908 Devices Reports Second Quarter 2024 Financial Results and Reiterates 2024 Revenue Outlook
Revenue increases 16% compared to prior year, driven by newly acquired handheld products
"We delivered solid execution on a multitude of fronts in the quarter, including the acquisition and integration of RedWave Technology into our company. With an expanded handheld portfolio, we are now supporting both our new and existing forensics customers more efficiently,” said
Recent Highlights
-
Revenue of
$14.0 million for the second quarter 2024, increasing 16% compared to the second quarter 2023-
Handheld revenue was
$11.1 million , increasing 26% year over year -
Desktop revenue was
$2.9 million , decreasing 9% year over year -
Recurring revenue was
$5.3 million , increasing 33% year over year - 38% of revenue was recurring revenue, driven by service and REBEL consumables
-
Handheld revenue was
- Gross margin increased 490 basis points to 53% for the second quarter 2024, partly due to timing of production but also as a result of scale across the business including higher handheld service revenues
- Launched a quantification package that enhances our XplorIR handheld gas and vapor analyzer, enabling first responders to now identify and quantify nearly 5,000 airborne chemicals
- Completed the commercial integration of RedWave Technology
-
Presented 13 posters at the
American Society for Mass Spectrometry (ASMS) conference and were collaborators on three oral presentations with researchers from theUniversity of Wisconsin-Madison and theNational Institute for Bioprocessing Research and Training (NIBRT) -
Appointed
Michele M. Leonhart , former administrator of theU.S. Drug Enforcement Administration , to our Board of Directors
Second Quarter 2024 Financial Results
Revenue was
Gross profit was
Operating expenses were
Net loss was
Cash, cash equivalents and marketable securities were
2024 Guidance
Webcast Information
About
Non-GAAP Measures of Financial Performance
To supplement the Company’s financial statements, which are presented on the basis of
- Adjusted Gross Profit is defined as gross profit excluding intangible amortization, acquisition and integration costs, restructuring charges (including the costs of severance), and non-cash expenses related to stock-based compensation.
- Adjusted Gross Margin is defined as Adjusted Gross Profit expressed as a percentage of total revenue.
- Adjusted EBITDA is defined as net loss excluding other income, benefit for income taxes, depreciation, intangible amortization, acquisition and integration costs, restructuring charges (including the costs of severance), non-cash expenses related to stock-based compensation, and costs associated with contingent consideration related to the Company’s acquisitions and for which the conditions for payment have not yet been achieved.
The Company’s non-GAAP financial results presented in this earnings release exclude certain costs that management believes do not have a direct correlation to future business operations, nor do the resulting charges recorded accurately reflect the performance of ongoing operations for the period in which such charges are recorded, nor do the resulting charges recorded accurately reflect the anticipated cash flows of ongoing operations, and as such, excluding these costs allows management to understand and evaluate core operating performance and trends. However, as there are no standardized methods of calculating these non-GAAP financial measures, the Company’s methods may differ from those used by other companies in its industry, and accordingly, the use of these measures may not be directly comparable to similar measures used by others, thus limiting their usefulness for purposes of comparison. Furthermore, these non-GAAP measures have certain limitations since they do not include the impact of certain expenses and cash flows that are reflected in the Company’s GAAP financial results. Accordingly, when analyzing the Company’s operating performance and guidance, investors should not consider non-GAAP measures in isolation or as a substitute for, or superior to, comparable financial measures prepared in accordance with GAAP. Rather, the Company believes that these non-GAAP financial measures, when viewed in addition to and not in lieu of reported GAAP financial results, provide investors with additional meaningful information to assess financial performance and trends, enable comparison of financial results between periods, and allow for greater transparency with respect to key metrics utilized internally in analyzing and operating the Company’s business.
