Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Rapid Micro Biosystems Inc (RPID) Q4 2024 Earnings Call Highlights: Record Revenue Growth and ...

In This Article:

  • Total Revenue: $8.2 million in Q4 2024, a 30% year-over-year increase.

  • Recurring Revenue: $4.2 million, a 27% increase compared to the prior year quarter.

  • Growth Direct System Placements: 6 systems placed in Q4, totaling 21 for the full year 2024.

  • Cumulative System Placements: 162 Growth Direct systems placed globally by the end of 2024.

  • Gross Margin: Improved to 12% in Q4 2024, up from 8% in Q3 and a 15 percentage point improvement from the prior year quarter.

  • Product Revenue: $5.2 million in Q4 2024, a 27% increase from Q4 2023.

  • Service Revenue: $3 million in Q4 2024, a 35% increase from Q4 2023.

  • Net Loss: $9.7 million in Q4 2024, compared to $11.2 million in Q4 2023.

  • Net Loss Per Share: $0.22 in Q4 2024, compared to $0.26 in Q4 2023.

  • Cash and Investments: Approximately $51 million at the end of 2024.

  • 2025 Revenue Guidance: At least $32 million for the full year.

  • 2025 System Placements Guidance: Between 21 and 25 systems.

  • 2025 Cash Burn Guidance: Approximately $30 million, a $14 million reduction from 2024.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Rapid Micro Biosystems Inc (NASDAQ:RPID) reported a 30% year-over-year revenue growth in Q4 2024, reaching a record $8.2 million.

  • The company placed six Growth Direct systems in Q4, bringing the total to 21 system placements for the full year.

  • Gross margins improved to 12% in Q4, up from 8% in the previous quarter, reflecting progress in cost structure and operating leverage.

  • A new global distribution and collaboration agreement with Millipore Sigma is expected to enhance system placements and improve supply chain efficiencies.

  • The partnership with Millipore Sigma is anticipated to significantly expand Growth Direct's reach and increase its total addressable market.

Negative Points

  • Despite the revenue growth, the company reported a net loss of $9.7 million in Q4 2024.

  • Product margins were only 8% in Q4, a decrease from 14% in Q4 2023.

  • The guidance for 2025 does not assume any contribution from the Millipore Sigma partnership, reflecting uncertainty in immediate impact.

  • There is ongoing uncertainty around the timing and scale of customer purchase decisions, particularly for larger multi-system opportunities.

  • The company expects to burn approximately $30 million in cash for the full year 2025, indicating continued financial pressure.

Q & A Highlights

Q: Rob, do you think that the Millipore relationship accelerates your entry into new areas that maybe you're not focused on now? A: Robert Spignesi, President, CEO: Yes, the Millipore Sigma team is well positioned in adjacent markets such as personal care and cosmetics, which are meaningful in size. This partnership is a fundamental part of our strategy to expand into these areas.