MASS 908 Devices Inc

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 September 30, 2023.

"We are pleased with the step-up in our revenues from the second quarter and the positive growth trend over the past nine months, despite the challenging environment in the life sciences instrumentation and bioprocessing markets," said Kevin J. Knopp, CEO and Co-founder. "Handheld revenue grew 19% year to date and we expect that to further accelerate in the fourth quarter. This underscores the value our handheld devices bring to our customers, aiding them in enhancing public safety during the ongoing crises of counterfeit drugs and opioids. Our expanding range of products and diverse markets are key strengths for 908 Devices, positioning us for success over the near and long term."

Third Quarter 2023 Financial Highlights

• Revenue of $35.9 million for the first nine months of 2023, increasing 2% compared to first nine months of 2022
• Revenue of $14.3 million for the third quarter 2023, decreasing 9% compared to the third quarter 2022
  • Handheld revenue was $11.7 million
  • Desktop revenue was $2.5 million
  • Recurring revenue was $3.6 million
• Ended the third quarter 2023 with $148 million in cash, cash equivalents and marketable securities with no debt outstanding, decreasing $5 million compared to prior quarter end

Recent Operating Highlights

• Launched MAVERICK in September for real-time in-line monitoring of multiple bioprocess parameters
• Entered initial production phase of US Department of Defense Aerosol and Vapor Chemical Agent Detector program to produce 122 initial systems, with partner Smiths Detection
• Received $10.4 million in orders from the United States Air Force for MX908 devices, Aero accessories, and support and recognized $4.2 million in the third quarter 2023
• Announced a collaboration with Terumo Blood and Cell Technologies for integrating our MAVEN on-line analyzer with Terumo BCT’s Quantum Flex cell therapy expansion platform

Third Quarter 2023 Financial Results

Revenue was $14.3 million for the three months ended September 30, 2023, a 9% decrease over the prior year period. This was primarily driven by a decline in desktop devices and handheld recurring revenue. The installed base grew to 2,714 devices with 124 devices placed during the third quarter 2023.

Recurring revenue represented 25% of total revenues in the quarter. Recurring revenue declined $0.9 million to $3.6 million over the prior year period. This was driven by a decline in handheld accessory and consumable revenue, offset in part by growth in service revenue.

Gross profit was $7.9 million for the third quarter of 2023, compared to $9.3 million for the corresponding prior year period. Gross margin was 55% as compared to 59% for the corresponding prior year period. The decline in gross margin was largely due to the decrease in revenues as well as higher service costs with training obligations, charges for excess and obsolete inventory, and the higher non-cash charges for intangible amortization and stock-based compensation during the third quarter of 2023.

Operating expenses were $17.0 million for the third quarter of 2023, compared to $16.5 million for the corresponding prior year period. This increase was driven by stock-based compensation and an increase in acquisition related costs for intangible amortization and valuation of contingent milestones, offset in part by a reduction in general operating costs.

Net loss was $7.1 million for the third quarter of 2023, compared to $6.3 million for the corresponding prior year period. Net loss per share was $0.22 for the third quarter of 2023, compared to a net loss per share of $0.20 for the corresponding prior year period.

Cash, cash equivalents and marketable securities were $148 million as of September 30, 2023.

2023 Guidance

908 Devices now expects full year 2023 revenue to be in the range of $49 million to $51 million, representing 4% to 9% growth over full year 2022, which compares to its previous expectations of $49 million to $52 million.

Webcast Information

908 Devices will host a conference call to discuss the third quarter 2023 financial results before market open on Tuesday, November 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

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2023

 

2022

 

2023

 

2022

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

12,161

 

 

$

13,541

 

 

$

28,778

 

 

$

29,169

 

Service revenue

 

 

2,136

 

 

 

1,896

 

 

 

6,730

 

 

 

4,905

 

Contract revenue

 

 

—

 

 

 

360

 

 

 

370

 

 

 

1,135

 

Total revenue

 

 

14,297

 

 

 

15,797

 

 

 

35,878

 

 

 

35,209

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product cost of revenue

 

 

4,651

 

 

 

5,234

 

 

 

13,237

 

 

 

11,509

 

Service cost of revenue

 

 

1,777

 

 

 

1,132

 

 

 

4,495

 

 

 

3,259

 

Contract cost of revenue

 

 

—

 

 

 

93

 

 

 

99

 

 

 

340

 

Total cost of revenue

 

 

6,428

 

 

 

6,459

 

 

 

17,831

 

 

 

15,108

 

Gross profit

 

 

7,869

 

 

 

9,338

 

 

 

18,047

 

 

 

20,101

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

5,537

 

 

 

4,666

 

 

 

16,460

 

 

 

12,864

 

Selling, general and administrative

 

 

11,421

 

 

 

11,826

 

 

 

34,632

 

 

 

32,281

 

Total operating expenses

 

 

16,958

 

 

 

16,492

 

 

 

51,092

 

 

 

45,145

 

Loss from operations

 

 

(9,089

)

 

 

(7,154

)

 

 

(33,045

)

 

 

(25,044

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

1,909

 

 

 

895

 

 

 

3,866

 

 

 

1,272

 

Loss from operations before income taxes

 

 

(7,180

)

 

 

(6,259

)

 

 

(29,179

)

 

 

(23,772

)

Benefit from income taxes

 

 

87

 

 

 

—

 

 

 

209

 

 

 

—

 

Net loss

 

$

(7,093

)

 

$

(6,259

)

 

$

(28,970

)

 

$

(23,772

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

$

(0.22

)

 

$

(0.20

)

 

$

(0.90

)

 

$

(0.76

)

Weighted average common shares outstanding

 

 

32,345,925

 

 

 

31,606,484

 

 

 

32,171,685

 

 

 

31,441,611

 

 

 

908 DEVICES INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2023

 

2022

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

147,897

 

$

188,422

Accounts receivable, net

 

 

12,885

 

 

10,033

Inventory

 

 

15,926

 

 

12,513

Prepaid expenses and other current assets

 

 

3,119

 

 

4,658

Total current assets

 

 

179,827

 

 

215,626

Operating lease, right-of-use assets

 

 

6,677

 

 

3,956

Property and equipment, net

 

 

2,854

 

 

3,083

Goodwill

 

 

9,928

 

 

10,050

Intangible, net

 

 

7,742

 

 

8,488

Other long-term assets

 

 

1,447

 

 

1,384

Total assets

 

$

208,475

 

$

242,587

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

9,848

 

$

10,244

Deferred revenue

 

 

10,521

 

 

7,514

Operating lease liabilities

 

 

1,953

 

 

1,468

Total current liabilities

 

 

22,322

 

 

19,226

Long-term debt, net of discount and current portion

 

 

—

 

 

15,000

Deferred revenue, net of current portion

 

 

4,447

 

 

3,040

Other long-term liabilities

 

 

11,777

 

 

14,722

Total liabilities

 

 

38,546

 

 

51,988

Total stockholders' equity

 

 

169,929

 

 

190,599

Total liabilities and stockholders' equity

 

$

208,475

 

$

242,587

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231107459217/en/

Investors: Carrie Mendivil IR@908devices.com

Media: Barbara Russo brusso@908devices.com