Moderna's Revenue Surprise, but Manufacturing Cuts Bite

Moderna, Inc. (NASDAQ: MRNA) reported its fourth-quarter and full-year 2024 financial results, beating revenue expectations but posting a wider-than-expected loss. The company's revenue for the quarter ended December 31, 2024, was $966 million, compared to the expected $942.8 million, according to a survey of analysts by LSEG. However, the company reported a net loss of $1.12 billion, or $2.91 per share, compared to the expected loss of $2.68 per share.



Moderna's revenue for the full year 2024 was $3.0 to 3.1 billion (unaudited), compared to the company's previous guidance of $3.5 billion. The company attributed the revenue shortfall to increased competition in the COVID market, falling vaccination rates, and timing around manufacturing contracts with a handful of countries. Moderna also pointed to uncertainty around what advisors to the Centers for Disease Control and Prevention will recommend for revaccination of respiratory syncytial virus shots.



Moderna's COVID-19 vaccine sales fell internationally due to the company's continued phase-out of advance purchase agreements with certain countries. The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May. Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates.

Moderna's cost of sales for the fourth quarter was $739 million, down 20% from the same period in 2023. This decline includes a $193 million writedown of unused doses of the COVID-19 vaccine, among other costs. Research and development expenses dropped by 20% to $1.1 billion compared with the same period in 2023. Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its COVID, RSV, flu, and combination shot programs.

Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year. The company expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter.



Moderna's stock price has been volatile in recent months, reflecting investor concerns about the company's ability to maintain its revenue growth and adapt to a changing market landscape. The company's shares are down more than 20% for the year, following a 20% drop in January after the company slashed its 2025 revenue guidance by roughly $1 billion.

Moderna's CEO, Stéphane Bancel, acknowledged the company's challenges in a letter to shareholders in January, stating, "We were also too optimistic about our ability to break into the market given the headwinds from a midyear approval and launch." The company is now focusing on cost-cutting measures to improve its financial stability and future growth prospects.