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908 Devices Reports First Quarter 2024 Financial Results and Updates 2024 Revenue Outlook

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908 Devices Inc. (Nasdaq: MASS) reported 5% revenue growth in Q1 2024 compared to Q1 2023, reaching $10 million. Handheld revenue increased by 20%, while desktop revenue decreased by 18%. Recurring revenue was $4.5 million, with 45% of total revenue being recurring. The company acquired RedWave Technology, published its inaugural ESG report, and ended the quarter with $134.2 million in cash and no debt. Gross profit was $5.0 million, net loss was $10.9 million, and EPS was $0.33. Operating expenses were $17.7 million. The company expects 2024 revenue to be $63.0-65.0 million, a 25-29% increase over 2023.

908 Devices Inc. (Nasdaq: MASS) ha registrato una crescita del fatturato del 5% nel primo trimestre del 2024 rispetto allo stesso periodo del 2023, raggiungendo i 10 milioni di dollari. Le vendite dei dispositivi portatili sono aumentate del 20%, mentre quelle dei dispositivi da tavolo sono diminuite del 18%. I ricavi ricorrenti sono stati di 4,5 milioni di dollari, rappresentando il 45% del fatturato totale. La compagnia ha acquisito RedWave Technology, ha pubblicato il suo primo rapporto ESG e ha chiuso il trimestre con 134,2 milioni di dollari in cassa e nessun debito. Il profitto lordo è stato di 5,0 milioni di dollari, la perdita netta di 10,9 milioni di dollari e l'EPS di 0,33 dollari. Le spese operative ammontavano a 17,7 milioni di dollari. L'azienda prevede ricavi per il 2024 tra i 63,0 e 65,0 milioni di dollari, con un incremento del 25-29% rispetto al 2023.
908 Devices Inc. (Nasdaq: MASS) ha reportado un crecimiento en los ingresos del 5% en el primer trimestre de 2024 comparado con el primer trimestre de 2023, alcanzando los 10 millones de dólares. Los ingresos de los dispositivos portátiles han aumentado un 20%, mientras que los de los dispositivos de escritorio han disminuido un 18%. Los ingresos recurrentes fueron de 4.5 millones de dólares, constituyendo el 45% del ingreso total. La compañía adquirió RedWave Technology, publicó su primer informe ESG y terminó el trimestre con 134.2 millones de dólares en efectivo y sin deudas. La ganancia bruta fue de 5.0 millones de dólares, la pérdida neta fue de 10.9 millones de dólares y el EPS fue de 0.33 dólares. Los gastos operativos fueron de 17.7 millones de dólares. La compañía espera que los ingresos de 2024 sean entre 63.0 y 65.0 millones de dólares, lo que representa un aumento del 25-29% comparado con 2023.
908 Devices Inc. (Nasdaq: MASS)는 2024년 1분기에 2023년 1분기 대비 매출이 5% 증가하여 1000만 달러를 달성했습니다. 휴대용 제품 매출은 20% 증가했으며, 데스크톱 제품 매출은 18% 감소했습니다. 반복 매출은 450만 달러로 전체 매출의 45%를 차지했습니다. 회사는 RedWave Technology를 인수하고 첫 ESG 보고서를 발행했으며, 분기 말에는 1억 3420만 달러의 현금과 무채무를 기록했습니다. 총 이익은 500만 달러, 순손실은 1090만 달러, 주당순이익은 0.33달러였습니다. 운영비는 1770만 달러였습니다. 회사는 2024년 매출이 6300만 달러에서 6500만 달러로, 2023년 대비 25-29% 증가할 것으로 예상합니다.
908 Devices Inc. (Nasdaq : MASS) a enregistré une croissance de ses revenus de 5 % au premier trimestre 2024 par rapport au premier trimestre 2023, atteignant 10 millions de dollars. Les revenus des appareils portatifs ont augmenté de 20 %, tandis que ceux des appareils de bureau ont diminué de 18 %. Les revenus récurrents s'élevaient à 4,5 millions de dollars, représentant 45 % du revenu total. L'entreprise a acquis RedWave Technology, publié son premier rapport ESG et a clôturé le trimestre avec 134,2 millions de dollars en caisse et sans dette. Le bénéfice brut était de 5,0 millions de dollars, la perte nette de 10,9 millions de dollars et l'EPS de 0,33 dollar. Les dépenses opérationnelles s'élevaient à 17,7 millions de dollars. L'entreprise prévoit des revenus de 63,0 à 65,0 millions de dollars pour 2024, soit une augmentation de 25 à 29 % par rapport à 2023.
908 Devices Inc. (Nasdaq: MASS) verzeichnete im ersten Quartal 2024 im Vergleich zum ersten Quartal 2023 ein Umsatzwachstum von 5 % und erreichte 10 Millionen Dollar. Der Umsatz mit Handgeräten stieg um 20 %, während der Umsatz mit Desktop-Geräten um 18 % zurückging. Die wiederkehrenden Einnahmen betrugen 4,5 Millionen Dollar, was 45 % des Gesamtumsatzes ausmacht. Das Unternehmen übernahm RedWave Technology, veröffentlichte seinen ersten ESG-Bericht und beendete das Quartal mit 134,2 Millionen Dollar in bar und ohne Schulden. Der Bruttogewinn betrug 5,0 Millionen Dollar, der Nettoverlust 10,9 Millionen Dollar und der EPS 0,33 Dollar. Die Betriebskosten beliefen sich auf 17,7 Millionen Dollar. Das Unternehmen erwartet für 2024 einen Umsatz von 63,0 bis 65,0 Millionen Dollar, was einem Anstieg von 25-29 % gegenüber 2023 entspricht.
Positive
  • Revenue increased by 5% in Q1 2024 compared to Q1 2023, reaching $10 million.

