LOWELL, Mass., March 03, 2023 (GLOBE NEWSWIRE) — Rapid Micro Biosystems, Inc. (Nasdaq: RPID), 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, 2022.
Recent Highlights
- Fourth quarter commercial revenue (combined product and service) of $4.4 million
- Fourth quarter recurring commercial revenue (combined consumables and service contracts) of $2.9 million, representing growth of 28% from the prior year period
- Increased cumulative customer systems to 125 placed systems and 103 validated systems
- Sold 3 millionth consumable on a cumulative basis
- Launched innovative RMBNucleus™ Mold Alarm software for the Growth Direct® system
- Cash, cash equivalents and investments of $138.4 million on December 31, 2022
“While 2022 was a challenging year, we’re pleased that our fourth quarter results were in line with or slightly better than our guidance. As we move forward in 2023, our highest priority remains accelerating Growth Direct system placements,” said Robert Spignesi, President and CEO. “We are encouraged with the progress we have made to improve execution and will continue to advance the other key elements of our growth strategy including driving margin improvement, investing in new product development to further differentiate the Growth Direct platform and prudently managing our cash.”
Fourth Quarter Financial Results
Total revenue for the fourth quarter of 2022 was $4.4 million, compared to $5.2 million in the fourth quarter of 2021. A breakdown of fourth quarter revenue and key metrics follows:
- Total commercial revenue was $4.4 million in Q4 2022, compared to $4.9 million in Q4 2021.
- Product revenue (combined systems and consumables) was $2.8 million in Q4 2022, compared to $2.9 million in Q4 2021. Higher consumables revenue, which grew by 22%, was offset by lower systems revenue due to one less system placement in Q4 2022.
- Service revenue was $1.5 million in Q4 2022, compared to $2.0 million in Q4 2021. Higher revenue from service contracts, which grew by 41%, was offset by lower validation revenue in Q4 2022.
- Recurring commercial revenue was $2.9 million in Q4 2022, compared to $2.3 million in Q4 2021, representing growth of 28%.
- Non-commercial revenue under the Company’s contract with the U.S. Biomedical Advanced Research and Development Authority (”BARDA”), which was completed in Q4 2021, was $0.0 million in Q4 2022, compared to $0.4 million in the prior-year period.
- Placed 2 new systems and completed the validation of 3 customer systems in Q4 2022.
Total cost of commercial revenue was $7.0 million in the fourth quarter of 2022, compared to $7.5 million in the fourth quarter of 2021. The decrease was due to one less system placement and improved manufacturing volume leverage in systems, partially offset by higher sales volume and unplanned automated manufacturing line downtime in consumables as well as higher headcount, travel-related and material costs in service to support a larger number of systems under service contracts.
Total operating expenses were $14.7 million in the fourth quarter of 2022, compared to $12.0 million in the fourth quarter of 2021. The increase was mainly due to higher costs associated with expanding our sales and marketing organizations and supporting new product development activities. Operating expenses in the fourth quarter of 2022 also included one-time costs of $1.0 million related to the unsolicited, non-binding proposal received by the Company from Kennedy Lewis Investment Management LLC in June and the strategic alternatives review process announced in August and completed in December as well as $0.8 million in costs related to the restructuring plan also announced in August.
Net loss for the fourth quarter of 2022 was $16.4 million, compared to $14.6 million in 2021. The increase in net loss was primarily due to higher operating expenses. Net loss per share attributable to common shareholders for the fourth quarter of 2022 was $0.39, compared to a net loss of $0.35 in 2021.
Cash, cash equivalents and investments were $138.4 million and the Company had no debt outstanding as of December 31, 2022.
Full Year 2022 Financial Results
Total revenue for the full year was $17.1 million in 2022, compared to $23.2 million in 2021. A breakdown of full year revenue and key metrics follows:
- Total commercial revenue was $17.1 million in 2022, compared to $21.6 million in 2021.
- Product revenue was $11.1 million in 2022, compared to $15.5 million in 2021.
- Service revenue was $6.1 million in both 2022 and 2021.
- Recurring commercial revenue was $11.0 million in 2022, compared to $7.8 million in 2021.
- Non-commercial revenue under the Company’s contract with BARDA was $0.0 in 2022, compared to $1.6 million in 2021.
- Placed 9 new systems and completed the validation of 19 customer systems in 2022.
Total cost of commercial revenue was $25.7 million in 2022, compared to $29.4 million in 2021.
Total operating expenses were $54.7 million in 2022, compared to $39.5 million in 2021.
Net loss was $60.8 million in 2022, compared to $73.5 million in 2021, and net loss per share attributable to common shareholders was $1.43 in 2022, compared to $3.94 in 2021.
Full Year 2023 Outlook
For the full year 2023, the Company expects commercial revenue of at least $22.0 million, including the placement of at least 15 new systems.
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 Twitter at @rapidmicrobio or on LinkedIn.
