to growth in our cell therapy business compared to last year and were relatively flat in drug discovery revenue compared to last year. Doug will cover that in more detail, but I will point out that our installed base of instruments expand to 708 as of March quarter. We executed our pipeline of instrument opportunities in the Q1 and are positioned to be in line for the remainder of the year. On PAs, revenue was up from the comparable prior year period and increased sequentially from the Q4 of 20 3. Growth that we experienced in the Q4 of 2020, we experienced strong demand across the customer base and we were very encouraged by the uptick in our PA revenue compared to 2023. Speaker 200:04:28This is dependent upon the activity level of customers, stages development programs and desired inventory level of customers, all of which can result in demand that can be lumpy from 1 quarter to 1000000. Turning to our SPL program, we recognized $3,200,000 of SPL product development in the Q1 of 'twenty four. This included a robust quarter of the Q1 of 'twenty four. This included a robust quarter of the Q1 of 'twenty four. We have a strong financial performance in the Q1 of 2019 and we are confident that we will continue to see the long term growth in the future. Speaker 200:04:59We will now begin the non forecasted regulatory pivotal milestone underlies the strength of our business model. As our therapeutic development customers move further into the position to receive revenue on occasion sooner than anticipated. So far in 2024, we have signed up with new sales, including BBI Pharma, Lusion, Imugene and Lion CCR. Our most recently signed SPL that we announced in April, BBI Pharma, is developing a proprietary class of engineered B cell medicines, BCMs, specific to a certain disease. MagSci's platform will support the development of programs to address unmet needs of patients with genetic diseases, cancer and cancer. Speaker 200:05:41The addition of BBIA, we added the total number of SBLs in our portfolio to 27, which further showcases our position as a partner of choice with technology capability across multiple cell types to cell and gene therapy. Speaker 300:05:53G and A. Speaker 200:05:54We remain excited about the commercialization of the commercial launch of Qashevy. Qashevy has been approved for certain indications in the United States, Great Britain, European Union, Saudi Arabia and Bahrain, with a new drug submission that has been accepted for priority review by Health Canada. As noted and as stated on our last earnings call, Maxar will only recognize revenue once a patient has been infused, which can take a number of months from the time a patient enrolls in the therapy program. We do not have sufficient visibility into the timing of patient dosing and therefore continue to exclude any cash Jebi related commercial milestone revenue and our updated outlook for SPL related revenue. We will provide updates on cash chevy as they come from Vertex. Speaker 200:06:35In a prospective client relationship and fostered are truly unique and reflective of our platform's value proposition. At MaxTight, we pride ourselves not only on our proven electrification technology, but also on the support that we provide to customers. We are present once they begin utilizing our platform. Our support system includes scientific customer service with our 36,000,000 trained field sales and application scientists who provide customer research and development support. As part of our HubSpot relationships, clients have FDA drug master file, which can help with regulatory understanding of the manufacturing process required for approval and help derisk one Speaker 300:07:16percent of our SBL customers. Speaker 200:07:16The expert platform and service that we offer to our clients is truly an all encompassing solution. We believe our value proposition has resonated well with existing customers and will drive substantial opportunity for Maxar over the course of 2024, we continue to deliberately evaluate and improve our business. We are focusing on our business to drive growth and to best support the programs of our clients. Notably, we have invested in additional customer support to build clients and support our efforts towards ensuring we are working with customers early in the development and providing them with the best know how application in the process. In summary, we are very pleased with our first quarter results and believe that we remain in a strong position to move towards non viral cell engineering approaches, I'm very optimistic about the opportunity for MaxCyte both in the near term and long term cell engineering platform. Speaker 200:08:12With that, I'll now turn the call over to Doug to discuss our financial results. Doug? Speaker 400:08:17Thanks, Mihir. Total revenue in the Q1 of 2024 was $6,600,000 in the Q1 of 2023, representing an increase of 32%. We reported core revenue of $8,200,000 in the comparable prior year quarter, representing an increase of 5%. This includes revenue from cell therapy customers of $6,400,000 which increased year over year and revenue from drug discovery customers of 1,800,000 dollars relatively flat year over year. Within core revenue, instrument revenue was $1,900,000 compared to $2,200,000 in the Q1 of 2023. Speaker 400:08:55Lease revenue was $2,600,000 compared to $2,800,000 in the Q1 of 2023 and processing assembly or PA revenue was $3,400,000 compared to $2,600,000 in the Q1 of 2023. We are pleased with the strong performance of PAs, which was a little better than planned, which we will continue to monitor as we move through the course of the year. Please note, we have added an appendix slide to our corporate presentation with the new quarterly historical disclosure for these new metrics. We recognized $3,200,000 of SPL program related revenue in the Q1 of 2024 compared to $800,000 of SPL program related revenue in the Q1 of 2023. We exceeded our initial milestone expectations for the Q1 driven by a regulatory pivotal milestone that we had not forecasted or anticipated in 2024 due to a positive timing development at one of our SPL customers. Speaker 400:09:50Moving down to the P and L. Gross margin was 88% in the Q1 of 2024, which was comparable to 88% in the Q1 of prior year. Our margins came in lower than our historical levels over the past year when excluding SPL program related revenue due to fixed overhead cost absorption. We believe that as we move closer towards previous revenue levels, margins should improve. Total operating expenses for the Q1 of 2024 were $1,000,000 compared to $20,800,000 in the Q1 of 2023. Speaker 400:10:23The overall increase in operating expenses was primarily driven by growth in sales and marketing expenses as well as R and D expenses with specific investments in product development and application. Going forward, the company continues to be disciplined making moderated and targeted long term investments, including an innovative product development and field efforts and additional technological capabilities. We continue to leverage the 1st quarter with combined total cash flow investments of 202.5 percent and no debt. Moving to our full year 2024 guidance, operating our core revenue guidance and raising our initial SPL program related revenue guidance. Core revenue is expected to be flat to 5% growth in 2023. Speaker 400:11:12As Maher discussed, our guidance assumes an operating environment for our customers that is unchanged from our prior earnings call. We now expect SPL program related to approximately $5,000,000 in 2024. The increase in our SPL program related outlook is a result of the unexpected Revitore pivotal milestone we achieved in the Q1, which was previously not incorporated in the Q1 of 2019. Speaker 200:11:37As a result, Speaker 300:11:40we expect adjusted EBITDA to be approximately $1,000,000,000 in the Q1 of 2019. Speaker 500:11:41As a result, we