Press Release: 908 Devices Announces Strategic Transformation and Reports Fourth Quarter and Full Year 2024 Financial Results

Dow Jones
04 Mar

908 Devices Announces Strategic Transformation and Reports Fourth Quarter and Full Year 2024 Financial Results

Divested desktop portfolio to Repligen for $70 million, including the MAVEN, MAVERICK, REBEL and ZipChip products

Fourth quarter 2024 revenue increases 31% and full year 2024 revenue increases 19% compared to prior year

Initiates revenue outlook for 2025

BOSTON--(BUSINESS WIRE)--March 04, 2025-- 

908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop devices for chemical analysis, today reported financial results for the quarter and full year ended December 31, 2024.

Strategic Transformation Realized

908 Devices cements its unique position as a market-leading provider of analytical tools for tackling critical public health and safety crises through the divestiture of its bioprocessing desktop assets to Repligen Corporation. This transaction follows the successful acquisition and integration of RedWave Technology's FTIR products in April 2024. The combination of these FTIR products and the company's innovative handheld mass spec devices forms a best-in-class portfolio to specifically address secular trends in advanced chemical detection -- including the growing opioid and illicit drug crisis, rising exposure risks to toxic carcinogens, and escalating threats to global security.

   -- Catalyzes Value Creation: $70 million asset divestiture (6x transaction 
      multiple) strengthens the company's balance sheet and sharpens its focus 
      on highest-growth handheld markets, while retaining future growth 
      opportunities in life sciences. 
 
   -- Accelerates Top-Line Growth Trajectory: The company expects Continuing 
      Operations to deliver 11% to 15% growth in 2025, year over year. 
      Management expects further acceleration above 20% in 2026, driven by 
      three defined catalysts: the need for equipment modernization, the launch 
      of the next-gen MX908 mass spec, and the anticipated full-rate production 
      award for the Department of Defense's AVCAD program. 
 
   -- Pulls Forward Profitability Timeline: The company now expects to achieve 
      Adjusted EBITDA positivity by Q4 2025 and cash flow positivity in 2026, 
      driven by improved gross margins, which are projected to reach the 
      mid-to-high 50% range in 2025, with further expansion anticipated in 2026 
      following manufacturing consolidation. Additionally, the divestiture 
      streamlines operations, reducing headcount by approximately 33% and 
      eliminating $20 million in annual operating losses. 

"Today marks a transformative milestone for 908 Devices--one that sharpens our strategic focus, enhances margins, and significantly accelerates our path to profitability, bringing our Adjusted EBITDA crossover into this year," said Kevin J. Knopp, CEO and Co-founder. "We've nearly doubled our cash reserves and aligned our efforts with powerful secular trends, including the fentanyl and opioid crisis, the global rise in defense budgets, and the U.S. border crisis. Moreover, our three key growth catalysts position us to exceed 20% top-line growth in 2026, driving full-year cash flow positivity. We believe our actions have fortified 908 Devices and created a compelling go-forward thesis for our investors."

Q4 2024 and Full Year 2024 Financial Highlights

   -- Revenue of $18.8 million for the fourth quarter 2024, increasing 31% 
      compared to the fourth quarter 2023 
 
   -- Revenue of $59.6 million for the full year 2024, increasing 19% compared 
      to the full year 2023 
 
          -- Handheld revenue was $46.1 million, increasing 22% year over year 
 
          -- Desktop revenue was $13.2 million, increasing 10% year over year 
 
          -- Recurring revenue was $23.3 million, increasing 42% year over year 
 
          -- 39% of revenue was recurring revenue, driven by service 
 
          -- Revenue from acquired FTIR products exceeded the post-acquisition 
             target of $11 million and increased 17% year over year on a 
             pro-forma basis 
 
   -- Adjusted gross margin of 55% for the full year 2024, increasing 250 
      basis points year over year 

Fourth Quarter 2024 Financial Results

Revenue was $18.8 million for the three months ended December 31, 2024, a 31% increase over the prior year period. This was driven by a 22% increase in handheld revenue and a 56% increase in desktop revenue. The installed base grew 23% year-over-year to 3,504 devices, with 219 handheld devices and 32 desktop devices placed during the fourth quarter. Recurring revenue represented 39% of total revenues in the quarter.

Gross profit was $9.1 million for the fourth quarter of 2024, compared to $7.3 million for the corresponding period in the prior year. GAAP Gross margin was 48% as compared to 51% for the corresponding prior year period. Adjusted gross profit was $10.0 million for the fourth quarter of 2024, compared to $7.5 million for the corresponding period in the prior year. Adjusted gross margin was 54% as compared to 53% for the corresponding prior year period.

