Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Fourth Quarter and Year-end 2022 Maravai LifeSciences Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to our host, Debra Hart, Head of Investor Relations. Thank you.

You may begin.

Debra Hart

Diego. you, Thank everyone. Good afternoon, joining XXXX us quarter for our for call. year-end earnings and Thanks fourth

Our the available release on press and our are today's website posted call and are at slides investors.maravai.com. that accompany

Carl join will and see President on will of Trey Commercial call a for Slide you As you Becky financial the Chief question-and-answer will and results Officer, our provide Kevin can first update, Martin, Testing; Buzzeo, our for today our Biologic agenda following the on Safety X, review prepared the business guidance. with and session remarks.

to management measures. forward-looking could X non-GAAP results It on detail We financial will remind and for GAAP today's possible to is and differ and from you use more measures call. Slide during of statements make non-GAAP you forward-looking statements management's actual refer our expectations. that financial refer We

provides issued and operating GAAP refer and Please also press just directly information financial results, most the Our SEC additional comparable release impact to condition. our measures. that for may on Maravai's reconciliations to performance the filings uncertainties risks

call to turn the over I'll Carl. Now

Carl Hull

Well, us our today. good We afternoon, thank for call you having you, Deb, appreciate and join everyone.

million on quarter, $XXX our start quarter Let's of per reported for share to $X.XX adjusted X. led and share. million revenue results fourth we Today, $XXX our with adjusted of in the Slide EBITDA earnings per

the $XX fourth revenue multiple business RNA continued of vaccine infectious across marks and XX% messenger million XXXX, quarter uptake of immuno-oncology therapeutic a quarter, demonstrating over technologies base platform Our of revenue widespread record up programs. disease the

the end provided per share share for put of per our quarter's quarter for us call. during of earnings last $X.XX year range EPS and adjusted $X.XX Our guidance the full top at the

adjusted was was As with an for revenue was margins entire XX%. indicates, million Slide XXXX coming business. record $XXX at $XXX and Full million, income EBITDA in year incredible a net the X year

XXXX divestiture for of business full business importantly, grew XX%. revenue our year XXXX when detection base our protein the adjusted Most

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revenue remaining of quarter of includes over million Our revenue. CleanCap Nucleic quarter. The had base business, revenue COVID fourth the Acid Production $XX in for largest $XXX estimated of $XXX million last year. base XXX% business million This up quarter an NAP ever of the our four represents

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value new drive leadership ensure We establish have strategy Chief She and and that to tasked our scientific with as will footprint. new roadmap position. she her In with and partner processes expanded execute her innovation overarching an development Maravai the and expand R&D, and will scientific and technological develop for our Officer, are and our technology role, responsibilities closely Innovation the customers. Maravai this culture Kate driving for innovations, throughout team report maintains

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long-term our ESG advancements safety Along the A growth, we how forward with from core the soon-to-be to are second published will in positioning look cover governance on for with we path that and be will March. goes The pleased infrastructure environmental proud step meticulously governance and the consciousness of our Our ourselves and environmental, achieving examples be ESG to towards XXXX. and strategic greater expansive question, our the first report with honest before transparency report results. growth. program sustainable necessary our our I year and that sustainable ESG will fiscal disclosure increased objectives. quality Without our are business hand data. report an the our build of is we social and commitment let founded intrinsic in have to tangible our strategy company's since Environmental date been to and of highlights sharing and to to of of you progress XXXX Eric end improve know and stewardship, transparency in provide effective are Maravai focused published working and and hand into products, values our our few include social I'm

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for new a path adopted growth also committee improve updated our respective Board Our their sustainable structure charters to oversight and forward. on

and committed forward to corporate We a on keeping strong are apprised our you being to citizen look journey.

