908 Devices Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Revenue Outlook
- 23% revenue increase in Q4 2023 driven by 57% growth in handheld revenue
- 28% growth in handheld revenue for full year 2023
- Launch of two desktop devices despite challenges in life science industries
- Ended 2023 with $145.7 million in cash and expanded global presence
- Collaboration with Cellares for large-scale cell therapy manufacturing
- None.
Insights
The reported 23% year-over-year increase in fourth-quarter revenue, particularly the 57% rise in handheld revenue, is a significant indicator of 908 Devices' growth trajectory. The handheld segment's robust performance, essential in combating counterfeit drugs and the opioid crisis, suggests a strong market demand for the company's products. The 33% recurring revenue stream is a healthy sign of sustainable earnings, providing predictability and stability to the revenue model. However, the reported net loss, despite narrowing from the previous year, raises concerns about the company's path to profitability. The cash burn of $28 million in 2023, combined with the additional $15 million used to pay off debt, indicates a substantial use of financial resources, although the company's strong cash and securities position of $145.7 million suggests a solid runway for future operations.
The expansion of 908 Devices' international presence, now in 56 countries, represents a strategic move to diversify revenue streams and reduce dependency on domestic markets. This international growth, alongside the collaboration with Cellares to adapt the MAVERICK in-line bioprocess analyzer, reflects the company's commitment to innovation and expansion into new market segments. The life science instrumentation and bioprocessing industries are known for high barriers to entry due to the technical complexity and regulatory requirements, which makes the company's progress in launching two additional desktop devices in the PAT space particularly notable. The market's response to these new products and the company's ability to capture market share in the evolving cell therapy manufacturing industry will be critical to its future growth prospects.
The Process Analytical Technology (PAT) field is rapidly gaining importance in the biotech industry, as it allows for real-time monitoring of bioprocessing, which is crucial for the manufacture of biologics and cell therapies. 908 Devices' launch of two new desktop devices in this space suggests strategic positioning to capitalize on this trend. The collaboration with Cellares to make the MAVERICK analyzer compatible with large-scale cell therapy manufacturing could open up significant new opportunities, given the growing importance of cell therapies in the treatment of various diseases. However, the decrease in desktop and contract revenues warrants attention, as it may reflect competitive pressures or shifts in customer preferences within the industry.
Fourth quarter 2023 revenue increased
"We made solid progress in 2023 towards our objectives. We have continued to see sustained growth of our handheld devices servicing customers in their efforts to combat the ongoing crisis of counterfeit drugs and opioids. For the full year we saw
Recent Highlights
-
Revenue of
$14.4 million 23% compared to the fourth quarter 2022 -
Revenue of
$50.2 million 7% compared to the full year 2022-
Handheld revenue increased
28% compared to full year 2022 -
Recurring revenue represented
33% of product and service revenues
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Handheld revenue increased
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Ended 2023 with
$145.7 million $28 million $15 million - Expanded international presence with MX908 handheld devices placed in 56 countries as of December 31, 2023, an additional 11 countries from December 31, 2022
- Announced a collaboration with Cellares, an integrated development and manufacturing company, to adapt our MAVERICK in-line bioprocess analyzer to be compatible with Cellares’ Cell Shuttle system for large-scale cell therapy manufacturing
Fourth Quarter 2023 Financial Results
Revenue was
Gross profit was
Operating expenses were
Net loss was
Full Year 2023 Financial Results
Revenue was
Gross profit was
Operating expenses were
Net loss was
Cash, cash equivalents and marketable securities were
2024 Guidance
908 Devices expects full year 2024 revenue to be in the range of
Webcast Information
908 Devices will host a conference call to discuss the fourth quarter and full year 2023 financial results before market open on Tuesday, March 5, 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
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) |
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenue: |
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Product revenue |
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$ |
11,436 |
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$ |
8,272 |
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$ |
40,214 |
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$ |
37,499 |
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Service revenue |
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2,915 |
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2,129 |
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9,645 |
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6,976 |
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Contract revenue |
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— |
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1,242 |
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370 |
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2,377 |
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Total revenue |
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14,351 |
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11,643 |
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50,229 |
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46,852 |
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Cost of revenue: |
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Product cost of revenue |
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5,191 |
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4,501 |
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18,428 |
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16,010 |
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Service cost of revenue |
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1,885 |
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1,161 |
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6,380 |
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4,420 |
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Contract cost of revenue |
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— |
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59 |
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99 |
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399 |
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Total cost of revenue |
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7,076 |
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5,721 |
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24,907 |
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20,829 |
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Gross profit |
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7,275 |
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5,922 |
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25,322 |
