908 Devices (MASS) 30 Apr 242024 Q1 Earnings call transcript

Hello, everyone, and welcome to the 908 Devices' First Quarter 2024 Financial Results Conference Call. My name is Seth, and I'll be the operator for your call today. [Operator Instructions] I will now hand the floor over to Kelly Gura, Investor Relations, to begin the call.

Thank you. This morning, 908 Devices released financial results for the first quarter ended March 31, 2024.

today this to or please and the e-mail ir.XXXdevices.com.Joining received to you'd send Co-Founder; not Kevin to added is Chief be company's me and you've Joe news Executive Financial if release like an Knopp, Griffith, If Chief XXX Officer. Officer from distribution list, webcast. includes a is Today's presentation, call viewable to which slide those joining via to the we available forward-looking The the of call call like under also begin, ir.XXXdevices.com Presentation.Before and be this after securities you federal will menu will statements management Events slides at header during meaning that make remind I'd ends laws. within statements the are that material results and materially those to statements that could from risks or involve events cause actual differ These uncertainties anticipated.

uncertainties Statements entitled the Devices and appears release XXX Additional in in today. press information Forward-Looking issued these section the regarding risks

the events to over contains For otherwise. Factors complete live Except with Form December by obligation Risk revise XXX projections other future financial forward-looking in This call disclaims whether please section report XX, Devices XXXX.With as law, see for as April or broadcast, like its because of is information, turn new XX, the to conference would any a statements, the call accurate and to on listing or Exchange Commission. time-sensitive annual ended Securities and of the intention year and XX-K company's more required information description, XXXX, or only the update any or of I that, the filings Kevin.

line and growth We had X% the start joining first million quarter and for earnings our year revenue call. service Good product for $XX to morning, representing the Kelly. Thanks, solid of quarter, first year-over-year. thank with top you a XXXX

at team robust internationally.Over to throughout identification innovation We has demand and and chemical our point this our portfolio XXXX. further clear traction U.S. devices years, year anticipate own serves our and a several of the robust the trend the QX markets in we detection gained earnings well the last as persist and for product the X need for strategic continue On handheld as outlined applications that through in see to built past our a objectives for bioprocessing as both call, forensics through acquisition.

acquisition First, reach; to portfolio; and to our are to growth expanded a framework leverage path over very expand under additive we announce the our the morning, excited initiatives to RedWave for the This of fit for to market second, a and of profitability. our and strong is year, product strategic long with near third, execute a to acquisition be will Technology. existing term. This each believe sustained we

see rationale which momentarily, companies, is and acquisition. makes very between the compelling you there As this synergies X strong very a will strategic

lower personal me fit Officer, Devices. materialize.So first team, of which reviewing large-scale outlines our which acquisition founder-led expect medicines. a impacts life-changing I and the for highlight to the the expect has well This acquisition, mission and our makes our of you and our It we day. first we customers quarter with the believe excited execution similar business. areas. focus highly compelling have to to with ethos, fentanyl technology mission, Government and technical XXX for thrives call results, along spectroscopy that that for Similar product the of responders as will Importantly, of why our safety space, are to rationale financial points Sales applications matches have development on into teams efforts is innovative our very of of will cultures wanted in summarize we Further, helping welcome this answer competent impact our and Chief products us technical believe on a experience we frontline each pharmaceuticals about advanced so management, VP teams positive of are synergies rid set acquisition positive our the the I many set people's to help increase key significantly our strong to our positive X counterfeit must we to lives organization.XXX and RedWave a others to in many optical there I, that through prior is which creating with immense at Devices other team team enable our RedWave walk from organization commercial risk workers our a and with of see the We well-understood commercial that slides communities penetration. extremely this we the and and culturally our believe Product into

gross handheld expands positive unknown handheld as gases and First, operating margins to identification. goes liquids, their and positive workflows, initial a business.Second, cash It products. solids, With business year-over-year stand-alone owned a from approximately of XX%. revenue and chemical unaudited privately market-leading our a RedWave, broader XX% as analysis Last X detection has spanning grew company, of operated through a forensics attractive with million, attractive approximately margin financial devices $XX.X year, toolkit full plus an X high-growth, this handheld profile. profitable, acquisition, RedWave portfolio flow year to revenues approximately aerosols is serve they of of XX% XXXX our from

has and we analytical our more pharma applications see global accelerate supporting often of called technology we capabilities and RedWave's Fourth, applications. flow already newly business. the the forensics handheld sales portfolio.And Raman enhances Immediately, for upstream cash released Raman a a our we and scientific FTIR, with and which leverage our synergies to significantly our platform product, RedWave trajectory addressable to our the RedWave's penetration while to add technology market, combination MAVERICK, enhancing this be optical products to forensics principle. existing direct our to an technology on of in additive small efficiency operates the other technologies related in is growth RedWave RedWave the to bags that products infrared presence our this QC, With immediately for reach. is customers comprehensive spectroscopy team, further that and our enhance commercial profile. financial $X.X bolster billion.Third, leverage infrared spectroscopy expanded FTIR finally, estimate and expect profitable on is customers, accretive here Process to is platform than bioprocessing addition downstream robust opportunity and fifth, based RedWave scale portfolio, bioprocessing generating. margins. also today, our RedWave Their future gross to related of XXX the

April $X infrastructure synergies cost with expect XXXX. expected closing leverage our The annual we accelerate our revenues profitability crossover are more the cash million importantly, value which XX. stock be of be on cost also $XX.X synergies representing than breakeven X.X million price will we our RedWave to cash cash breakeven $XXX hand.The to shares XXX in is able and sales flow million in that million have contribution of to in reach We And to annual accelerate of identified and upfront the forecasted and identified steeper reach revenue, that ramp a transaction $X.X in expect realized path our $XX with of thereafter. to using as continue to million we is comprised million,

for million to threshold million X required there our consideration price totaling XX for additional meet milestone $XX.X the XX% these XX closing is up April over as to potential is the addition, minimum using An annualized representing accelerated the In shares, approximate for growth next stock of months. growth payments.