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
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product revenue |
|
$ |
10,266 |
|
|
$ |
9,595 |
|
|
$ |
17,499 |
|
|
$ |
16,617 |
|
Service revenue |
|
|
3,681 |
|
|
|
2,354 |
|
|
|
6,439 |
|
|
|
4,594 |
|
Contract revenue |
|
|
100 |
|
|
|
145 |
|
|
|
100 |
|
|
|
370 |
|
Total revenue |
|
|
14,047 |
|
|
|
12,094 |
|
|
|
24,038 |
|
|
|
21,581 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product cost of revenue |
|
|
4,732 |
|
|
|
4,800 |
|
|
|
7,942 |
|
|
|
8,586 |
|
Service cost of revenue |
|
|
1,823 |
|
|
|
1,448 |
|
|
|
3,601 |
|
|
|
2,718 |
|
Contract cost of revenue |
|
|
74 |
|
|
|
52 |
|
|
|
74 |
|
|
|
99 |
|
Total cost of revenue |
|
|
6,629 |
|
|
|
6,300 |
|
|
|
11,617 |
|
|
|
11,403 |
|
Gross profit |
|
|
7,418 |
|
|
|
5,794 |
|
|
|
12,421 |
|
|
|
10,178 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
6,381 |
|
|
|
5,525 |
|
|
|
12,171 |
|
|
|
10,923 |
|
Selling, general and administrative |
|
|
14,597 |
|
|
|
11,208 |
|
|
|
26,498 |
|
|
|
23,211 |
|
Total operating expenses |
|
|
20,978 |
|
|
|
16,733 |
|
|
|
38,669 |
|
|
|
34,134 |
|
Loss from operations |
|
|
(13,560 |
) |
|
|
(10,939 |
) |
|
|
(26,248 |
) |
|
|
(23,956 |
) |
Other income, net |
|
|
943 |
|
|
|
1,522 |
|
|
|
2,644 |
|
|
|
1,955 |
|
Loss from operations before income taxes |
|
|
(12,617 |
) |
|
|
(9,417 |
) |
|
|
(23,604 |
) |
|
|
(22,001 |
) |
Benefit for income taxes |
|
|
69 |
|
|
|
71 |
|
|
|
139 |
|
|
|
122 |
|
Net loss |
|
$ |
(12,548 |
) |
|
$ |
(9,346 |
) |
|
$ |
(23,465 |
) |
|
$ |
(21,879 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders |
|
$ |
(0.37 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.68 |
) |
Weighted average common shares outstanding |
|
|
34,061,933 |
|
|
|
32,199,156 |
|
|
|
33,386,413 |
|
|
|
32,083,122 |
|
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
|
|
|
|
|
||
|
|
2024 |
|
2023 |
||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
|
$ |
77,383 |
|
$ |
145,682 |
Accounts receivable, net |
|
|
10,987 |
|
|
8,989 |
Inventory |
|
|
18,589 |
|
|
14,938 |
Prepaid expenses and other current assets |
|
|
3,485 |
|
|
4,181 |
Total current assets |
|
|
110,444 |
|
|
173,790 |
Operating lease, right-of-use assets |
|
|
5,904 |
|
|
6,233 |
Property and equipment, net |
|
|
3,556 |
|
|
3,342 |
|
|
|
40,220 |
|
|
10,367 |
Intangible, net |
|
|
47,298 |
|
|
7,860 |
Other long-term assets |
|
|
1,352 |
|
|
1,389 |
Total assets |
|
$ |
208,774 |
|
$ |
202,981 |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
7,610 |
|
$ |
9,904 |
Deferred revenue |
|
|
11,954 |
|
|
10,629 |
Operating lease liabilities |
|
|
2,153 |
|
|
2,016 |
Total current liabilities |
|
|
21,717 |
|
|
22,549 |
Deferred revenue, net of current portion |
|
|
9,528 |
|
|
3,929 |
Other long-term liabilities |
|
|
21,170 |
|
|
11,012 |
Total liabilities |
|
|
52,415 |
|
|
37,490 |
Total stockholders' equity |
|
|
156,359 |
|
|
165,491 |
Total liabilities and stockholders' equity |
|
$ |
208,774 |
|
$ |
202,981 |
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited, amounts in thousands, except percentage and per share data)
In all tables below, totals may not add due to rounding
Reconciliation from Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) and Margin Percentage:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Profit (GAAP) |
|
$ |
7,418 |
|
|
$ |
5,794 |
|
|
$ |
12,421 |
|
|
$ |
10,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Intangible amortization |
|
|
530 |
|
|
|
107 |
|
|
|
637 |
|
|
|
213 |
|
Acquisition and integration costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Restructuring |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
|
202 |
|
|
|
140 |
|
|
|
373 |
|
|
|
255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Gross Profit (Non-GAAP) |
|
$ |
8,150 |
|
|
$ |
6,041 |
|
|
$ |
13,431 |
|
|
$ |
10,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Margin Percentage (GAAP) |
|
|
53 |
% |
|
|
48 |
% |
|
|
52 |
% |
|
|
47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Gross Margin Percentage (Non-GAAP) |
|
|
58 |
% |
|
|
50 |
% |
|
|
56 |
% |
|
|
49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP):
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Loss (GAAP) |
|
$ |
(12,548 |
) |
|
$ |
(9,346 |
) |
|
$ |
(23,465 |
) |
|
$ |
(21,879 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income, net |
|
|
(943 |
) |
|
|
(1,522 |
) |
|
|
(2,644 |
) |
|
|
(1,955 |
) |
Benefit for income taxes |
|
|
(69 |
) |
|
|
(71 |
) |
|
|
(139 |
) |
|
|
(122 |
) |
Depreciation |
|
|
500 |
|
|
|
368 |
|
|
|
918 |
|
|
|
738 |
|
Intangible amortization |
|
|
693 |
|
|
|
219 |
|
|
|
913 |
|
|
|
437 |
|
Acquisition and integration costs |
|
|
1,950 |
|
|
|
- |
|
|
|
1,950 |
|
|
|
- |
|
Restructuring |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
524 |
|
Stock-based compensation |
|
|
3,096 |
|
|
|
2,578 |
|
|
|
5,739 |
|
|
|
4,744 |
|
Contingent consideration |
|
|
- |
|
|
|
65 |
|
|
|
- |
|
|
|
230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA (Non-GAAP) |
|
$ |
(7,321 |
) |
|
$ |
(7,709 |
) |
|
$ |
(16,728 |
) |
|
$ |
(17,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806067859/en/
Investor:
IR@908devices.com
Media:
brusso@908devices.com
Source: