01—Abstract
Summary
Summary of the 10-Q filed August 3, 2022. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported strong revenue growth in the six months ended June 30, 2022, primarily driven by its COVID-19 vaccine, Spikevax.
Total revenue reached $10.8 billiona, a significant increase from $6.3 billion in the same period last year, with product sales contributing $10.5 billion. Despite robust revenue, the company experienced a notable increase in cost of sales, largely due to inventory write-downs and losses on firm purchase commitments related to the COVID-19 vaccine. Research and development expenses also rose, reflecting continued investment in pipeline expansion, particularly for its COVID-19 vaccine candidates and other therapeutic areas like RSV and influenza.
The company ended the period with a strong cash position of $2.9 billionb and significant investments, demonstrating solid liquidity to fund future operations and development. Moderna continues to advance its diverse pipeline, including Omicron-specific COVID-19 booster candidates and promising vaccine candidates for influenza and RSV. The company also highlighted progress in its therapeutic areas, such as rare diseases and oncology, underscoring its long-term commitment to mRNA innovation beyond COVID-19.
02—Key points
Key Highlights
- Total revenue for the first six months of 2022 was $10.8 billion, up 72% year-over-year, primarily driven by COVID-19 vaccine sales ($10.5 billion).
- Cost of sales significantly increased by 154% to $2.4 billion for the first six months of 2022, impacted by $689 million in inventory write-downs and $342 million in losses on firm purchase commitments.
- Research and Development expenses increased by 54% to $1.3 billion for the first six months of 2022, reflecting continued investment in vaccine and therapeutic candidate development.
- Net income for the first six months of 2022 was $5.9 billion, an increase of 46% compared to $4.0 billion in the prior year.
- The company repurchased $1.9 billion of its common stock during the first six months of 2022.
- Moderna ended the period with $2.9 billion in cash and cash equivalents and $15.2 billion in marketable securities.
- The company is advancing multiple COVID-19 booster candidates, including Omicron-specific bivalent vaccines, and has supply agreements for the fall 2022 booster season.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2022, Moderna, Inc. kept $0.46.
- Revenue$4.75B100.0%
- Cost of revenue−$1.38B29.1%
- Gross profit$3.37B70.9%
- Operating costs−$921.0M19.4%
- Operating income$2.45B51.5%
- Interest, other & tax−$250.0M5.3%
- Net income$2.20B46.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2022filed August 3, 2022Financial Statements
Q2 FY2022 against Q2 FY2021
| Line item | Q2 FY2022Q2 FY2021 | Change |
|---|---|---|
| Revenue | $4.75B$4.35B | +9.1% |
| Cost of Revenue | $1.38B$750.00M | +84.1% |
| Gross Profit | $3.37B$3.60B | −6.5% |
| R&D Expenses | $710.00M$421.00M | +68.6% |
| Operating Expenses | $2.30B$1.29B | +78.2% |
| Operating Income | $2.45B$3.06B | −20.1% |
| Net Income | $2.20B$2.78B | −21.0% |
| EPS (Basic) | $5.55$6.93 | −19.9% |
| EPS (Diluted) | $5.24$6.46 | −18.9% |
| Shares Outstanding (Basic) | 396.00M402.00M | −1.5% |
| Shares Outstanding (Diluted) | 419.00M431.00M | −2.8% |
05—Questions
Frequently Asked Questions
What was Moderna's primary revenue driver during this period?
Moderna's primary revenue driver was its COVID-19 vaccine, Spikevax. Product sales for the first six months of 2022 reached $10.5 billion, accounting for the vast majority of the company's total revenue of $10.8 billion.
What factors contributed to the significant increase in cost of sales?
The cost of sales more than doubled year-over-year, primarily due to substantial inventory write-downs ($689 million) and losses on firm purchase commitments ($342 million) related to the COVID-19 vaccine. Unutilized manufacturing capacity and a shift in product demand also played a role.
How is Moderna investing in future growth?
Moderna is significantly investing in research and development, with R&D expenses increasing by 54% to $1.3 billion in the first six months of 2022. This investment supports the development of its diverse pipeline, including next-generation COVID-19 vaccines, influenza vaccines, RSV vaccines, and various therapeutic candidates.
What is Moderna's current liquidity position?
Moderna maintains a strong liquidity position, with $2.9 billion in cash and cash equivalents and $15.2 billion in marketable securities as of June 30, 2022. This provides ample resources to fund ongoing operations, research and development, and capital expenditures.
06—Continue