MRVI - Earnings call 3 2023 | Maravai LifeSciences Holdings, Inc.

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Operator

My name is Tammy, and I will be your conference operator today. At this time, I would like to welcome everyone to the 3rd 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.

Debra Hart

everyone. afternoon, Good us joining Xrd XXXX quarter Thanks on call. earnings for our

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

prepared the joining the Officer; Executive Executive Kevin Vice session Buzzeo, you of details Commercial refer We It expectations. could remind Nucleic Herde, question-and-answer forward-looking Drew Chief on financial on during non-GAAP management on remarks. We Acid Martin, Officer; and results see statements, will Officer; Financial President the our management's President more can are measures. Trey and call. and you you Slide financial refer As statements and make call you we is today's our will our non-GAAP and actual X, from Birch, me Chief forward-looking Production; today Chief Becky possible to that for agenda to following use Slide join GAAP differ of and for measures X

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

the to over turn Trey. I'll Now call

William Martin

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

business me few the updates provide recap before cost-cutting over Let give the Kevin. and of on a quick turning quarter, some initiatives today, color a the Xrd highlight we to announced call

were expectations. the fully on our loss industry-specific for the macroeconomic adjusted Slide a for $XX conditions results EBITDA, persistent we quarter. EPS total adjusted line. QX our Xrd quarter, diluted $X.XX in with in With the quarter in of Let's top and million start revenue X. Today, below impacting million $XX results reported and

wake our equity-backed we've continued the we last many spending broader our lower levels in as as of update private economic investment. peers, venture by of priorities and softness customers seen in their of uncertainty quarterly mentioned and adjust referenced during As

customers in continue research prioritize key conservation result, result which causing a is on development programs. stage longer and capital customers strategically a efforts, process, to As to focus and decision-making continues their constrained budgets. This to

signs we expect those persist consistent been industry. the XXXX. and We end Unfortunately, trends theme provided when prior has this of not through least throughout a are seeing at our to guidance,

Our the Nucleic includes of had Acid Acid estimated Nucleic Production revenue was million Biologic $XX revenue Xrd QX. segment The Safety revenue. of quarter. million million in Testing in base Production $XX This $XX an

Slide Turning to X.

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course the annualized to our million $XX realized integral them pandemic, committed say over contributions. these actions. It are XXXX to goodbye who of to for I thank success least at targeting the and many difficult are colleagues the reductions their many be talented from through We to is cost and to want

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we see organic opportunities identified many into growth as Day and R&D revenue. at over ahead, we to on million greater have in Moving than our turn outlined the $XXX X-year September, a Investor Slide path future in XX. We our

cost the allow realize industry-leading driving volumes. even improvements on taking We at EBITDA will we are continue to goal initiatives to margin. us adjusted and believe our regain now, we to that today's focus realignment

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XX. Turning to Slide

XXXX business space. units for a remain ahead have capabilities next we our right focused confident the the the through I the XXXX, completion we our growing mission we and on and our our leverage. commercial together technologies business significant generation team, to health out and markets in close on remain achieve that and focused operating are structures in business the base we We our medicines. to make remain organizational our to long-term the right quarter long-term and support businesses, our objectives As to we the in meaningful look realignment expanding with innovative have R&D base As to we product of talent of all growth. of growth. through deliver believe on leadership market the impact, prepare I'm can technologies the advancing with across future, mRNA and operations expanding the we excited margins the our invest strategically our human achieve and continuing portfolio, on improving Xrd about what year, in to

for revised our in now to provide guidance. considers moment, will Kevin Xrd expectations broader Kevin our discussed. a Our greater in I'll the headwinds ask which quarter the and market more the QX mainly detail XXXX, previously and on due outlook details results the fourth performance discuss to updated Kevin? quarter for modest

Kevin Herde

XX. everyone. Starting Thank Slide Trey, and you, good afternoon, on

million, QX both below to per continues across release base and for expectations pressure XXXX $XX were this softness As business afternoon, quarter ongoing our macro our the our revenue the as industry-specific press the segments.

