Shares of MaxCyte Inc (NASDAQ: MXCT) took a hit as the company reported a decline in preliminary Q3 revenue. The company expects a year-over-year decrease of 25-27%, with Q3 core business revenue down 33-35% Y/Y.
This decline in revenue is attributed to reduced customer activity in the sector. MaxCyte now anticipates total sales of approximately $34-36 million for FY23, below the consensus estimate of $35 million. Core revenue is expected to be around $28-30 million, contradicting the earlier expectation that it would be comparable to 2022.
The decrease in revenue is primarily attributed to lower-than-expected sales of Processing Assembly (PA). The underperformance in PA sales had a cascading effect on Q3’s Cell Therapy and Drug Discovery results. Even SPL partners, who had previously shown resilience in the face of challenges, experienced softness in PA sales.
Alongside the decline in PA sales, customers, especially those in the early stages, are displaying more caution toward significant capital expenditures. However, the company’s lease revenue has remained steady amidst these dynamics.
Analysts at William Blair acknowledge the current challenges faced by MaxCyte’s base business but highlight the potential value proposition it offers to investors. With the impending exa-cel approval decision and the continued adoption of MaxCyte’s technology by SPL partners, the company’s outlook remains optimistic in the long run.
As of Thursday, MXCT shares were down 21.10% at $2.58.