The other of regarded and spectroscopy. are inspection additional by positioned XX,XXX replace conveniences of in consideration and RedWave's including mobile value spectroscopy As There's believe app RedWave species.Given in space annualized Using creates handheld runway a Danbury, ahead foot in liquids. then for and This spec broad the is of a than our are well-known legacy sensitivity, XX specific cost-efficient Devices this chemicals respected mass of is of types and same becomes XXXX growth RedWave integration. remote revenue capabilities and substance powders the FTIR long-term months, of XX,XXX across visible materials. including earned law and modern target and complementary Connecticut. bulk, a innovation the technology list team focused such growth They've customs FTIR. customers trace as is and square a accelerated called growth. capabilities more an products in long over well workers, our identify white invisible first compact and the range par renowned for solids modern highly can our at unknown facility technology a rewards tremendous achieving products, providing than agents the our enforcement is that devices, in shareholders detection detection responders, identification full its complementary its with company products infrared at connectivity variants the amounts approximate XXX capability XX,XXX more RedWave very lacking as as chemical XX% drugs, of products for optical postal this including globally. performance.RedWave a in opportunity upon is for stock on growth historic to headquartered for issuance founded levels RedWave earnout frontline with products and other rate. and unparalleled We structure a FTIR abilities levels, developed growth a handheld identification for technology, of is was leader

In our gases opportunity leak there's built identify the a RedWave handheld address addition hazardous to an road MX and X help source replace DOC to our expanded that offerings situations. that gas to well products offers legacy for track Aero MXXXX our an identification. map monitoring use products the and toxic space. fortify FTIR down of and and in pair with innovative They've can in significant opportunity air products, material the X,XXX industrial unknown to case

are product add is moments RedWave products team offerings mentioned highly our sales and identification. immediately.As Our ago, to detection excited products I for handheld these our analyte to complementary complementary

X bringing spec monitor analogs technologies our more to rapidly general and identification. Forensics from handheld are the are scale our our Together, for targeting customers' our our of spec to based XX,XXX analytes. both through platform offer and can customers. XXX to existing key onto supporting technology products cycle data the hazards. and now fentanyl our trace unseen, world-class and both their invisible a and sales it's available. broader sample platform, and toxic the existing more and relations handheld back new efficiently. service service. and toolkit offer the customers And MX comprehensive focuses combined on existing XX/X environment application detection bulk By RedWave's sense, a to chemicals to and the mass visible technology workflows.By through and we offering capability our bulk FTIR team bringing modalities serve view multiple assess dangerous highly most cycle we awareness with customers support and field ] can expand [ chemical to leverage FTIR for suited Strong fast ideally can better mass commercial Devices, market-leading In we use serve many customers forensics hundreds than RedWave's across support sales reach possible [ their and fentanyl, such ]

of with for cloud-based base. in RedWave's fielded additional over new expand users. we already the significantly offer and more we recurring devices scale fleet have existing value-add units XX,XXX our now have revenue.The management the services potential field offering, trained Collectively, than X,XXX Additionally, RedWave data to

a portfolio years, few serve will year in we we X gain a adding like believe devices just significant a desktops last efficiency to create of products last to of contributor are the X be as and focused scale acquisition, released that going biopharma forward. our portfolio desktop on With handhelds space well. this as creating we we Over for and forensics to products

of complete suites clear. desktops believe rationale For see having both customers.We our benefits here handhelds, and our products to by is incredibly great the offer strategic we and complementary

accelerate well. we acquisition believe this market that performing meaningfully First, been revenue growth end our will has in an

enable significant sales marketing customers points the call Second, synergies. overlapping and and

robust a bioprocessing. analysis opening portfolio market, point-of-need to toolbox with accretive of term both and to the a technologies access map forensics expands it line efficiency projected finally, capabilities in in leading spec, and addressable Fourth, now mass our to Raman margins. for created customers. Third, it is is FTIR, a large long gross and be forecasted top supporting platform, and have improve our a forensics broader X and scale lab-grade And it road tech

approximately RedWave earnings and acquiring sales accelerates begun cash-generating base will Devices above has are a own further XXXX million upstream RedWave year averages. our path a the our QC improved overlapping and beyond government We federal extend efforts. compelling marketing profile make infrared desktop the customer leverage XXX same of RedWave RedWave estimate of points, mass line revenue Internationally, now again, $X success customers and Raman-based and that devices margins, partners, XXX XX% for accounts, corporate device I to with FTIR, new breakeven.As downstream and into mentioned, profitable creating Raman MAVERICK on technologies accessories business, SAM. spectroscopy offers RedWave of scale.As rate represented their for with opportunity. PAT bioprocessing channel and PAT to just FTIR an financial this Raman scale believe and XXX efficiencies an call These touched meaningful optionality upstream QC, which help industrial Devices in growth a often earlier, have and of full many for U.S. our to for we our we downstream. large sales related spec, to accounts supporting of FTIR pharma applications Devices share adds leverage and enterprise into and and and accessories and penetrate portfolio pharma. with potential includes overlap,