expect adjusted EBITDA Speaker 400:11:41to be approximately $1,000,000 in TESJevi. Finally, MaxSight has maintained a strong financial position and continues to expect to end 2024 with at least $175,000,000 in cash, cash and investments and no debt on our balance sheet. I would like to close by reiterating that we remain well positioned on our 2024 revenue and remain laser focused on our plan and balance sheet to deliver on our financial Speaker 200:12:05results. We're our progress so far in 2024. We look forward to supporting our customers in their development stages as they progress through the clinic and remain committed to further expanding our Estelle portfolio. We believe that we continue to be the premier enabler of non viral cell therapies and would like to thank our Maxi team for their continued hard work. With that, I will turn the call back over to the operator for the Q and A. Speaker 200:12:32Operator? Speaker 500:12:33Thank Operator00:12:39you. Our first question is from the line of Dan Arias with Stifel. Your line is now open. Speaker 500:12:58Good afternoon, guys. Maybe just to talk about some of the components of the revenue, the revenue bolus for the quarter, PA revenues up sequentially. And so when we think about the rest of the year and I hear you on your comments about there being lumpiness there, it seems like what you record there on the PA side is largely a function of activity and just project intensity, which think you alluded to. And so it feels like the funding environment is there a reason why PA revenue just here across the year now that you're out of what is the choppiest quarter of the 4? Speaker 600:13:39Yes, absolutely, Dan. So obviously, thank you for the question. Obviously, we're still holding steady in terms of our guidance for the year. We're still cautiously optimistic in terms of the rest of the year. We were not pleasantly surprised. Speaker 600:13:52That's what we expected coming out of last year. This is the end of last year, we saw some stabilization. We're seeing it continue through the year. And it's a mix. It's broad based, right? Speaker 600:14:00It's not just related to necessarily one particular customer where we see that increase. It's across the customer base we're seeing it. But we're not ready just yet to in any way increase revenues throughout the year. We're still seeing how the year plays out, but we're cautiously optimistic. Speaker 300:14:16Do you Speaker 600:14:17have anything else to add there? Speaker 400:14:18No. I mean, we're I think our PAs were this quarter, but I think it's too soon to tell whether some of that timing or whether we're going to have significantly higher than we were expecting when we projected at the same time, we're going to have a similar guidance at the levels we provided on the March call for revenue. Speaker 500:14:39Makes perfect sense. And then maybe just higher level talk to the tone from customers that you're hearing right now. I mean, it does feel a little bit of a sigh of relief there just activities have gone over the last couple of months. So to your point on project prioritizations, are you starting to see things open up a little bit that you've worked on, a couple of months or 6 to 12 months ago? And feel confident that the industry is seeing what it needs in order to keep heading in this direction in terms of increased activity Speaker 300:15:16preclinical? And Speaker 600:15:17I think you hit on the head there is that we are seeing the activity start to come back. The comps are coming back. I think that's evident we signed for SBLs to start the year, but also in the markets, a few of our partners have raised significant amount of money in the capital markets in Q1. We're seeing that confidence come back in the market. We think it's the early stages of that. Speaker 600:15:40We're going to keep our eye on it to make sure that it's not just a small little bump. But I think working with our customers, even though they're still rationalizing what programs are taking into the clinic and how many programs they take into the clinic, we feel fairly confident that we're and we're cautiously optimistic as we keep saying, but it's the quarter is kind of a prognosticator of where we are and where the market is right now and how it seems to be coming back slowly. Speaker 500:16:07Okay. If I could just sneak one more nuance on to that last point. When you obviously or maybe not obviously, but I assume you're looking at who's raising money and who's not raising money. Is it fair to say that those that have maybe not had a public raise are showing signs of improvement as well? Or does the line really get drawn down the middle where you have some that are that have financed and therefore are in a better position. Speaker 500:16:33Those are the companies that are starting to open up the spigot a little bit. Those that haven't done that haven't really changed. Is that the dynamic? Thank you, Bunch. Speaker 600:16:41I mean, Doug, Speaker 400:16:42Yes. I think, first off, on PAs, I think you don't need to see the things snap back to strong levels for folks to start making investments and moving their programs forward. I think where the timing of capital raise is going to impact things maybe on when an instrument purchase takes place. So I think those capital acquisitions are going to be more tied to the fundraising than certainly the PA utilization is going to be. Speaker 500:17:14Okay, very good. Thank you. Speaker 600:17:16Thank you, Dan. Operator00:17:18Thank you. Our next question comes from the line of Matt Larew with William Blair. Your line is now open. Speaker 700:17:26Good afternoon. Just maybe following up on that last point. Acknowledging that takes some time for flow through from perhaps a successful capital raise to release of that into a budget. On the instrument side, what are you starting to hear about from customers on a budget perspective? What does the perhaps the instrument pipeline look like relative to maybe the end of last year just because obviously while PAs were strong, instruments still a little bit softer in the quarter? Speaker 600:17:59Yes. Matt, let me answer that and then I'll let Doug also weigh in. So what we're seeing in terms of instrument side really is not scared for that is what we're seeing on the PA side, right? That's usually where you start to see the recoveries normally in PAs because the CapEx spend is far less than we do for instrument side for an instrument purchase. So we're hopeful and we're optimistic that what we're seeing on the PAs will lead later in the year to potentially where now customers are willing to make purchases that maybe last year they were not willing to make. Speaker 600:18:28But again, it's just that lean indicators because of the PAs. But I'm not so sure we want to, at this point, indicate that it's going to lead to future instrument sales just because the PAs have question. Speaker 400:18:41And I think it's a good opportunity to remind everybody what makes up core revenue, right? There's the leases, which I think we've got good visibility in. It's very stable. We saw some growth there. And then there's the PAs, which are a lot tougher to project. Speaker 400:18:55And then instrument sales. Instrument sales really is a we build up our forecast based on very detailed information that comes from the commercial team on each opportunity that they're looking at. And so when we think about the year, certainly instrument revenue wasn't as strong as PAs was this quarter, but we still feel very good about the guidance we provided when we're looking specifically at the book of business that they're working through now on the instrument sales side. Speaker 700:19:26Okay, understood. And here you referenced in the prepared remarks, I think adding additional FPL support for clients and starting to work with them earlier. I'm curious if this is sort of a step