01—Abstract
Summary
Summary of the 10-Q filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported financial results for the third quarter and first nine months of 2024, demonstrating a shift from pandemic-driven COVID-19 vaccine sales to a more seasonal commercial market.
While total revenue saw a significant decrease year-over-year for the nine-month period primarily due to lower COVID-19 vaccine sales, the third quarter revenue remained stable. The company achieved profitability in the third quarter of 2024 with a net income of $13 milliona, a substantial improvement from the $3.6 billion net loss in the prior year quarter. This turnaround is largely attributed to a significant reduction in the cost of sales, driven by lower inventory write-downs and optimized manufacturing capacity.
Key developments include the launch and sales of its new RSV vaccine, mRESVIA®, in the U.S. and Europe, and the rollout of updated COVID-19 vaccines targeting new strains for the 2024-2025 season. Despite the ongoing transition in the COVID-19 vaccine market, Moderna maintains a strong cash position and is advancing a diverse pipeline of 45 development programs across various therapeutic areas, including oncology and other infectious diseases. The company faces ongoing legal challenges related to intellectual property for its COVID-19 and RSV vaccines, which are being actively defended.
02—Key points
Key Highlights
- Moderna reported a net income of $13 million for Q3 2024, a significant improvement from a net loss of $3.6 billion in Q3 2023.
- Total revenue for the nine months ended September 30, 2024, decreased by 44% to $2.27 billion, primarily due to lower COVID-19 vaccine sales.
- Cost of sales decreased by 77% for Q3 2024 and 81% for the nine months ended September 30, 2024, driven by reduced inventory write-downs and improved manufacturing efficiency.
- The company commenced sales of its new RSV vaccine, mRESVIA®, in the third quarter of 2024.
- Moderna updated its COVID-19 vaccine to target KP.2 and JN.1 strains for the 2024-2025 season, receiving approvals in key markets.
- Research and development expenses remained relatively stable, with a slight decrease of 1-2% for the three and nine-month periods, reflecting continued investment in pipeline development.
- The company is facing multiple new patent infringement lawsuits filed by GSK and Northwestern University related to its COVID-19 and RSV vaccines, as well as securities class action and derivative litigation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Moderna, Inc. kept $0.01.
- Revenue$1.86B100.0%
- Cost of revenue−$514.0M27.6%
- Gross profit$1.35B72.4%
- Operating costs−$1.42B76.2%
- Operating income−$70.0M3.8%
- Interest, other & tax$83.0M4.5%
- Net income$13.0M0.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 7, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.86B$1.83B | +1.7% |
| Cost of Revenue | $514.00M$2.24B | −77.1% |
| Gross Profit | $1.35B-$410.00M | +428.8% |
| R&D Expenses | $1.14B$1.16B | −2.0% |
| Operating Expenses | $1.93B$3.84B | −49.7% |
| Operating Income | -$70.00M-$2.01B | +96.5% |
| Net Income | $13.00M-$3.63B | +100.4% |
| EPS (Basic) | $0.03$-9.53 | +100.3% |
| EPS (Diluted) | $0.03$-9.53 | +100.3% |
| Shares Outstanding (Basic) | 385.00M381.00M | +1.0% |
| Shares Outstanding (Diluted) | 399.00M381.00M | +4.7% |
05—Questions
Frequently Asked Questions
What was Moderna's financial performance in Q3 2024 compared to Q3 2023?
In the third quarter of 2024, Moderna reported a net income of $13 million ($0.03 per diluted share), a significant turnaround from a net loss of $3.63 billion (-$9.53 per diluted share) in the third quarter of 2023. Total revenue for Q3 2024 was $1.86 billion, a slight increase of 2% compared to $1.83 billion in Q3 2023. Net product sales remained stable at $1.82 billion for both quarters.
How has the COVID-19 vaccine market impacted Moderna's revenue?
The COVID-19 vaccine market is transitioning from pandemic-driven demand to a seasonal commercial pattern. This shift led to a substantial decrease in net product sales for the nine months ended September 30, 2024, down 44% to $2.17 billion, compared to $3.88 billion in the same period of 2023. While Q3 2024 net product sales were stable year-over-year, driven by an earlier launch of updated vaccines and a favorable adjustment to sales provisions, the company anticipates further reductions in full-year 2024 COVID-19 vaccine sales compared to 2023.
What are the key commercial developments for Moderna beyond COVID-19 vaccines?
Moderna has successfully launched its respiratory syncytial virus (RSV) vaccine, mRESVIA® (mRNA-1345), receiving approval and commencing sales in the U.S. in Q3 2024 and authorization in Europe. The company also has a broad pipeline, including programs in oncology (like the INT program with Merck), other infectious diseases (CMV, Norovirus), and combination vaccines (Flu+COVID).
What is Moderna's current cash position and liquidity outlook?
As of September 30, 2024, Moderna held $1.64 billion in cash and cash equivalents and $7.55 billion in marketable securities (current and non-current investments). The company's total cash, cash equivalents, and investments amounted to $9.20 billion. Moderna believes its current financial resources are sufficient to fund projected operations and capital expenditures for at least the next 12 months, despite an expected continued net cash outflow from operations.
Are there any significant legal or regulatory challenges facing Moderna?
Yes, Moderna is facing several legal challenges. In October 2024, GlaxoSmithKline (GSK) and Northwestern University filed patent infringement lawsuits related to lipid-mRNA vaccine formulation and lipid nanoparticle technology used in Moderna's COVID-19 and RSV vaccines. Additionally, the company is facing a securities class action lawsuit and derivative litigation concerning statements made about its RSV vaccine.
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