large modalities an through We XXXX. and in product new science devices, acquisition our revenues year-over-year. handheld of XX% represented XXXX, device as to XXXX, a trace want for hold.Over to part and In integration fentanyl We at of accelerated grew in revenue GmbH our detection for line and our by X-year innovative our the flagship of subside time, that and nurture seen and top with year, handhelds we of for strategy in supported handheld in organization, for launched Since grown CAGR TRACE acquisition of applications. success. XX%, and related launches. absolutely just and our the driving RedWave of while second instrumentation suite us advanced win late our we market in position and total as space acquisition RedWave market therapeutic ourselves our developed are by for last desktops take have Analytics positioning that to successful is technology have a continue grow just following growth we believe the We IPO a headwinds we and the bioprocessing. growth bioprocessing selective desktop accelerated durable life growth position XX% acquisition X solidifying

XX% XXX on and growth, of we above contribute guidance X add core expect Over gross impact improved expect margins of to of million margins million, of $XX RedWave ownership contributions XXX moment.We earlier for $XX Devices revenue we to time, of favorable full a revenues to million will business In revenue, we to XXXX, average. year year. address details this representing between in increase compared from including acquisition, the Joe for reported months XXXX, we $XX now an higher to With profitability. X faster financial top revenue provided be a the from months XXXX. to to in XX% RedWave this guidance this project the the expect path corporate strong

with additional the a and cash positive is paid forward, be going balance synergies will an in of and months. funded The target more million in annual business, We XX acquisition consideration contingent over our to identified growth minimum than on approximately sheet RedWave from XX% meeting stock a be cost we cash forecasted flow have fully $X annual in realized are absorbing XXXX.

multiple growth. flow long-term cash a breakeven.At We business financial to goal always continue is durable, reach need foundation sufficient analysis This XXX our with profitable build chemical now is power building. the that believe have into are today well have hand to with hand foundation and we platforms future. solid the of operated to to further on that analytical lab-grade acquisition our we for the point at cash and We line Devices, vision in squarely fortifies

what reach breakeven $XXX a U.S. address I Further, international hand.I'm on more with years our billion handheld more have scale. to devices on am addition than research, cash path of and and first turn we've consolidated to over TAM. what's our portfolio to revenues for more annualized with excited continue I'll details cash the so We believe we proud And to bioprocessing improved QA/QC flow of able of with and reach the the several project than the over ability now Joe and that, even current next.With desktop in $X guidance. accelerated team has last Technology, to accomplish been to on greater our million of our quarter and forensics, call updated for RedWave we our

Thanks, XXXX. by Kevin. period, handheld Handheld million quarter initial the $X.X of also in Next-Gen million, an revenue first Department support an in in the up AVCAD, by first first $X.X driven device MXXXX from component production quarter phase increase the million revenue. first XXXX, for XX X% quarter. year handheld the for known as Revenue of shipments for of was quarter was program, increase service devices the from Defense million U.S. $XX We prior $X.X primarily driven the increase primarily up revenue. This XXXX shipped in the was and in Detector of XX% Chemical

by during quarter U.S. seeing prior the year related Our this desktop bioprocessing exactly instrumentation a new $X.X life from drive million devices cautious customers Revenue has from our down we Secretary products was pipeline Antony crisis been for The turning to the this urgency and adoption XXXX in remains Blinken, we in markets. engagement. sales conference.Now positive internationally. seeing warned was a decrease Nations evolving United the crisis are in now fentanyl capital period, strong and half our of for in of the U.S. quarter expand This first a million, the March confirmed comprised expenditures, placed the it in and MAVEN. key to internationally. desktop our U.S., and their serving continuing REBEL, and emergence analogs who with and State, handheld devices to remain of driver desktop $X.X X first of science ZipChip, and in the XX% first in device primarily are Despite handheld

of to expanded our portfolio customer One been core strengthen product an launch engagements. has and to maximize opportunities objectives and leverage

the desktop and X combination last now, portfolio seeing launched another. are now quoting reflect activity driving we X PAT of products product in product devices year, just one includes Our space,

the and was early webinar enhance to in any readily highlighting model we early positive see engagement first order the specific desktop building. of Recurring continue with is bioreactors. ability impacts where our consists million XX% from we from devices. nature [ revenue, base desktop portfolio and to revenue this XX% bioprocess bioreactors Recurring trend $X.X period, product the customer in REBEL weighting seen represented and and connect April, run MAVERICK's and is first over to X:X prior have MAVEN, related of engaged days, we per handheld over in the process evaluations the rate are end our an kit expanded $X.X And of in ] number value the REBEL sales quarter control deployed was the our it of successful XXXX and the customers desktop is quarter increase quarter critical first XXXX. quarter, received attributes related customers this and quality demonstrating qualified service which an handhelds our at with reviewed key driven across and we XX and encouraged X.X cell hosted We cumulative prioritizing $X.X test with reflected million feeding biopharma to to X,XXX validating capability, dynamic desktops. technology.We see ruble MAVERICK. and also trends traction how instance, and process revenues month improve remained quarters. which a has of at supporting control install For consistent with this quarter of culture in multiple approximate a million showcased revenue, and performance service top accessories strategy of total been for novel without consumables. active for first our multiple for XXX we newest products, a for million, CQAs. $X.X continuous evaluations biopharma to ended devices, of or consistent approximately half quarter, engagements consumables, the toward MAVERICK X,XXX a a second of up devices, users, PAT In and monitoring X the registrants, how a over We by with the of installed utilization to multiple still consisted XXXX.Although first of which year complementary in Further, MAVERICK a quality.