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26,023 |
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Operating expenses: |
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Research and development |
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5,444 |
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4,662 |
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21,904 |
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17,526 |
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Selling, general and administrative |
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11,544 |
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11,598 |
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46,176 |
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43,879 |
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Total operating expenses |
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16,988 |
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16,260 |
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68,080 |
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61,405 |
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Loss from operations |
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(9,713 |
) |
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(10,338 |
) |
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(42,758 |
) |
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(35,382 |
) |
Other income: |
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Other income, net |
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2,282 |
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547 |
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6,148 |
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1,819 |
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Loss from operations before income taxes |
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(7,431 |
) |
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(9,791 |
) |
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(36,610 |
) |
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(33,563 |
) |
Benefit for income taxes |
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2 |
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— |
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211 |
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— |
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Net loss |
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$ |
(7,429 |
) |
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$ |
(9,791 |
) |
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$ |
(36,399 |
) |
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$ |
(33,563 |
) |
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Net loss per share attributable to common stockholders |
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$ |
(0.23 |
) |
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$ |
(0.31 |
) |
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$ |
(1.13 |
) |
|
$ |
(1.07 |
) |
Weighted average common shares outstanding |
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32,440,312 |
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31,749,993 |
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32,239,394 |
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31,492,531 |
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908 DEVICES INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
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December 31, |
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December 31, |
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2023 |
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2022 |
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Assets |
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Current assets: |
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Cash, cash equivalents and marketable securities |
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$ |
145,682 |
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$ |
188,422 |
Accounts receivable, net |
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8,989 |
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10,033 |
Inventory |
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14,938 |
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12,513 |
Prepaid expenses and other current assets |
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4,181 |
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4,658 |
Total current assets |
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173,790 |
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215,626 |
Operating lease, right-of-use assets |
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6,233 |
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3,956 |
Property and equipment, net |
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3,342 |
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3,083 |
Goodwill |
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10,367 |
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10,050 |
Intangible, net |
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7,860 |
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8,488 |
Other long-term assets |
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1,389 |
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1,384 |
Total assets |
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$ |
202,981 |
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$ |
242,587 |
Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable and accrued expenses |
|
$ |
9,904 |
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$ |
10,244 |
Deferred revenue |
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10,629 |
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7,514 |
Operating lease liabilities |
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|
2,016 |
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|
1,468 |
Total current liabilities |
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22,549 |
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|
19,226 |
Long-term debt, net of discount and current portion |
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3,929 |
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|
15,000 |
Deferred revenue, net of current portion |
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8,571 |
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3,040 |
Other long-term liabilities |
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2,441 |
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14,722 |
Total liabilities |
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37,490 |
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|
51,988 |
Total stockholders' equity |
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|
165,491 |
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|
190,599 |
Total liabilities and stockholders' equity |
|
$ |
202,981 |
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$ |
242,587 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305336510/en/
Investor Contact:
Carrie Mendivil
IR@908devices.com
Media Contact:
Barbara Russo
brusso@908devices.com
Source: 908 Devices Inc.
FAQ
What was the revenue increase in Q4 2023 for 908 Devices Inc. (MASS)?
How much was the growth in handheld revenue for the full year 2023 for 908 Devices Inc. (MASS)?
What was the cash amount 908 Devices Inc. (MASS) ended 2023 with?
What collaboration was announced by 908 Devices Inc. (MASS) for large-scale cell therapy manufacturing?
