MARAVAI LIFESCIENCES HOLDINGS, INC. Q4 FY2024 earnings call

• Identified revenue recognition timing error with $3.9 million revenue shift from Q2 to Q3 2024, no impact on full-year results. • Conducted goodwill impairment assessment for Alphazyme, resulting in $11.9 million non-cash charge and identified material weaknesses in internal controls. • Completed multiyear facility expansions, improved turnaround times, launched ~50 new products, made acquisitions, and advanced partnerships. • Focused on returning base business to growth, with base business (excluding high-volume CleanCap) expected to be $185 million to $205 million in 2025. • Enhanced clinical trial business intelligence platform for real-time insights into mRNA and RNA-related programs.

Nucleic acid production (NAP) segment: Q4 2024 revenue was $42 million, full-year 2024 revenue was $196 million with adjusted EBITDA of $51 million (26% margin). Biologic safety testing (BST) segment: Q4 2024 revenue was $15 million, full-year 2024 revenue was $63 million with adjusted EBITDA of $44 million (about 70% margin). Combined adjusted EBITDA of operating segments prior to corporate shared service expenses was $95 million for 2024, with a combined margin of 37%.

• Anticipates base business (excluding high-volume CleanCap) to be $185 million to $205 million in 2025, with growth in low-single digits at midpoint. • No guidance for adjusted EBITDA in 2025. • Interest expense, net of interest income, expected to be between $14 million and $16 million in 2025. • Depreciation and amortization expected to be between $50 million and $55 million. • Equity-based compensation expected to be between $45 million to $50 million. • Capital expenditures expected to decline to $15 million to $20 million in 2025, mostly tied to enzyme manufacturing capabilities expansion.

• Material weaknesses in internal control over financial reporting related to revenue process and goodwill impairment assessment. • Revenue recognition timing error not resulting from override of controls, misconduct, or fraud. • Bad debt expense associated with a customer winding down operations in late 2024. • Uncertainties in forecasting due to market, political, and global events impacting financial results.

Q: Matt Stanton asked about profitability picture in 2025 and gross margins.

A: Kevin Herde responded about cost structure, fixed costs, and variable component of revenue.

Q: Doug Schenkel asked about improving visibility, new products, and high-value CleanCap.

A: Trey Martin discussed visibility through updated agreements and mandatory disclosures, new products, and lack of firm commitments for high-volume CleanCap in 2025.

Q: Matt Larew asked about segment growth and cadence.

A: Trey Martin spoke about first quarter expectations, GMP vs NAP growth drivers, and integration of acquisitions.

Q: Ricki Levitus asked about capital allocation priorities and M&A appetite.

A: Kevin Herde and Trey Martin discussed debt repayment, CapEx, M&A evaluation, and integration of recent acquisitions.

Q: Tejas Savant asked about headwinds from NIH/FDA changes and China growth.

A: Kevin Herde addressed minimal direct tie to NIH funding and flat China growth expectations.

Q: Dan Arias asked about base business forecast and COVID contributions.

A: Kevin Herde and Trey Martin discussed zeroing out COVID-related revenues in the forecast.

Q: Catherine Schulte asked about acquisitions' revenue contribution and base business stabilization.

A: Trey Martin and Kevin Herde talked about small revenue contributions from acquisitions and base business stabilization factors.

Q: Matt Sykes asked about high volume CleanCap inventory and BST growth strategy.

A: Trey Martin discussed lack of visibility into inventory and BST growth vectors like MockV and host cell DNA detection.

Q: Anna Snopkowski asked about new product traction and strategy.

A: Trey Martin spoke about new products being largely preclinical focused and traction of CleanScribe.