908 Devices Inc. (NASDAQ:MASS) Q3 2022 Earnings Call Transcript

Joe Griffith: That’s right Kevin. And about that service contract, there’s about $5 million of ongoing service revenue over the period where they committed to technology upfront, and I think I disclosed that it goes through September 2025. So about 3 years of service where that gets recognized on a recurring revenue basis. Within the quarter, we did see the U.S. Army adopting the Aero capabilities and had about $1 million of recurring revenue ship related to those Aero modules in the third quarter, and the remaining portion of that additional order will be here in Q4. Moving forward… Yes. I mean if we take your question about what does 2023 look like with that as backdrop and… Totally here. But if we just step back at a high level and think about it, yes, likely more moderate growth that over the first half of the year and particularly as some of the volume patterns need to change on that preclinical level to support our desktops.

We certainly don’t want to see any more macro impacts that deteriorate earlier. We are seeing that, as we mentioned, kind of a couple of quarters with a trend there. We really don’t believe that, that much that way to commit to what it is we have set up for 2023 in terms of new products, and we’re engaging now with KOLs on that. And the first we’ll launch in early Q1. In leveraged business expands our Analyte Panel a bit and many may might provide an on-ramp to further level adopt and made device release slated to follow in short order. So we’re definitely not standing still there as we leverage our R&D machine and — we really have been impressed with TRACE analytics and where that can go and the great team and great technology that brings.

So yes, based on where we’re at, I’d say, more moderate, but incremental from new products, getting that positive feedback that now and thus far really should make us more diversified and give us more opportunity and drive more conversations next year and all very differentiated new products we’re contemplating. So we believe that to be an important contribution for us in 2023.

Daniel Arias: Okay. Helpful. And then just maybe following those comments, just on the REBEL side, the macro concerns that you highlighted there, do you expect that to impact pull-through in 4Q for the REBEL relative to 3Q levels? Or is that mainly an instrument placement issue — and then, Kevin, I hear you on the industry level data for cell and gene, but you guys are still in the pretty early innings of penetrating that market. So are you saying that the new trial start trajectory is sort of outweighing the overall level of activity taking place that ARM report does put the number of trials globally at over 2,000. And we have your installed base at like 150 or 200 come the end of the year. So it does seem like there’s a lot of opportunity there, a lot of room to play systems. Can you just talk about the selling environment and just how you’re finding conversations within a pretty large overall market to be, thanks.