908 Devices reports 15% annual revenue growth

BOSTON - 908 Devices Inc. (NASDAQ:MASS), known for its specialized chemical analysis equipment and currently valued at $69.3 million in market capitalization, has released its preliminary unaudited financial results for the fourth quarter and the full year of 2024. The company announced an anticipated 15% increase in annual revenue compared to the previous year, aligning with the upper end of its revenue guidance.

For the fourth quarter ended December 31, 2024, the company expects to report revenues of about $17.2 million, up from $14.4 million in the same quarter of 2023, marking a 20% increase. This growth is attributed to strong sales in both handheld and desktop device categories. The company's recent acquisition, RedWave Technology, is also expected to contribute to this performance, with projected double-digit pro-forma growth for the year and meeting post-acquisition revenue targets of around $11 million for approximately 8 months.

Despite the positive revenue outlook, 908 Devices reported a cash consumption of approximately $2 million during the last quarter of 2024. The company's cash, cash equivalents, and marketable securities stood at an unaudited $69.5 million at the end of the quarter, maintaining a strong liquidity position with a current ratio of 4.24. According to InvestingPro analysis, the company holds more cash than debt on its balance sheet, though it's quickly burning through its reserves.

Kevin J. Knopp, CEO and Co-founder of 908 Devices, expressed satisfaction with the business momentum, particularly noting the increased demand for the company's handheld FTIR devices. He remains optimistic about the future growth prospects of the company's handheld portfolio. While the stock has seen a significant decline of 74% over the past year, InvestingPro analysis suggests the company is currently undervalued, with 12 additional key insights available to subscribers. Discover comprehensive analysis and Fair Value estimates for over 1,400 US stocks with InvestingPro's detailed research reports.

The company plans to provide a detailed discussion of its 2024 financial results and outlook for 2025 later in the quarter. It should be noted that these preliminary results are subject to change pending the completion of annual audit procedures and internal reviews.

908 Devices specializes in creating handheld and desktop devices that simplify chemical analysis for a variety of applications, including forensics and life sciences. Headquartered in Boston, the company integrates analytical technologies, microfluidic sampling, and machine learning in its products.

The financial information shared is based on a press release statement and remains subject to finalization of the company's financial closing procedures.

In other recent news, 908 Devices, a leader in mass spectrometry devices, reported a 17% increase in revenue for the third quarter of 2024, reaching $16.8 million. Despite this growth, delays in federal budget approvals and international contracts have led the company to adjust its 2024 revenue guidance to $56-$58 million. This adjustment reflects an anticipated growth rate of 11%-15%.

Moreover, the company is taking steps to improve operational efficiency, including relocating manufacturing and reducing its workforce. These measures are expected to save $2.4 million and $4.2 million annually, respectively. Additionally, 908 Devices is focusing on strategic initiatives such as the upcoming launch of a next-generation MX908 device and full-rate production awards for the Department of Defense's AvCat program.

Despite facing headwinds in the bioprocessing and life science markets, 908 Devices remains optimistic about future growth, particularly in the biopharma sector. Notably, the company has secured a significant account win with the Vietnam Border Guard and has strategic partnerships in place to drive long-term growth. These recent developments underscore 908 Devices' commitment to navigating market challenges while positioning itself for future growth and margin expansion.

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