Moderna - $MRNA - Earnings Analysis: Focus on driving cost efficiencies and reducing cash costs.

Business Model

Moderna generates revenue primarily through the sale of its mRNA-based vaccines, including Spikevax (COVID-19 vaccine) and mRESVIA (RSV vaccine). Revenue also includes grant, collaboration, licensing, and royalty revenue.

Revenue Sources

• Spikevax (COVID-19 vaccine) sales
• mRESVIA (RSV vaccine) sales
• Grant, collaboration, licensing, and royalty revenue

Income Statement Analysis

• Total revenue decreased by 66% year-over-year, primarily due to the earlier launch of the updated COVID-19 vaccine in the United States and the phase-out of advance purchase agreements internationally.
• Cost of sales decreased by 20%, but increased as a percentage of net product sales to 79%, reflecting the impact of lower net product sales. Excluding wind-down costs, cost of sales as a percentage of net product sales would have been 53%
• Research and development expenses decreased by 20%, driven by lower clinical development and manufacturing expenses.
• Selling, general and administrative expenses decreased by 25%, driven by lower consulting and outside services.
• Net loss was $(1.1) billion, compared to net income of $217 million in Q4 2023.

Balance Sheet Analysis

• Total assets decreased from $18.4 billion to $14.1 billion, driven by a decrease in cash, cash equivalents, and investments.
• Total liabilities decreased from $4.6 billion to $3.2 billion.
• Total stockholders' equity decreased from $13.9 billion to $10.9 billion, mainly attributable to operating loss.

Cash Flow Analysis

• Net cash used in operating activities slightly decreased from $(3.1) billion to $(3.0) billion.
• Net cash provided by investing activities decreased from $4.2 billion to $1.9 billion.
• Net cash provided by (used in) financing activities increased from $(1.4) billion to $56 million.
• Net decrease in cash, cash equivalents and restricted cash decreased from $289 million to $999 million.

Capital Allocation

Moderna is focused on prioritizing investments in its late-stage pipeline to support up to 10 product approvals through 2027. The company is also committed to driving cost efficiencies across the business, reducing cash costs, and optimizing its manufacturing operations.

Management Commentary

We have made progress in 2024 across our late-stage pipeline and cost reduction efforts.

Our team successfully filed three Biologics License Applications in the final months of the year and reduced our costs by 27 percent compared to 2023.

In 2025, we remain focused on driving sales, delivering up to 10 product approvals through 2027, and expanding cost efficiencies across our business.

Overall Sentiment: Positive, with a focus on driving sales, achieving product approvals, and expanding cost efficiencies.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.