As earnings share basic both $X.XX share, and were loss. per per for GAAP our diluted EPS at

was While adjusted per fully for share loss quarter. $X.XX EPS the diluted

Our of from for recently of million completed Xnd noncontrolling attributable amount million quarter GAAP-based QX non-GAAP net million for the up measure, $XX.X $XX.X interests Xrd Adjusted loss was quarter in EBITDA, a for to was $X.X most XXXX. the the XXXX.

was Our in margin EBITDA adjusted quarter. Xrd the XX%

million, X For adjusted first a XX%. resulting in the non-GAAP months XXXX, EBITDA, $XX.X was adjusted our of an margin of measure, EBITDA

As discussed us our balancing best labor facilities our managing future in on focused our our also in address the quarter, last we structure to expense current our for and the position investment while revenue remain outlook. to actively

structure was environment. aggressively necessary continue to to to decided the we current soft we realign As our see cost the market conditions, demand it more

structured targeting necessary million never levels. heading reduction covered, in previously been Trey $XX pressure at easy. But annualized spend all into initiative our to least business is As based today, reflecting feel XXXX a we recent with a in that address the announced on faced expense broader adjustment are These XXXX. and we we've decisions

our reduction in operations XXX lower labor and about We in that actively in be million Nucleic approximately on functions. realized our will areas and employees, by reducing in labor roughly primarily be or $XX force will Acid Production XX% XXXX. supporting expenses the This general administrative yields

to wait and achieve of We million market over in these revenue another our products time broader current identified in strength we've growth serve the that given the we prudent we the improve reductions, are believe our million to $XX savings. nonlabor technology, markets services. structure quality these to return and and cost a actions reductions annualized $X and in we expense and of align help the confident our as conditions to total to environment cost addition minimum In cost reductions to

late to cash, determined let's at $XXX flat XXXX of the Slide million. has quarter. $XXX Xnd turn million debt, Now which with the in Gross is end QX level to a XX. We ended until

flow less free reflected expenditures. define capital measure as is the flow quarter adjusted cash The the expenditures $X.X location Diego. the outfitting that million non-GAAP in our a EBITDA Flanders less GMP tied Acid Our million. $XX.X for EBITDA capital Nucleic facilities free adjusted Adjusted Production free our cash net quarter we was to flow of adjusted cash in our ongoing of San at

XX% business slightly year-to-date our XX%. in XX% from EBITDA million, customers Nucleic Production revenues with more million. some company's were $XX quarter, the Acid of our revenue $XXX segment Acid margin in The quarter for large now the of quarter. the Production down Xnd On CleanCap $XX quarter, segment turning revenues A from the for million this of EBITDA of and for business the on generated million Slide insights segment vaccine XX. I'll Xrd in a for a margin for X-month Acid is performance adjusted in the Now Nucleic provide quarter, the $XX in our consistent financial previously represented our $XX Xrd to total the discussed expectations the into estimate COVID-XX revenues Production the adjusted quarter. Nucleic of of basis, quarter. million $XX the Included was the of results million. segment

quarter, were the XX% Xrd Biologics total Testing of revenues. Our our business $XX million in Safety revenues contributing

Testing Biologics quarter, adjusted margin a business Safety XX%. of EBITDA Our of contributed million $XX in the

XXXX, X margin. XX% $XX adjusted I just million were BST EBITDA that For our $XX of recent $XX million, apertures. expenses line revenues of in in adjusted the on EBITDA included first million the totals Corporate segment not are adjusted the with spoke, months in EBITDA a segment recorded quarter, of

for our Now financial turning and to Slide guidance XX updated XXXX.

in of in our range the markets. of little full at are in are signs but slightly disappointing from more optimistic million our year call, the is to midpoint. $XXX about we This year. given for the $XX that XXXX This our a broader last $XXX recovery to quarter revenues reflects is near-term lowering reduction guidance revenues view less We the a than million for total million expected reduction the between XXXX

