908 Devices Reports Second Quarter 2021 Financial Results and Raises 2021 Revenue Outlook

Aug 4, 2021

Increased 2021 revenue guidance projects 54% annual revenue growth at the midpoint of the range

BOSTON--(BUSINESS WIRE)--Aug. 4, 2021-- 908 Devices Inc. (Nasdaq: MASS), a pioneer of purpose-built handheld and desktop mass spec devices for chemical and biomolecular analysis, today reported financial results for the quarter ended June 30, 2021.

“I am incredibly proud of our team’s progress this quarter as we continue to execute on our growth strategy. We have made important strides across our business and are looking forward to continuing this momentum into the second half of the year,” said Kevin J. Knopp, CEO and Co-founder. “We now expect revenue to grow more than 50% this year as we expand our global presence and continue to accelerate customer adoption.”

Recent Highlights

  • Total revenue for Q2 2021 increased 49% over Q1 2021 and decreased 26% over the prior year period
  • Desktop revenue contributed to a third of total revenue for Q2 2021, growing 70% over the prior year period
  • Increased the installed base to 1,530 devices with 103 devices placed during the second quarter
  • Broadened international presence with additions of new distribution partners and key hires across the commercial organization
  • Expanded platform reach in synthetic biology, specifically the cultured meat market, with multiple REBEL orders
  • Added Marcia Eisenberg, CSO of LabCorp, to our Board of Directors
  • Bolstered proteomic focus with the appointment of a panel of seven individuals to our Scientific Advisory Board

2021 Guidance

  • Expected revenue of $40 million to $43 million, representing 49% to 60% growth over full year 2020. This compares to the previously expected revenue range of $38 million to $40 million.

Second Quarter 2021 Financial Results

Revenue was $8.3 million for the three months ended June 30, 2021, a 49% increase over the first three months ended March 31, 2021 and a 26% decrease from $11.1 million for the three months ended June 30, 2020. A one-time revenue event in Q2 2020, due to the shipment of 150 MX908 handheld devices for a single customer, is primarily responsible for the year over year decline. Desktop revenue grew 70% year over year and contributed to one-third of total revenue for Q2 2021.

The install base grew to 1,530 placements with 103 devices placed in Q2 2021. The increase in devices was driven primarily by our handhelds which increased 63% over Q1 2021, and our desktops which increased 25% over Q1 2021.

Gross profit was $4.4 million for the second quarter of 2021, compared to $6.4 million for the corresponding prior year period. Product and service gross margin was 53%, as compared to 58% for the corresponding prior year period.

Operating expenses were $11.8 million for the second quarter of 2021, compared to $4.3 million for the corresponding prior year period. This increase was driven by headcount expansion across our business, primarily focused in our commercial organization, a provision to increase our allowance for bad debts, and increased expenses related to operating as a public company.

Net loss was $7.4 million for the second quarter of 2021, compared to net income of $2.1 million for the corresponding prior year period. Net loss per share was $0.27 for the second quarter of 2021, compared to a net income per share of $0.11 for the corresponding prior year period.

Cash and cash equivalents were $141 million as of June 30, 2021. In addition, the Company has approximately $15 million of debt outstanding.

Webcast Information

908 Devices will host a conference call to discuss the second quarter 2021 financial results before market open on Wednesday, August 4, 2021 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 democratizing laboratory mass spectrometry with its simple handheld and desktop devices, addressing critical-to-life 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 life sciences research, bioprocessing, pharma / biopharma, forensics 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 mass spectrometry, microfluidic separations, software automation, and machine learning.

