• Revenue: Q1 2024 revenue was $10 million, up 5% from $9.5 million in Q1 2023.

• Net Income: Net loss improved to $10.9 million in Q1 2024 from $12.5 million in Q1 2023.

• Gross Margin: Increased to 50% in Q1 2024 from 46% in Q1 2023.

• Handheld Device Revenue: $7.4 million in Q1 2024, up 20% from $6.2 million in Q1 2023.

• Desktop Product Revenue: $2.6 million in Q1 2024, down 17% from $3.1 million in Q1 2023.

• Recurring Revenue: $4.5 million in Q1 2024, representing 45% of total revenues.

• Acquisition of Redwave Technology: Expected to add $11 million in revenue for 2024, enhancing gross margins and accelerating path to profitability.

• 2024 Revenue Guidance: Projected to be between $63 million to $65 million, including $11 million from Redwave.

• Cash Position: Ended Q1 2024 with $134.2 million in cash and securities, with an additional $45 million used for the Redwave acquisition.

• Warning! GuruFocus has detected 6 Warning Signs with MASS.

Release Date: April 30, 2024

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

Q & A Highlights

Q: Hi, good morning. And wanted to start on RentWay and two things. One would be I think back to last acquisition and trace, obviously, we just on the product and Maverick that features the aseptic sample technology from Trace. So clearly at incorporating the technology and product development. And you referenced obviously the impressive portfolio that Radware has of their own products and how the sales channels overlap. But I'm just curious, as you looked at the deal, what you're thinking about from potential collaboration on the R&D or product development side and over time? A: Kevin Knopp - 908 Devices Inc. - CEO, Co-Founder: Yes. Hi, Matt. Thanks for the question. And you're right, I mean, we did the acquisition of trace analytics GmbH in 2022 and really a successful one that we're really happy. We did it. It is fully integrated now, as you know, it's become our base of operations in Europe and allowing us to take orders direct across Europe. And then as you mentioned, technology, we took a sampling technology and release the product made, and then that's on the market. And it's the basis of the online capabilities for next generations of Rebel when we get to that point. So lots and lots of good there on the R & D side and then plugging it in and having a base of operations in Europe. From the read rate perspective, we're super excited that now we have a portfolio of products in the bio processing life science instrumentation space for certain products. And we really built a nice foundation for that growth as we as we move along. But if you look at our handhelds. We've had one product and a series of accessories. So with Redwave that adds three additional products that have that high overlap with our customers and sales channel, which we can get immediately into the bag of our team from a R&D collaboration perspective. We briefly touched on it in the prepared remarks, but we're also excited that regulators have approximately $2 million of their sales last year in the pharma PAT. space, selling accessories and selling around improved FTR approach and the like heightened to industrial QHTC and pharma PAT application. So I would imagine as we continue to grow and the market justifies that, we'll be able to work more together on integrating and looking to offer additional FTIR based products into our desktop portfolio.

Q: Okay. That's great to hear. And you referenced obviously or Joe did I suppose in his comments from a CapEx recovery being key obviously to your own bioprocessing recovery, which just curious what you're hearing from customers about budgets for capital equipment. Are you any indicators of shifts in sales cycle or availability of capital. And you referenced obviously we placements at a top 20 biopharma. Any patterns or trends that you would call out in terms of customer groups and how they're perhaps have you in their purchasing ability this year? A: Kevin Knopp - 908 Devices Inc. - CEO, Co-Founder: Yes, sure. I'm happy to give a few comments there on. So yes, absolutely. It's really not the destocking dynamic of consumables that impacts 98 as you know, it's more around the CapEx spending for small-scale instrumentation like nine rate does here in the life science instrumentation market and bioprocessing. As you know, we're very much in the PD. lab process development labs. So that's in upstream preclinical world. So we've been seeing particularly pause there to adopt novel technologies in that space. I would say two things I mean one from a from open conversations with customers regarding budget, I think there's still uncertainty on the timing of the release of CapEx within the organizations. I've been direct conversations with several customers of hard to draw conclusions by group, as you asked for just because our numbers are fairly modest here, but I have definitely seen larger organizations as well as smaller position showing that uncertainty that last comment on that. In fact, one of our customers talking to of late is very much ready to pull the trigger but is waiting for their biotech funding to come through and additional series raise for that organization. So it's directly coupled so we are pleased that the world has been showing some positive signs in the bio tech funding arena, as you as you know, over the first quarter. So we're pleased for that. And what will take some time for that to ripple down? I'm sure but I think that is a positive thing. And the other thing that we mentioned in our prepared remarks, and we are getting a lot of engagement. While that engagement isn't translating directly to desktop orders as fast as we would, of course, all like lots of engagement. Joe called pushing things out in his prepared remarks regarding great engagement on a maverick revenue great engagements with customers doing valuations in some case funded evaluation so. Little color there for you.

Q: That's great. I'll jump back in queue. Congrats on what looks like that to really like that in terms of direct retail. A: Operator: Jacob Johnson, Stephens.

Q: Hey, thanks. Good morning and congrats on the deal. I guess I've got a couple on roadway make maybe just first on the red wave technology versus the MX 908 and use applications. Can you just talk about how complementary your products are with theirs? And then is there any risk what kind of cannibalization between these two product portfolios? A: Kevin Knopp - 908 Devices Inc. - CEO, Co-Founder: Yes. Yes, happy to. Thanks, Jacob, for the congratulations there. The we're really excited for the Red Lake side. I mean, first, from a technology perspective, they are very complementary and very much expands the toolkit. We mentioned that about 80% of our international distributors represent both. And we would only do that if they were not in a competitive situation and that they were in fact complementary. So it's a little bit of a proof point there. But in its simplest way, you can think of the MX technology has a new product class is taking mass spec. So it has immense sensitivity. So it can measure things at very, very low trace levels. So invisible amounts a residue a minute particulates aerosols in the air. Now, if you think of the red wave technology, it can measure a bulk quantities, but it can measure many, many more chemicals, 22,000 plus chemicals that can measure. So the two are often used by our customers in concert depending on the situation and where they go. So we really don't see that their competitive nature to those products from there. They're positioning it. And as you know, obviously, we're excited for them for Redwave as well do its financial profile. We have pretty high benchmarks that we've been trying to stay true to. And this acquisition really kind of showcases those in terms of being very synergistic from a cost perspective that we touched on, as well as the complete financial portfolio profile. That's a bit accretive in

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

This article first appeared on GuruFocus.