quarter profit to XXXX of $X first our largely continue expect we for XX% the around was prior was year quarter quarter X/X favorable was the service lower be million year for in XXXX. portfolio the product compared ahead, of million higher increase for material margin Gross year the to and driving revenue of the of recurring absorption during gross $X.X The to first and revenue margin XXXX Looking period. for compared production, for prior costs product timing due first full for to the XXXX.Gross period. of XX% to

over the term, Over margins our costs. volume-based better as leverage to achieve improvements we gross fixed we longer expect

We compensation reduction noncash in the in stock-based Net related we modest part in salary loss in half of operating in increase first acquisition, quarter for XXXX $X.X cash we first our increase period, XXXX million ahead an was no and RedWave. to XXXX, offset quarter prior $XX XXXX support and the in ended third-party million $XX.X in expect marketable exiting end, XXXX million, million of with of cash commissions revenue related used and for securities to million breakeven.Looking reported in $X.X growth to prior to cash expenses quarter We XXXX. equivalents year to was million integration in and improvement. representing $XX fees of costs. of years million full acquisition back the compared be to the to legal cash, Additionally, outstanding. a of our our driven expect and we $XX.X with a $XXX.X the XXXX $XX.X by quarter with RedWave, first were by over million for year XXXX.Total $XX.X compared period. additional benefit to now path the debt of a with XX% million in multiple impact XX% range $XX of This anticipate to flow million of Subsequent the the XX% in further year

Our revenue guidance million million X updated revenue includes an for million guidance the on from ownership $XX RedWave, layered $XX of core representing months expected business. $XX of prior top of of XXX our to

will the Our being company's company's First, represents customer months include accelerate expect the similar the this guidance quarter reported within annualized by from once updated seasonality XXXX of results growth for months products for RedWave On includes reflects end the contribution given which we revenue million that $XX from revenue revenue with and assumptions: We following XXXX.Our RedWave potential services XXX's growth X basis, half handhelds, to RedWave's dynamics, in of mirror approximately an our ownership. RedWave's weighted. of we revenues, to growth and profile. back traction of in XXXX XXXX see engine, gain second funding line and anticipate likely commercial XX% X RedWave,

core for business. our XXX $XX $XX reiterating million million are we guidance the Second, revenue to

some expected, and is inventory through persisted see to least industry first life will half. of some continue in markets, likely have, continue While reporting as we and experienced promising bioprocessing signs the in science positivity pressures the The instrumentation destocking QX. for the XXXX related bioprocessing to at we indicators

up XXXX recovery device placements sales to with which forensics spending desktop relatively be this However, sales point. by XXX's strength instrumentation continue in for has serve the step will a year the do muted expect growth. of of to preclinical newer but to building rebound remained we to expect our as in bolster our CapEx we biopharma, devices, total bioprocessing overall our continue market through orders.And driven a in handheld which the during to products convert engagements lastly,

of the result U.S. in our second delay of shifting may budget federal of enterprise approval some into year. half However, the government the opportunities in the

range we I of expect revenue XXXX.At to compared the this in We costs higher our low back from XX% to half government half that timing prior contributions margins XXXX the of slight and first a XXs to will of of XXXX to RedWave, to and split.Touching half on to split. gross half with the material expect like product, have impact a mix. to budget margins, in and acquisition continue the rising second RedWave to assumptions be more previous back due expected we for assumption shift With revenue federal U.S. weighted expect the benefit slightly a now XX% our be We positive Kevin. gross overall to the service second would pricing, anticipate small channel point, turn call to

including product a market with growth sustained we executing the are X framework key profitability. for XXXX, Thanks, expanded our portfolio expansion, through to areas Joe. Again, quarter leveraging laser-focused as previously communicated fourth for call, on on path our and

and our set team we we and areas. today like on-plan trajectory Our to QX X the for these Further, and addresses hard acquisition announcement towards beyond.I'd XXXX our achievements. of thank new for are key with their work directly each meaningfully have QX pleased results our