Operating expenses were $29.4 million for the fourth quarter of 2024, compared to $17.0 million for the corresponding prior year period. This increase was driven by a $10.1 million non-cash charge for an impairment of goodwill, the inclusion of operating expenses related to our RedWave Technology acquisition and stock-based compensation, offset in part by a $1.1 million credit for the change in fair value of the contingent consideration liability.

Net loss was $19.4 million for the fourth quarter of 2024, compared to $7.4 million for the corresponding prior year period. Adjusted EBITDA was a loss of $6.2 million for the fourth quarter of 2024, compared to a loss of $7.0 million for the fourth quarter of 2023.

Full Year 2024 Financial Results

Revenue was $59.6 million for the year ended December 31, 2024, a 19% increase over the prior year period. This was primarily driven by an increase in revenues from FTIR products within handhelds and desktop revenues. Recurring revenue represented 39% of total 2024 revenues, compared to 33% in 2023.

Gross profit was $29.9 million for 2024, compared to $25.3 million for the corresponding prior year period. Gross margin was 50%, compared to 50% for the corresponding prior year period. Adjusted gross profit was $32.8 million for 2024, compared to $26.3 million for the corresponding prior year period. Adjusted gross margin was 55%, compared to 52% for the corresponding prior year period.

Operating expenses were $106.6 million for 2024, compared to $68.1 million for the corresponding prior year period. This increase was driven by a $40.7 million non-cash charge for an impairment of goodwill, the inclusion of operating expenses related to our RedWave Technology acquisition and stock-based compensation, offset in part by a $13.2 million credit for the change in fair value of the contingent consideration liability.

Net loss was $72.2 million for 2024, compared to $36.4 million for the corresponding prior year period, with the increase largely driven by the $40.7 million non-cash charge for an impairment of goodwill. Adjusted EBITDA was a loss of $29.6 million for 2024, compared to a loss of $30.0 million for the corresponding prior year period.

Cash, cash equivalents and marketable securities were $69.6 million as of December 31, 2024, with no debt outstanding. Subsequent to year end, 908 Devices announced the sale of their desktop assets, consisting of MAVEN, MAVERICK, REBEL, and ZipChip products, for $70 million.

2025 Guidance

908 Devices expects full year 2025 revenues from continuing operations of $53 million to $55 million, representing 11% to 15% growth compared to 2024 revenue from continuing operations. Full year 2025 reported revenues are expected to be $54 million to $56 million, inclusive of approximately $1 million of desktop revenues in the first quarter, prior to divestiture.

Webcast Information

908 Devices will host a conference call to discuss the fourth quarter and full year 2024 financial results before market open on Tuesday, March 4, 2025 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 analysis with its simple handheld and desktop devices, addressing life-altering 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 forensics, bioprocessing, pharma / biopharma, life sciences research 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 complementary analytical technologies, microfluidic sampling and separations, software automation, and machine learning.

Non-GAAP Measures of Financial Performance

To supplement the Company's financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release and presented with detailed reconciliations to comparable GAAP financial results in the tables below:

   -- 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 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 December 
                                     31,                 Year Ended December 31, 
                        -----------------------------  ---------------------------- 
                             2024            2023          2024           2023 
                        ---------------  ------------  ------------  -------------- 
Revenue: 
    Product revenue     $    13,578      $    11,436   $    43,922   $    40,214 
    Service and 
     contract revenue         5,242            2,915        15,709        10,015 
                         ----------       ----------    ----------    ---------- 
        Total revenue        18,820           14,351        59,631        50,229 
                         ----------       ----------    ----------    ---------- 
Cost of revenue: 
    Product cost of 
     revenue                  7,466            5,191        21,645        18,428 
    Service and 
     contract cost of 
     revenue                  2,251            1,885         8,130         6,479 
        Total cost of 
         revenue              9,717            7,076        29,775        24,907 
                         ----------       ----------    ----------    ---------- 
        Gross profit          9,103            7,275        29,856        25,322 
                         ----------       ----------    ----------    ---------- 
Operating expenses: 
    Research and 
     development              6,536            5,444        25,495        21,904 
    Selling, general 
     and 
     administrative          13,759           11,544        53,636        46,069 
    Change in fair 
     value of 
     contingent 
     consideration           (1,075)              --       (13,216)          107 
    Goodwill 
     Impairment              10,136               --        40,659            -- 
                         ----------       ----------    ----------    ---------- 
          Total 
           operating 
           expenses          29,356           16,988       106,574        68,080 
                         ----------       ----------    ----------    ---------- 
          Loss from 
           operations       (20,253)          (9,713)      (76,718)      (42,758) 
                         ----------       ----------    ----------    ---------- 
Other income, net               736            2,282         4,230         6,148 
Loss from operations 
 before income taxes        (19,517)          (7,431)      (72,488)      (36,610) 
Benefit for income 
 taxes                           71                2           282           211 
                         ----------       ----------    ----------    ---------- 
Net loss                $   (19,446)     $    (7,429)      (72,206)      (36,399) 
                         ==========       ==========    ==========    ========== 
 