function change or new for you or if there are particular services or capabilities that you're adding in terms of how you interact with clients that are different from before and whether this is something that's sort of been asked from clients or more of a push from you either from a competitive or servicing standpoint? Speaker 600:20:04Yes, absolutely. Great question. Actually, it's more of a push from internal rather than being asked from clients per se. We've always if you look at what we do, we do a complete end to end solution, right? We provide support to our customers where from the time they first work with us all the way through the clinic. Speaker 600:20:19We want to make sure, I think I said on the last call as well, that we're doubling down that support. So we're staying ahead of the competition, we're providing support now with better communication, both electronic communication as well as face to face communication. So we're building out systems to ensure that the support that we provide to our SQL partners, whether it's regulatory or quality or any potential issues that they have, whether in the clinical development, even potential commercial development. We stay ahead of it and the turnaround time is even faster than before. So we're ensuring that what we've done in the past, we're doing even more so of it and really coming of age with where the industry is going, where we want to make sure as these therapies need to make it to the clinic faster and make it to patients faster that we derisk that step where they're working with us. Speaker 600:21:03So we're investing extra resources and really capabilities in that area to make sure we stay ahead of the competition and keep up and align our interest with our partners. Speaker 400:21:15All right. Thank you. Speaker 600:21:17Absolutely. Operator00:21:20Thank you. Our next question comes from the line of Jacob Johnson with Stephens. Your line is now open. Speaker 800:21:27Hey, thanks. Good afternoon and congrats on the quarter. You guys called out kind of a pivotal trial surprise in the quarter. I'm just curious if this relates to a new or an existing therapy. I think program revenues don't include KASGEVY. Speaker 800:21:45So I'm curious if it's a new customer and maybe I'll dovetail that into looking at your chart on potential commercial approvals. It looks like you're not really expecting anything until 2026. I'm just curious if this kind of surprise pivotal Speaker 400:22:01changes you're thinking about that. Thank you. Speaker 600:22:05Yes. Jacob, thanks for that. I'll take that. It doesn't quite change our thinking on that. Obviously, we can't comment in terms of what customer it is or why it happens sooner than it should be for confidential reasons with our partners. Speaker 600:22:18However, as I mentioned, it does speak to our business model in the sense of there are going to be times where some of our current partners that have signed licenses with us are going to reach milestones sooner than they even anticipated or that we anticipated, and we'll get the benefit of that. And that's what happened here. I wouldn't change the 'twenty six or 'twenty seven timeline for next generating events for us. We're still that's where you see we're confident with that. But this is a positive. Speaker 600:22:51This speaks to exactly why we have these licenses, why we provide the support. And what I've mentioned in the past, which is these are not like antibody therapies. There's a higher potential that you're going to have potential clinical efficacy earlier than anticipated by our partners, which will benefit us and benefit patients and our partners Speaker 200:23:09as well. Does that answer your question, Jacob? Speaker 800:23:12Okay. Yes, that's helpful. Thanks, Maher. And maybe Dan asked you about customers spending money who had received funding versus maybe those who had. And I'm just curious, maybe looking at dicing a different way. Speaker 800:23:26Just curious if there's any difference in PA demand, if it's maybe more skewed to customers in the clinic or if you did have some maybe preclinical or earlier demand from preclinical or earlier stage customers as well? Speaker 600:23:41Yes. I'll answer that and if Doug wants to weigh in. I think it's spread across. It's not just clinical. It's clinical and preclinical demand as well as research. Speaker 600:23:48We're seeing that across the board, which is what we want to see. We want to see the healthy business, both for the SPLs and the non SGL customers. And that's what we saw sequentially from this quarter to last quarter. So it's a healthy demand across the board, Jacob. Speaker 400:24:04Got it. Thanks for taking the questions, guys. Speaker 600:24:07Okay. Thank you, Jacob. Operator00:24:09Thank you. Our next question comes from the line of Matt Hewitt with Craig Hallum Capital Group. Your line is now open. Speaker 900:24:18Hi, guys. This is Jack on for Matt. Congrats on Speaker 100:24:20a good readout. We just have one question. So after like a flurry of new SPL agreements at the start of the year, could you just give us an update on that pipeline and whether you expect additional agreements this year? Thanks. Speaker 600:24:32Thanks, Jack. I can speak to that and then Doug feel free to speak to that as well. Obviously, very healthy start to the year. We're still what we've mentioned in the past, we're comfortable with the 3 to 5 per year. The funnel and the pipeline itself for future SBLs is healthy. Speaker 600:24:48We're confident that we can continue to have those 3 to 5. I won't comment on whether we're going to sign another one this year just yet. Obviously, for obvious reasons, as I mentioned last time, sometimes you see a bolus of SBL signed at any one particular time. The reason being is we're oftentimes working in research, working with these customers, really in the benches with them, supporting them. And then from there, it ends up being a negotiation a little bit thereafter where now we're negotiating licenses where they're about to enter into the clinic. Speaker 600:25:17So sometimes you might have it where you have 3 or 4 aligned at the same time we've been working within the past 12 months, 18 months that are about to sign licenses. So that's why you see a bolus, but we're completely confident at 3 to 5 moving forward. We won't speculate as to where they'll sign another one. And then the funnel itself is healthy, and that's where we're confident at 3% to 5% moving forward as well. Jack, did that answer your question? Speaker 500:25:44Yes, it was helpful. Thank you. Speaker 600:25:46Excellent. Operator00:25:49Thank you. Our next question comes from the line of Mark Massaro with BTIG. Your line is now open. Speaker 1000:25:56Hey guys, this is Vivien on for Mark. Thanks for taking the questions. So just a quick one on VLX adoption. It sounds like that might be more of a lagging indicator involved in the PAs. But just any new appetite or early feedback to report there? Speaker 1000:26:11Thanks. Speaker 200:26:13Yes. Thanks for Speaker 600:26:14the question. On the VLX in terms as I mentioned last time, we're still working with early adopters. We're taking a step back to ensure that we do this where we understand the true application needs for the VLX. I won't mention for confidential reasons the name of those early adopters, but it's just to ensure that we understand the space that we're entering into, where it's different than cell therapy, where we're really trying to disrupt the industry here and not just with from the VLX, but just in terms of production of proteins in a transient manner that has at a scale that's never been done before. So in terms of the PA usage for that, we haven't disclosed that. Speaker 600:26:49In terms of instrument sales, we haven't disclosed that. But we're still working with early adopters to truly understand the space and then launch in a manner