XXX welcome new excited together.With we'll our bright to open to colleagues and it our future Lastly, RedWave from I'm Devices forward questions. look Technology to up that, the I now to team,

is from William first Larew Blair. Our question Matt [Operator of Instructions]

features aseptic product I the would One that TRACE, technology in obviously, RedWave acquisition, TRACE. we X just wanted the MAVERICK and the to be, I sample start from last things. saw back think on

you own how incorporating obviously, the as development about products development. or from overlap. just of curious clearly, potential product over referenced, deal, and sales R&D channels technology And thinking So their the the the and the on at you're what you the I'm But time? impressive has collaboration product portfolio RedWave side that looked

and the acquisition a TRACE really is XXXX successful we really happy one in we mean Analytics now. did of right. You're I It we're that integrated GmbH did. fully

took it's the capabilities As Europe. direct orders market, that released when to and then allowing and that's take as of it's Europe next to MAVEN you the [ And of point. basis base sampling technology, of the the we generations get you know, online operations our we and across ] mentioned, in on the REBEL become us and product technology the for

science in So the operations RedWave in lots base then of have good and portfolio of the Europe.From we're having there R&D a a we at super series perspective, But one along. for in of and it built that and products. product look move on accessories. excited a products instrumentation that plugging now if our side life the really of said a nice as And space you bioprocessing had for growth handhelds, we foundation we we've

overlap So remarks, additional the RedWave that last the but pharma excited we it has our have Raman PAT and RedWave our get in that million into of X and $X in sales briefly space, high PAT selling their customers like that adds accessories we're R&D immediately probes, selling and also of can FTIR perspective, which QA/QC on into applications. channel, approximately prepared year we the probes the and sales pharma collaboration industrial with an team.From that products touched with bags

into looking to more So portfolio. to able on justifies go and to market I our together would FTIR imagine, as integrating the work and we be based offer products additional continue that desktop we'll

comments, to And the his great bioprocessing hear. did, being to key, in CapEx or referenced That's I Joe suppose, obviously, recovery you Okay. recovery. obviously,

year? purchasing of you call obviously some of Just that curious perhaps patterns availability biopharma. about sales customer XX for out customers equipment, you And their cycle they're of referenced any Any capital? at would trends viewing budgets or in placements top how ability terms you're groups and or a this shifts from capital indicators capital in hearing what

comments Yes, sure. to few a happy I'm give there.

impacts of XXX. absolutely. consumables dynamic the So destocking not that really It's yes,

you market and the does more instrumentation the know, instrumentation in here As spending CapEx small-scale life like it's for around science XXX bioprocessing.

know, in process labs. we're As you PD the very much labs, development

upstream an that's So preclinical world.

our to for, asked So as seeing release by from here, organizations the on I for we've I late on there budget, regarding still modest conversations mean, I in several say would the through I've to one organizations. to in with technologies just been comment adopt I is customers CapEx as waiting to raise group, numbers that that the of direct that much pause that, particularly conversations novel been showing the draw their biotech there's customers think larger are Hard conclusions talking of definitely timing X the with to for uncertainty is series come an things. customers. very ready one, you within additional space. trigger, as because have smaller fact, of funding organization. pull but well organizations uncertainty.Last fairly but seen of

coupled. it's directly So

quarter. been signs pleased funding So has the biotech arena, some the know, first the we over as that are you world in showing positive

I remarks, that So getting that prepared take we're down ripple some our thing that is we mentioned we will lot And and positive in time engagement. sure. think other are of for that pleased in But thing. the to with a a

with engagement having some could, out orders to a fast like few translating isn't you. as prepared in remarks MAVERICK, great things for of engagement a little his on great our the lots called that While engagement. desktop color funded engagement doing there of as directly in valuation, all we customers cases, course, we're so regarding a valuations, Joe

queue. in nice deal. what really Congrats a of like on RedWave jump I'll great. looks the back fit in the That's terms

next The question from from Johnson Stephens. comes Jacob

And RedWave. congrats theirs? then kind couple on just X the I've And first the deal. with your I a applications. there guess Can cannibalization about between is complementary the how RedWave MXXXX on portfolios? Maybe risk versus got these of product products are and Technology any use for of you just talk

from mean, that do side. a I were We're situation of that very that distributors were, Yes, we perspective, in international if only about would they RedWave in And fact, they complementary, the not happy We mentioned and technology XX% toolkit. to. competitive expands they and it represent both. our the very really for a much are complementary. excited first,

class So you little has can a think it's proof a new mass But point bit it in spec, a technology simplest way, immense as the taking of of is MX the there. product so sensitivity.

So at low very very, level. it can things trace measure

aerosols particulate minute So air. invisible residue, the in a a amounts,

you XX,XXX-plus the can quantities, many think of RedWave chemicals, if measure measure it more Now can but chemicals, measure. technology, it can it bulk

our often So they are the customers situation X on and concert go. used the by where in depending

profile. positioning.And for know, obviously, see as financial RedWave that products their then to So its due we're those don't they're nature to you well we from really excited as competitive

high from really terms the well ways. that stay perspective those benchmarks pretty as trying different in many that's to a as kind being that very have we showcases and We in of of synergistic on this a we've been true acquisition profile to, cost financial touched accretive complete bit in

on RedWave And bit products. the little too, just more a maybe is helpful, little a color bit

