• Revenue (Q4 2024): $18.8 million, up 31% from $14.4 million in Q4 2023.
• Handheld Revenue (Q4 2024): $13.6 million, up 22% from $11.1 million in Q4 2023.
• Desktop Revenue (Q4 2024): $5 million, up 56% from $3.2 million in Q4 2023.
• Recurring Revenue (Q4 2024): $7.4 million, representing 39% of total revenues, up 56% from the prior year period.
• Gross Margin (Q4 2024): 48%, compared to 51% in Q4 2023.
• Adjusted Gross Margin (Q4 2024): 54%, compared to 53% in Q4 2023.
• Net Loss (Q4 2024): $19.4 million, compared to $7.4 million in Q4 2023.
• Adjusted EBITDA (Q4 2024): Loss of $6.2 million, compared to $7 million in Q4 2023.
• Revenue (Full Year 2024): $59.6 million, up 19% from $50.2 million in 2023.
• Handheld Revenue (Full Year 2024): $46.1 million, up 22% from $37.9 million in 2023.
• Desktop Revenue (Full Year 2024): $13.2 million, up 10% from $12 million in 2023.
• Recurring Revenue (Full Year 2024): $23.3 million, up 42% from the prior year.
• Gross Margin (Full Year 2024): 50%, flat compared to 2023.
• Adjusted Gross Margin (Full Year 2024): 55%, up from 52% in 2023.
• Net Loss (Full Year 2024): $72.2 million, compared to $36.4 million in 2023.
• Adjusted EBITDA (Full Year 2024): Loss of $29.6 million, compared to $30 million in 2023.
• Cash and Equivalents (End of 2024): $69.6 million, with no debt outstanding.
• 2025 Revenue Guidance: $54 million to $56 million, with 11% to 15% growth expected from continuing operations.
• Expected Cash Position (End of 2025): More than $110 million.

• Warning! GuruFocus has detected 7 Warning Signs with MASS.

Release Date: March 04, 2025

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

Positive Points

• 908 Devices Inc (NASDAQ:MASS) announced the divestiture of its desktop bioprocessing portfolio to REPLIGEN for $70 million, significantly strengthening its cash reserves.
• The company is focusing on higher growth handheld markets, aligning with industry trends in opioid crisis response, defense, and border security.
• Revenue from acquired FTIR products slightly exceeded the initial post-acquisition target, contributing positively to Q4 and full-year performance.
• The divestiture is expected to lead to positive adjusted EBITDA by Q4 2025 and cash flow positivity in 2026.
• The company has a comprehensive set of handheld products, expanding from one device to a portfolio of four, with more on the horizon.

Negative Points

• The divestiture of the desktop portfolio results in a reduction of total headcount by about 33%, from 246 to approximately 165.
• Operating expenses increased significantly due to a $10.1 million non-cash goodwill impairment charge and a $5 million increase in stock-based compensation.
• Net loss for the fourth quarter of 2024 was $19.4 million, largely due to the non-cash charge for an impairment of goodwill.
• The company faces uncertainty in government funding, which could impact revenue projections.
• There is potential impact from tariffs on international sales, which could affect the company's expansion efforts.

Q & A Highlights

Q: Within the ancillary opportunities for handhelds, which are most accessible in the near and midterm, and how optimistic are you about Pharma applications? A: Kevin Knopp, CEO, explained that the core applications for handhelds are in fentanyl response, opioid crisis, and measuring toxic industrial materials. While there are opportunities in Pharma, the focus remains on these core applications. Partnerships are currently used for life science customers, and future opportunities in areas like GMP and purity analysis are acknowledged but will take time.

Q: How does the guidance for the year account for government budget uncertainties, and is there conservatism embedded in the guidance? A: Joseph Griffith, CFO, acknowledged the uncertainty but believes the guidance reflects assumptions for government funding. The guidance does not include aggressive assumptions, and they see potential tailwinds from increased focus on border security and the fentanyl crisis.

Q: Can you explain the process behind the divestiture of the healthcare business and how it came about? A: Kevin Knopp, CEO, stated that the divestiture was a strategic decision to focus on higher growth and margin opportunities with handheld devices. The process involved a competitive bidding process, and REPLIGEN was chosen as the acquirer. The decision was driven by the potential for unlocking more value through separation.

Q: What are the expectations for the MX 908 handheld device in the full-year guide, and how are tariffs affecting international opportunities? A: Joseph Griffith, CFO, mentioned that they are monitoring tariffs closely, but the impact is expected to be minimal due to primarily US-based sourcing. Kevin Knopp, CEO, highlighted strong placements for MX 908, with international opportunities like Romania driving growth.

Q: How does the divestiture of desktop assets affect the long-term P&L and margin structure? A: Joseph Griffith, CFO, explained that the divestiture eliminates significant operating losses and focuses 908 Devices on profitability. The company expects to be adjusted EBITDA positive by Q4 2025 and cash flow positive in 2026, with continued leverage opportunities in the future.

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