Slide to XX. turning Now

over $XXX growth COVID-XX at of business introducing revenue that our release press we million revenue to the This for CleanCap our million. assumption guidance GAAP XX% $XXX of includes base and rate million the from of XXXX $XXX midpoint. saw an are the You

viruses XXXX product the the customer that of foundational revenue ongoing from or anticipate vaccine approaches. multiple peak future. COVID we expect for for demand, While revenue support was flexibility stand-alone respiratory include the CleanCap could vaccines, given contributions This respiratory year CleanCap both demand foreseeable CleanCap our do coved combination to we multiple

updated primary shot met vaccination COVID-XX As on the FDA BA.X/X-bivalent the recommended vaccines XX, use it simplify vaccine both final note here, moves strategy. for country's the advisory as of and latest a to the January booster and unanimously panel

and were plans around a what for that straining broadly move programs experts U.S. similar the and autumn/winter composition and future booster about with the Additionally, periodically for supported. data review seasonal updates happens COVID annual to COVID discussed any propose to believe strains flu circulating vaccines, composition the to vaccine is will world We vaccine the where campaign, of selection newly can to Meanwhile, vaccines offering and innovate gather virus which updated approximately be that narrow a manufacturers create virus. between continue durable days. of specified or of to coverage transmission can prevent that to variant the health vaccine necessary. officials mRNA may more are the XXX strain vaccines, further better delivery is advantage here The window vaccine public improved

of in involved many are development We these programs.

cover fourth Kevin? our year on ask now with our guidance full I'll quarter our performance, assumptions. along details more Kevin model and and to

Kevin Herde

Thank you, afternoon. and Carl, good

year Maravai. quarter an fourth Our wrapped for up amazing

Given that more XXXX. results I fourth already, cover Karl financial full has regarding some highlights our will financial presented of briefly details for quarter the year and the

$XXX early into dive that we want details, range we XXXX views performance. million. setting strong $XXX for to XXXX, at our I 'XX provided revenue Before expectations November In initial our of underscore million the to

about Our fully provided strong that performing [$X.XX] million, total of guidance [technical initial per within a narrow of that solidly On full ago, XXXX $X.XX also difficulty] resulted year diluted share, fourth XXXX. excess quarter for guidance call a adjusted XXXX year in in initial we $XXX for revenue range. EPS of our

we strategy as believe and on strengthening we for also but against via key continue XXXX foundation our did growth. sit these our the business only investments that expectations, long-term We for to initial strategic Not deliver towards squarely we vision of of care being meaningful our our develop that health part solutions. commercialize will power headed next to the are a and the future of customers generation products, technologies here deliver today, services and

discuss the recent let's in some of more So results detail.

begin Here Slide GAAP numbers. our XX, on we with

XXXX. the quarter margin for the was $XX XXXX. certain year adjusted was amounts net quarter to under the income required non-controlling for Note interests $XXX of were was ASC net fourth $XXX and that compared for GAAP from million of This before million operating GAAP for million for income million XXXX. change Income Our operations prior quarter fourth XXX. the to lease standards million in the compares accounting year $XXX of XX%. $XXX

XX. Moving non-GAAP million to measure $XXX for compared million QX for Slide Adjusted a XXXX. $XXX was EBITDA, to QX XXXX

term adjusted CleanCap million from as and expiring the in reason for margin lower specific as primary materials tied expectations EBITDA in RUO quarter Our had in XXXX. the the charges the $XXX write-offs compared inventory quarter, and $XXX was in noncash associated our for million slightly that well mostly COVID-related unfavourable reserves, grade near to or manufacturing excess to for materials. Adjusted EBITDA a XX% the customers' this $XX was with GMP expectations was for related demand to The quarter. million conversion below fourth about year

Moving XX to Slide EPS. and

I move call EPS with expectation of fully $X.XX $X.XX from everyone presentation per EPS stated diluted share. and and the of share, was understands I capital our forward last will quarter's $X.XX the our numbers. Given metrics, EPS of adjusted structure Diluted our ahead of per Maravai slightly believe various was

basic and share our EPS of fully EPS were of year, $X.XX share, EPS adjusted per EPS per of diluted per the share. $X.XX $X.XX For metrics diluted

cash in balance very million and come More net to on $XXX a position year and nearly million debt, other to that $XXX ended in We and in cash in cash metrics. with resulting on roll long-term and million net position. XX some financial the strong in Let's $XXX bit. a cash Slide sheet

for our flow the is cash free which in flow, the respectively. CapEx the and year quarter million measure, Adjusted for and respectively, of and less for full That and the non-GAAP quarter, the was $XX free were three $XXX for $XXX adjusted a million year, million EBITDA months million based adjusted $XX XXXX. $XXX $XXX million of calculation on million full cash

