908 Devices (MASS) Q1 2025 Earnings Call May 13, 2025 08:30 AM ET Speaker0 Hello, and welcome, everyone, to the nine zero eight Devices First Quarter twenty twenty five Financial Results Conference Call. My name is Becky, and I'll be your operator today. I will now hand over to your host, Kelly Gura, Investor Relations, to begin. Please go ahead. Speaker1 Thank you. This morning, nine zero eight Devices released financial results for the first quarter ended 03/31/2025. If you've not received this news relea ...

908 Devices Inc. (MASS) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.52%. A quarter ago, it was expected that this company would post a loss of $0.35 per share when it actually produced a loss of $0.32, delivering a surprise of 8.57%.Over the last four quarters, the company has surpasse ...

Revenue Performance - Revenue from continuing operations for the three months ended March 31, 2025, was $11.8 million, up from $7.4 million in the same period of 2024, representing a 59.5% increase[140] - Total revenue for the three months ended March 31, 2025, was $11.777 million, a 58.7% increase from $7.422 million in the same period of 2024[190] - Product revenue increased by $3.297 million, or 63%, to $8.529 million for the three months ended March 31, 2025, compared to $5.232 million in 2024[191] - Service and contract revenue rose by $1.058 million, or 48%, to $3.248 million for the three months ended March 31, 2025, compared to $2.190 million in 2024[195] Profitability and Losses - The company incurred net losses of $9.8 million for the three months ended March 31, 2025, compared to $5.9 million for the same period in 2024, indicating a 66.1% increase in losses[140] - Loss from operations for the three months ended March 31, 2025, was $(11.026) million, compared to $(7.611) million in the same period of 2024, representing a $3.415 million increase in losses[190] - Gross profit for the three months ended March 31, 2025, was $5.541 million, up 42.5% from $3.887 million in 2024[190] - Gross profit margin for product revenue decreased to 45% in Q1 2025 from 54% in Q1 2024, reflecting a 9 percentage point decline[191] Operating Expenses - Total operating expenses increased by $5.069 million, or 44.2%, to $16.567 million for the three months ended March 31, 2025, compared to $11.498 million in 2024[190] - Research and development expenses increased by $0.537 million, or 16.3%, to $3.829 million for the three months ended March 31, 2025, compared to $3.292 million in 2024[190] - Selling, general and administrative expenses increased to $10.2 million for the three months ended March 31, 2025, up by $2.0 million, or 25%, and accounted for 87% of total revenue[199] Cash Flow and Financial Position - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $124.3 million, sufficient to fund operations for at least the next twelve months[204] - Net cash used in operating activities was $15.0 million for the three months ended March 31, 2025, primarily due to noncash charges of $50.5 million and changes in operating assets and liabilities[212] - Net cash provided by investing activities was $50.3 million for the three months ended March 31, 2025, mainly from $69.9 million in proceeds from the sale of the Desktop Portfolio[214] - Cash used in financing activities was $0.2 million for the three months ended March 31, 2025, primarily for withholding taxes on vested equity awards[216] Strategic Outlook - The company expects to continue incurring net losses as it focuses on growing sales and scaling manufacturing operations[140] - The company plans to enhance its device technology and expand sales efforts to drive future growth[152] - The company plans to expand global sales efforts, particularly through distribution channels, as it assesses international market needs[190] - The company may seek additional funding through various means, including private or public equity financings and strategic alliances, but there is no assurance of obtaining funds on acceptable terms[209] Market and Economic Factors - The company is closely monitoring macroeconomic factors, including inflation and interest rates, which may impact its business and customer spending[143] Product and Placement Metrics - Recurring revenue accounted for 37% of total revenue for the three months ended March 31, 2025, slightly down from 38% in the same period of 2024[156] - Device sales represented 63% of total revenue for the three months ended March 31, 2025, compared to 62% for the same period in 2024[165] - The number of handheld product placements increased to 157 units for the three months ended March 31, 2025, up from 53 units in the same period of 2024, reflecting a 196.2% increase[163] - Cumulative product placements of handheld devices reached 3,172 units as of March 31, 2025, compared to 2,475 units as of March 31, 2024, marking a 28.2% increase[164] Contingent Consideration and Interest Income - The fair value of contingent consideration increased by $2.5 million due to the rise in the company's publicly quoted share price during the three months ended March 31, 2025[200] - Interest income decreased by $0.8 million to $0.9 million for the three months ended March 31, 2025, primarily due to a lower cash and marketable securities balance[201]

MAY 2025 Forward looking statements / Non-GAAP financial measures Analysis at the speed of life This presentation and the accompanying oral presentation (this "presentation") contain forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations of future results of operations or financial performance of 908 Devices Inc. ( ...

