908 Devices Reports Fourth Quarter and Full Year 2022 Financial Results and Provides 2023 Revenue Outlook

Rhea-AI Summary

908 Devices Inc. (Nasdaq: MASS) reported a full year 2022 revenue of $46.9 million, an 11% increase year-over-year, with desktop revenue soaring 25%. Recurring revenue more than doubled, reaching $15.7 million. Despite these gains, Q4 revenue declined 27% to $11.6 million, attributed to fewer product placements compared to a significant shipment to the U.S. Army in Q4 2021. 2023 guidance projects revenue between $48 million and $52 million, reflecting a modest growth of 2% to 11%. The company ended 2022 with $188 million in cash and had a net loss of $33.6 million for the year.

Positive

• 2022 revenue increased 11% year-over-year.
• Desktop revenue up 25%, significantly outperforming overall growth.
• Recurring revenue grew 101%, constituting 1/3rd of total revenue.
• Cash and equivalents totaled $188 million at year-end.

Negative

• Q4 revenue declined by 27% year-over-year.
• Net loss for 2022 increased to $33.6 million compared to $22.2 million in 2021.
• Operating expenses rose to $61.4 million in 2022, up from $45.3 million.

Full Year 2022 revenue increases 11% compared to prior year with desktop revenue increasing 25%

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 and full year ended December 31, 2022.

“While we are pleased with the progress made against our long-term objectives in 2022, as anticipated, we experienced protracted sales cycles and more conservative capital budgets during the fourth quarter, which will likely persist through the first half of 2023,” said Kevin J. Knopp, CEO and Co-founder. “Despite these near-term headwinds, we started 2023 off strong with the launch of our first ‘on-line’ device for bioprocessing analytics, a companion to our REBEL desktop device. The strength of our product roadmap and the market diversification provided by our handheld devices makes me as confident as ever in the opportunity ahead for real-time analytics at the point-of-need.”

Recent Highlights

• Revenue of $46.9 million for the full year 2022, increasing 11% compared to the full year 2021.
  • Desktop revenue increased 25% compared to the full year 2021, more than 2X the overall growth rate.
  • Recurring revenue increased 101% compared to the full year 2021, representing 1/3^rd of total 2022 revenue.
• Revenue of $11.6 million for the fourth quarter 2022, compared to $15.8 million in the fourth quarter 2021, which included an $8 million shipment of MX908 devices to the U.S. Army in the fourth quarter 2021.
• Expanded total installed base to 2,385 devices with 68 devices placed during the fourth quarter 2022.
  • Shipped 2,000th MX908 device during the fourth quarter 2022.
• Ended 2022 with $188 million in cash and cash equivalents and $15 million of debt outstanding.
  • Cash and cash equivalents consumed in 2022 was $36 million, which included $14 million used for acquisition.
  • Multiple years of capital on-hand to support the Company’s long-term growth objectives.
• Launched MAVEN, the Company’s first on-line device, providing real-time monitoring and automated control of glucose and lactate in cell culture and fermentation processes as a complement to REBEL.

Fourth Quarter 2022 Financial Results

Revenue was $11.6 million for the three months ended December 31, 2022, a 27% decline over the prior year period. This was driven by a decrease in product placements for both handheld and desktop devices, primarily related to the timing of a large shipment of MX908 devices to the U.S. Army in the fourth quarter of 2021. The installed base grew to 2,385 devices with 68 devices placed in Q4 2022.

Recurring revenue grew $3.4 million to $5.9 million or 142% over the prior year period. This increase was driven by increases in both accessory and consumable revenues as well as increased service revenue.

Gross profit was $5.9 million for the fourth quarter of 2022, compared to $9.1 million for the corresponding prior year period. Gross margin was 51%, as compared to 58% for the corresponding prior year period. The decline in gross margin was largely due to the lower device shipments during the fourth quarter of 2022.

Operating expenses were $16.3 million for the fourth quarter of 2022, compared to $12.7 million for the corresponding prior year period. This increase was driven by headcount expansion across our business as well as by an increase in stock-based compensation.

Net loss was $9.8 million for the fourth quarter of 2022, compared to $3.5 million for the corresponding prior year period. Net loss per share was $0.31 for the fourth quarter of 2022, compared to a net loss per share of $0.12 for the corresponding prior year period.