  • Handheld revenue increased by 20% year over year.

  • Recurring revenue was $4.5 million, representing 45% of total revenue.

  • The company acquired RedWave Technology, expanding its product portfolio.

  • Published inaugural ESG report showcasing commitment to sustainability.

  • Ended the quarter with $134.2 million in cash and no debt outstanding.

  • Gross margin increased to 50%, up from 46% in the prior year.

  • Company expects 2024 revenue to be $63.0-65.0 million, a 25-29% increase over 2023.

Negative
  • Desktop revenue decreased by 18% year over year.

  • Net loss was $10.9 million in Q1 2024.

  • Operating expenses were $17.7 million, slightly higher than the prior year.

  • The company used $45 million of cash for the acquisition of RedWave Technology.

Insights

From a financial perspective, 908 Devices' quarterly report reveals a nuanced picture of the company's performance. The 8% increase in product and service revenue demonstrates resilience in their core business, particularly the 20% growth in handheld revenue. This sector's expansion is a testament to the company's ability to innovate and meet market demand for portable chemical analysis solutions. However, investors should note the 18% decline in desktop revenue, which could signify a shift in consumer preference or intensifying competition. The financial health of the company appears robust, with a substantial cash reserve of $134.2 million and no debt, which is a strong indicator of management's prudent fiscal stewardship. This positions the company advantageously for its acquisition strategy, evident in the purchase of RedWave Technology, which is expected to contribute $11 million to the annual revenue. Looking ahead, the projected 25% to 29% revenue growth for the year is ambitious and will likely hinge on the successful integration of RedWave and continued innovation in the handheld segment.

The strategic acquisition of RedWave Technology signals 908 Devices' commitment to expanding its product lineup and capitalizing on synergies. By incorporating RedWave's capabilities, 908 Devices not only broadens its portfolio but also enhances its analyte detection capabilities. In terms of market positioning, this move could enable the company to tap into new customer segments and applications. The consistent increase in recurring revenue, accounting for 45% of total revenue, also underscores a shift towards a service-oriented business model, which typically offers more stable revenue streams and can enhance customer loyalty in the long-term. This is particularly valuable as the company combats volatility in device sales, as illustrated by the mixed performance across handheld and desktop products.