that allows us to have true market adoption for the VLX and applications around the VLX as well. But we have not disclosed anything specifically there. Speaker 1000:27:07Perfect. Understood. And then just one follow-up. You guys have a pretty healthy balance sheet. Just any tuck in acquisitions or techs that you might look to evaluate, particularly for upstream or downstream steps, kind of like cell enrichment or harvesting, just any conversations going on there? Speaker 1000:27:24Thanks. Speaker 400:27:26We have an active corporate development effort. Clearly, we're not in a position to talk about specific targets we're looking at. I think the types of things you mentioned are sort of in the realm of opportunities we would look at, but we've got healthy effort just to balance out our initiatives to target both inorganic and organic growth opportunities. So this is one of the use of proceeds when we went public. So we're mindful that that's part of the reason why we have the healthy balance sheet that we do. Speaker 400:27:53And our goal is to look closely at things, but be very prudent. I think it's healthy that we're evaluating things. It's also very good that we've been very disciplined and not pulling the trigger on things that either we didn't think were valued correctly or just weren't the right fit. Speaker 1000:28:14Awesome. Thanks for taking the questions. Speaker 600:28:17Thank you. Thank you. Operator00:28:19Thank you. Our next question comes from the line of Jacqueline Kisse with TD Cowen. Your line is now open. Speaker 1100:28:27Hi. This is Jacqueline Kisseh on for Steven Ma. Thanks so much for taking the questions. Just to start off, with regards to your new and ongoing BD discussions for new SPLs. Are you seeing these discussions weighted more towards emerging biotechs or large pharma? Speaker 1100:28:41Is there like a noticeable mix or anything? Speaker 600:28:46Yes. Hi, Jacqueline. Thank you for the question. I'll take that. It's more towards it's not large pharma, it's more towards, I'd say, smaller to midsized biotechs. Speaker 600:28:56And it's a mix of what we're seeing there. Obviously, as the industry keeps changing and evolving and as some therapies have greater adoption, we could see that mix begin to change as well, whether it's from early to midsized to larger biotechs. It's a good mix. I mean, it's a good question. I think you're seeing it across the board. Speaker 600:29:17When I say large pharma, we don't have that's not our focus right now. It's more on the support that's needed for that smaller to mid to even larger sized biotechs. Speaker 1100:29:27Right. Great. Thank you. And then if you look across the clinical programs you're supporting, can you speak to the diversity of the cell types and molecules that your partners are using to create their cell based therapies? And has this trended over the past 12 months? Speaker 1100:29:42And if you're willing to call any emerging trends with regards to Speaker 400:29:46that, that would be really cool too? Speaker 600:29:48Absolutely, Jack. So actually that's the beauty of our support and what we do truly best is it's emerging across cell therapies, whether it's T cells or NK cells, whether it's TILs or TCRs, we're working with all of them. And obviously, for the indications, it's increasing where you went from blood cancer to solid tumors, which is what we're having a presence in. And then you're seeing the space really get more complex with the companies we work with and truly begin to go into other indications. So you're seeing autoimmune diseases begin to really take shape here and that's where the seams of space is lending itself and we're working with a few of our partners on autoimmune disorders, cell therapy suite for autoimmune diseases, rare diseases. Speaker 600:30:30So it's an entire breadth and that's what we anticipate. We anticipate the field continue to evolve, continue to mature and really get more complex. And that's what we've built the last 15, 20 years to ensure that we're ahead of competition and working with everyone with regards to the cell type, regardless of the modality and indication. So I hope that answers your question, Jacqueline. Speaker 1100:30:52No, that's great. Thank you so much. I appreciate it. Operator00:30:56Thank you. And I'm currently showing no further questions at this time. I'd like to hand the call back over to Maher Masood for closing remarks. Speaker 600:31:04Yes. Thank you, operator, and thank you all for joining today's call. I look forward and we look forward to speaking with all of you again on our next earnings call in a few months. Thank you. Operator00:31:13This concludes today's conference call. Thank you for your participation. You may now disconnect.Read moreRemove AdsPowered by Conference Call Audio Live Call not available Earnings Conference CallMaxCyte Q1 202400:00 / 00:00Speed:1x1.25x1.5x2xRemove Ads Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) MaxCyte Earnings HeadlinesMaxCyte intends to delist from London's AIM to enhance liquidityApril 15 at 5:24 PM | lse.co.ukMaxCyte to Delist from AIM, Focus on NasdaqApril 15 at 2:14 AM | tipranks.comWarning: “DOGE Collapse” imminentElon Strikes Back You may already sense that the tide is turning against Elon Musk and DOGE. Just this week, President Trump promised to buy a Tesla to help support Musk in the face of a boycott against his company. But according to one research group, with connections to the Pentagon and the U.S. government, Elon's preparing to strike back in a much bigger way in the days ahead.April 16, 2025 | Altimetry (Ad)MaxCyte to Report First Quarter 2025 Financial Results on May 7, 2025April 10, 2025 | globenewswire.comMaxCyte to Report First Quarter 2025 Financial Results on May 7, 2025April 10, 2025 | globenewswire.comWith 66% institutional ownership, MaxCyte, Inc. (LON:MXCT) is a favorite amongst the big gunsApril 8, 2025 | uk.finance.yahoo.comSee More MaxCyte Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like MaxCyte? Sign up for Earnings360's daily newsletter to receive timely earnings updates on MaxCyte and other key companies, straight to your email. Email Address About MaxCyteMaxCyte (NASDAQ:MXCT), a life sciences company, discovers, develops, and commercializes next-generation cell therapies in the United States and internationally. Its products include ExPERT ATx, a static electroporation instrument for small to medium scale transfection; ExPERT STx, a flow electroporation for protein production and drug development, as well as expression of therapeutic targets for cell-based assays; ExPERT GTx, a flow electroporation for large scale transfection in therapeutic applications; and ExPERT VLx for very large volume cell-engineering. The company also provides disposable processing assemblies (PAs) to process and electroporate cells; and accessories supporting PAs, such as electroporation buffer solution and software protocols. It licenses and sells its instruments and technology; and sells its consumables to developers of cell therapies, as well as to pharmaceutical and biotechnology companies for use in drug discovery and development, and bio-manufacturing. MaxCyte, Inc. was incorporated in 1998 and is headquartered in Rockville, Maryland.View MaxCyte ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Tesla Stock Eyes Breakout With Earnings on DeckJohnson & Johnson Earnings Were More Good Than Bad—Time to Buy? 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There are 12 speakers on the call. Operator00:00:00Welcome to the MaxSight First Quarter 20 24 Earnings Conference Call. Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Eric Abdow, Investor Relations. Operator00:00:28Please go ahead. Speaker 100:00:32Good afternoon, everyone. Thank you for participating in today's call. On the MAX site, we have Maher Masood, President and Chief Executive Officer and Douglas Swirsky, Chief Financial Officer. Earlier today, Maxite's financial results for the Q1 ended March 31, 2024. A copy of the press release is also available on our company's website. Speaker 100:00:55Before we begin, I need to read the following statement. Statements or comments on this call may be filed within the meaning of federal securities laws. Any statements contained in this call that relate to expectations or predictions of future events, results or performance are forward looking statements. Actual results may differ materially from those expressed or implied in any forward looking statements due to a variety of factors, which are discussed in detail on our SEC filings. The company has no obligation to publicly update any forward looking statements, future events or otherwise. Speaker 100:01:32With that, I will turn the call over to Har. Speaker 200:01:37Thank you, Eric. Good afternoon and thank you for joining MagSafe's Q1 2024 earnings call. We reported $11,300,000 of total revenue in the first quarter, including $8,200,000 and $5,200,000 of SBL program related revenue. We reported the same results in our core business, which is consistent with our plan, along with SPL program related revenue, and are also thrilled with our progress in signing new SPLs, with 4 in 2024, including BBI Pharma most recently. Following the Q1, we remain on track for the year and are confident in the trajectory of the overall business. Speaker 200:02:16The operating environment has remained largely unchanged from our last earnings call. We think the environment has improved as evidenced by the capital markets activity in the Q1. And prospective SLP partners raised capital in recent months. Over the past couple of years, we saw cell therapy programs and deprioritized other programs, resulting in variable levels of demand for our instruments and PAs in 2023. Though there are fewer new cell therapy programs throughout the industry today due to deprioritization, we believe this has resulted in an industry focus on assets that are further along or have a higher probability of making it to the clinic. Speaker 200:02:55Additionally, MaxSight's late stage preclinical and early stage clinical customers who have their programs over the past years continue to utilize our platform for their lead time. We are becoming increasingly optimistic on the market outlook for cell therapy developers and continue to assess industry demand levels based on direct conversations with our existing and existing customers. The timeframe from when a customer secures funding to when they make research and clinical spending decisions can take time, And our business is not directly funded by the FDA's approval of funding in any given quarter. General trends in the nonviral cell therapy market continue to bode well for the use of our More complex cell therapies across a variety of different indications with multiple engineering steps, which MaxSight's electroporation technology is well equipped to deliver. Looking specifically at the quarter, the core business performed as expected across cell therapy and drug discovery. Speaker 200:03:48We saw return to growth in our cell therapy business compared to last year and were relatively flat in drug discovery revenue compared to last year. Doug will cover that in more detail, but I will point out that our installed base of instruments expand to 708 as of March quarter. We executed our pipeline of instrument opportunities in the Q1 and are positioned to be in line for the remainder of the year. On PAs, revenue was up from the comparable prior year period and increased sequentially from the Q4 of 20 3. Growth that we experienced in the Q4 of 2020, we experienced strong demand across the customer base and we were very encouraged by the uptick in our PA revenue compared to 2023. Speaker 200:04:28This is dependent upon the activity level of customers, stages development programs and desired inventory level of customers, all of which can result in demand that can be lumpy from 1 quarter to 1000000. Turning to our SPL program, we recognized $3,200,000 of SPL product development in the Q1 of 'twenty four. This included a robust quarter of the Q1 of 'twenty four. This included a robust quarter of the Q1 of 'twenty four. We have a strong financial performance in the Q1 of 2019 and we are confident that we will continue to see the long term growth in the future. Speaker 200:04:59We will now begin the non forecasted regulatory pivotal milestone underlies the strength of our business model. As our therapeutic development customers move further into the position to receive revenue on occasion sooner than anticipated. So far in 2024, we have signed up with new sales, including BBI Pharma, Lusion, Imugene and Lion CCR. Our most recently signed SPL that we announced in April, BBI Pharma, is developing a proprietary class of engineered B cell medicines, BCMs, specific to a certain disease. MagSci's platform will support the development of programs to address unmet needs of patients with genetic diseases, cancer and cancer. Speaker 200:05:41The addition of BBIA, we added the total number of SBLs in our portfolio to 27, which further showcases our position as a partner of choice with technology capability across multiple cell types to cell and gene therapy. Speaker 300:05:53G and A. Speaker 200:05:54We remain excited about the commercialization of the commercial launch of Qashevy. Qashevy has been approved for certain indications in the United States, Great Britain, European Union, Saudi Arabia and Bahrain, with a new drug submission that has been accepted for priority review by Health Canada. As noted and as stated on our last earnings call, Maxar will only recognize revenue once a patient has been infused, which can take a number of months from the time a patient enrolls in the therapy program. We do not have sufficient visibility into the timing of patient dosing and therefore continue to exclude any cash Jebi related commercial milestone revenue and our updated outlook for SPL related revenue. We will provide updates on cash chevy as they come from Vertex. Speaker 200:06:35In a prospective client relationship and fostered are truly unique and reflective of our platform's value proposition. At MaxTight, we pride ourselves not only on our proven electrification technology, but also on the support that we provide to customers. We are present once they begin utilizing our platform. Our support system includes scientific customer service with our 36,000,000 trained field sales and application scientists who provide customer research and development support. As part of our HubSpot relationships, clients have FDA drug master file, which can help with regulatory understanding of the manufacturing process required for approval and help derisk one Speaker 300:07:16percent of our SBL customers. Speaker 200:07:16The expert platform and service that we offer to our clients is truly an all encompassing solution. We believe our value proposition has resonated well with existing customers and will drive substantial opportunity for Maxar over the course of 2024, we continue to deliberately evaluate and improve our business. We are focusing on our business to drive growth and to best support the programs of our clients. Notably, we have invested in additional customer support to build clients and support our efforts towards ensuring we are working with customers early in the development and providing them with the best know how application in the process. In summary, we are very pleased with our first quarter results and believe that we remain in a strong position to move towards non viral cell engineering approaches, I'm very optimistic about the opportunity for MaxCyte both in the near term and long term cell engineering platform. Speaker 200:08:12With that, I'll now turn the call over to Doug to discuss our financial results. Doug? Speaker 