To we million segment QX. break Acid We $XXX quarterly see COVID estimate vaccine business which Production Nucleic around an includes the little around line, of $XXX to in top on down base for $XX million, further, expect million this the CleanCap sales the at in demand. related our to a recent levels remain

prior recall POs year the we million you that As CleanCap our have and those $XX for on had we in all remain. call, stated POs

customer that have year reflect that they customers' COVID for one programs are using clean trials. has estimate communicated to best demand non-COVID clinical the Thus, advancing we be $X we orders understand vaccines what to of about specific adjusted support their However, anticipated down million for fiscal to half cap. in our our

our used As inventory CleanCap mRNA the existing our of specific dynamic franchise can has thus be we target and future are usage and extended chemical multiple by demand by our likely have previously, across market complicating analogs, end customers. We this which the indications CleanCap customers feel disability. discussed across not this further programs. end assessment volume of large their

NAP midpoint. removing base estimated a $XX This million of the the million estimated from decline XXXX XX% demand, for $XXX levels. about XXXX projected year revenues roughly our at segment Now COVID is fiscal in reflects

lower lower to our we've at $XX the than vaccine since the or Safety and the updated the to resulting seen X around little expect have quarter be $XX with estimate range, range million revenues EBITDA BST per we $X.XX to $XX for Xth EPS shifting historically NAP $XX quarter million, metrics. We including million million COVID revenue for and segment anticipate QX of adjusted updated expectations of million Xth to also at $XX full XXXX. be cycles. Based in we $XX We updating EBITDA revenues guidance seen to previous the share of Testing this million on XXXX, are total for to to Due fully And And midpoint million the tied levels the $XX a are revenues XXXX. the expectations The midpoint our $XX for so see between for estimate diluted estimated quarter our to months and between Biologic year QX. earnings around now adjusted guidance. million books, our about of that revenue at our of the bit CleanCap in that segment our $XX million $XX to dip and manufacturing the CDMO a $XX adjusted million demand slightly of an year continues business of XX% $XX loss leveling this on be million to $XX ranges range of our million are of per margin in earnings. $X.XX of about in our XX% million and to

between $XX financial Stock-based as following of million, and million Additionally, amortization on we expect compensation, and income between $XX expense $XX Interest and the million. million show $XX as depreciation listed Slide XX. expectations from a million. $XX an about effective interest which XXX between we net reconciling and an about GAAP $XX if adjusted converted rate of share This million also million item to tax shares non-GAAP as to includes fully be XX%. and count of EBITDA

it's [indiscernible] done work to guidance Trey. year, call their focus the We to providing it do QX part needs. continuing will Trey? back limited the work believe XXXX realignment I I Now over turn next I level larger initial due turn ongoing out initiative, XXXX and to closing our visibility on the that guidance the understand have to to want back surrounding for prudent Trey. cost combined mention early from next executing of we to over have yet year. to demand to before our we now our on not confidence customers the XXXX customers, historically our call. We cost with of anticipate in current provide as year reduction

William Martin

Thanks, Kevin.

prepared up the initiatives our the well wrap we announced, position we on believe for XX, to future. remarks cost-cutting while difficult, us So Slide

structure near growth, Our to along that market conditions corporate challenging better customers' future term. is of though support and This, needs our a in base the overall with customers new those is will sustainable expanding serve diversifying. remain equipped of

outpace believe therapy. We the able be products X services. next differentiated We will expected to serviceable growth editing with expect the confident technology, in gene and double gene rates for medicines over and years. market And long-term and growth biologics market our we addressable for for are cell mRNA to

investments cash facilities select in to We flow will and sheet with our innovations. analytics put organic and our continue balance product work and to

investment to and solutions. position bolster continue additional for our inorganic also customers will provide our for opportunities to We with market look

sustainable are We to answer growth to for long-term, profitable strong for a and building are happy business. Kevin, Becky, Drew I committed base all our and foundation your questions.

the turn I'll over the call instructions. now for So operator to back

Operator

[Operator first line from Savant with Morgan question Instructions] Your comes Tejas of the Stanley.