Net loss per share 
 attributable to 
 common stockholders    $     (0.56)     $     (0.23)  $     (2.12)  $     (1.13) 
                         ==========       ==========    ==========    ========== 
Weighted average 
 common shares 
 outstanding             34,670,638       32,199,156    34,076,321    32,239,394 
                         ==========       ==========    ==========    ========== 
 
 
 
                             908 DEVICES INC. 
                  Condensed Consolidated Balance Sheets 
                              (in thousands) 
                                (unaudited) 
 
                                             December 31,    December 31, 
                                                 2024            2023 
                                            --------------  -------------- 
Assets 
Current assets: 
    Cash, cash equivalents and marketable 
     securities                             $       69,600  $      145,682 
    Accounts receivable, net                        12,627           8,989 
    Inventory                                       16,173          14,938 
    Prepaid expenses and other current 
     assets                                          4,655           4,181 
                                                ----------      ---------- 
        Total current assets                       103,055         173,790 
Operating lease, right-of-use assets                 6,910           6,233 
Property and equipment, net                          3,421           3,342 
Goodwill                                                --          10,367 
Intangible, net                                     45,261           7,860 
Other long-term assets                                 829           1,389 
                                                ----------      ---------- 
        Total assets                        $      159,476  $      202,981 
                                                ==========      ========== 
Liabilities and Stockholders' Equity 
Current liabilities: 
    Accounts payable and accrued expenses   $       11,159  $        9,904 
    Deferred revenue                                12,125          10,629 
    Operating lease liabilities                      1,865           2,016 
                                                ----------      ---------- 
        Total current liabilities                   25,149          22,549 
Deferred revenue, net of current portion            10,679           3,929 
Other long-term liabilities                          9,056          11,012 
                                                ----------      ---------- 
        Total liabilities                           44,884          37,490 
Total stockholders' equity                         114,592         165,491 
                                                ----------      ---------- 
        Total liabilities and 
         stockholders' equity               $      159,476  $      202,981 
                                                ==========      ========== 
 
 
 
    908 DEVICES INC. 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            Year Ended 
                          December 31,              December 31, 
                     -----------------------  ------------------------ 
                        2024         2023        2024         2023 
                     -----------  ----------  -----------  ----------- 
 
Gross Profit (GAAP)  $ 9,103      $7,275      $29,856      $25,322 
 
    Intangible 
     amortization        741         107        2,121          428 
    Acquisition 
    and 
    integration 
    costs                  -           -            -            - 
    Restructuring         69           -           69            - 
    Stock-based 
     compensation        157         167          753          577 
                      ------       -----       ------       ------ 
 
Adjusted Gross 
 Profit (Non-GAAP)   $10,070      $7,549      $32,799      $26,327 
                      ------       -----       ------       ------ 
 
Gross Margin 
 Percentage (GAAP)        48%         51%          50%          50% 
 
Adjusted Gross 
 Margin Percentage 
 (Non-GAAP)               54%         53%          55%          52% 
 
 
 
 
Reconciliation from Net Loss (GAAP) to Adjusted EBITDA 
(Non-GAAP): 
 
                     Three Months Ended         Year Ended 
                        December 31,           December 31, 
                     -------------------  ---------------------- 
                       2024       2023      2024        2023 
                     ---------  --------  ---------  ----------- 
 
Net Loss (GAAP)      $(19,446)  $(7,429)  $(72,206)  $(36,399) 
 
Adjustments: 
    Other income, 
     net                 (736)   (2,282)    (4,230)    (6,148) 
    Benefit for 
     income taxes         (71)       (2)      (282)      (211) 
    Depreciation          514       380      1,942      1,466 
    Intangible 
     amortization         903       219      2,746        877 
    Goodwill 
     impairment        10,136         -     40,659          - 
    Acquisition and 
     integration 
     costs                162        44      2,492         44 
    Restructuring         539         -        710        524 
    Stock-based 
     compensation       2,825     2,339     11,763      9,787 
    Change in fair 
     value of 
     contingent 
     consideration     (1,075)     (228)   (13,216)       107 
                      -------    ------    -------    ------- 
 
Adjusted EBITDA 
 (Non-GAAP)          $ (6,249)  $(6,961)  $(29,622)  $(29,953) 
                      -------    ------    -------    ------- 
 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250304378915/en/

 
    CONTACT:    Investor Contact: 

Carrie Mendivil

IR@908devices.com

Media Contact:

Barbara Russo

brusso@908devices.com

 
 

(END) Dow Jones Newswires

March 04, 2025 07:45 ET (12:45 GMT)

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