Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET

Company Participants

Deb Hart - Investor Relations

Trey Martin - Chief Executive Officer

Kevin Herde - Chief Financial Officer

Drew Burch - President, Nucleic Acid Production

Becky Buzzeo - Executive Vice President and Chief Commercial Officer

Conference Call Participants

Tejas Savant - Morgan Stanley

Tom Peterson - Baird

Matt Larew - William Blair

Michael Ryskin - Bank of America

Conor McNamara - RBC Capital Markets

Dan Arias - Stifel

Justin Bowers - Deutsche Bank

Operator

Ladies and gentlemen, thank you for standing by. My name is Tammy and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2023 Maravai LifeSciences Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Ms. Deb Hart. Please go ahead.

Deb Hart

Good afternoon, everyone. Thanks for joining us on our third quarter 2023 earnings call. Our press release and the slides that accompany today’s call are posted on our website and are available at investors.maravai.com.

As you can see on the agenda on Slide 2, joining me today are Trey Martin, Chief Executive Officer; and Kevin Herde, Chief Financial Officer; Drew Burch, President of Nucleic Acid Production; and Becky Buzzeo, our Executive Vice President and Chief Commercial Officer will join the call for the question-and-answer session following our prepared remarks.

We remind you management will make forward-looking statements, and we refer you to GAAP and non-GAAP financial measures during today’s call. It is possible that actual results could differ from management’s expectations. We refer you to Slide 3 for more details on forward-looking statements and our use of non-GAAP financial measures. Our just issued press release provides reconciliations to the most directly comparable GAAP measures. Please also refer to Maravai’s SEC filings for additional information on the risks and uncertainties that may impact our operating results performance and financial condition.

Now I’ll turn the call over to Trey.

Trey Martin

Thank you, Deb, and good afternoon, everyone. We appreciate having you join us for our call today. Let me give a quick recap of the third quarter, provide some color on the cost-cutting initiatives we announced today, and highlight a few business updates before turning the call over to Kevin.

Let’s start with our third quarter results on Slide 5. Today, we reported $67 million in revenue for the quarter, $12 million in total adjusted EBITDA, and a loss of $0.01 in adjusted fully diluted EPS for the quarter. Q3 results were below our expectations. With persistent macroeconomic and industry-specific conditions impacting the top line. As we mentioned during our last quarterly update and as referenced by many of our peers, we’ve seen continued softness as customers adjust their spending priorities in the wake of broader economic uncertainty and lower levels of venture in private equity-backed investment. As a result, key customers continue to focus on capital conservation efforts, which is constrained research and development budgets. This continues to result in a longer decision-making process, causing customers to strategically prioritize and stage their programs. We are not seeing signs when we provided prior guidance, and expect those trends to persist at least through the end of 2023. Unfortunately, this has been a consistent theme throughout our industry. Our Nucleic Acid Production segment had revenue of $51 million in Q3. This includes an estimated $36 million of base Nucleic Acid Production revenue. The Biologic Safety Testing revenue was $16 million in the third quarter.