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

Kevin Knopp: Yes. We have seen — you’re right, we have picking what we think more of a blanket purchase order where they sign up for a set number of hits, that could be 6, that could be 12 tend to be delivered. Typically, they sign up for nominally 1 kit a month, and then they can call us to pull those in or push those out based on their project schedules. And we’ve seen both cases. But we’ve also seen with some of the macro dynamics, we’ve also seen some customers having layoffs and then calling us and saying, we need to delay those kits or cancel that order altogether.

Madeline Mollman: Got it. And then just in general, in terms of the recent election, do you see any change to government spending priorities that would make an impact on investment in your offerings?

Kevin Knopp: Yes, that’s a great question. I mean, we’re continuing to monitor that very closely. We do have a legislative effort where we try to work and on the advocacy side as well. Fentanyl is very important. We’ve certainly seen some headwinds with what we call a more of a macro level with just limited funding that’s been available to some of our customers, particularly ones on the southern border across the board, multiple organizations really hit by the migraine crisis there, where a lot of resources are being taken from technology and needed for humans to help with that problem. So we’ll have to see what transpires here with the elections and near term and longer-term sentiment. But I think we do have good visibility.

We shared publicly in the past that Kevin McCarthy has been got a first-hand demo through the Ohio BCI of technology set, and that was all positive. And so I think there is an awareness that more needs to be done for the Fentanyl and Opioid crisis. Joe and I were just mentioning that there were just articles on our drive in this morning, more about counterfeit drug. So I think the government certainly views as a problem. I think it’s also becoming more of a global problem. And so I think we’ll continue to see resources on it, but maybe too early to tell us as a particular change of it.

Madeline Mollman: Thank you.

Operator: Thank you. I would now like to turn the conference back to Kevin Kanoff, CEO of 908 for closing remarks.

Kevin Knopp: Yes. Thank you. Thank you all very much for your attendance, and we appreciate your time this morning.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.