908 Devices Inc (MASS) Reports 9% Decrease in Q3 2023 Revenue, Narrows Full-Year Outlook
908 Devices Inc (NASDAQ:MASS) reported a 9% decrease in Q3 2023 revenue compared to the same period last year, primarily due to a decline in desktop devices and handheld recurring revenue.
Handheld revenue grew by 19% year-to-date, with expectations of further acceleration in Q4.
The company narrows its full-year 2023 revenue outlook to a range of $49 million to $51 million, representing 4% to 9% growth over full year 2022.
Net loss for Q3 2023 was $7.1 million, compared to $6.3 million for the same period in the previous year.
908 Devices Inc (NASDAQ:MASS), a pioneer in handheld and desktop devices for chemical and biochemical analysis, announced its financial results for the quarter ended September 30, 2023, on November 7, 2023. Despite challenging conditions in the life sciences instrumentation and bioprocessing markets, the company saw a positive growth trend over the past nine months, particularly in handheld revenue, which grew 19% year-to-date.
Financial Highlights
Revenue for Q3 2023 was $14.3 million, a 9% decrease compared to the same period last year. This was primarily due to a decline in desktop devices and handheld recurring revenue. The installed base grew to 2,714 devices with 124 devices placed during the third quarter 2023.
Recurring revenue represented 25% of total revenues in the quarter, declining $0.9 million to $3.6 million over the prior year period. This was driven by a decline in handheld accessory and consumable revenue, offset in part by growth in service revenue.
Gross profit for Q3 2023 was $7.9 million, compared to $9.3 million for the same period in 2022. The gross margin was 55%, compared to 59% for the corresponding prior year period. The decline in gross margin was largely due to the decrease in revenues as well as higher service costs with training obligations, charges for excess and obsolete inventory, and the higher non-cash charges for intangible amortization and stock-based compensation during the third quarter of 2023.
Operating Expenses and Net Loss
Operating expenses for Q3 2023 were $17.0 million, compared to $16.5 million for the same period in 2022. This increase was driven by stock-based compensation and an increase in acquisition-related costs for intangible amortization and valuation of contingent milestones, offset in part by a reduction in general operating costs.
The net loss for Q3 2023 was $7.1 million, compared to $6.3 million for the same period in 2022. Net loss per share was $0.22 for the third quarter of 2023, compared to a net loss per share of $0.20 for the corresponding prior year period.
2023 Guidance
908 Devices Inc (NASDAQ:MASS) now expects full-year 2023 revenue to be in the range of $49 million to $51 million, representing 4% to 9% growth over full year 2022, which compares to its previous expectations of $49 million to $52 million.
Company Overview
908 Devices Inc (NASDAQ:MASS) is revolutionizing chemical and biochemical analysis with its simple handheld and desktop devices, addressing critical-to-life applications. The company's devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address some of the most critical problems in life sciences research, bioprocessing, pharma/biopharma, forensics, and adjacent markets.
Explore the complete 8-K earnings release (here) from 908 Devices Inc for further details.
This article first appeared on GuruFocus.
