Rapid Micro Biosystems(RPID) - 2025 Q1 - Quarterly Results

Financial & Operational Highlights Rapid Micro Biosystems reported strong financial performance for the first quarter of 2025, highlighted by a 28% increase in total revenue and a significant 33-percentage point improvement in gross margin compared to the prior-year period. The company also announced a key global distribution and collaboration agreement with MilliporeSigma and reaffirmed its full-year 2025 revenue guidance Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $7.2 million | +28% | | Gross Margin | 6% | +33 percentage points | - Service revenue reached a record high, driven by strong validation activity for customer systems[3][9] - Announced a global Distribution and Collaboration Agreement with MilliporeSigma to help accelerate Growth Direct system placements and improve gross margins[3][9] - Full-year 2025 total revenue guidance of at least $32.0 million is reaffirmed[8][9] First Quarter Financial Results Analysis In Q1 2025, total revenue grew 28% to $7.2 million, primarily fueled by a 64% surge in service revenue. Gross margin turned positive at 6%, a substantial improvement from negative 27% in Q1 2024, due to lower cost of revenue. Operating expenses saw a 5% reduction, contributing to a smaller net loss of $11.3 million, or $0.26 per share. The company maintained a healthy liquidity position with approximately $42 million in cash and investments and no debt Q1 2025 vs. Q1 2024 Revenue Breakdown (in millions) | Revenue Type | Q1 2025 | Q1 2024 | Growth | | :--- | :--- | :--- | :--- | | Product Revenue | $4.1 | $3.7 | +10% | | Service Revenue | $3.1 | $1.9 | +64% | | Total Revenue | $7.2 | $5.6 | +28% | | Recurring Revenue | $4.0 | $3.7 | +6% | - The company placed three new Growth Direct® systems and completed nine customer system validations, compared to three placements and three validations in Q1 2024[4] Q1 2025 vs. Q1 2024 Profitability (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit (Margin) | $0.4 (6%) | -$1.5 (-27%) | | Total Operating Expenses | $12.1 | $12.8 | | Net Loss | $11.3 | $13.3 | | Net Loss Per Share | $0.26 | $0.31 | - As of March 31, 2025, the company had approximately $42 million in cash, cash equivalents, and short-term investments, with no debt outstanding[7] 2025 Outlook The company has reaffirmed its full-year 2025 financial guidance, signaling confidence in its operational strategy and market position for the remainder of the year Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Total Revenue | At least $32.0 million | | System Placements | Between 21 and 25 | Financial Statements The financial statements provide a detailed overview of the company's financial position and performance for the period Unaudited Condensed Consolidated Statements of Operations The statement of operations for the three months ended March 31, 2025, shows a 28% increase in total revenue to $7.2 million and a reduced net loss of $11.3 million compared to a $13.3 million loss in the prior-year period, reflecting improved gross margins and controlled operating expenses Q1 2025 Statement of Operations (in thousands, except per share data) | | Three Months Ended March 31, | | :--- | :---: | :---: | | | 2025 | 2024 | | Revenue: | | | | Product revenue | $4,101 | $3,713 | | Service revenue | $3,104 | $1,898 | | Total revenue | $7,205 | $5,611 | | Costs and operating expenses: | | | | Cost of product revenue | $5,029 | $5,173 | | Cost of service revenue | $1,772 | $1,961 | | Research and development | $3,624 | $3,842 | | Sales and marketing | $2,751 | $3,281 | | General and administrative | $5,690 | $5,627 | | Total costs and operating expenses | $18,866 | $19,884 | | Loss from operations | ($11,661) | ($14,273) | | Interest income, net | $466 | $983 | | Net loss | ($11,263) | ($13,322) | | Net loss per share — basic and diluted | ($0.26) | ($0.31) | Unaudited Condensed Consolidated Balance Sheets As of March 31, 2025, the company's balance sheet shows total assets of $85.4 million and total liabilities of $19.9 million. This compares to total assets of $98.2 million and total liabilities of $22.8 million at the end of 2024, with the decrease in assets primarily driven by a reduction in short-term investments Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :---: | :---: | | Assets | | | | Cash and cash equivalents | $18,906 | $16,911 | | Short-term investments | $22,764 | $33,821 | | Total current assets | $69,182 | $80,917 | | Total assets | $85,434 | $98,169 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | $14,996 | $17,565 | | Total liabilities | $19,943 | $22,817 | | Total stockholders' equity | $65,491 | $75,352 | Unaudited Cash, Cash Equivalents and Investments The company's total cash, cash equivalents, and investments stood at $41.7 million as of March 31, 2025, a decrease from $50.7 million at the end of 2024 Cash Position (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :---: | :---: | | Cash and cash equivalents | $18,906 | $16,911 | | Short-term investments | $22,764 | $33,821 | | Cash, cash equivalents and investments | $41,670 | $50,732 | Other Information This section provides details on the investor conference call, a corporate overview of Rapid Micro Biosystems' business in automating microbial quality control (MQC), and the standard forward-looking statements disclaimer outlining potential risks and uncertainties - The company will host a conference call on May 9, 2025, at 8:30 a.m. ET to discuss the quarterly results[10] - Rapid Micro Biosystems provides automation solutions, including its flagship Growth Direct system, to modernize manual microbial quality control (MQC) testing for pharmaceutical manufacturing[11] - The press release contains forward-looking statements concerning financial guidance, the MilliporeSigma collaboration, and operational improvements, which are subject to risks and uncertainties detailed in SEC filings[13][14]