investment flow as months cash teams in that further two to Maravai over in strategic both This our the infrastructure broaden company. and We to internally. make been last uniquely well have XX our we used our been capabilities. organic long-term the the a has as evidenced valuable by have investing value our acquisitions complemented have commercial increase These more high innovation strong by capacity made and

years from Even Capital via though and were ahead. face expenditures Maravai we our of the financial than phenomenal we in year comparison to items the facilities. commentary. a will touch longer at building in million. committed growth XXXX, for our this primarily forecast expectations outfitting saw lead quarter a headwind XXXX, and for opportunity CapEx in timing the ended guidance year performance some in and step fully see remain times to part our XXXX slight to facilities XXXX little the We less our $XX the installation I'll QX and of first some certain a and more into XXXX these new of tied of shift for the expansion on

strong position. XXXX, of we the to our acquire to the first cash used for quarter million upfront consideration Alphazyme. cash of $XX Returning In

However, another Thus, receivable a we great strong asset of still also in since fourth statement you revenues. the the family quarter collected have Maravai speak in million from in $X quarter. income here half year-end of today. the you've over added that million as net to I accounts over the we've our income, position remaining in reflected of year, the interest $XXX strong to the end Further, as seen while cash generated we

with our interest and X.X%, treasury our in control result should cash rates, consolidate have This restructured that rate activity generating our when sweep contract effective rate XXXX. to operations accounts a interest with cap is our banking of into cost excess cash flows As interest rising net partners. help interest-yielding combined our we exceed

effective cap debt to net expense, million of an of effective pursue the for our on of our interest an interest an sheet to rate contract up about get to $XX to estimated and $XX this anticipating million ability balance further would to structure keeps our rate down expense mitigates interest We are We risk, in net believe be be that range to interest acquisitions netted with us is income X%. both and us by our which XXXX. rate use

the to discussion XX Slide Let's and transition the quarter. in of the performance segment

or trialing products Acid margin assets which research million will and from NAP Production segment, XXXX from our and and includes January of Nucleic quarter Our fourth of in MyChem of and had the Solulink Alphazyme, in EBITDA include XX%. contributions adjusted of $XXX revenues the starting a $XXX million,

For million, the million XX%. EBITDA year, for a NAP, revenue adjusted $XXX or margin of was was $XXX

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For IT, Adjusted compliance, functions Corporate was facilities, expenses, service and our Corp the quarter a marketing, year segments $XX legal which million million, and finance the million. accounting was strategic of full year. and shared XX%. for and the Dev totaled EBITDA $XX corporate of leadership million support year, resources, and both in quality efforts, in revenue margin $XX Maravai executive $XX the including

challenging in the customers. XXXX forecast China demand, the inventory an inherent XX. underlying COVID continued Slide ever-increasing of tied to breadth to rebalancing Turning a is very dynamics and to uncertainties market, given variability year

in mRNA for and our quarterly of of unique fair technologies. overall have a We been period have business, reflection the seen fluctuations a with time of both amount we annual

years end XX%. and has Maravai four in in solid the XXXX, sit to total business base the $XXX steadily over last and the for the a revenues base very XXXX back we at of course we of look of one from highs CAGR year, $XXX here underlying is another a in grown million million lows that business, As all

years materials early address the last capacity with we companies Maravai private those another founder-based recent our in viral here through customers XXXX. for integrating enter unique years, the and pandemic to yet helping as phase building out now company critical From a acquiring, our three

offerings depth customers the wave over XXXX that breadth in of the for goals to invest our to and business next our to the are support Our of continue decade. for growth