Investors with an interest in corporate responsibility should take note of 908 Devices' inaugural Environmental, Social, & Governance (ESG) report. While often considered a soft factor, ESG performance can be a significant driver of investment decisions. The publication of this report reflects a growing trend in corporate transparency and may bolster stakeholder confidence by demonstrating a commitment to sustainable operations. As socially responsible investing becomes more prevalent, the company’s dedication to ESG principles could ultimately contribute to its financial performance by attracting like-minded investors and customers.

First quarter 2024 product and service revenue increased 8% compared to prior year, driven by a 20% increase in handheld revenue

Acquired RedWave Technology, expanding forensics product portfolio for point-of-need applications

BOSTON--(BUSINESS WIRE)-- 908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop devices for chemical and biochemical analysis, today reported financial results for the quarter ended March 31, 2024.

"We had a solid start to the year with topline revenue of $10 million for the first quarter and continued to see robust demand for our handheld devices as applications for chemical detection and identification at the point of need gain further traction in the US and internationally," said Kevin J. Knopp, CEO and Co-founder. "This morning, we were excited to announce the acquisition of RedWave Technology which we believe will be a very strong strategic fit as we execute against our existing initiatives for the near- and long-term."

Recent Highlights

  • Revenue of $10.0 million for the first quarter 2024, increasing 5% compared to the first quarter 2023
    • Handheld revenue was $7.4 million, increasing 20% year over year
    • Desktop revenue was $2.6 million, decreasing 18% year over year
    • Recurring revenue was $4.5 million, increasing 8% year over year
    • 45% of revenue was recurring revenue, driven by service and REBEL consumables
  • Ended the first quarter 2024 with $134.2 million in cash, cash equivalents and marketable securities, and zero debt outstanding
  • Subsequent to quarter end, acquired RedWave Technology, expanding analyte detection capabilities with a highly complementary product suite, accelerating top-line growth, and expanding margins
  • Published inaugural Environmental, Social & Governance (ESG) report, showcasing commitment to pursuing responsible, ethical, and sustainable operations

First Quarter 2024 Financial Results

Revenue was $10.0 million for the three months ended March 31, 2024, a 5% increase over the prior year period. This was primarily driven by an increase in handheld devices revenue offset by a decrease in desktop devices revenue. The installed base grew to 2,914 devices with 53 handheld devices and 8 desktop devices placed during the first quarter 2024. Recurring revenue represented 45% of total revenues in the quarter.

Gross profit was $5.0 million for the first quarter of 2024, compared to $4.4 million for the corresponding prior year period. Gross margin was 50% as compared to 46% for the corresponding prior year period.

Operating expenses were $17.7 million for the first quarter of 2024, compared to $17.4 million for the corresponding prior year period. This increase was driven by stock-based compensation and legal fees related to our acquisition, offset in part by a reduction in third party commissions and salary and related costs.

Net loss was $10.9 million for the first quarter of 2024, compared to $12.5 million for the corresponding prior year period. Net loss per share was $0.33 for the first quarter of 2024, compared to a net loss per share of $0.39 for the corresponding prior year period.

Cash, cash equivalents and marketable securities were $134.2 million as of March 31, 2024 with no debt outstanding. Subsequent to quarter end, the Company used $45 million of cash as part of the acquisition of RedWave Technology. The Company anticipates that its cash on hand continues to be sufficient to reach cash flow breakeven.

2024 Guidance

908 Devices now expects full year reported 2024 revenue to be in the range of $63.0 million to $65.0 million, representing 25% to 29% growth over full year 2023. This includes $11 million of expected revenue from RedWave Technology, representing 8 months of ownership.