Tejas Savant

the start and of visibility, biotech, I the Trey one you on pharma right? some big like that on share base, a hearing on through particularly also is key just biopharma here? And customers fair it's as believe, with conversations interpretation? I'll picture sounds XX% total mentioned your very similar capital well. revenue into about there specially November a emerging exposure. Maybe the conservation customer customer one customers that you're focusing you color some dynamic So at your larger Can just Is

Unknown Executive

we pharma through hope the somewhere a between the experienced person pretty I had the rapid be we has normalcy and probably Becky, say than progression might would the that, industry some visits. to just of large There the Yes. that expectations for I'm high-level has a cap revenue time of pandemic but your completely rationalization of I and, we have public is pharma in small announcements color, numbers everyone quite pandemic color consistently. Thank of licensure that also right all me the correct for frame through progression think to has recently you, continued add exposure the the before. But XX% best actually different a and sure see, rapid a been there customer noticed, recent large return mid for that time few course, progression who program And that around that company activity year-to-date. about our again,

Becky Buzzeo

Yes, biotech. we've many been Even big small academic clients. talking to clients, pharma,

sure, For tight. are budgets

getting lot We information also a around program rationalization. are of

view conversations outcome. derisking continual programs. entrants into their are So and positive that a the programs slowing pipeline progressing new around of really There best have

getting packages is So the that is many successful. this times so means filing data development what additional

So initial with instead and those analytics. kind back in further optimization of sequences delay filing and on doing some we're that, going seeing INDs and

Operator

comes Catherine of the with Baird. Schulte question from Next line

Unknown Analyst

September, wondering guess particularly I throughout start, October? progressed, Tom the in if is I on what quarter you the as have to seen Peterson speak what quarter? This for the in rate was to was the you first you could what And in business Catherine. exit saw

Andrew Burch

Yes, sure.

We have a bit of month Xrd effect. a

described Largely soft think and say, line have a and of with August, essentially guide our for in speaking, quarter. though, guiding rescheduled constant the that July saw but where ticket we shipments actually, would with that is, part in into QX. more effect we've rest I we each previously particularly of month the for the now we I a year July, the the again, of Xrd rate was so September, are what relatively strong, reason to

Operator

Our with of next question comes from Matt the Blair. Larew William line

Matthew Larew

One was R&D at COVID of contribution base XXXX And XX% from the around XX% the base XXXX guidance that assuming frame. and business through that today holds, thing over you gave business reiterated long-term CAGR the the grew you would Day to that require a time XXXX.

So CAGR this would be XXXX. a faster on through a base larger

speak not the giving maybe uncertainty understanding confidence end some could just in long-term at to you're to start the guidance, hit point. they markets, those much the XXXX have level you how we given in again there growing So is levels, trajectory? And

your required you long-term really start that's growth of So level when hit targets? to working do way or tracking that to those back back

Andrew Burch

good we've would the, is rates the are material we are This that Matt. I forward down. a base, particular, broader the area also And will inputs of a CRISPR gene growth of shift to example in the we partnerships exciting have Thanks, editing rates a And a announced in uptake the our a look [ publicized. is example the have XXXX's in TAM to has work be will as how correction been of year, gene I make step as see and a non-COVID growth a we therapy forward material. fungible down both have base and millions to, tool took from we we look sure. think probably CRISPR the of be you to and say including what correction lot that been estimates growth today. as long-term and very But definitely activity cell around. a back there for way. We looked to adjusted and activity we coming SAM us, single-digit are, editing, program in confidence and market in identified, itself do the we bit bit the about a out. starting use, for And has business COVID in COVID CleanCap across which standpoint, Yes, it's We and, where well again, you think that what our COVID obviously had programs. of that we already And lot have therapies. ] a gene people markets are a out seen of the I X say,

we're looking are base programs period. therapy very many forward and more editing concentrated gene broader markets mRNA, to and X-year the a in about that cell So over optimistic CRISPR the with growth and less much customer gene progressing

Operator

next from Our with of comes Bank of question the line America. Ryskin Michael

Michael Ryskin

actually to a part. two ask I'm going

to stuff to the some and some growing is all a to you can year? move the COVID to now sort rebasing segment that I want that in you Or I years I when second but again. you've I'm easily. non-COVID and Just follow right COVID for such just growth then in say, on exactly of the row piece. there non that? And First, more to maybe adjustments is of next grow still or declines especially [ point, can out elevated floor can I'll is in figure near in between start the about the for prior needs if part. Or pretty excess I trying mean and guiding and that dollar a the of as I X terms, was just because last that the believe, the the that And cost year, X bit million. what on out on in had another zeroed squeeze all that little you're just can more XQ, up have come on a X? out of cuts, this term, decline a ], in drill a XXXs there ask want there the $XX an period non-COVID quarters happen?

of year, having it on just really it the, like in that side, SG&A. pretty specifics, a heavily in but could the any a if also and sounds provide bit to little want next XQ? on kicking was I is is benefit First, is Or sure it more you it manufacturing make only on

that could be different we through should about just it? would think across of sort how That you buckets, the break If helpful.