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Certainly, to range expectations range with be of for XX. financial around million, for $XXX COVID-related $XXX revenues demand. $XXX revenues an CleanCap estimate to We million million the Now getting to our $XX on detailed in currently vaccine in of and to has occur hand $XX is XXXX see the in million approximately We a second commitments large in hand The to in late anticipate relatively there remaining million COVID outcomes current roughly XXXX. revenues for the be assumption for demand XXXX the Slide $XX evenly for in of likely to in over spread XXXX. related half already million XXXX. firm XXXX CleanCap

business to this in XXXX million of range XXXX is segment see based low we adjusted Overall, business XX% for $XXX the the in base to $X.XX and business revenues We the XX% $XXX our the base range, Acid the points Breaking million. $XXX of to reflect we and from a $X.XX see comparable we a diluted business just growing Nucleic the base would while contribution million revenue revenues between around the into over total see in Testing couple adjusted Nucleic in of base down the over revenue Included EPS level, Production acquisition. Safety Biologics in midpoint segment business EBITDA teens. million. million $XXX of Production which of growing see at contribution growth the estimated growth $XXX range the Alphazyme the low Acid fully of

is and and as GAAP income million we amortization an interest This to expense, between $XX on share as additional XXXX between and million of million. shares million show a which Slide based between adjusted XX%. $XX all count for of equity-based range listed of as converted compensation, $XX following million XX: and discussed; expectations on $XX The and the between EBITDA I million tax million; reconciling be of as effective rate based Interest net non-GAAP item and is fully $XX on an XXX depreciation $XX

XX. Slide to Turning

Biologics the already We also Testing in to part complete difficulty] which new Safety personnel expansion first the our full facility move business continue Leland, our the transition which of be [technical Carolina, North key during XXXX. facility will in is its housing to completed purpose-built of

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half as and corporate our Lastly, of target on completion difficulty] house is our [technical Center for XXXX the will in facility Pacific functions first

XXXX in volumes To facilities can us revenue these to support facilities that had plus $XX long-term anticipate a $XX mentioned. $X key million of we of utilization. growth the of to I capital completion investments, $XX facility Pacific support tied expenditures with and at provides of these billion to of that capital the completion the foundational full build-outs roughly with support in XXXX million we million, strategic and range net Overall,

thereafter. cadence and XXXX, XXXX, for in range for around million revenues As valuable estimated in for heading lightly stage with setting growth the of Maravai performance successful and a return XXXX. financial to increasingly million look of overall an a $XX increasing we We starting into see a to forward $XX QX to total the

Carl. I'll the now call to back turn over

Carl Hull

and as line, it the have the CFO’s line, on some numbers. for those we blank things Kevin, it I a technical of out you where apologize there sounds assure thanks, line out, just to saying like cut were problems Well, was he and strategy wasn't on our of you important Kevin's

free happy that feel it ask, recap be for you. and to missed we'll if of any you So any of to

to having are up had in are wrap on on as target pillars the non-COVID markets as business will strong the a and in believe for proud accelerate. our with our that we three base at future we human Slide making impact right and playing building messenger 'XX growth, playing health We in the role customers' beyond. From XX, portfolio XXXX with cell global our growth So improved an key and of for our to services incredible in strategic vaccines new RNA transformative vaccines strong we'll innovation our customers, to shingles We're leadership and partners COVID-XX and committed to the and only us. and is that high-value important expanding catalyze battling strategically are excellence, sustainable gene and on positions and and influenza journey to are operational Maravai long-term foundation building We we that and employees work to continue for cancer, people happen. areas. while product offerings focus therapies, poised

for the like over I open call to Diego? would to now your along back questions. to turn Diego

Operator

question Suisse. Dan with Our from first comes Instructions] Leonard Credit [Operator

Dan Leonard

in first Kevin, on My half keep we're versus the thinking phasing about revenue. for there otherwise? half should is XXXX. mind comments else second anything question on I heard Is or guidance COVID as your we phasing first

Kevin Herde

Dan. Yes,

COVID in or so second the the remainder evenly $XX that's the back the firm half. to relatively million hand being and likely spread obviously, that with or then and I addition half in phasing mentioned, In

at I base there from start well. the end business think low the will and ramp as

course So of on you'll business to a of XXXX. to I up think the kind continue and those of base the progressively here then revenues things two evolve as the quarter first see see ramping leading over items in combination lower the we

Dan Leonard

therapy is trends. the Lonza, anything helpful And you're seeing then a for in example, the a though, or if for driven whether and softening pipeline. flagged who customer Carl, activity, high-level any else? commentary I'm change all biotech I velocity curious by drought my flag. cell capital the That's follow-up. has mean company thank Understood. of you gene on