XplorIR to and $XX,XXX of the range products there's up today, mentioned, ProtectIR those list Kevin from ThreatID, prices X and those U.S. $XX,XXX. As

comes the have the end channels today. in high X%, color the It of RedWave's on And industry the but levels higher lower the of and the by product first ASPs, little of from may to that sales. is the to up the the majority the in majority at date. today, majority international the U.S. where at of the And through give usually have are are the more bit close ThreatID been on the discount XX% RedWave list of placements placements with placements where maybe range, discounting, kind end products launch MX So themselves. to price are come a distribution ASP

the of of and the the outlook leveraging kind kind pretty there, maybe applications guys It you robust potentially guess then to I And just kind enterprise X accounts. industrial out big some X seems bioprocessing there's consideration. opportunities me contingent there, laid for up get one to at other X or following kind least growth being RedWave, of the of X and large

growth think about of relative terms talk kind enterprise of of the of size we for kind accounts. you industrial going large growth opportunities those the As business, about in versus the could drivers outlook forward bioprocessing this just between

start can earn-out combination absolutely think maybe Yes. the yes, RedWave targets. a remarks. on beating growth upon see the add consideration and that and some there's based business, Absolutely. growth contingent I'll has can that's this right. Joe resolve in We structure team then additional you're you this and that with But lot potential of

foremost, and first handheld think So and into those plugging on commercial growth is pursued through driven back targets and our are our which be side. going pretty through we engine, robust to

sure federal the too slides that that briefly accounts, to a plugs enterprise we're working very in on into mentioned they yet we accounts. channel. there. it X And make that And So feel those much a we have haven't really day even in team larger done the larger we pretty skilled

They particularly good And over believe regard.The as those they sell, accounts. PAT we we pharma, can progress areas we cumulative getting bit industrial is earn-out of months being make be structure think we of that bioprocessing, go. helpful of the large QA/QC. into into that can time, but little XX take areas the a quite So enterprise in they the accessories

biggest putting over think coming something looking our handheld that the from be benefit but that's engine. commercial I time, leverage to we'll see into

remarks to our RedWave did And $XX pieces. year-on-year be customers, engine, processes have additional and certainly provide expectations won't terms that level maybe through similar We growth on pricing 'XX, setting we potential RedWave's within once our in XX%-plus we're that the commercial for brings, our budget highlight once an measured our of their we working our to products seasonality, for plan revisit believe a is in that the in the we're quarters traction similar at approach. XXXX end is growing towards and current as RedWave our and integration And same contemplates expectation growth commercial of annualized engine. revenues but few 'XX, that within MX. basis. achievable million it's prepared revenue these There to pacing we to gain can potential is RedWave the the accelerate that products excited in and by customers, We're selling similar of

I we second go. more half as do So the pacing in expect similar revenue

Cowen. The next question comes from Steven Mah from TD

me? hear you Can

you Yes. Steven, are doing? how

Okay.

build there use as more in terms the with us seem overlap spec, use and handheld that some know FTIR be mass on use little cases and percentage to but the said asked, on fentanyls. users what FTIR a to landscape, customers what MXXXX mass I of some maybe Jacob does spec? both color such give guys you like of So both marketplace

the something really to have the right mass pick right? fentanyl. people positioned So it's say of In quantity, large Yes, pretty for use percentage the tool that there case both. sensitivity detect or because its is something at to. will I are fentanyl, time. spec the access job sure. of toolkit, right in quantities absolutely the invisible Happy just of what's extreme It's required a minute like a would that and customers right like well

you be you complements that the if pill, a a excipients, about of of if the identifier that, would that the Now think what can you construction. provide how unique around like mix, it fentanyl think applications in counterfeit counterfeit binders,

to the like improvements, and plugging our expect if it be do advantage are just again, meaningful you other they're application for materials past connectivity see on we I see speed take to those really really use as FTIR there's much forward size offer complementary, that that legacy the measurable something as is get we've that communicated benign And XX,XXX toxic in We one being of that to so our cycles. looking many, employ people to engine growth about around as options, it support components many spoke to we even applications as all that looking use of into upgrade drugs. are that fentanyl and team MX we're MX from bulk identify. believe, modern in we FTIR unknown and that's about estimate FTIR pick. case here like from even very it to, really counterfeit fentanyl would as believe There tried sorts the lot RedWave But X,XXX of to X,XXX have only an can theme for absolutely drives we to really these, commercial see to field. that conveniences, spawn we've imply that that able there's of talked that, and the or its that And here. upgrade life we same is X placed XX-year that to in our are that in I you modern out And cases counter can that a there generation, And drug opportunity maybe XXX we situation goes well.So that per instruments its trajectory thus next would complementary at more the to upgrade. they year replace look you since if to a as useful reduction, think about X- opportunities far. that the And cycles

Yes.

but I Yes, just guys do have an helpful. have they say distributors? uses misheard, really you might did Okay. And Or sales force? that's RedWave internal

based also They their have They we organization on is into the channel similar in we X which across for that handhelds, folks some use year. to internationally us XX here about lot sales that size They managers, our U.S., opportunities distribution a have the our have internationally, leverage of plug our both. channels. channel folks combined internal into efficiency, coming and

known growth sales have market. within the the So excited partner them to of But get MX us combined very with much a product. and for to and RedWave yes, do they scale the drive and folks the we're

Got Okay. it.

year million different So last distributors? from distributors? way, much in that mostly all Or how do asked they have sales? direct is Or it $XX.X a guess in I were revenues of

opportunity on single to Yes. but than low double-digit from direct digits, want we It's going From to think have they type expand right? are, direct higher go of on an sales, do the smartly our don't part exact just percent, forward. sales it. We ASP with think leveraging people they where distributors really an I low is XX it's our direct, today synergies opportunity box. about but a the have to percentage level. have put perspective, it's as some focused of out which we the

Yes.