Kevin Herde

of for Yes. Mike, those line. primarily second say our I P&L, part going reductions your the would XX% segment it's sort hitting to Yes, on cost the initiative. the the with I'll roughly in question start Acid COGS The of realignment on rightsize Nucleic be to continue operational Production geographically appropriate volumes a dividends paying of our seeing that in post-pandemic hit channel XX% commercial we the the SG&A going other bit to and we're operations predominantly the line. on see G&A component time. the us that to our over more little The focus investments

basically and So COGS split XX-XX between SG&A.

day primary of actually, throughout was yesterday in We spend course the year revenue this XXX positions. have of been the the And action cognizant and took elimination on declines certain cut the we items. roughly of certainly investors' back which discretionary the

those if So dynamic comment roughly decline coming quarter partially I a well cost I see Trey, of charge contentious the will less lay-offsindiscernible] you previous quarters. It's in P&L mitigated our of our be see on yesterday. and why the to severance as know, that in that we did quarter. know in incur EBITDA I onetime by a you revenue progression. of the grain to the given controls portion in of think some you guidance, the Xth impact with ongoing don't want out impact when here don't the for this little as our previously certainly revenue a That's

William Martin

certainly we part in has ready see reality this been a down certainly days and in the performance me that But July Yes. first at say, to and optimistic for call August that facing here revenue the, we'll leg today, the are level progression and monthly be, focusing our and mean not let's next admittedly, for are big the the of that with restructure the set looking will growth. point. XX activities the on pivot stage we I really reorg

the again, in which months revenue realignment based to lower have first months the, compared but of on unfortunately I've on been the past, So the seat been for where stable now the relatively X reorg, guide we're rest the taken been we're has a, here, for on have year, keel approach the the down. which going think, and of I a, QX the a same reason forward is basically X for

Operator

from come questions next RBC Capital Markets. Our with the line Conor of McNamara

Conor Noel McNamara

I cuts. cost think I've $XX got one for each of million you around the

can't in how and hit impact that, that sales, some you're that at you growth that? to hit about target? your First, about probably it helps talked going EBITDA Will just revenue, does follow-up, plans? cuts $XX And any, just if manufacturing still cost think I these for that still allow historically? about like Trey, your that? in those target margin rates the assuming mean, if does ability Day, to had you as should cuts, those million think your you that Kevin, then you've R&D they're sounds Whatever your hit a that we was outlined And

Kevin Herde

and the very at the done sense going which could the which sense of our take rates touch company that that and forward. it's as that company. But the just all Again, reorganizing through the costs, operating continue the thought as, we There reduction on labor manner the to to Yes. the also the those part we've in we couple we the important, looked to in variable also on in projecting on the but that modeling we in areas made a we at predominantly I'll and exercise, those We we are side ability the half about financial in going in in new specific Yes, forward. targets reduce reductions came XX% kind we I different think in [indiscernible] have is cash targeting of again, we teams reduction lines think, ask And was, plan the had this SG&A at the business it around about invest. both operationally but to I together Trey's the made first without it. are predominantly a we're not and and impacting agree half of across second in move company and grow overall G&A that manners. part. I'll are more went of costs, line, a in leadership looked and want that to

think made what So on our feel based we long-term real yes, has, estate hamstring to it growth the we've but improved currently revenue not I does right reductions hit objectives. us that are

