01—Abstract
Summary
Summary of the 10-Q filed May 6, 2021. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported a significant financial turnaround in the first quarter of 2021, driven primarily by the commercialization of its COVID-19 vaccine.
The company achieved a net income of $1.221 billiona, a substantial improvement from a net loss of $124 million in the same period of the previous year. This profitability is largely a result of $1.733 billion in product sales from its COVID-19 vaccine, a revenue stream that was non-existent in Q1 2020. Despite the strong performance, Moderna continues to heavily invest in research and development, with expenses increasing significantly to $401 million, supporting its broad pipeline of mRNA-based vaccines and therapeutics.
The company's balance sheet reflects this growth, with total assets more than doubling to $12.694 billionb, primarily due to a substantial increase in cash and cash equivalents and a significant rise in deferred revenue, indicating future vaccine delivery obligations. Moderna's outlook remains focused on expanding its COVID-19 vaccine manufacturing capacity and advancing its diverse pipeline of other mRNA candidates.
02—Key points
Key Highlights
- Reported a net income of $1.221 billion for Q1 2021, a dramatic improvement from a net loss of $124 million in Q1 2020.
- Generated $1.733 billion in product sales from its COVID-19 vaccine, a new revenue stream compared to zero product sales in Q1 2020.
- Total revenue surged to $1.937 billion in Q1 2021, up from just $8 million in Q1 2020.
- Significant increase in cash and cash equivalents, from $2.624 billion at the end of 2020 to $5.442 billion at the end of Q1 2021.
- Deferred revenue more than doubled from $3.867 billion at the end of 2020 to $7.531 billion at the end of Q1 2021, reflecting future vaccine commitments.
- Research and development expenses increased by 249% year-over-year to $401 million, underscoring continued investment in its mRNA platform and pipeline.
- The company projects 2021 COVID-19 vaccine supply to be between 800 million and 1 billion doses, with planned investments to increase global 2022 capacity to up to 3 billion doses.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2021, Moderna, Inc. kept $0.63.
- Revenue$1.94B100.0%
- Cost of revenue−$193.0M10.0%
- Gross profit$1.74B90.0%
- Operating costs−$478.0M24.7%
- Operating income$1.27B65.4%
- Interest, other & tax−$45.0M2.3%
- Net income$1.22B63.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2021filed May 6, 2021Financial Statements
Q1 FY2021 against Q1 FY2020
| Line item | Q1 FY2021Q1 FY2020 | Change |
|---|---|---|
| Revenue | $1.94B$8.00M | +24112.5% |
| Cost of Revenue | $193.00M$0 | — |
| Gross Profit | $1.74B$8.00M | +21700.0% |
| R&D Expenses | $401.00M$115.00M | +248.7% |
| Operating Expenses | $671.00M$139.00M | +382.7% |
| Operating Income | $1.27B-$131.00M | +1066.4% |
| Net Income | $1.22B-$124.00M | +1084.7% |
| EPS (Basic) | $3.05$-0.35 | +971.4% |
| EPS (Diluted) | $2.84$-0.35 | +911.4% |
| Shares Outstanding (Basic) | 400.00M353.00M | +13.3% |
| Shares Outstanding (Diluted) | 430.00M353.00M | +21.8% |
05—Questions
Frequently Asked Questions
What is the primary driver of Moderna's significant revenue increase in Q1 2021?
The primary driver of Moderna's significant revenue increase is the commercialization of its COVID-19 vaccine. The company reported $1.733 billion in product sales from the vaccine in Q1 2021, a revenue source that was not present in the prior year's comparable quarter.
How has Moderna's cash position changed, and what does the large deferred revenue indicate?
Moderna's cash and cash equivalents significantly increased from $2.624 billion at the end of 2020 to $5.442 billion at the end of Q1 2021. The substantial increase in deferred revenue, from $3.867 billion to $7.531 billion, indicates significant advance payments received for future deliveries of its COVID-19 vaccine under supply agreements.
What is Moderna's strategy regarding research and development (R&D) expenses?
Moderna continues to make substantial investments in R&D, with expenses rising by 249% year-over-year to $401 million in Q1 2021. This investment supports its broad pipeline of mRNA-based vaccines and therapeutics across various modalities, including prophylactic vaccines, cancer vaccines, and gene therapies, demonstrating a commitment to innovation beyond its COVID-19 vaccine.
What are Moderna's future manufacturing and supply expectations for its COVID-19 vaccine?
Moderna anticipates supplying between 800 million and 1 billion doses of its COVID-19 vaccine in 2021. Furthermore, the company plans significant investments to increase its global manufacturing capacity to up to 3 billion doses by 2022, indicating a strong focus on meeting global demand and expanding its production capabilities.
06—Continue