Revenue Performance - Revenue from continuing operations for Q1 2025 was $11.8 million, a 59% increase year-over-year, primarily driven by an 86% increase in handheld product and service revenue[5] - Recurring revenue reached $4.4 million, up 54% year-over-year, representing 37% of total revenues for the quarter[8] - The company expects full-year 2025 revenues from continuing operations to be between $53 million and $55 million, indicating an 11% to 15% growth compared to 2024[12] Profitability Metrics - Adjusted gross profit for Q1 2025 was $6.4 million, with an adjusted gross margin of 54%, an increase of approximately 75 basis points compared to the prior year[6] - Gross profit (GAAP) for Q1 2025 was $5,541 million, up from $3,887 million in Q1 2024, representing a 42.5% increase[24] - Adjusted gross profit (Non-GAAP) for Q1 2025 was $6,409 million, compared to $3,983 million in Q1 2024, indicating a 60.8% growth[24] - Gross margin percentage (GAAP) decreased to 47% in Q1 2025 from 52% in Q1 2024[24] - Adjusted gross margin percentage (Non-GAAP) remained stable at 54% for both Q1 2025 and Q1 2024[24] - Adjusted EBITDA (Non-GAAP) improved to $(4,569) million in Q1 2025, compared to $(5,339) million in Q1 2024, showing a reduction in losses[24] Operating Expenses - Operating expenses increased to $16.6 million in Q1 2025 from $11.5 million in the prior year, influenced by a $2.5 million non-cash charge related to contingent consideration[7] - Stock-based compensation increased to $2,221 million in Q1 2025 from $1,839 million in Q1 2024[24] - Acquisition and integration costs rose to $640 million in Q1 2025, up from $274 million in Q1 2024[24] - Intangible amortization for Q1 2025 was $713 million, while there was none reported in Q1 2024[24] Net Loss - Net loss from continuing operations was $9.8 million for Q1 2025, compared to a net loss of $5.9 million in the same period last year[9] - Net loss from continuing operations (GAAP) increased to $(9,838) million in Q1 2025 from $(5,895) million in Q1 2024[24] Device and Market Metrics - The installed base of devices grew 28% year-over-year to 3,172 devices, with 157 devices placed during Q1 2025[5] - A $2.0 million order for MX908 mass spectrometry devices was received from the Texas Department of Public Safety for drug detection[8] Cash Position - Cash, cash equivalents, and marketable securities totaled $124.3 million as of March 31, 2025, with no debt outstanding[11] Corporate Actions - The company announced the divestiture of its bioprocessing product portfolio to Repligen Corporation on March 4, 2025[8] Fair Value Adjustments - Change in fair value of contingent consideration was $2,499 million in Q1 2025, with no comparable figure in Q1 2024[24]

The market expects 908 Devices Inc. (MASS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 13, 2025, might help the stock move higher if these key numbers ar ...

Vancouver, British Columbia--(Newsfile Corp. - April 24, 2025) - Masivo Silver Corp. (TSXV: MASS) (OTC Pink: GNYPF) ("Masivo" or the "Company") is pleased to announce the completion of its strategic drill target program design at the Cerro Colorado property, located in Sonora, Mexico. An eight-hole, 1,300-meter drill program was designed by Senior Mexican Geologist Jorge Rafael Gallardo, with guidance from P.Geo Brian Brewer and P.Geo Mark Bailey. CEO David Coburn commented: "We're thrilled to launch our hi ...

Vancouver, British Columbia--(Newsfile Corp. - April 3, 2025) - Masivo Silver Corp. (TSXV: MASS) (OTC Pink: GNYPF) ("Masivo" or the "Company") is pleased to announce that on April 1, 2025 it completed the signing of an arms-length agreement to acquire the Cerro Colorado Gold, Copper and Silver project in the state of Sonora, Mexico with Jorge Rafael Gallardo Romero, Minera GoldZone S.A. de C.V. and partners. This project is located 28 kilometres from the city of Alamos, Sonora and 11 kilometres north of th ...