I'll leave there. question So component of the just, that I'll

Andrew Burch

and It's that question. XX-XX add. insightful operations and I'll say And G&A. Yes. our, again, really I'd between an

chemistry made the we So an fixed there we capacity than capacity business. is I that this changes are business labor One set the you there RNA being From two for whether it's last where residual footprint And pandemic would decline in available, the two elements perspective, or contracting on. And residual say to of so and holding quarters. it. a COVID is principles, function the faster production level over essentially expected overlapping really of and that operations is some COVID were legacy all X have shifts up

faster essentially then in doubling and rate in conjunction the COVID. So business, decline that's with in decline diversifying a Maravai the that faster slower growth of next-generation a potential we're

a question for because and within more [ in It it I more of a diversified customer customer not hope which for more smaller ] will was of will have much XX% like mRNA. and be 'XX the group isn't it to we stability and 'XX. many the sales certainly business. predictability broader needed capacity one capability it Unfortunately, bring of things compound the be to So diversified do projects, group for typo one

say, of side, G&A current services X sustain shared that the current its it had our company or to we size size. you're the similar, aware realization On that all of I size afford corporate Xx it's of, can imagined level a well would a and very necessarily the

So we structural slower a to company. operations EBITDA high-growth, they obviously be incrementally and our the be this at ability a we we will adjusted And there intend place, we for grow fundamental as where add strategically. still back high do to need are will, to have rate capabilities

Kevin Herde

of that do a are Conor, from specific that we talking think And at XX% mean, roughly our look structure as if and thing so. not about that perspective, certainly, of certainly question this had way to it at it's guidance that adjusted I margin sort low this will today our in roughly to environment. are the increasing basis on current big you would margin, And is take or I company. in one XX% sort beginning occurred the right an Yes. which we're the the I year, to cost of look at this to tell

that That's think and needs clear. I their January going a our currently understanding to is with have and environment just industry prudent to obviously XXXX visibility think X, anyone into for big that an structure one overly levels now we're from for completing able a the our we and certainly don't be not will main that. the our margin it's the expansion our and we a reduction year. complete a there back what come we're and until spring top and did feel return to and assuming certainly, lot in of So those tough be light reset, working of is certainly, and our because in case. of to to I hasty to support as guidance But frankly, to that's good can from get people we still doing, to drive continue this was is reasons most macro operations growth, ourselves understanding it of adjust this be us. that discussions growth cost will 'XX customers, good and at we're is the our deferring positioning to streamline line heading continue that ability as XXXX,

Operator

Our comes next line Arias from question Dan the with of Stifel.

Daniel Arias

if Performance to China softer to kind and can you how there? two, going Safety into and might about Kevin, maybe actually China China, on what what's might difference the trend Biologic expect you imagine compare buckets in just year-end? to of you but curious is or talk those I then then like outside of look then Trey there

William Martin

we started 'XX PST in of for are, We, I lot them which a between having looked that second stable a and of leg the you. down really, and at would obviously, last big year. new been China in China so driver about what And say, growth half was talking that the for numbers, 'XX, Yes. really at is far, the again Thank we've this specifically relatively just Yes. difference the BST, at level. looking

year-over-year and year comparisons are there first in certainly steady us now half for So that half harder of from this second that last growth the year. were are

steps X but further quarters China rate So so we a for any not at BST in past see taking specific. stable down far the not relatively

Kevin Herde

was our In to just the saw numerical first XXXX Ray of China to to, growth alluded decline And in we that of to. XX.X% business. was most Yes. BST business. that XX.X% for its when second XX.X%, I about just the quarter from put in this China context range some recently XX.X% spoke revenues those in and predated quarter, the the BST periods

lower it's than that. So ongoing exposure we believe, much that go leveled We have, out. don't see to

current we're the for in that's think the China. manufacturing I going biologic seeing support level that's to that environment

Operator

next Our with the Sykes Goldman Sachs. line question comes of from Matthew

Unknown Analyst

thinking This X? additional in is COVID demand about is on being bringing how capacity and on weaker Founders where year Matt. destocking, the of rolling And by farmer a updates on are impacted for spend? off progress Any you Ivy

Kevin Herde

commercial important it it's competitor these just frankly, given Yes, discussions of our still I'll was at context funded. manufacturing need we these of not online that Flanders are our the that that have it it comment X, start. asset some I'll to finish, something and an that to in something the brand. room of years redundancy facilities. think certainly have to certainly, a was part commercial X obviously, and bring given CleanCap. Through to the we let in on to the not incredibly but that's rushing and that, Acid is necessary, others be accomplish Flanders this but in year, Solutions part Yes, still advance frankly, additional you of X big And our the business. obviously, right we're least but length [indiscernible] demand, again, in of table ideal the stakes to our decision make take is is, for the certainly in decisions capacity Nucleic a strategy,

William Martin

Yes.