Webcast Information

908 Devices will host a conference call to discuss the first quarter 2024 financial results before market open on Tuesday, April 30, 2024 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 revolutionizing chemical and biochemical analysis 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 sampling and separations, software automation, and machine learning.

Forward Looking Statements

This press release includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding the Company’s future revenue and growth, including the expected revenue contribution from RedWave. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on management’s current expectations and 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.

908 DEVICES INC.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2024

 

2023

Revenue:

 

 

 

 

 

 

Product revenue

 

$

7,233

 

$

7,022

Service revenue

 

 

2,758

 

 

2,240

Contract revenue

 

 

 

 

225

Total revenue

 

 

9,991

 

 

9,487

Cost of revenue:

 

 

 

 

 

 

Product cost of revenue

 

 

3,210

 

 

3,786

Service cost of revenue

 

 

1,778

 

 

1,270

Contract cost of revenue

 

 

 

 

47

Total cost of revenue

 

 

4,988

 

 

5,103

Gross profit

 

 

5,003

 

 

4,384

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

5,790

 

 

5,398

Selling, general and administrative

 

 

11,901

 

 

12,003

Total operating expenses

 

 

17,691

 

 

17,401

Loss from operations

 

 

(12,688)

 

 

(13,017)

Other income:

 

 

 

 

 

 

Other income, net

 

 

1,701

 

 

485

Loss from operations before income taxes

 

 

(10,987)

 

 

(12,532)

Benefit for income taxes

 

 

70

 

 

Net loss

 

$

(10,917)

 

$

(12,532)

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

$

(0.33)

 

$

(0.39)

Weighted average common shares outstanding

 

 

32,710,894

 

 

31,965,799

908 DEVICES INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2024

 

2023

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

134,195

 

$

145,682

Accounts receivable, net

 

 

7,486

 

 

8,989

Inventory

 

 

16,356

 

 

14,938

Prepaid expenses and other current assets

 

 

3,831

 

 

4,181

Total current assets

 

 

161,868

 

 

173,790

Operating lease, right-of-use assets

 

 

5,754

 

 

6,233

Property and equipment, net

 

 

3,215

 

 

3,342

Goodwill

 

 

10,139

 

 

10,367

Intangible, net

 

 

7,468

 

 

7,860

Other long-term assets

 

 

1,347

 

 

1,389

Total assets

 

$

189,791

 

$

202,981

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

6,771

 

$

9,904

Deferred revenue

 

 

10,483

 

 

10,629

Operating lease liabilities

 

 

2,076

 

 

2,016

Total current liabilities

 

 

19,330

 

 

22,549

Deferred revenue, net of current portion

 

 

7,871

 

 

8,571

Other long-term liabilities

 

 

5,697

 

 

6,370

Total liabilities

 

 

32,898

 

 

37,490

Total stockholders' equity

 

 

156,893

 

 

165,491

Total liabilities and stockholders' equity

 

$

189,791

 

$

202,981

 

Investor Contact:

Carrie Mendivil

IR@908devices.com

Media Contact:

Barbara Russo

brusso@908devices.com

Source: 908 Devices Inc.

FAQ

What was 908 Devices' revenue in Q1 2024?

908 Devices reported $10.0 million in revenue for the first quarter of 2024.

How much was the handheld revenue in Q1 2024?

Handheld revenue was $7.4 million in the first quarter of 2024, representing a 20% increase year over year.

What was the recurring revenue in Q1 2024?

Recurring revenue was $4.5 million in the first quarter of 2024, accounting for 45% of total revenue.

What was the gross profit in Q1 2024?

Gross profit was $5.0 million in the first quarter of 2024.

What is 908 Devices' revenue outlook for 2024?

908 Devices expects full year reported 2024 revenue to be in the range of $63.0 million to $65.0 million, a 25% to 29% growth over 2023.

908 Devices Inc.

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