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LEXINGTON, Mass. – Rapid Micro Biosystems Inc. (NASDAQ:RPID), a technology company specializing in automated solutions for healthcare product manufacturing, has reported preliminary unaudited financial results indicating a record revenue for the fourth quarter of 2024. According to InvestingPro data, the company's stock has shown strong momentum with a 60% gain over the past six months, though analysis suggests the stock may be currently undervalued. The company expects a revenue of approximately $8.2 million for the quarter, marking a growth of about 30% compared to the same period in the prior year. Full-year revenue for 2024 is anticipated to be around $28.1 million, representing an increase of roughly 25% from the previous year. While revenue growth remains strong, InvestingPro analysis reveals the company faces challenges with negative gross profit margins and rapid cash burn, though it maintains a healthy balance sheet with more cash than debt.
The company's recurring revenue for the fourth quarter is projected at approximately $4.2 million, a 27% rise from the prior-year period. For the entire year, recurring revenue is expected to be about $15.5 million, up 14% from the previous year.
In addition to its strong financial performance, the company announced a successful collaboration with Lonza, a global leader in life sciences. This partnership has led to the creation of the first fully automated end-to-end environmental monitoring quality control solution. The integrated system, combining Rapid Micro Biosystems' Growth Direct and Lonza's MODA-EM module, is being deployed across Lonza’s worldwide cell and gene therapy manufacturing network.
Rapid Micro Biosystems, which is headquartered in Lexington, Massachusetts, with additional locations in Switzerland, Germany, and the Netherlands, emphasizes the importance of its flagship Growth Direct system. This system automates microbial quality control testing workflows, which are crucial for the efficient manufacturing and rapid, safe release of healthcare products such as vaccines and sterile injectables.
The company placed six new Growth Direct systems and completed the validation of four customer systems in the fourth quarter, bringing the total to over 160 systems placed and over 135 systems validated globally.
The preliminary financial results are subject to adjustment upon completion of the year-end financial close processes. Rapid Micro Biosystems plans to announce complete financial results for the fourth quarter and full year 2024 and will host a webcast to discuss these results and its outlook for 2025 later in the first quarter. For deeper insights into RPID's financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro, which offers detailed research reports covering over 1,400 US stocks.
This report is based on a press release statement from Rapid Micro Biosystems, Inc.
In other recent news, Rapid Micro Biosystems has announced a record total revenue of $7.6 million for Q3, a 24% year-over-year increase. This marks the eighth consecutive quarter the company has surpassed its guidance. The company also confirmed its full-year revenue forecast of at least $27 million, indicating a steady growth trajectory. The company placed seven Growth Direct systems in Q3, the highest since Q3 2021, and has improved its gross margins to 8%. Despite these advances, the company still operates at a net loss, with Q3 2024's loss recorded at $11.3 million. In the face of a cautious market environment, the company received a multi-system order from a top 20 pharma customer and has strong prospects in the biologics and cell and gene consumables sectors. These recent developments point towards a path of sustainable growth for Rapid Micro Biosystems.
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