Carl Hull

Dan. Sure,

had companies. case of may would conservation some we that previously and that especially -- among think be is it's I reprioritization there pipelines, smaller still for we commented say the that cash important.

may to So before if they or two programs to five three working was to three somebody be emphasizing two now. of four them

stuff customers, players that really and the there is for in major seen the haven't sure. some on big margin going phenomenon. industry the the we terms . there But at So of in

Operator

with from Our Sykes comes next Matt Sachs. question Goldman

Matthew Sykes

'XX, QX. to sort for we understand in in that the just I for margin you XX, the around look help one-offs course like? but end we us EBITDA down, like kind related math like bridge the of just basis, the what that go the maybe of sort margins kind quarter-to-quarter the on look the But is Kevin, quarter of of over from fourth range can us of low with first, Obviously, of sort of you from the cadence sort But which towards coming just occurred margin? talked high the you that about as help the be the implied margins. that it did looks 'XX, a of kind the it Maybe XX on 'XX I of that. as XXs will XX%, could of

Kevin Herde

itself with here mean, margin, it I sitting we're Yes. Look, our out business the leverage and that here. as is the obviously, driver we where every revenue But the of I'm are as yes, reverses exact to into you tremendous as big starting today. not have quarter a revenues going certainly, know. go scales,

over the for the I infrastructure explained a that those it, talked Again, progress of that adding that's in go be much for of kind year, year. throughout first probably up think as in then now. the natural half the will again, back concern pressures here just and it right doesn't to the course here the about we we've in first I and we're south the we've out will quarter. progression. comes margins and think as most leveling certainly it's So and the start I to us, do, highest the And year revenue the quarter midpoint of margins COVID of assuming revenues the we margins, the course like see that, apparent And of thing then here us think but think because we

Matthew Sykes

RUO Got about conversion, was about there it. And China something just the as the think then contract. to know I last GMP year you

coming deal the position do feel you're 'XX? for something say, this Do 'XX half with year of I in 'XX, were, change kind that you're to to first as mentioned with But with better fourth quarter, of you you Flanders you positioned how think the a deal believe. RUO You conversion? online that in to GMP in in

Carl Hull

that, I and reason which and question to just And investments. more with for the no accelerate that. pharma probably those There's It's Absolutely. the customers to as making the before, they commented direction about involved programs, we've on the as going depend becoming that's larger think of go. companies more individually

Matthew Sykes

Got I If it. could in. more X squeeze

you Is kind quantity from for vaccines. think that wanted to 'XX is and about modalities sort of of of for to shoot sort for pie yourself there? shift a programs on about terms chart order a it sort the for either of made some comments there many as difference higher modalities. modalities faster-growing the to materials you quantity had strategy you as you versus the CleanCap, of through you're of mix of that therapies in of build get just attaching as RNA of aiming Or modality? in materials understanding high-level then move you or just Just previously I can as on

Carl Hull

program we stages, we or we target comers, kind in the scale whatever will ultimate at able all roughly the it the I same need that were it services be. customers Yes, welcome may remember, I specifically. scales. all And to early no, the wish But same think enable of whatever

So they they proven. and they become more are similar all and successful reasonably their then start diverge as indications

Operator

Our with comes Arias Stifel. next from question Dan

Daniel Arias

account this X think bit just as place that wins And point, existing market, a where you year or of identified I business GMP to -- serve the you rough contributions up sort about that ones? incremental mix new open new for the new capabilities guys ready of is your that that just transition that more ask programs and that is side, this accounts? Matt's beyond all new wanted the wins. versus being inside are Phase sort little a in existing takes to then driving of sort of can of about what's on follow-up Carl, the study we Flanders customers XX maybe

Carl Hull

Yes.

second to then Let your I'll part do. enables Becky on me question, answer question Flanders the of Buzzeo to the first what ask team about comment her

first, Becky? at the to turn I let first, look -- fill and think we and in after that Becky me then I'll as to and ahead go it that. ask over well, her comment

Becky Buzzeo

Sure, Carl.

