908 Devices (MASS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $14 million, up 16% year-over-year, with $3.1 million from the RedWave acquisition completed in April.

• H1 2024 revenue was $24 million, up 11% year-over-year, with net loss widening to $23.5 million; Q2 net loss was $12.5 million.

• Handheld device revenue grew 26% to $11.1 million in Q2, while desktop revenue declined 9% to $2.9 million.

• Recurring revenue represented 38% of total revenue in Q2, increasing to $5.3 million, mainly from service.

• Integration of RedWave completed, expanding the handheld portfolio and customer base.

Financial highlights

• Gross profit for Q2 2024 was $7.4 million (53% margin), up from $5.8 million (48%) in Q2 2023; adjusted gross profit was $8.2 million (58% margin).

• Operating expenses rose to $21 million in Q2 2024, including acquisition/integration costs and higher stock-based compensation.

• Net loss for Q2 2024 was $12.5 million, compared to $9.3 million in Q2 2023; adjusted EBITDA loss was $7.3 million.

• Cash, cash equivalents, and marketable securities totaled $77.4 million as of June 30, 2024, with no debt.

• Service revenue grew 56% year-over-year in Q2 2024, with service gross margin improving by 12 percentage points.

Outlook and guidance

• 2024 revenue expected at $63–$65 million, up 25–29% over 2023, including $11 million from RedWave.

• Core business revenue guidance reiterated at $52–$54 million (4–8% YoY growth).

• Adjusted gross margin for 2024 projected in the mid-50% range, with further expansion in 2025.

• Handheld revenue mix expected to increase, with desktop contribution slightly lower in H2 2024.

• Existing liquidity expected to cover operating and capital needs for at least the next 12 months.