Forward Looking Statements

This press release includes “forward-looking statements,” including statements relating to the Company’s future revenue and growth. Forward-looking statements 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 and Comprehensive Loss

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product and service revenue

 

$

7,915

 

 

$

10,378

 

 

$

13,272

 

 

$

13,017

 

 

License and contract revenue

 

 

362

 

 

 

750

 

 

 

548

 

 

 

2,112

 

 

Total revenue

 

 

8,277

 

 

 

11,128

 

 

 

13,820

 

 

 

15,129

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product and service cost of revenue

 

 

3,846

 

 

 

4,471

 

 

 

6,406

 

 

 

6,041

 

 

License and contract cost of revenue

 

 

52

 

 

 

247

 

 

 

127

 

 

 

580

 

 

Total cost of revenue

 

 

3,898

 

 

 

4,718

 

 

 

6,533

 

 

 

6,621

 

 

Gross profit

 

 

4,379

 

 

 

6,410

 

 

 

7,287

 

 

 

8,508

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

3,055

 

 

 

1,846

 

 

 

6,020

 

 

 

4,002

 

 

Selling, general and administrative

 

 

8,779

 

 

 

2,436

 

 

 

14,532

 

 

 

5,142

 

 

Total operating expenses

 

 

11,834

 

 

 

4,282

 

 

 

20,552

 

 

 

9,144

 

 

Income (loss) from operations

 

 

(7,455

)

 

 

2,128

 

 

 

(13,265

)

 

 

(636

)

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(39

)

 

 

(246

)

 

 

(415

)

 

 

(487

)

 

Other income (expense), net

 

 

70

 

 

 

213

 

 

 

161

 

 

 

252

 

 

Total other income (expense), net

 

 

31

 

 

 

(33

)

 

 

(254

)

 

 

(235

)

 

Net income (loss) and comprehensive income (loss)

 

$

(7,424

)

 

$

2,095

 

 

$

(13,519

)

 

$

(871

)

 

Net income (loss) per share attributable to common

stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.27

)

 

$

0.11

 

 

$

(0.49

)

 

$

(0.19

)

 

Diluted

 

$

(0.27

)

 

$

0.10

 

 

$

(0.49

)

 

$

(0.19

)

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,335,637

 

 

 

4,994,142

 

 

 

27,313,125

 

 

 

4,993,671

 

 

Diluted

 

 

27,335,637

 

 

 

5,614,136

 

 

 

27,313,125

 

 

 

4,993,671

 

 

 

 

908 DEVICES INC. 

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

 

2021

 

 

2020

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

141,314

 

 

$

159,227

 

 

Accounts receivable, net

 

 

5,324

 

 

 

6,825

 

 

Unbilled receivables

 

 

154

 

 

 

47

 

 

Inventory

 

 

7,953

 

 

 

4,568

 

 

Prepaid expenses and other current assets

 

 

2,441

 

 

 

300

 

 

Total current assets

 

 

157,186

 

 

 

170,967

 

 

Operating lease, right-of-use assets

 

 

5,752

 

 

 

6,287

 

 

Property and equipment, net

 

 

1,610

 

 

 

850

 

 

Other long-term assets

 

 

1,936

 

 

 

723

 

 

Total assets

 

$

166,484

 

 

$

178,827

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,004

 

 

$

1,004

 

 

Accrued expenses

 

 

4,944

 

 

 

5,038

 

 

Deferred revenue

 

 

3,965

 

 

 

3,104

 

 

Operating lease liabilities

 

 

1,265

 

 

 

1,187

 

 

Current portion of long-term debt

 

 

 

 

 

500

 

 

Total current liabilities

 

 

11,178

 

 

 

10,833

 

 

Long-term debt, net of discount and current portion

 

 

15,000

 

 

 

14,332

 

 

Operating lease liabilities, net of current portion

 

 

5,199

 

 

 

5,839

 

 

Deferred revenue, net of current portion

 

 

8,246

 

 

 

8,588

 

 

Other long-term liabilities

 

 

194

 

 

 

194

 

 

Total liabilities

 

 

39,817

 

 

 

39,786

 

 

Total stockholders' equity

 

 

126,667

 

 

 

139,041

 

 

Total liabilities and stockholders' equity

 

$

166,484

 

 

$

178,827

 

 

 

Carrie Mendivil
IR@908devices.com

Source: 908 Devices Inc.