So of about year. just your question, shy to answer we last customers had first X,XXX new

So year. we X,XXX last be calculated out new customers to almost

see customers the quite being rapid. So contribution new we do of

investments commercial the penetration are also our address We to in team making in markets.

more is Europe Asia, specifically think in us we share where So there and for gain. to

see in to it great big is Flanders manufacturing. As X for because we really CleanCap. as source opportunity. concern That's Flanders our are enabling One, customers give single a going us we this business, a relates been with our redundancy to

to and we journey will their from Phase value we great into transition as up they continue going clinical showcase ability So and control that to maintain RUO have stage that nice redundancy that material. manufacturing material that and a believe then bring very critical I endpoints. us gives be running, then and have a on customers we how continue and to proposition later for of is really Flanders raw that X GMP,

Carl Hull

numbers I incremental in of in have And the reason from for was answer, looking the around don't I XX, detail me. I and those was front that my on bundling

So I detail. of answer can't the first question part in your

Daniel Arias

the Maybe low could on on I no for outlook, fingertips. follow-up, the teens One a Kevin, your if to BST recall ask problem. Yes, just year.

think, guys grow double-digit to on was contamination which host your range, ability in kind there historically positive pretty of low viral that cell and detection. for for have above been I market You

growth to rate little of do a more accelerates has market growth presumably like road? you bit reversion just down in this reasons China? market back Or the the So that is think for come a

Kevin Herde

XX% we we still that's two exceed services color There's we you're and there, kind segments good target, do and well. to -- a range have can that asset, perspective, through MockV on the complement growth through as our in think uptake really to those a perhaps when and market range. a our see touch that can and factors Trey doesn't of some together, and what guidance add couple I'll From of you market. XX% provide Look, that which that's of

creating are so allowed seeing that on we're that of from industry to again, to going us starting regard about be the business. some of range. conservative teens of correct slow, think around still we, ones, I end? don't to impact kind that we're think outperform, color end any the range then talked rates and And how up that And the trying certainly historically there. those your little I the factors to So that that that market guide sensitivities low to Trey, the then range. kind we overall we legacy kind those growth of China. that's year we're softness in are I But it's know our off a as XXXX, but

Trey Martin

That's Carl good highlighted, in out of we're stuff, participating of XX XX particularly figure, -- proud and CAR-T Kevin. gene the in as The therapy.

have So we diverse geographic also business.

programs. touched already referred that, So you've prioritization the of China Carl is on. recently as to material some also And to

a growth we growth about MockV position, our expect continue So exciting do have services and we're competitive not general activity new but we segment and there's call vectors in the that the to there, concerned of of

Operator

comes with Schulte question Baird. Catherine next from Our

Catherine Schulte

some take I week data? on do has large a not it guess, flu? you read-through And vaccine think in guess potential yours, first, to the what's that readout player a customer a last of mRNA mRNA and I while flu had broader your we mixed data of

Carl Hull

haven't I studied Catherine, it detail. in

one in that after. I in you're trials these say target So a guy ask would different each sequences the am not done probably of best that I a different of can at going question, be the time a flu but with different design the place to

of a like the you'll who little one I BioNTech think when these more draw conclusion. conclusion a probably and enough to programs better see working data about is I So bit you others to and are a heads-up draw class. CureVac, think not Pfizer comparison be on And able kind from

Catherine Schulte

And Any base how of? the than fourth in of acid increased year-over-year. quarter orders cadence think onetime And should nucleic Okay. Got production in that sequentially it. then aware should about 'XX? and business doubled more we that XX% we be over the

Carl Hull

want you that? do to handle Kevin,

Kevin Herde

Yes. the in Yes, a numbers. I stand-alone there. for just quarter, obviously sure, Catherine. some really Again, some CleanCap at non-COVID vaccine or we strong saying orders programs -- did had looking it mean, was We stand-up have

driver think XXXX, bit perspective. I and that of a on of that lead bit a seen for gate to the was there we've a based will just in well, spike a that every little as when timing numbers out and then softer coming of

second year base we'll indications, the we the pretty orders the people for business quarter here type NAP how of So again in it standalone pick I 'XX, current first you'll of use today see in of and and based course low then those the that non-COVID on we see sequentially in is, on of for starting trending their half. each up as as throughout see part think kind the then light phases CleanCap that progress