Full Year 2022 Financial Results

Revenue was $46.9 million for the year ended December 31, 2022, a 11% increase over the prior year period. Recurring revenue grew $7.9 million to $15.7 million, increasing 101% over the prior year period. This was driven by increases in both accessory and consumable revenues as well as by an increase in service revenue.

Gross profit was $26.0 million for 2022, compared to $23.2 million for the corresponding prior year period. Gross margin was 56% compared to 55% for the corresponding prior year period.

Operating expenses were $61.4 million for 2022, compared to $45.3 million for the corresponding prior year period.

Net loss was $33.6 million for 2022, compared to $22.2 million for the corresponding prior year period. Net loss per share was $1.07 for 2022, compared to a net loss per share of $0.79 for the corresponding prior year period.

Cash and cash equivalents were $188 million as of December 31, 2022. In addition, the Company had $15.0 million of debt outstanding.

2023 Guidance

908 Devices expects full year 2023 revenue to be in the range of $48 million to $52 million, representing 2% to 11% growth over full year 2022.

Webcast Information

908 Devices will host a conference call to discuss the fourth quarter and full year 2022 financial results before market open on Tuesday, March 7, 2023 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. 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								Year Ended
	December 31,								December 31,
	2022				2021				2022				2021
Revenue:
Product and service revenue	$	10,401			$	15,551			$	44,475			$	41,108
License and contract revenue		1,242				290				2,377				1,098
Total revenue		11,643				15,841				46,852				42,206
Cost of revenue:
Product and service cost of revenue		5,662				6,592				20,430				18,654
License and contract cost of revenue		59				115				399				319
Total cost of revenue		5,721				6,707				20,829				18,973
Gross profit		5,922				9,134				26,023				23,233
Operating expenses:
Research and development		4,662				3,745				17,526				13,067
Selling, general and administrative		11,598				8,917				43,879				32,235
Total operating expenses		16,260				12,662				61,405				45,302
Loss from operations		(10,338	)			(3,528	)			(35,382	)			(22,069	)
Other income (expense), net		547				63				1,819				(100	)
Net loss	$	(9,791	)		$	(3,465	)		$	(33,563	)		$	(22,169	)
Net loss per share attributable to common stockholders	$	(0.31	)		$	(0.12	)		$	(1.07	)		$	(0.79	)
Weighted average common shares outstanding		31,749,993				29,476,480				31,492,531				27,957,904

908 DEVICES INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited)
	December 31,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	188,422		$	224,073
Accounts receivable, net		10,033			16,375
Inventory		12,513			7,918
Prepaid expenses and other current assets		4,658			4,527
Total current assets		215,626			252,893
Operating lease, right-of-use assets		3,956			5,182
Property and equipment, net		3,083			1,603
Goodwill		10,050			—
Intangible assets, net		8,488			—
Other long-term assets		1,384			1,228
Total assets	$	242,587		$	260,906
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	10,244		$	8,332
Deferred revenue		7,514			5,160
Operating lease liabilities		1,468			1,344
Total current liabilities		19,226			14,836
Long-term debt, net of discount and current portion		15,000			15,000
Deferred revenue, net of current portion		11,496			11,958
Other long-term liabilities		6,266			4,508
Total liabilities		51,988			46,302
Total stockholders' equity		190,599			214,604
Total liabilities and stockholders' equity	$	242,587		$	260,906

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230307005188/en/

Investor Contact:

Carrie Mendivil

IR@908devices.com

Source: 908 Devices Inc.

FAQ

What were 908 Devices' revenue results for 2022?

908 Devices reported a revenue of $46.9 million for 2022, an 11% increase from the previous year.

How did the desktop revenue perform for 908 Devices in 2022?

Desktop revenue increased by 25% compared to the prior year, significantly outpacing overall revenue growth.

What is the guidance for 908 Devices in 2023?

The company expects 2023 revenue to be between $48 million and $52 million, reflecting 2% to 11% growth over 2022.

What was the net loss for 908 Devices in 2022?

908 Devices reported a net loss of $33.6 million for the year 2022.

How did recurring revenue change for 908 Devices in 2022?

Recurring revenue surged by 101% year-over-year, totaling $15.7 million.