Facility where So Waterridge G&P the II Flanders our nice for there's and chemistry RNA, the on happen and Phase we X a services services that beyond is existing our in at picture have [indiscernible]. specifically all mRNA of [indiscernible]

leaned progression, talk the rightsizing as the through quarter proactively operations have we And schedule. realigning to and add this time obviously, at this the our because into a we quarter. here not few for just work customers. comments with probably customer ability Flanders that's been program footprint, And we until last can X, right have bookings right our we Becky So turn solid done have that the on focus primary we've all

Becky Buzzeo

Yes, always that footprint. sure. more manufacturing we're offering ahead going I building to you're mean, I you're be building. that facility And think X when look, of GMP about incredibly excited the Flanders

progress that II IND, customers in through they Phase combo. that use Phase the and come interest number a now for have II/III material of sometimes our GMP manufacturing We an made and to and we've to they're and them, have then they services, going it's file have only then research

material we're that Phase up II lines engaging are And mid-next be customers so the same GMP-ready II/III pathway on that combo. need it that clinical in are going that for where Phase a year, to cases, those those we're that to with or

well. a And be is do customers that. progress to to great to clean And we really cap continue making is that's so in continue definitely our mRNA, we and in what ability which best a development service I think what

Operator

comes the with Bank. Deutsche Justin Bowers question line Next of from

Justin Bowers

As of forward about to what composition funnel think us have the and think part like revenue the to of the a or that to that's proportion two as capacity been going your industry now, sort the has is help well? across you come that your any helpful a way about there's on on revenue of of I then you NAP have the down date just times One, to at way look recurring of lead is and well, sort just come part there landscape. be as there also the know that be a lot lot, perspective sense landscape would a competitive a online visibility thoughts have

William Martin

to a competitive stab landscape at quick Yes, question. your take or hand and Drew I'll it the first

the, come where and the at where programs. the are So front there's funnel, focus large competition specifically has really competition more end the services the is diffuse level significantly fewer as we of up development there there on CDMO

mRNA through as recently CDMOs X/X our So meeting of so we through through discovery since brought the capacity such progressing the Discovery. of is with Phase about is the on earlier Phase who competitive phases and us large reaching II to TriLink folks discovery back market, and I middle in revenue from into landscape sort have

project really, are more competition. there by specific new slowdowns than affected or being starts, think, We I delays

first the your question. So then I'll of to for part hand Drew

Andrew Burch

Look, difficult Sure. a on it's terms. revenue to think Thanks, precise percentage Trey. put in it I recurring

have and think customers are basis discovery there I we tends recur. order on in regular from to a

We long program may clinic services, recurring be but of as with trial through basis supporting whether on it get through not so quarter on have we're you clinical regular and continues like with advance basis. the the some that platforms reagents supplied a that whether the into clinic, the of clean piece were built supporting we're business regularly quarter that quarterly program to advancement regularly into trials, X that quarterly occur further cap as a was clinical or a may

there in certain events be be and may of phases events certain trial, the of clinical manufacturing So clinical stocking phases at there trial. may the

to question, a get quarterly your always trial clinical pattern helps activities. and the it's not but on a that in hopefully, consistent both of really mix So

Operator

over like Director, Relations. Investor Hart, to turn Deb I'd Senior to the call back

Debra Hart

and a of week conferences with Tammy, at time Have the you, next We'll of be good couple joining your today Thank you a thanks, many there. for to up hope everyone, and catch evening. for and call.

Operator

conference This call. concludes today's

now may disconnect. You

Maravai LifeSciences (MRVI) 7 Nov 232023 Q3 Earnings call transcript