01—Abstract
Summary
Summary of the 10-Q filed May 4, 2022. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc.'s first-quarter 2022 results, filed on May 4, 2022, demonstrate a significant surge in revenue, primarily driven by strong product sales of its COVID-19 vaccine, Spikevax.
Total revenue reached $6.1 billiona, a substantial increase from $1.9 billion in the prior year's quarter, with product sales accounting for the vast majority. This growth underscores the continued global demand for Moderna's COVID-19 vaccine and the company's ability to scale manufacturing. Despite this revenue growth, operating expenses also rose considerably, driven by increased cost of sales, research and development, and selling, general, and administrative expenses.
Net income more than tripled to $3.7 billionb from $1.2 billion year-over-year, reflecting the high-margin nature of its COVID-19 vaccine sales. The company also maintained a strong liquidity position with substantial cash, cash equivalents, and investments.
02—Key points
Key Highlights
- Total revenue for Q1 2022 was $6.07 billion, a 213% increase compared to $1.94 billion in Q1 2021.
- Product sales, primarily from the COVID-19 vaccine (Spikevax), reached $5.93 billion, a 242% increase year-over-year.
- Net income surged by 200% to $3.66 billion ($8.58 diluted EPS) in Q1 2022, up from $1.22 billion ($2.84 diluted EPS) in Q1 2021.
- Cost of sales increased significantly to $1.02 billion, reflecting higher product sales volume and associated royalties and manufacturing costs.
- Research and development expenses rose by 38% to $554 million, indicating continued investment in pipeline development and COVID-19 related studies.
- Selling, general, and administrative expenses increased by 248% to $268 million, driven by commercialization efforts and a $50 million endowment to the Moderna Charitable Foundation.
- The company reported $5.05 billion in cash and cash equivalents and $14.24 billion in total investments at the end of Q1 2022, maintaining a strong liquidity position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2022, Moderna, Inc. kept $0.60.
- Revenue$6.07B100.0%
- Cost of revenue−$1.02B16.8%
- Gross profit$5.05B83.2%
- Operating costs−$822.0M13.6%
- Operating income$4.23B69.7%
- Interest, other & tax−$570.0M9.4%
- Net income$3.66B60.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2022filed May 4, 2022Financial Statements
Q1 FY2022 against Q1 FY2021
| Line item | Q1 FY2022Q1 FY2021 | Change |
|---|---|---|
| Revenue | $6.07B$1.94B | +213.2% |
| Cost of Revenue | $1.02B$193.00M | +426.9% |
| Gross Profit | $5.05B$1.74B | +189.5% |
| R&D Expenses | $554.00M$401.00M | +38.2% |
| Operating Expenses | $1.84B$671.00M | +174.1% |
| Operating Income | $4.23B$1.27B | +233.9% |
| Net Income | $3.66B$1.22B | +199.5% |
| EPS (Basic) | $9.09$3.05 | +198.0% |
| EPS (Diluted) | $8.58$2.84 | +202.1% |
| Shares Outstanding (Basic) | 402.00M400.00M | +0.5% |
| Shares Outstanding (Diluted) | 426.00M430.00M | −0.9% |
05—Questions
Frequently Asked Questions
What was the primary driver of Moderna's revenue growth in Q1 2022?
The primary driver of Moderna's revenue growth was a substantial increase in product sales, predominantly from its COVID-19 vaccine, Spikevax. Product sales grew by 242% year-over-year to $5.93 billion, reflecting increased global demand and the company's expanded manufacturing capabilities.
How did Moderna's expenses change in Q1 2022 compared to Q1 2021?
Moderna's operating expenses saw a significant increase in Q1 2022. Cost of sales rose by 427% due to higher sales volume and royalties. Research and development expenses increased by 38% as the company continued to invest in its pipeline and COVID-19 research. Selling, general, and administrative expenses grew by 248%, driven by commercialization activities and other operational expansions.
What is Moderna's current financial health and liquidity position?
Moderna demonstrated strong financial health and liquidity. As of March 31, 2022, the company held $5.05 billion in cash and cash equivalents and $14.24 billion in total investments. This, combined with positive cash flow from operations, indicates a robust ability to fund ongoing operations, research, and development activities.
Are there any significant legal proceedings that investors should be aware of?
Yes, Moderna is facing patent infringement lawsuits related to its COVID-19 vaccine. Specifically, Arbutus Biopharma and Alnylam Pharmaceuticals have filed complaints alleging infringement of patents related to lipid nanoparticles and cationic lipids, respectively. Moderna states these lawsuits are not seeking to stop the marketing or sales of its vaccine, but are seeking monetary damages and other remedies.
06—Continue