400:08:17Thanks, Mihir. Total revenue in the Q1 of 2024 was $6,600,000 in the Q1 of 2023, representing an increase of 32%. We reported core revenue of $8,200,000 in the comparable prior year quarter, representing an increase of 5%. This includes revenue from cell therapy customers of $6,400,000 which increased year over year and revenue from drug discovery customers of 1,800,000 dollars relatively flat year over year. Within core revenue, instrument revenue was $1,900,000 compared to $2,200,000 in the Q1 of 2023. Speaker 400:08:55Lease revenue was $2,600,000 compared to $2,800,000 in the Q1 of 2023 and processing assembly or PA revenue was $3,400,000 compared to $2,600,000 in the Q1 of 2023. We are pleased with the strong performance of PAs, which was a little better than planned, which we will continue to monitor as we move through the course of the year. Please note, we have added an appendix slide to our corporate presentation with the new quarterly historical disclosure for these new metrics. We recognized $3,200,000 of SPL program related revenue in the Q1 of 2024 compared to $800,000 of SPL program related revenue in the Q1 of 2023. We exceeded our initial milestone expectations for the Q1 driven by a regulatory pivotal milestone that we had not forecasted or anticipated in 2024 due to a positive timing development at one of our SPL customers. Speaker 400:09:50Moving down to the P and L. Gross margin was 88% in the Q1 of 2024, which was comparable to 88% in the Q1 of prior year. Our margins came in lower than our historical levels over the past year when excluding SPL program related revenue due to fixed overhead cost absorption. We believe that as we move closer towards previous revenue levels, margins should improve. Total operating expenses for the Q1 of 2024 were $1,000,000 compared to $20,800,000 in the Q1 of 2023. Speaker 400:10:23The overall increase in operating expenses was primarily driven by growth in sales and marketing expenses as well as R and D expenses with specific investments in product development and application. Going forward, the company continues to be disciplined making moderated and targeted long term investments, including an innovative product development and field efforts and additional technological capabilities. We continue to leverage the 1st quarter with combined total cash flow investments of 202.5 percent and no debt. Moving to our full year 2024 guidance, operating our core revenue guidance and raising our initial SPL program related revenue guidance. Core revenue is expected to be flat to 5% growth in 2023. Speaker 400:11:12As Maher discussed, our guidance assumes an operating environment for our customers that is unchanged from our prior earnings call. We now expect SPL program related to approximately $5,000,000 in 2024. The increase in our SPL program related outlook is a result of the unexpected Revitore pivotal milestone we achieved in the Q1, which was previously not incorporated in the Q1 of 2019. Speaker 200:11:37As a result, Speaker 300:11:40we expect adjusted EBITDA to be approximately $1,000,000,000 in the Q1 of 2019. Speaker 500:11:41As a result, we expect adjusted EBITDA Speaker 400:11:41to be approximately $1,000,000 in TESJevi. Finally, MaxSight has maintained a strong financial position and continues to expect to end 2024 with at least $175,000,000 in cash, cash and investments and no debt on our balance sheet. I would like to close by reiterating that we remain well positioned on our 2024 revenue and remain laser focused on our plan and balance sheet to deliver on our financial Speaker 200:12:05results. We're our progress so far in 2024. We look forward to supporting our customers in their development stages as they progress through the clinic and remain committed to further expanding our Estelle portfolio. We believe that we continue to be the premier enabler of non viral cell therapies and would like to thank our Maxi team for their continued hard work. With that, I will turn the call back over to the operator for the Q and A. Speaker 200:12:32Operator? Speaker 500:12:33Thank Operator00:12:39you. Our first question is from the line of Dan Arias with Stifel. Your line is now open. Speaker 500:12:58Good afternoon, guys. Maybe just to talk about some of the components of the revenue, the revenue bolus for the quarter, PA revenues up sequentially. And so when we think about the rest of the year and I hear you on your comments about there being lumpiness there, it seems like what you record there on the PA side is largely a function of activity and just project intensity, which think you alluded to. And so it feels like the funding environment is there a reason why PA revenue just here across the year now that you're out of what is the choppiest quarter of the 4? Speaker 600:13:39Yes, absolutely, Dan. So obviously, thank you for the question. Obviously, we're still holding steady in terms of our guidance for the year. We're still cautiously optimistic in terms of the rest of the year. We were not pleasantly surprised. Speaker 600:13:52That's what we expected coming out of last year. This is the end of last year, we saw some stabilization. We're seeing it continue through the year. And it's a mix. It's broad based, right? Speaker 600:14:00It's not just related to necessarily one particular customer where we see that increase. It's across the customer base we're seeing it. But we're not ready just yet to in any way increase revenues throughout the year. We're still seeing how the year plays out, but we're cautiously optimistic. Speaker 300:14:16Do you Speaker 600:14:17have anything else to add there? Speaker 400:14:18No. I mean, we're I think our PAs were this quarter, but I think it's too soon to tell whether some of that timing or whether we're going to have significantly higher than we were expecting when we projected at the same time, we're going to have a similar guidance at the levels we provided on the March call for revenue. Speaker 500:14:39Makes perfect sense. And then maybe just higher level talk to the tone from customers that you're hearing right now. I mean, it does feel a little bit of a sigh of relief there just activities have gone over the last couple of months. So to your point on project prioritizations, are you starting to see things open up a little bit that you've worked on, a couple of months or 6 to 12 months ago? And feel confident that the industry is seeing what it needs in order to keep heading in this direction in terms of increased activity Speaker 300:15:16preclinical? And Speaker 600:15:17I think you hit on the head there is that we are seeing the activity start to come back. The comps are coming back. I think that's evident we signed for SBLs to start the year, but also in the markets, a few of our partners have raised significant amount of money in the capital markets in Q1. We're seeing that confidence come back in the market. We think it's the early stages of that. Speaker 600:15:40We're going to keep our eye on it to make sure that it's not just a small little bump. But I think working with our customers, even though they're still rationalizing what programs are taking into the clinic and how many programs they take into the clinic, we feel fairly confident that we're and we're cautiously optimistic as we keep saying, but it's the quarter is kind of a prognosticator of where we are and where the market is right now and how it seems to be coming back slowly. Speaker 500:16:07Okay. If I could just sneak one more nuance on to that last point. When you obviously or maybe not obviously, but I assume you're looking at who's raising money and who's not raising money. Is it fair to say that those that have maybe not had a public raise are showing signs of improvement as well? Or does the line really get drawn down the middle where you have some that are that have financed and therefore are in a better position. Speaker 