MAXCYTE, INC. Q4 FY2024 earnings call

• 2024 was a strong year with core revenue growth, strategic team/operations improvements, and CASGEVY launch. - Acquired SeQure Dx, which provides safety assessments for cell and gene therapy development, integrating to offer a comprehensive suite of assays. - Instrument installed base grew to 760. PA sales grew 36% in 2024. - 18 active clinical programs under SPL agreements have pre-commercial milestone potential >$220 million, including ~$10 million already received. - Signed first SPL of 2025 with TG Therapeutics. - CASGEVY had progress with Vertex securing approvals in Bahrain, Saudi Arabia, UAE, and a reimbursement agreement with NHS England. - Potential for multiple therapies to come to market from 2027 onwards, with various indications.

For the full year 2024, total revenue was $38.6 million, down 6% from $41.3 million in 2023. Core revenue was $32.5 million, up 9% from $29.8 million in 2023. Instrument revenue for the full year was $7.1 million, down from $8.3 million in 2023. License revenue was $10.3 million in both 2024 and 2023. PA revenue was $14 million in 2024, up from $10.3 million in 2023. SPL program-related revenue was $6.1 million in 2024, down from $11.5 million in 2023. 55% of Core business revenue was from SPL customers in 2024, compared to 48% in 2023.

• Core revenue growth expected 8% to 15% in 2025, inclusive of SeQure Dx revenue expected at least $2 million. - SPL program-related revenue expected ~$5 million in 2025. - Expected to end 2025 with ~$160 million in cash, cash equivalents, and investments.

• Potential impacts of macroeconomic environment on customers' funding and program priorities. - Dependence on the successful clinical progress and commercialization of SPL customers' programs. - Uncertainties in the funding environment affecting customers' ability to advance programs.

Q: On the guidance for Core business by backout SeQure Dx, what does it reflect in terms of end market dynamics and long-term growth?

A: Maher Masoud and Doug Swirsky discussed continued growth across customer base, operational changes, and expectation of year-over-year growth due to strong execution. Instruments saw a decline in 2024 but opportunities to improve, PA sales were strong, and it's across the board due to commercial, scientific, and organizational execution.

Q: On SeQure Dx, how much in costs to integrate into MaxCyte and revenue track record?

A: Maher Masoud stated SeQure Dx's cost to continuing operating expenses is immaterial, and it's part of guidance. Doug Swirsky mentioned SeQure Dx began commercializing in 2024 as a full-year, with expected growth and a services-based business model with high differentiation.

Q: On exposure to academic markets and NIH spending?

A: Doug Swirsky and Maher Masoud noted exposure to NIH grants is immaterial, with focus on working with biotech companies and later-stage companies preparing for the clinic.

Q: On SPL environment, are customers still signing off at pre-IND level?

A: Maher Masoud confirmed customers are still signing off at pre-IND level, with the SPL pipeline healthy and expecting 3-5 new agreements per year.

Q: On SeQure integration and combined gross margins, and top-line upside?

A: Maher Masoud and Doug Swirsky said combined gross margins are expected to remain in the low to mid-80s. Guidance is conservative, with potential for upside if market conditions improve outside the current range.

Q: On SeQure revenue opportunity and monetization?

A: Maher Masoud explained SeQure Dx is fee-for-service with potential for a subscription-based model in the future, with highly differentiated services.

Q: On core revenue guidance cadence and SeQure growth?

A: Doug Swirsky discussed that revenue components like license and PA are stable, while instrument revenue may have some lumpiness, and SeQure Dx growth is early with expansion opportunities as it integrates into MaxCyte's commercial team.