908 Devices Inc. (Nasdaq: MASS), a leader in handheld and desktop devices for chemical analysis, announced its financial results for the quarter ending June 30, 2024. Kevin J. Knopp, CEO and Co-founder, highlighted the company’s strong performance, including the successful acquisition and integration of RedWave Technology, which has enhanced the handheld portfolio and improved support for both new and existing forensics customers. “Our focus on operational excellence and scale is beginning to show early benefits,” Knopp added.
Recent Highlights:
- Revenue: $14.0 million for Q2 2024, a 16% increase year-over-year.
- Handheld Devices Revenue: $11.1 million, up 26% compared to the previous year.
- Desktop Devices Revenue: $2.9 million, down 9% year-over-year.
- Recurring Revenue: $5.3 million, a 33% increase year-over-year, making up 38% of total revenue, driven by service and REBEL consumables.
- Gross Margin: Improved by 490 basis points to 53%, due to production timing and increased scale, including higher service revenues.
- Product Development: Launched a new quantification package for the XplorIR handheld gas and vapor analyzer, enabling the identification and quantification of nearly 5,000 airborne chemicals.
- Integration: Completed the commercial integration of RedWave Technology.
- Research Contributions: Presented 13 posters at the American Society for Mass Spectrometry (ASMS) conference and contributed to three oral presentations with the University of Wisconsin-Madison and the National Institute for Bioprocessing Research and Training (NIBRT).
- Board Appointment: Michele M. Leonhart, former U.S. Drug Enforcement Administration administrator, joined the Board of Directors.
Q2 2024 Financial Results:
- Revenue: $14.0 million, a 16% increase from the previous year, primarily driven by higher handheld device sales despite a decrease in desktop device sales. The installed base grew to 3,067 devices, with 143 handheld and 10 desktop devices added in Q2.
- Gross Profit: $7.4 million, up from $5.8 million in the same period last year. Gross margin improved to 53%, compared to 48% previously. Adjusted gross profit was $8.1 million, with an adjusted gross margin of 58%.
- Operating Expenses: $21.0 million, compared to $16.7 million last year, due to $1.9 million in acquisition and integration costs, and stock-based compensation.
- Net Loss: $12.5 million, an increase from $9.3 million in the prior year. Adjusted EBITDA was a loss of $7.3 million, slightly improved from $7.7 million in Q2 2023.
- Cash Position: $77.4 million in cash, cash equivalents, and marketable securities as of June 30, 2024, with no debt outstanding.
908 Devices reaffirmed its 2024 revenue outlook, reflecting confidence in its growth strategy and market position.
