01—Abstract
Summary
Summary of the 10-Q filed November 4, 2021. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported a significant increase in revenue and net income for the nine months ended September 30, 2021, primarily driven by strong product sales from its COVID-19 vaccine.
Total revenue reached $11.26 billiona, a substantial leap from $232 million in the same period of 2020, with product sales contributing $10.74 billion. The company's financial position has strengthened considerably, with total assets growing to $20.92 billion from $7.34 billion at the end of 2020. This growth is reflected in its substantial cash and equivalents, which stood at $5.55 billion, and a significant increase in retained earnings to $5.09 billion, a notable shift from an accumulated deficit in the prior year.
Research and development expenses also increased, indicating continued investment in its pipeline, while selling, general, and administrative expenses grew due to commercialization efforts for the COVID-19 vaccine. Moderna's outlook remains focused on advancing its mRNA platform, with multiple development programs in various stages of clinical trials for infectious diseases, immuno-oncology, rare diseases, and more. The company's robust financial performance provides a strong foundation for these ongoing and future endeavors, positioning it for continued growth and innovation.
02—Key points
Key Highlights
- Total revenue surged to $11.26 billion for the first nine months of 2021, a massive increase from $232 million in the same period of 2020, primarily due to $10.74 billion in product sales from the COVID-19 vaccine.
- Net income for the nine months ended September 30, 2021, was $7.33 billion, a significant turnaround from a net loss of $474 million in the prior year.
- Total assets grew to $20.92 billion as of September 30, 2021, up from $7.34 billion at December 31, 2020, with a substantial increase in cash and cash equivalents to $5.55 billion.
- Retained earnings (accumulated deficit) improved dramatically, standing at $5.09 billion at September 30, 2021, compared to an accumulated deficit of $2.24 billion at December 31, 2020.
- Research and development expenses increased by 120% to $1.34 billion for the nine months ended September 30, 2021, reflecting continued investment in its broad pipeline of mRNA-based therapies and vaccines.
- Selling, general, and administrative expenses rose by 236% to $366 million for the nine months ended September 30, 2021, driven by commercialization activities related to the COVID-19 vaccine.
- The company reported $8.3 billion in deferred revenue as of September 30, 2021, related to advance payments for future COVID-19 vaccine supply.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2021, Moderna, Inc. kept $0.67.
- Revenue$4.97B100.0%
- Cost of revenue−$722.0M14.5%
- Gross profit$4.25B85.5%
- Operating costs−$689.0M13.9%
- Operating income$3.56B71.6%
- Interest, other & tax−$225.0M4.5%
- Net income$3.33B67.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2021filed November 4, 2021Financial Statements
Q3 FY2021 against Q3 FY2020
| Line item | Q3 FY2021Q3 FY2020 | Change |
|---|---|---|
| Revenue | $4.97B$157.00M | +3065.0% |
| Cost of Revenue | $722.00M$0 | — |
| Gross Profit | $4.25B$157.00M | +2605.1% |
| R&D Expenses | $521.00M$344.00M | +51.5% |
| Operating Expenses | $1.41B$392.00M | +259.9% |
| Operating Income | $3.56B-$235.00M | +1614.0% |
| Net Income | $3.33B-$233.00M | +1530.5% |
| EPS (Basic) | $8.27$-0.59 | +1501.7% |
| EPS (Diluted) | $7.70$-0.59 | +1405.1% |
| Shares Outstanding (Basic) | 404.00M395.00M | +2.3% |
| Shares Outstanding (Diluted) | 434.00M395.00M | +9.9% |
05—Questions
Frequently Asked Questions
What is driving Moderna's significant revenue growth?
Moderna's revenue growth is overwhelmingly driven by the sales of its COVID-19 vaccine, mRNA-1273 (Spikevax). Product sales accounted for the vast majority of its total revenue in the first nine months of 2021, marking a dramatic increase from the prior year when no product sales were recorded.
How has Moderna's profitability changed?
Moderna has transitioned from a significant net loss in the first nine months of 2020 to substantial net income in the same period of 2021. This shift is directly attributable to the high-margin sales of its COVID-19 vaccine, transforming its financial performance.
What is Moderna's current financial health and liquidity position?
Moderna's financial health has significantly improved. As of September 30, 2021, the company held $5.55 billion in cash and cash equivalents and substantial investments, totaling over $9.7 billion in marketable securities. The company's total assets have tripled, and it has moved from an accumulated deficit to a significant retained earnings position, indicating strong liquidity and financial stability.
How is Moderna reinvesting its earnings?
Moderna is substantially increasing its investment in research and development, with R&D expenses growing by 120% year-over-year for the first nine months of 2021. This investment is supporting its broad pipeline of mRNA-based vaccines and therapeutics across various disease areas, alongside increased spending on selling, general, and administrative functions to support the commercialization of its COVID-19 vaccine.
06—Continue