908 Devices (MASS) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Financial performance and growth drivers

• Handheld business accounted for 75% of revenue in Q2, growing 26%, driven by FTIR products and service revenue.

• Desktop segment faced challenges due to broader CapEx and funding constraints, but is positioned for future growth.

• Full-year pro forma growth guidance is 6%-9%, primarily led by handhelds.

• Gross margins reached 56% in H1, with mid-50s% expected for the year; margin expansion anticipated with scale.

• Recurring revenue comprised 41% of H1 revenue, with desktops offering higher pull-through potential than handhelds.

Strategic acquisitions and integration

• RedWave acquisition added FTIR technology, expanding analyte coverage and complementing mass spectrometry offerings.

• RedWave generated $3M in revenue in the first two months post-acquisition; $11M expected for the full year.

• Synergies include technology, customer base, and manufacturing capacity, with $5M+ in expected leverage by 2026.

• Earn-out structure incentivizes aggressive growth for RedWave.

• Trace Analytics acquisition in 2022 enhanced aseptic sampling capabilities, enabling new product launches.

Product portfolio and innovation

• Four desktop and four handheld products now in the portfolio, with recent launches in biopharma and bioprocessing.

• Focus on process analytical technology (PAT) to address unmet needs in bioprocessing and cell therapy.

• New products aim to automate and provide real-time insights for complex bioprocesses.

• Next-gen handheld MX mass spec and incremental Rebel desktop updates are in development.

• Product roadmap targets a major release every 18-24 months.