Operator

And comes Morgan the Stanley. Tejas question with next Savant from

Tejas Savant

million. $XXX you of of on your of one about forecast just Carl, for maybe CleanCap sort sort long-term COVID roughly

million recent of sort updates X% towards your in million commitments. least customer move XXX in guide, to with commitments. in It as terms you framing 'XX like that there. doses talked not on You've sounded firm conversations firm your the embedded of or in marquee of only the at so including XXX, Any that here? past And thought in of of why terms philosophically this about XXX was

and inventory at that then levels a got any variables combo the just potentially in that, color the including the around commercial you've helpful. vaccs So transition 'XX, given play, be in right, U.S. market to super would the and

Carl Hull

probably good do mine. that. ball to as crystal as is your Sure, happy Look,

estimate. I that thoughtful to premise But commercial that's have best from it. and we going I'll the say comfortable vaccines data And rate available there they exactly been sources the generally available happen. XXX the there in very nicely then their and we goes vaccines correct So was in knowing out that still million to ties number We of in in a of And source consult call range, are wastage of going here the XXX it the estimates and record best think as into of towards data their do what past. that point feel the and I'm pretty track what's claim manufacturing utilization that it pretty later with having Airfinity, any to sort know XXX the of million would distribution. the million way knowing that that not we that that tend I

show why million we XX to there. honestly, there's believe because just don't you As upside we the

know where past that today both -- don't upside based instincts exactly our on will from, experience We come our but that's and our here.

forecast, I the that. I in only with So you terribly if the orders only wouldn't to probably be if gave satisfied you all you I have hand, guided

downturn XX% the So this two banking XXX you us years utilization. reflection in puts the to at XXX XX%, sort this is We But down a of at million year, of think delta if from reasonable fair look volume. that's between going past million. realistic compromise. a That of the

Tejas Savant

stand-alone mean guys. slide. update really services That's super it of versus follow-up operating on you're you one sort org on the that that on underpinned this shop that the value highlighted I by then company focused And helpful. proposition Got outlined like the one-stop structure -- here, Maravai you sounds it.

of help and analysis buy cross-selling? you any And done increase potential solution bundling the more examples to your penetration one on than can in today us So portfolio? you've dimension significant you, account how opportunities customers of just many then from

Carl Hull

me start, existing Becky over two. we customers, But between to I'll to our that up. with and those it Yes. there right as now, think a products tumble Look, look it significant is services at finish then let again, I overlap and

Now aside let's smaller on and put biotherapeutic the focus and market. academic customers just

us to they fashion and construct choices get buy initially and make for will they products potential or then and buy buy -- So services a these as rapid from lot CleanCap their targets mRNA from as then to to in-source things will or us later in usage. own customers may made their like develop and those come components programs a components of

There lot. a occur overlap customer with be base does enzyme will that So significant a with the definitely Alphazyme.

We that haven't out. bottomed

have like now. right cross-sells? would about you to a So And don't I talk bit Becky, little numbers you any your thoughts on for

Becky Buzzeo

go that good It's question to very a into one we're components to and highly mRNA and Yes. Obviously, focus focused our making high-quality, continue on. all the high-purity is that that. objective on

so the separate is done And sales some we year things out -- our have this that team. of we

partner So to and customers. team in products they very how and a with and focused we have services, team on then focused but on have overlay go a very market some communicate

So how growing share our very focused clients organically. is we are of selling existing more on market as to kind well taking in the as

Carl Hull

now. the So hour Diego, at the I think top we're of

over to Deb. back it turn can we perhaps that, with So

Operator

now closing have we for of correct, end And I'll now the Debra turn sir. question-and-answer to you, reached the Hart Thank And call remarks. over our session.

Debra Hart

you, thank get queue today. thank that us time to. the joining for and to anyone's Well, in you, have everyone, if we didn't Apologies

throughout this We will be and evening. afternoon answering questions

your conferences with catch up of time. those you I to So you some several meet to events. much We're there. with and attending March financial hope for also at in so Thanks hope

Operator

parties a you. conference. concludes today's great This disconnect. may evening. Have All Thank

Maravai LifeSciences (MRVI) 22 Feb 232022 Q4 Earnings call transcript