908 Devices Reports First Quarter 2021 Financial Results and Reiterates 2021 Revenue Outlook

Rhea-AI Summary

908 Devices reported a 39% increase in Q1 2021 revenue, totaling $5.5 million compared to $4.0 million in Q1 2020. Product and service revenue surged over 100%, driven by strong sales of MX908 and Rebel units. The installed base grew to 1,427 devices, with 66 new placements in the quarter. However, the company reported a net loss of $6.1 million, up from $3.0 million in the prior year. Operating expenses also rose to $8.7 million. The full year 2021 revenue guidance is set between $38 million and $40 million, a growth rate of 41% to 49%.

Positive

• Q1 2021 revenue increased 39% year-over-year, reaching $5.5 million.
• Product and service revenue growth exceeded 100% compared to the prior year.
• Installed base expanded to 1,427 devices, with 66 new placements in Q1 2021.
• Gross margin improved to 52%, up from 41% in the prior year.
• Company expects full year 2021 revenue between $38 million and $40 million, indicating 41% to 49% growth.

Negative

• Net loss increased to $6.1 million in Q1 2021 from $3.0 million in Q1 2020.
• Operating expenses rose significantly to $8.7 million, up from $4.9 million in the prior year.

Q1 2021 Product and Service Revenue Increased More Than 100% Over Prior Year

BOSTON, May 13, 2021 (GLOBE NEWSWIRE) -- 908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop mass spec devices for chemical and biomolecular analysis, today reported financial results for the quarter ended March 31, 2021.

Recent Highlights

• Q1 2021 total revenue increased 39% over prior year period
• Increased the installed base to 1,427 devices with 66 devices placed during the first quarter, double the number of devices placed compared to the first quarter of 2020
• Deepened traction within biopharma with multiple desktop devices placed at existing customers; approximately 40% of total desktop installed base now placed across top 20 biopharma companies
• Announced the MX908 Aero / Bluetooth 3.0 updates to enhance the features of our handheld mass spec device
• Announced a collaboration with Bio-Techne to develop an extended workflow for protein characterization
• Strengthened leadership team with the addition of Michele Fournier as VP, Chief People Officer
• Appointed six new members to the Scientific Advisory Board, expanding its expertise in bioprocessing and biotherapeutics
  

“Our team made excellent progress during the first quarter which translated into strong product and service revenue growth and expansion of our installed base,” said Kevin J. Knopp, CEO and Co-founder. “I am encouraged by the momentum we are seeing from customers, the talent we are bringing on board, and the capabilities we are adding to our platform. We are committed to our mission to bring mass spectrometry to the point-of-need and are well positioned to capture the vast opportunity ahead of us.”

First Quarter 2021 Financial Results
Revenue was $5.5 million for the three months ended March 31, 2021, a 39% increase from $4.0 million for the three months ended March 31, 2020. This growth was related to the 103% increase in product and service revenue which was driven predominantly by an increase in MX908 and Rebel units compared to the prior year period, as well as strong recurring revenue. The install base grew to 1,427 placements with 66 devices placed in Q1 2021.

Gross profit was $2.9 million for the first quarter of 2021, compared to $2.1 million for the corresponding prior year period. Product and service gross margin was 52%, as compared to 41% for the corresponding prior year period.

Operating expenses were $8.7 million for the first quarter of 2021, compared to $4.9 million for the corresponding prior year period. This increase was driven by headcount expansion across our business, primarily focused in our commercial organization, and increased expenses related to operating as a public company.

Net loss was $6.1 million for the first quarter of 2021, compared to $3.0 million for the corresponding prior year period. Net loss per share was $0.22 for the first quarter of 2021, compared to $0.60 for the corresponding prior year period.

Cash and cash equivalents were $149 million as of March 31, 2021. In addition, the Company has approximately $15 million of debt outstanding.

2021 Guidance
908 Devices continues to expect full year 2021 revenue to be in the range of $38 million to $40 million, representing 41% to 49% growth over full year 2020.

Webcast Information
908 Devices will host a conference call to discuss the first quarter 2021 financial results before market open on Thursday, May 13, 2021 at 5:30 am Pacific Time / 8:30 am Eastern Time. A webcast of the conference call can be accessed at https://ir.908devices.com/news-events/events. The webcast will be archived and available for replay for at least 90 days after the event.