Financial Performance - The company generated revenue of $59.6 million and $50.2 million for the years ended December 31, 2024 and 2023, respectively, reflecting a year-over-year increase of 27.7%[393] - The company incurred net losses of $72.2 million and $36.4 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $242.8 million as of December 31, 2024[395] - Total revenue for the year ended December 31, 2024, was $59.6 million, a $9.4 million increase from $50.2 million in 2023[443] - The net loss for 2024 was $72,206,000, compared to a net loss of $36,399,000 in 2023, indicating a worsening financial position[524] - Cash and cash equivalents decreased to $44,032,000 in 2024 from $121,041,000 in 2023, a decline of 63.6%[522] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $77.0 million in 2024, compared to a decrease of $67.4 million in 2023[473] Revenue Composition - Recurring revenue accounted for 39% of total revenue in 2024, up from 33% in 2023, indicating a growing reliance on consumables and services[414] - Product revenue increased by $3.7 million, or 9%, to $43.9 million for the year ended December 31, 2024, compared to $40.2 million in 2023[444] - Service and contract revenue increased significantly by 56.5% to $15,709,000 from $10,015,000[524] - Device sales revenue increased to $35,991,000 in 2024 from $33,379,000 in 2023, a growth of 4.8%[586] - The total handheld revenue for 2024 was $46,238,000, up from $38,240,000 in 2023, representing a growth of 20.5%[586] Expenses and Costs - Selling, general and administrative expenses rose by $7.6 million, or 16%, to $53.6 million in 2024 compared to $46.1 million in 2023[443] - Research and development expenses increased by $3.6 million, or 16%, to $25.5 million in 2024 from $21.9 million in 2023[443] - Total operating expenses surged to $106,574,000, a 56.5% increase from $68,080,000 in 2023, primarily due to higher research and development costs[524] Acquisitions and Restructuring - The company completed an acquisition of RedWave for $45.0 million in cash and 1,497,171 shares of common stock, enhancing its portfolio of handheld chemical analysis devices[392] - An organizational restructuring was announced in November 2024, resulting in an approximately 11% workforce reduction to improve operational efficiencies[397] - The company acquired RedWave Technology for $44.8 million in April 2024, enhancing its portfolio of handheld chemical analysis devices[536] Cash Flow and Financing - Net cash used in operating activities for the year ended December 31, 2024, was $30.2 million, an increase from $25.1 million in 2023, primarily due to a net loss of $72.2 million[474][475] - Cash used in investing activities increased significantly to $46.3 million in 2024 from $26.4 million in 2023, largely due to the acquisition of RedWave for $44.8 million[476][477] - Cash used in financing activities decreased to $0.4 million in 2024 from $15.9 million in 2023, primarily due to a payment for contingent consideration related to the acquisition of Trace Analytics GmbH[478][479] Goodwill and Impairment - A goodwill impairment of $40.7 million was recorded for the year ended December 31, 2024, representing 68% of total revenue[454] - The company recorded a goodwill impairment of $40,659,000 in 2024, reflecting significant changes in asset valuation[524] Market and Economic Factors - The company is closely monitoring macroeconomic factors, including inflation and interest rates, which may impact customer spending and purchasing patterns[401] - The company expects to transition manufacturing operations from Massachusetts to North Carolina and Connecticut throughout 2025, with associated costs anticipated[399] Customer and Revenue Concentration - One customer accounted for 15% of gross accounts receivable as of December 31, 2024, highlighting a concentration risk[545] - Government sector revenue accounted for $46,161,000 in 2024, an increase of 20.5% from $38,232,000 in 2023[586] Future Outlook - The company expects gross profit margins to increase over the long term as sales and production volumes rise and costs per unit decrease[431] - The company anticipates that its cash and marketable securities will be sufficient to fund operations for at least the next 12 months[539] - The company expects to continue generating operating losses in the foreseeable future, indicating ongoing financial challenges[539]

Over the last couple of years, there have been numerous small-cap biopharma companies that have seen their stocks plunge. Last year, I covered one of these names, 908 Devices (NASDAQ: MASS ), that was a major favorite of high profile ETFI am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the investment manageme ...