500:16:33Those are the companies that are starting to open up the spigot a little bit. Those that haven't done that haven't really changed. Is that the dynamic? Thank you, Bunch. Speaker 600:16:41I mean, Doug, Speaker 400:16:42Yes. I think, first off, on PAs, I think you don't need to see the things snap back to strong levels for folks to start making investments and moving their programs forward. I think where the timing of capital raise is going to impact things maybe on when an instrument purchase takes place. So I think those capital acquisitions are going to be more tied to the fundraising than certainly the PA utilization is going to be. Speaker 500:17:14Okay, very good. Thank you. Speaker 600:17:16Thank you, Dan. Operator00:17:18Thank you. Our next question comes from the line of Matt Larew with William Blair. Your line is now open. Speaker 700:17:26Good afternoon. Just maybe following up on that last point. Acknowledging that takes some time for flow through from perhaps a successful capital raise to release of that into a budget. On the instrument side, what are you starting to hear about from customers on a budget perspective? What does the perhaps the instrument pipeline look like relative to maybe the end of last year just because obviously while PAs were strong, instruments still a little bit softer in the quarter? Speaker 600:17:59Yes. Matt, let me answer that and then I'll let Doug also weigh in. So what we're seeing in terms of instrument side really is not scared for that is what we're seeing on the PA side, right? That's usually where you start to see the recoveries normally in PAs because the CapEx spend is far less than we do for instrument side for an instrument purchase. So we're hopeful and we're optimistic that what we're seeing on the PAs will lead later in the year to potentially where now customers are willing to make purchases that maybe last year they were not willing to make. Speaker 600:18:28But again, it's just that lean indicators because of the PAs. But I'm not so sure we want to, at this point, indicate that it's going to lead to future instrument sales just because the PAs have question. Speaker 400:18:41And I think it's a good opportunity to remind everybody what makes up core revenue, right? There's the leases, which I think we've got good visibility in. It's very stable. We saw some growth there. And then there's the PAs, which are a lot tougher to project. Speaker 400:18:55And then instrument sales. Instrument sales really is a we build up our forecast based on very detailed information that comes from the commercial team on each opportunity that they're looking at. And so when we think about the year, certainly instrument revenue wasn't as strong as PAs was this quarter, but we still feel very good about the guidance we provided when we're looking specifically at the book of business that they're working through now on the instrument sales side. Speaker 700:19:26Okay, understood. And here you referenced in the prepared remarks, I think adding additional FPL support for clients and starting to work with them earlier. I'm curious if this is sort of a step function change or new for you or if there are particular services or capabilities that you're adding in terms of how you interact with clients that are different from before and whether this is something that's sort of been asked from clients or more of a push from you either from a competitive or servicing standpoint? Speaker 600:20:04Yes, absolutely. Great question. Actually, it's more of a push from internal rather than being asked from clients per se. We've always if you look at what we do, we do a complete end to end solution, right? We provide support to our customers where from the time they first work with us all the way through the clinic. Speaker 600:20:19We want to make sure, I think I said on the last call as well, that we're doubling down that support. So we're staying ahead of the competition, we're providing support now with better communication, both electronic communication as well as face to face communication. So we're building out systems to ensure that the support that we provide to our SQL partners, whether it's regulatory or quality or any potential issues that they have, whether in the clinical development, even potential commercial development. We stay ahead of it and the turnaround time is even faster than before. So we're ensuring that what we've done in the past, we're doing even more so of it and really coming of age with where the industry is going, where we want to make sure as these therapies need to make it to the clinic faster and make it to patients faster that we derisk that step where they're working with us. Speaker 600:21:03So we're investing extra resources and really capabilities in that area to make sure we stay ahead of the competition and keep up and align our interest with our partners. Speaker 400:21:15All right. Thank you. Speaker 600:21:17Absolutely. Operator00:21:20Thank you. Our next question comes from the line of Jacob Johnson with Stephens. Your line is now open. Speaker 800:21:27Hey, thanks. Good afternoon and congrats on the quarter. You guys called out kind of a pivotal trial surprise in the quarter. I'm just curious if this relates to a new or an existing therapy. I think program revenues don't include KASGEVY. Speaker 800:21:45So I'm curious if it's a new customer and maybe I'll dovetail that into looking at your chart on potential commercial approvals. It looks like you're not really expecting anything until 2026. I'm just curious if this kind of surprise pivotal Speaker 400:22:01changes you're thinking about that. Thank you. Speaker 600:22:05Yes. Jacob, thanks for that. I'll take that. It doesn't quite change our thinking on that. Obviously, we can't comment in terms of what customer it is or why it happens sooner than it should be for confidential reasons with our partners. Speaker 600:22:18However, as I mentioned, it does speak to our business model in the sense of there are going to be times where some of our current partners that have signed licenses with us are going to reach milestones sooner than they even anticipated or that we anticipated, and we'll get the benefit of that. And that's what happened here. I wouldn't change the 'twenty six or 'twenty seven timeline for next generating events for us. We're still that's where you see we're confident with that. But this is a positive. Speaker 600:22:51This speaks to exactly why we have these licenses, why we provide the support. And what I've mentioned in the past, which is these are not like antibody therapies. There's a higher potential that you're going to have potential clinical efficacy earlier than anticipated by our partners, which will benefit us and benefit patients and our partners Speaker 200:23:09as well. Does that answer your question, Jacob? Speaker 800:23:12Okay. Yes, that's helpful. Thanks, Maher. And maybe Dan asked you about customers spending money who had received funding versus maybe those who had. And I'm just curious, maybe looking at dicing a different way. Speaker 800:23:26Just curious if there's any difference in PA demand, if it's maybe more skewed to customers in the clinic or if you did have some maybe preclinical or earlier demand from preclinical or earlier stage customers as well? Speaker 600:23:41Yes. I'll answer that and if Doug wants to weigh in. I think it's spread across. It's not just clinical. It's clinical and preclinical demand as well as research. Speaker 600:23:48We're seeing that across the board, which is what we want to see. We want to see the healthy business, both for the SPLs and the non SGL customers. And that's what we saw sequentially from this quarter to last quarter. So it's a healthy demand across the board, Jacob. Speaker 400:24:04Got it. Thanks for taking the questions, guys. Speaker 600:24:07Okay. Thank you, Jacob. Operator00:24:09Thank you. Our