Small-Cap Maravai LifeSciences' Q4 Outperforms Expectations, Analyst shows Optimism Around 2024 Guidance

Thursday, Maravai LifeSciences Holdings Inc MRVI reported fourth-quarter 2023 revenue of $74.1 million, beating the consensus of $64.38 million.

The company reported a net loss of $(110.0) million following a valuation adjustment to certain deferred tax assets and an adjusted EBITDA margin of 28%.

Adjusted EPS of $0.01 came below $0.35 a year ago but surpassed the estimated $(0.01) loss.

“We closed out a challenging 2023 with better than forecasted demand for our Nucleic Acid Production products, including for CleanCap and custom chemistry,” said Trey Martin, Chief Executive Officer of Maravai.

“Thanks to our team’s strong execution, the cost reductions we implemented in the fourth quarter, and our revenue outperformance, we delivered a 28% adjusted EBITDA margin in the fourth quarter.”

Guidance: Maravai LifeSciences introduced a full-year 2024 revenue guidance range of $265.0 million to $285.0 million, above the consensus estimate of $261.03 million.

William Blair notes that after a challenging 2023, Maravai surprised the market with a strong performance and topline guidance exceeding analyst expectations. This stands out in an earnings cycle marked by conservative outlooks and below-consensus results. 

The company’s 2024 guidance appears achievable, supported by improved visibility into customer trends and forecasting tools. Despite assuming conditions similar to 2023, there is optimism, with the high end of the range allowing for a return to growth, William Blair analyst writes. 

The analyst highlights that if the company executes its plan, especially in the second half of the year, it could attract investors looking for mid-teens-plus growth and EBITDA margins exceeding 40%. William Blair reiterates the Outperform rating.

Price Action: MRVI shares are up 60.8% at $8.22 on the last check Friday.