About 908 Devices
908 Devices is democratizing laboratory mass spectrometry with its simple handheld and desktop devices, addressing critical-to-life applications. The Company’s devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address some of the most critical problems in life sciences research, bioprocessing, pharma / biopharma, forensics and adjacent markets. The Company is headquartered in the heart of Boston, where it designs and manufactures innovative products that bring together the power of mass spectrometry, microfluidic separations, software automation, and machine learning. 

Forward Looking Statements
This press release includes “forward looking statements,” including statements relating to the Company’s future revenue and growth. Forward-looking statements involve known and unknown risks, uncertainties and assumptions which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement, including the risks outlined under “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission which are available on the SEC’s website at www.sec.gov. Additional information will be made available in our annual and quarterly reports and other filings that we make from time to time with the SEC. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it cannot guarantee future results. The Company has no obligation, and does not undertake any obligation, to update or revise any forward-looking statement made in this press release to reflect changes since the date of this press release, except as may be required by law.

Investor Contact:
Carrie Mendivil
IR@908devices.com

908 DEVICES INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)

			Quarter Ended March 31,
			2021													2020
Revenue:
Product and service revenue			$		5,357											$			2,639
License and contract revenue					186														1,362
Total revenue					5,543														4,001
Cost of revenue:
Product and service cost of revenue					2,560														1,570
License and contract cost of revenue					75														333
Total cost of revenue					2,635														1,903
Gross profit					2.908														2,098
Operating expenses:
Research and development					2,965														2,156
Selling, general and administrative					5,753														2,706
Total operating expenses					8,718														4,862
Loss from operations					(5,810								)						(2,764							)
Interest expense					(376								)						(241							)
Other income (expense), net					91														39
Net loss and comprehensive loss					(6,095								)						(2,966							)
Accretion of redeemable convertible preferred stock to redemption value					-														(30							)
Net loss attributable to common stockholders			$		(6,095								)			$			(2,996							)
Net loss per share attributable to common stockholders, basic and diluted			$		(0.22								)			$			(0.60							)
Weighted average common shares outstanding, basic and diluted			27,290,364													4,993,199

908 DEVICES INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

		March 31,				December 31,
		2021				2020
Current assets:
Cash and cash equivalents		$	148,959			$	159,227
Accounts receivable, net			4,367				6,825
Unbilled receivables			55				47
Inventory			6,822				4,568
Prepaid expenses and other current assets			2,696				300
Restricted cash			60				—
Total current assets			162,959				170,967
Operating lease, right-of-use assets			6,027				6,287
Property and equipment, net			966				850
Other long-term assets			1,798				723
Total assets		$	171,750			$	178,827
Current liabilities:
Accounts payable		$	1,690			$	1,004
Accrued expenses			3,011				5,038
Deferred revenue			3,321				3,104
Operating lease liabilities			1,225				1,187
Current portion of long-term debt			—				500
Total current liabilities			9,247				10,833
Long-term debt, net of discount and current portion			15,000				14,332
Operating lease liabilities, net of current portion			5,525				5,839
Deferred revenue, net of current portion			8,472				8,588
Other long-term liabilities			194				194
Total liabilities			38,438				39,786
Total stockholders’ equity			133,312				139,041
Total liabilities and stockholders’ equity		$	171,750			$	178,827

 

FAQ

What were the Q1 2021 financial results for MASS?

908 Devices reported a Q1 2021 revenue of $5.5 million, a 39% increase from the previous year, with a net loss of $6.1 million.

How much did MASS's product and service revenue grow in Q1 2021?

Product and service revenue for 908 Devices grew over 100% compared to Q1 2020.

What is the installed base of MASS devices as of Q1 2021?

The installed base reached 1,427 devices, with 66 new placements during the first quarter of 2021.

What is the revenue guidance for MASS in 2021?

908 Devices expects full year 2021 revenue to range between $38 million and $40 million.

What was the gross margin for MASS in Q1 2021?

The gross margin for 908 Devices increased to 52% in Q1 2021, compared to 41% in the prior year.