• Total Revenue: $8.2 million in Q4 2024, a 30% year-over-year increase.
• Recurring Revenue: $4.2 million, a 27% increase compared to the prior year quarter.
• Growth Direct System Placements: 6 systems placed in Q4, totaling 21 for the full year 2024.
• Cumulative System Placements: 162 Growth Direct systems placed globally by the end of 2024.
• Gross Margin: Improved to 12% in Q4 2024, up from 8% in Q3 and a 15 percentage point improvement from the prior year quarter.
• Product Revenue: $5.2 million in Q4 2024, a 27% increase from Q4 2023.
• Service Revenue: $3 million in Q4 2024, a 35% increase from Q4 2023.
• Net Loss: $9.7 million in Q4 2024, compared to $11.2 million in Q4 2023.
• Net Loss Per Share: $0.22 in Q4 2024, compared to $0.26 in Q4 2023.
• Cash and Investments: Approximately $51 million at the end of 2024.
• 2025 Revenue Guidance: At least $32 million for the full year.
• 2025 System Placements Guidance: Between 21 and 25 systems.
• 2025 Cash Burn Guidance: Approximately $30 million, a $14 million reduction from 2024.

• Warning! GuruFocus has detected 4 Warning Signs with RPID.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Rapid Micro Biosystems Inc (NASDAQ:RPID) reported a 30% year-over-year revenue growth in Q4 2024, reaching a record $8.2 million.
• The company placed six Growth Direct systems in Q4, bringing the total to 21 system placements for the full year.
• Gross margins improved to 12% in Q4, up from 8% in the previous quarter, reflecting progress in cost structure and operating leverage.
• A new global distribution and collaboration agreement with Millipore Sigma is expected to enhance system placements and improve supply chain efficiencies.
• The partnership with Millipore Sigma is anticipated to significantly expand Growth Direct's reach and increase its total addressable market.

Negative Points

• Despite the revenue growth, the company reported a net loss of $9.7 million in Q4 2024.
• Product margins were only 8% in Q4, a decrease from 14% in Q4 2023.
• The guidance for 2025 does not assume any contribution from the Millipore Sigma partnership, reflecting uncertainty in immediate impact.
• There is ongoing uncertainty around the timing and scale of customer purchase decisions, particularly for larger multi-system opportunities.
• The company expects to burn approximately $30 million in cash for the full year 2025, indicating continued financial pressure.

Q & A Highlights

Q: Rob, do you think that the Millipore relationship accelerates your entry into new areas that maybe you're not focused on now? A: Robert Spignesi, President, CEO: Yes, the Millipore Sigma team is well positioned in adjacent markets such as personal care and cosmetics, which are meaningful in size. This partnership is a fundamental part of our strategy to expand into these areas.

Q: Sean, on the instrument placement outlook for the year, why is the guidance similar to 2024 despite positive developments? A: Sean Wirtjes, CFO: Our guidance is prudent and achievable. We haven't seen meaningful changes in customer purchasing processes from 2024. The guidance does not include potential contributions from Millipore Sigma or large multi-system orders, which could provide upside.

Q: Are there some number of systems that you expect to go to Lanza through this collaboration this year? A: Robert Spignesi, President, CEO: Our guidance for 2025 does not include contributions from Millipore Sigma or large multi-system orders. These are complex and global, making timing difficult to predict. However, we reserve the right for upside from these collaborations.

Q: On the Merck and Millipore collaboration, how do you prevent channel conflict, and what impact do you expect on gross margins? A: Robert Spignesi, President, CEO: We have a clear go-to-market strategy to manage sales funnels. The collaboration aims to improve gross margins through volume and supply chain efficiencies, particularly in consumables.

Q: Regarding the Lonza relationship, are you seeing a pick-up from Lonza encouraging industry adoption? A: Robert Spignesi, President, CEO: Lonza's deployment is a strong example of our technology's potential. We anticipate continued growth with Lonza and similar deployments across the industry.

Q: How many systems has Millipore committed to purchase, and what are your thoughts on AI integration? A: Robert Spignesi, President, CEO: We can't disclose the exact number of systems, but the commitment will be significant starting in 2026. Regarding AI, managing digital data and integrating it into AI or cloud environments is part of our innovation strategy.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.