01—Abstract
Summary
Summary of the 10-Q filed August 5, 2021. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported a significant financial turnaround in the first half of 2021, driven by the substantial revenue generated from its COVID-19 vaccine.
For the three months ended June 30, 2021, the company posted a net income of $2.78 billiona on revenue of $4.35 billion, a stark contrast to a net loss of $117 million on revenue of $67 million in the same period of the prior year. This dramatic shift is primarily due to the commencement of product sales, which generated $4.2 billion in the second quarter of 2021 alone, compared to no product sales in Q2 2020. Financially, Moderna's balance sheet has strengthened considerably, with total assets growing from $7.34 billion at the end of 2020 to $16.15 billion by June 30, 2021.
This growth is largely fueled by an increase in cash and cash equivalents, which more than doubled to $5.6 billionb, and a significant rise in deferred revenue to $7.48 billion, reflecting advance payments for future COVID-19 vaccine deliveries. The company's robust cash position and strong revenue from its COVID-19 vaccine provide a solid foundation for continued investment in its mRNA platform and pipeline development.
02—Key points
Key Highlights
- Moderna reported a net income of $2.78 billion for Q2 2021, a substantial increase from a net loss of $117 million in Q2 2020.
- Total revenue surged to $4.35 billion in Q2 2021, driven by $4.2 billion in product sales from the COVID-19 vaccine, compared to $67 million in Q2 2020.
- Cash and cash equivalents significantly increased to $5.6 billion as of June 30, 2021, up from $2.6 billion at December 31, 2020.
- Deferred revenue more than doubled to $7.48 billion as of June 30, 2021, indicating substantial advance payments for future COVID-19 vaccine deliveries.
- Research and development expenses increased significantly to $421 million in Q2 2021 (up from $152 million in Q2 2020), reflecting ongoing investment in pipeline development.
- The company expects to supply between 800 million and 1 billion doses of its COVID-19 vaccine in 2021.
- Moderna initiated the rolling submission process for a Biologics License Application (BLA) for its COVID-19 vaccine with the U.S. FDA in June 2021.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2021, Moderna, Inc. kept $0.64.
- Revenue$4.35B100.0%
- Cost of revenue−$750.0M17.2%
- Gross profit$3.60B82.8%
- Operating costs−$542.0M12.4%
- Operating income$3.06B70.3%
- Interest, other & tax−$282.0M6.5%
- Net income$2.78B63.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2021filed August 5, 2021Financial Statements
Q2 FY2021 against Q2 FY2020
| Line item | Q2 FY2021Q2 FY2020 | Change |
|---|---|---|
| Revenue | $4.35B$67.00M | +6398.5% |
| Cost of Revenue | $750.00M$0 | — |
| Gross Profit | $3.60B$67.00M | +5279.1% |
| R&D Expenses | $421.00M$152.00M | +177.0% |
| Operating Expenses | $1.29B$189.00M | +583.6% |
| Operating Income | $3.06B-$122.00M | +2609.8% |
| Net Income | $2.78B-$117.00M | +2476.1% |
| EPS (Basic) | $6.93$-0.31 | +2335.5% |
| EPS (Diluted) | $6.46$-0.31 | +2183.9% |
| Shares Outstanding (Basic) | 402.00M381.00M | +5.5% |
| Shares Outstanding (Diluted) | 431.00M381.00M | +13.1% |
05—Questions
Frequently Asked Questions
What is the primary driver of Moderna's revenue growth in the first half of 2021?
The primary driver is the significant revenue generated from the sale of Moderna's COVID-19 vaccine, which began commercial sales in December 2020 following Emergency Use Authorization. This product generated $4.2 billion in revenue in the second quarter of 2021 and $5.9 billion in the first six months of 2021.
How has Moderna's financial position changed from December 2020 to June 2021?
Moderna's financial position has strengthened considerably. Total assets grew from $7.34 billion to $16.15 billion, primarily due to an increase in cash and cash equivalents (from $2.62 billion to $5.60 billion) and a substantial rise in deferred revenue (from $3.87 billion to $7.30 billion) related to advance payments for COVID-19 vaccine supply agreements. The company also moved from an accumulated deficit of ($2.24 billion) to retained earnings of $1.76 billion.
What is the outlook for Moderna's COVID-19 vaccine production and sales?
Moderna anticipates supplying between 800 million and 1 billion doses of its COVID-19 vaccine in 2021. For 2022, potential capacity could reach up to 3 billion doses if production is dedicated to 50 μg booster doses, or approximately 2 billion doses at 100 μg doses. The company has secured supply agreements totaling approximately $19.2 billion for future deliveries through 2022 and has $7.2 billion in deferred revenue as of June 30, 2021.
Is Moderna profitable, and what is its future profitability outlook?
Moderna achieved profitability in the first half of 2021, reporting a net income of $4.0 billion for the six months ended June 30, 2021, a significant turnaround from a net loss in the prior year. This profitability is largely attributed to COVID-19 vaccine sales. The company expects continued strong revenue and profitability, but also anticipates significant increases in operating expenses, particularly in research and development, as it advances its pipeline.
06—Continue