Q3 2022 revenue increases 26% over prior year, with gross margin of 59%
BOSTON–(BUSINESS WIRE)–908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop mass spec devices for chemical and biomolecular analysis, today reported financial results for the quarter ended September 30, 2022.
“We were pleased with our results for the third quarter as we continue to support our customers’ critical-to-life applications. We also executed the strategic acquisition of TRACE Analytics, which provides in-line testing of critical parameters in the bioreactor and enables us to fast-track development of our on-line REBEL technology,” said Kevin J. Knopp, CEO and Co-founder. “During the quarter, we began to see some slowdown and lengthening of purchase cycles, in large part due to macro-economic pressures, which has resulted in us lowering our expectations for the remainder of the year. Despite near-term headwinds, our team is focused on serving our customers, expanding our user base, and making our technology even more accessible with new product launches planned for early 2023.”
Recent Highlights
Revenue of $15.8 million for the third quarter of 2022, representing a 26% increase over the prior year period
Expanded installed base to 2,317 devices with 175 devices placed during the third quarter
Received a $3.1 million order from the U.S. Army for aerosol modules for the MX908 device used to detect and identify vapor and aerosol hazards
Demonstrated improved cell culture outcomes using the REBEL™ at-line media analyzer, including increased titer by up to 40% and reduction of toxic metabolite accumulation, in collaboration with UK-based Center for Process Innovation (CPI)
Launched a pesticide target pack for the MX908® handheld device developed in coordination with the U.S. Forest Service, an agency of the U.S. Department of Agriculture, for safe and quick remediation of illegal marijuana grown on federal lands
Hosted annual user meeting covering the full breadth of our platform with talks from key opinion leaders including Boehringer Ingelheim, MIT, Clemson University, Ohio Bureau of Criminal Investigation, and the Fresno Police Department, among others
Third Quarter 2022 Financial Results
Revenue was $15.8 million for the three months ended September 30, 2022, a 26% increase over the prior year period. This increase was primarily driven by product revenue from an increase in handheld recurring revenue and desktop device placements. Desktop revenue grew 51% year over year because of both increased device sales and increased recurring revenue.
The installed base grew to 2,317 placements with 175 devices placed in Q3 2022.
Gross profit was $9.3 million for the third quarter of 2022, compared to $6.8 million for the corresponding prior year period. Gross margin was 59%, as compared to 54% for the corresponding prior year period. The increase in gross margin was driven by the increased product and service revenue and an increase in the average selling price for devices, offset in part by planned investments in personnel and expenses in calendar year 2021 and the first nine months of 2022.
Operating expenses were $16.5 million for the third quarter of 2022, compared to $12.1 million for the corresponding prior year period. This increase was driven by headcount expansion across our business, an increase in stock-based compensation, and an increase in marketing activities and travel expenses.
Net loss was $6.3 million for the third quarter of 2022, compared to $5.2 million for the corresponding prior year period. Net loss per share was $0.20 for the third quarter of 2022, compared to a net loss per share of $0.19 for the corresponding prior year period.
Cash and cash equivalents were $193.7 million as of September 30, 2022. In addition, the Company had approximately $15.0 million of debt outstanding.
2022 Guidance
908 Devices is updating its full year 2022 revenue outlook and now expects revenue to be in the range of $46 million to $49 million, representing growth of 13% over full year 2021 at the midpoint of the range.
Webcast Information
908 Devices will host a conference call to discuss the third quarter 2022 financial results before market open on Monday, November 14, 2022 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 democratizing laboratory mass spectrometry 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 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,
2022
2021
2022
2021
Revenue:
Product and service revenue
$
15,437
$
12,285
$
34,074
$
25,557
License and contract revenue
360
260
1,135
808
Total revenue
15,797
12,545
35,209
26,365
Cost of revenue:
Product and service cost of revenue
6,366
5,656
14,768
12,062
License and contract cost of revenue
93
77
340
204
Total cost of revenue
6,459
5,733
15,108
12,266
Gross profit
9,338
6,812
20,101
14,099
Operating expenses:
Research and development
4,666
3,302
12,864
9,322
Selling, general and administrative
11,826
8,786
32,281
23,318
Total operating expenses
16,492
12,088
45,145
32,640
Loss from operations
(7,154
)
(5,276
)
(25,044
)
(18,541
)
Other income (expense), net
895
91
1,272
(163
)
Net loss
$
(6,259
)
$
(5,185
)
$
(23,772
)
$
(18,704
)
Net loss per share attributable to common stockholders
$
(0.20
)
$
(0.19
)
$
(0.76
)
$
(0.68
)
Weighted average common shares outstanding
31,606,484
27,707,858
31,411,611
27,446,149
908 DEVICES INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
193,698
$
224,073
Accounts receivable, net
15,231
16,375
Inventory
11,731
7,918
Prepaid expenses and other current assets
3,222
4,527
Total current assets
223,882
252,893
Operating lease, right-of-use assets
4,271
5,182
Property and equipment, net
2,761
1,603
Goodwill
9,200
—
Intangibles, net
7,969
—
Other long-term assets
1,198
1,228
Total assets
$
249,281
$
260,906
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses
$
10,227
$
8,332
Deferred revenue
7,419
5,160
Operating lease liabilities
1,432
1,344
Total current liabilities
19,078
14,836
Long-term debt
15,000
15,000
Deferred revenue, net of current portion
12,162
11,958
Other long-term liabilities
6,541
4,508
Total liabilities
52,781
46,302
Total stockholders’ equity
196,500
214,604
Total liabilities and stockholders’ equity
$
249,281
$
260,906
Contacts
Investor Contact:
Carrie Mendivil
[email protected]