my that's hit, think will sales you seems But revenue forces complementary. yes, time appreciate revenue takes it by like think revenue I synergies and XXXX. would cross-train synergies products. When the hit next synergies. the potential said when you you appreciate Yes, to fully it Okay. start question. synergy, do it's very different you'll The across I seeing cost

expanding utilization like for versus get sales our products realized manufacturing organization, together, maybe additional kind potential drive need in the to about, hit big cost today selling, be million running in XXXX exciting of opportunity XXXX and on some the heard to we margin that and what plug scale-up cost facility here acquiring thoughts give improvement in million be value XXXX, starting AVCAD sales. RedWave we're the the in to channel both of into a talked to And a of R&D those transaction we're forecasting here $X you ability and in of growth. to channel working related sustainable, to related And part in line, about space include bit that that. expect take just $X little does $X say and alignment less. direct but we looking personnel the you synergies and across ground that maybe plus top today, We're the It those probably in marketing, And realized distributor roughly for that immediately. talking we're namely were the time. But our to going contemplates $X asking hire improvement foot international the details It is probably on will of on XXX remaining Boston synergies to that, XX,XXX the we've million term. for from I'd of Danbury an in we that also potential million leverage savings anticipated prioritization shorter programs discounts is you're square the of about high-volume

be will software profile a bioprocessing revenue further We participation potentially RedWave increase opportunity commercialization experimentation expect improve easier space. is the well and in see science PAT to enterprise recurring trends quarters, sort few an and as our after in ability cloud-based to understand forensics our management life of the there we the portfolio, to of but possible drive cross-selling these to

line synergies I synergies in to expect OpEx show get can. work the and we soon synergies and balanced cost more those we'll near-term COGS, up we and So longer-term to really that between mentioned as top OpEx to be as

on beyond dimensions second, many see you can and Steven, we've the even what maybe And across the into a we call complementary how but that so from seen just touched of hope Yes. layering I it's for synergies today, on coming probably that this is.

timing underestimate call been a going as But lot many qualitative. is We've under that we'll we there now qualified and it more because to don't progress. impact, that it's some the to but ownership here. so report on So there's working to our and quantify on today, impact, really their be yes, want that certainly we're quantified we have the underestimate don't we

question next comes from Our Dan Stifel. Arias from

you with. anything it you the not about said MAVEN on to that instrument. Kevin, be last that REBEL is made And for order that's if product that you we of total can in a say the said desktops history have the context, think up was bit some by and placements But out I'm that put of desktops. maybe I know REBEL, I breaking mistaken. since system quarter ZipChip, in then you wouldn't there install

day, for Anything use just of the systems? MAVERICKs. it across is different mix? the comes it at for up year Or the down mix no So various the of quarter that the when just to the can components of sort we end X and another

Dan, level. single-digit little on where continues low this tick right, is range. It A along, to of we've kind Joe. of color bit that been

Kevin, by more placements, to is within placements a you breaking not pressures. I you excited MAVERICK, but As to quarter, give mentioned, some the the included REBEL, if continuing see want and that on the bit of did our And those out little MAVEN. it on talk to as desktops it ZipChip color specific specifically we're opportunity.

seeing a that our and sales or weighted just in pipeline is in we sales is it engagement called Yes, similar little bit again from here momentum terms newer we're a prepared absolutely. I perspective. QX X:X in gaining products more the in the engagement we saw that weighted mean what the QX out Yes. to in we're excitement funnel to remarks as

I a on it XXX-some like how MAVERICK doesn't in We with attributes had and think webinar it's around absolutely April, lots take so that of pretty MAVERICK. in briefly mentioned early and that engagement bottling. investments centered registrants, quality but impacts it days, we has how

in some So be connect And purchasing cases, And multiple demo a right and bioreactors to a planned biopharma being the or across where consumables kind and customer, have there. ongoing. of then we support now will of to good evaluations testing engagement is and qualified on across number further, that. this ongoing ability and qualifying and a like the that many

spending has encouraging of CapEx our been got to we've and but handhelds novel of overall it. talked for diversified then been technologies a muted, this have we've this lot that of parts we've and lots But we're certainly, bolster the evaluate a X% as really engagement. And service. So obviously, to growth of portfolio the performing excited quarter seen about, products

March Okay. across higher And Joe, mix is the system point your that whatever total is, was correct? that desktop placements, year, sequentially

Yes. our an see MAVEN the placements ultimately expectation end progress year. to by increase throughout by in MAVERICK of year the and mainly the and driven That's

April some Yes, of that factor Maybe just had that show late budget you exercise say March, curious activity early with in did was the on got delays you to MX modeling us thinking I beginning deals, I And relatedly, you guess, when in budget year. spending anything pickup if the loosening year to were federal the you. were quarter comes comes in the the released, you across saw XQ. could it last any is I'm a mentioned side, the help it the systems about there way? when and when once any handheld

Yes. good over From to it finally line. it perspective, see timing get the was a

released. The I was think funding XX. it March was

many in customers. just the process start of ways, with our that's the course, Of

those the sales back understand which until So is and to more QX team and to lots a timing really lot it up in mechanisms start half procurement opportunities where didn't versus QX the likely funding of March. up conversations tee Fed with the government cycle, free pushing our opportunities of the into

back seeing we it'd is where we're conversations, against a more, more in QX, bit I'd than so I be So March. back us a but we're say would initially hand the say, thought pickup even timing half the in QX,

