Moderna (MRNA 0.17%), a trailblazer in mRNA technology and vaccines, reported its first-quarter results on Thursday, May 2, exceeding analyst estimates for both earnings and revenue. The narrower-than-expected EPS loss suggests the company is improving its financial health and operational efficiency following a period marked by pandemic-driven challenges.
These latest results reflect Moderna's enduring commitment to innovation and the strategic leveraging of its mRNA platform. They also showcase the challenges Moderna faces when making comparisons to past performance.
| Metric | Q1 2024 | Analyst Estimate | Q1 2023 | Change (YOY) |
|---|---|---|---|---|
| Revenue | $167 million | $93.3 million | $1.9 billion | (91%) |
| EPS (diluted) | ($3.07) | ($3.56) | $0.19 | N/A |
| R&D expenses | $1.06 billion | N/A | $1.13 billion | (6%) |
| Net income | ($1.18 billion) | N/A | $79 million | N/A |
Data sources: Company results from company. Analyst estimates from FactSet. YOY = Year over year. EPS = Earnings per share.
A brief overview of Moderna
Moderna is working to revolutionize medicine through mRNA technology, aiming to create a new generation of transformative vaccines and therapies. Its signature product, the Spikevax COVID-19 vaccine, has been a centerpiece of global vaccination efforts. The company is now focused on expanding its infectious disease portfolio and advancing its pipeline in areas such as oncology and rare diseases.
These strategic focuses are underpinned by a commitment to research and development (R&D) and agile responses to global health challenges. The advancement of vaccines against Epstein-Barr virus, Varicella-Zoster, and norovirus into Phase 3 trials epitomizes Moderna's ambition to address a broad spectrum of infectious diseases.
Quarterly financial and operational highlights
Moderna saw a sharp year-over-year revenue decline from $1.9 billion to $167 million, primarily due to decreasing demand for COVID-19 vaccines (down roughly 90%). The healthcare giant is working to correct this with a focused shift toward sustainability and diversified growth. Its revenue and earnings outperformance against analyst expectations underscores the company's adaptive business model.
A pending launch of an RSV vaccine and the ongoing sales of its updated COVID-19 vaccine illustrate Moderna's ability to navigate the complex vaccine market effectively. R&D expenses, down 6% from the previous year, reflect a disciplined approach to investment in its pipeline.
The highlight of the quarter was undoubtedly the advancement of Moderna's pipeline, with three new vaccine programs moving toward Phase 3 clinical trials. This, coupled with the initiation of new clinical studies in oncology, signifies Moderna's steadfast commitment to leveraging its mRNA platform across a broad spectrum of diseases.
A noteworthy shift this quarter was the 10% reduction in selling, general, and administrative (SG&A) expenses, indicating an organizational pivot toward operational efficiency and cost-effectiveness. Moderna ended the quarter with $12.2 billion in cash, cash equivalents, and investments. That's down from $13.3 billion at the end of the previous quarter.
Looking ahead
Looking to the future, Moderna reaffirmed its full-year 2024 financial outlook of roughly $4 billion in revenue, projecting significant revenue from its RSV and updated COVID-19 vaccines alongside disciplined pipeline investments. This optimistic stance is anchored in the expected launches of new vaccines and the transition of its product portfolio toward endemic, seasonal markets.
Investors are advised to monitor the progression of Moderna's diverse clinical pipeline, especially the upcoming regulatory milestones and market launches, which could substantially influence the company's financial trajectory and market presence.
