908 Devices Inc. (NASDAQ:MASS) Q3 2023 Earnings Call Transcript

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Kevin Knopp: Yes, sure, sure, sure, absolutely. I mean, we always are working to build up that pilot to enterprise conversion and have opportunities on deck here to expand within enterprise accounts. And we are pleased that over the first nine months, we did get that 19% growth out of the handhelds there, which certainly has buoyed our overall performance. We have big enterprise orders each year that promote that growth that we’re always working to navigate, but we certainly have a number of enterprise and pilots being transitioned and always have a lot reliance on those. We feel we’ve got plenty of TAM to work with here, plenty of sockets and really just paced by budget priority and are working through the pipeline and how it’s really broadened with our offerings over the last 18 months, whether it be the accessories and Arrow’s and beacons and other elements.

So we think there’s a lot there. If we think about 2024, we think kind of holistically about our offerings at 908 here and we’re really diversified and got a broad technology platform that we think [indiscernible] a unique differentiator and we’re cautiously optimistic. We’re seeing for 2024 here at these early moments, but we’re hearing some positive indicator and anecdotes and things seem to be moving in the right direction. We can’t really predict when the recovery in the in the bioprocessing headwinds really subside, but I would say that we’re very confident in our product portfolio and working towards getting back to being a 20-plus percent grower as soon as we can and got a lot of good momentum there with our handheld devices serving forensics.

We’re going to keep investing, keep that going and we think we’ve been doing a decent job managing our cash and so we’ve got a long runway of growth. And importantly now, we really do have many more shots on goal without foundation in process analytical technology tools. So look, I mean if you think about 2024 in these early days, if you combine the durability of our flagship handhelds here and that have demonstrated some good growth and you think about the macros lessening a bit and our expanded desktop portfolio we hope things will get exciting here in the not too distant future.

Daniel Arias: Yes, that would be great. Okay, and then maybe just on Rebel usage and where that tends to be higher or lower, cell and gene therapy and new modality customers, those seem to be the areas where the intensity, the workflow is a good thing for you, but that has been a choppy market this year. So as we — again, as we look to next year, do you see that bucket as additive to the utilization average because of that intensity or are you not ready to say that that will be the case just given the ups and downs that we’re talking about there? Thanks.

Kevin Knopp: Yes, I think it’s hard for us to slice and dice it. I mean, we’re continuing to see about a half a kit per month on average for our active users. Ultimate goals we’ve discussed in the past, kind of getting to more one kit per month. Half a kit a month is on average is about $24,000 worth of consumables and we’re working to, of course, get that to increase. And you’re right, some of the dynamics and some of the modalities could be strong drivers there. We do think it’s a good sign that during these macro times it has been hanging in there at the half a kit. Obviously, I’d like it to increase from there and are working to drive that. But yes, I don’t think we can slice and dice by modality just yet.

Daniel Arias: Got it. Okay. Thank you.

Operator: With that, I’ll hand back for any closing remarks.

Kevin Knopp: Well, thank you. Thank you very much and we appreciate your time today. And with that, we’ll end the call.

Operator: Thank you for joining. Ladies and gentlemen, you may now disconnect your lines.

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