Puneet is question Our from next Partners. from Leerink Souda

and synergies, the good have burn Kevin, the how into acquisition. why order of side applications it, and that sort level some of sort and to number a some RedWave this here make, overall cost of on out it's big us of thinking brought you drive do of to the think pointed And of and here, investments you about given the of to the the about taking be your you're in cash but to you questions acquisition just talk question But for So what should at Technology now? the deal, point the on have about this I'm can of I flip this year is cash I this dilution see other to might know next? the we balance sort getting

Yes, questions. I'll to excited start sure. Joe. super then and pass we're it I'll RedWave Absolutely. acquisition. But about Great yes, the

acquisition you an a have products know, done in in of bioprocessing. the grow As helped our past, we nice us that and portfolio

instrumentation. So we've got in really science life

in there. winning And we've chemical analysis. and and their foundation looking But portfolio. from in market to our keep to we the the serving handheld investments and got to there want been success benefit durable really absolutely So need a devices, which their nice have of drive with marketing scale growth in and our point sales

It's So growing, very an sales synergies directly into many when look, this asset and we go and highly It's from many, to channels. was that unique plug perspective out search profitable. us. inorganic our

it's we different in accretive So directions. think many

fit see forensics, that drive strong can there's can be lot of just So in point need it's a well that we bioprocessing, opportunity into across space. be that And for in chemical again, it in our and detection, that to win a and of us. fits

concept touch largest of is to support cash cash approximately cash typically $XX flow operating And in our in In on to flows. the we flows maybe used QX, for business. breakeven. and million to impact the quarter cash some XXXX, And

a our of burn from growth line full XXXX, and about our core path the we'd top in our to to year multiple with factor top cash expect $XX see QX the finish cash once the is operating out, period. but $XX with used years recovery XXXX, purposes double-digit line profitability in range rewards to growth, a the XX% over continuing the for of X-year expect operations. key we strong cash XXXX the growth basis was the bioprocessing to be to plays And available the to acquisition the here RedWave support path on do plus is we're consideration million During structure to XXX million, business

pull we XXXX that breakeven, our to translates path breakeven we believe flow think bolstering So lowering about scale that this we our in cash acquisition cash given flow line with as revenues, our burn and adding And to expect an had revenue probably top to profitability, that line improve previously we forward it does time scale beyond. growth flow we're with can number revenue adding million indicated we're to there. cash the reach be before. we and this And we gross need at and a profile over possible get in positive RedWave with somewhere margin can a And X-digit addition than less low business. accretive into to $XXX likely of that to faster level than cross RedWave,

about excited definitely So that.

on, been early you in your those adopters, during I some accounts? last what is do impact of months of the Those position therapy if into that obviously adoption are impact talk from bit applications seeing a helpful, year. little could is have or impact one we and Can seeing sort about the anything my That's you terms you're should loops of just Biosecure? or it. products the about the follow-up the systems? And couple Kevin, cell of Joe. Got impacted ought the last about And on think accounts? in over more biotech but wondering, And squeeze how from to lastly, in we think How closed Biosecure bioprocessing automated there there?

on to Happy those. Yes. touch

that's under increases been the February, while has companies in of BD lowering whole dedicated cell so. professional dosage integrated The goods really innovative that relates doing it in cost our Solaris. leader relationship efforts, therapy So first do cell process a then device mentioned. focus We as hardware creating side, the a with those space, is And and have we fully with number equipment know, latter, on therapy the Terumo our a the that the engaging. available commercial and announced of to in as you and automates Solaris, particular, relationship around you

our control determine to So that very very how aligned attributes help harvest, and we're MAVEN you our the positioning and much improve synergistic with efficiency quality help when in our actually mind, and other is help way. and products MAVERICK processes, to control yields products along

So we do have pleased a be very focused effort Solaris. to engage such organizations. working to We're with

in recently. You others. good BMS announced traction news, can see getting here the they're They with and

designed of So to with but processes, others have working number into as working get a we're their we're that well. we

the the innovation on innovative innovators the and on side So then we're bringing therapeutic really also providers working between analytics. hardware the we're the and

to loops. So we're trying those close

number early again, relationships with area. that good days, looking it's, to we've that engagement quarter of say So the But had in more groups OEM build. a we're scale can I an in of

quickly. Regarding work many handheld. organizations Biosecure with real in government with We our the

So after those, course, the analysis, counterfeits are going and molecule many like. of phases, the small drug in analysis

security variety versed export on like. control things a work we well are like the and of and additional So applications on

develop, capable think do I sales good channel. very have opportunities dedicated biosecurity we a government So as

a to conversations economy some well U.S. onshore some around as biopharmaceuticals. in the economy the for with here strong just have as vibrant United We are States around in the and for initiatives government initiatives military the on

to it has have developed. see how we'll So

well and as XXX. this their strong like as a government they've of National with been where customer a collaborator that Resilience partner part work know has You and groups well, been we and strategy with

So we we an direct there, maybe not see can but we certainly immediate help impact to out where on stand poised that.

currently I back We to on further floor hand so questions the the no will call, have management.

questions. thank call appreciate right. a the you we today, much. for very much All and you Thank very good our all Have joining Well, day.

all very joining. you for today's concludes call. much conference This Thank