next question comes from the line of Matt Hewitt with Craig Hallum Capital Group. Your line is now open. Speaker 900:24:18Hi, guys. This is Jack on for Matt. Congrats on Speaker 100:24:20a good readout. We just have one question. So after like a flurry of new SPL agreements at the start of the year, could you just give us an update on that pipeline and whether you expect additional agreements this year? Thanks. Speaker 600:24:32Thanks, Jack. I can speak to that and then Doug feel free to speak to that as well. Obviously, very healthy start to the year. We're still what we've mentioned in the past, we're comfortable with the 3 to 5 per year. The funnel and the pipeline itself for future SBLs is healthy. Speaker 600:24:48We're confident that we can continue to have those 3 to 5. I won't comment on whether we're going to sign another one this year just yet. Obviously, for obvious reasons, as I mentioned last time, sometimes you see a bolus of SBL signed at any one particular time. The reason being is we're oftentimes working in research, working with these customers, really in the benches with them, supporting them. And then from there, it ends up being a negotiation a little bit thereafter where now we're negotiating licenses where they're about to enter into the clinic. Speaker 600:25:17So sometimes you might have it where you have 3 or 4 aligned at the same time we've been working within the past 12 months, 18 months that are about to sign licenses. So that's why you see a bolus, but we're completely confident at 3 to 5 moving forward. We won't speculate as to where they'll sign another one. And then the funnel itself is healthy, and that's where we're confident at 3% to 5% moving forward as well. Jack, did that answer your question? Speaker 500:25:44Yes, it was helpful. Thank you. Speaker 600:25:46Excellent. Operator00:25:49Thank you. Our next question comes from the line of Mark Massaro with BTIG. Your line is now open. Speaker 1000:25:56Hey guys, this is Vivien on for Mark. Thanks for taking the questions. So just a quick one on VLX adoption. It sounds like that might be more of a lagging indicator involved in the PAs. But just any new appetite or early feedback to report there? Speaker 1000:26:11Thanks. Speaker 200:26:13Yes. Thanks for Speaker 600:26:14the question. On the VLX in terms as I mentioned last time, we're still working with early adopters. We're taking a step back to ensure that we do this where we understand the true application needs for the VLX. I won't mention for confidential reasons the name of those early adopters, but it's just to ensure that we understand the space that we're entering into, where it's different than cell therapy, where we're really trying to disrupt the industry here and not just with from the VLX, but just in terms of production of proteins in a transient manner that has at a scale that's never been done before. So in terms of the PA usage for that, we haven't disclosed that. Speaker 600:26:49In terms of instrument sales, we haven't disclosed that. But we're still working with early adopters to truly understand the space and then launch in a manner that allows us to have true market adoption for the VLX and applications around the VLX as well. But we have not disclosed anything specifically there. Speaker 1000:27:07Perfect. Understood. And then just one follow-up. You guys have a pretty healthy balance sheet. Just any tuck in acquisitions or techs that you might look to evaluate, particularly for upstream or downstream steps, kind of like cell enrichment or harvesting, just any conversations going on there? Speaker 1000:27:24Thanks. Speaker 400:27:26We have an active corporate development effort. Clearly, we're not in a position to talk about specific targets we're looking at. I think the types of things you mentioned are sort of in the realm of opportunities we would look at, but we've got healthy effort just to balance out our initiatives to target both inorganic and organic growth opportunities. So this is one of the use of proceeds when we went public. So we're mindful that that's part of the reason why we have the healthy balance sheet that we do. Speaker 400:27:53And our goal is to look closely at things, but be very prudent. I think it's healthy that we're evaluating things. It's also very good that we've been very disciplined and not pulling the trigger on things that either we didn't think were valued correctly or just weren't the right fit. Speaker 1000:28:14Awesome. Thanks for taking the questions. Speaker 600:28:17Thank you. Thank you. Operator00:28:19Thank you. Our next question comes from the line of Jacqueline Kisse with TD Cowen. Your line is now open. Speaker 1100:28:27Hi. This is Jacqueline Kisseh on for Steven Ma. Thanks so much for taking the questions. Just to start off, with regards to your new and ongoing BD discussions for new SPLs. Are you seeing these discussions weighted more towards emerging biotechs or large pharma? Speaker 1100:28:41Is there like a noticeable mix or anything? Speaker 600:28:46Yes. Hi, Jacqueline. Thank you for the question. I'll take that. It's more towards it's not large pharma, it's more towards, I'd say, smaller to midsized biotechs. Speaker 600:28:56And it's a mix of what we're seeing there. Obviously, as the industry keeps changing and evolving and as some therapies have greater adoption, we could see that mix begin to change as well, whether it's from early to midsized to larger biotechs. It's a good mix. I mean, it's a good question. I think you're seeing it across the board. Speaker 600:29:17When I say large pharma, we don't have that's not our focus right now. It's more on the support that's needed for that smaller to mid to even larger sized biotechs. Speaker 1100:29:27Right. Great. Thank you. And then if you look across the clinical programs you're supporting, can you speak to the diversity of the cell types and molecules that your partners are using to create their cell based therapies? And has this trended over the past 12 months? Speaker 1100:29:42And if you're willing to call any emerging trends with regards to Speaker 400:29:46that, that would be really cool too? Speaker 600:29:48Absolutely, Jack. So actually that's the beauty of our support and what we do truly best is it's emerging across cell therapies, whether it's T cells or NK cells, whether it's TILs or TCRs, we're working with all of them. And obviously, for the indications, it's increasing where you went from blood cancer to solid tumors, which is what we're having a presence in. And then you're seeing the space really get more complex with the companies we work with and truly begin to go into other indications. So you're seeing autoimmune diseases begin to really take shape here and that's where the seams of space is lending itself and we're working with a few of our partners on autoimmune disorders, cell therapy suite for autoimmune diseases, rare diseases. Speaker 600:30:30So it's an entire breadth and that's what we anticipate. We anticipate the field continue to evolve, continue to mature and really get more complex. And that's what we've built the last 15, 20 years to ensure that we're ahead of competition and working with everyone with regards to the cell type, regardless of the modality and indication. So I hope that answers your question, Jacqueline. Speaker 1100:30:52No, that's great. Thank you so much. I appreciate it. Operator00:30:56Thank you. And I'm currently showing no further questions at this time. I'd like to hand the call back over to Maher Masood for closing remarks. Speaker 600:31:04Yes. Thank you, operator, and thank you all for joining today's call. I look forward and we look forward to speaking with all of you again on our next earnings call in a few months. Thank you. Operator00:31:13This concludes today's conference call. Thank you for your participation. You may now disconnect.Read moreRemove AdsPowered by