NASDAQ:MASS 908 Devices Q2 2024 Earnings Report $5.40 -0.20 (-3.57%) Closing price 05/5/2025 04:00 PM EasternExtended Trading$5.40 0.00 (0.00%) As of 04:30 AM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast 908 Devices EPS ResultsActual EPS-$0.32Consensus EPS -$0.34Beat/MissBeat by +$0.02One Year Ago EPSN/A908 Devices Revenue ResultsActual Revenue$14.05 millionExpected Revenue$13.69 millionBeat/MissBeat by +$360.00 thousandYoY Revenue GrowthN/A908 Devices Announcement DetailsQuarterQ2 2024Date8/6/2024TimeN/AConference Call DateTuesday, August 6, 2024Conference Call Time8:30AM ETUpcoming Earnings908 Devices' Q1 2025 earnings is scheduled for Tuesday, May 13, 2025, with a conference call scheduled at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by 908 Devices Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 6, 2024 ShareLink copied to clipboard.There are 9 speakers on the call. Operator00:00:00Hello and welcome to the 908 Devices Second Quarter 20 24 Financial Results Conference Call. My name is Elliot, and I'll be coordinating your call today. I would now like to hand over to Kelly Gura, Investor Relations. Please go ahead. Speaker 100:00:22Thank you. This morning, 908 Devices released financial results for the Q2 ended June 30, 2024. If you've not received this news release or if you'd like to be added to company's distribution list, please send an e mail to ir908devices.com. Joining me today from 908 Kevin Knopf, Chief Executive Officer and Co Founder and Joe Griffith, Chief Financial Officer. Before we begin, our commentary today will include the presentation of some non GAAP financial measures. Speaker 100:00:51These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today's earnings press release, which is available in the Investor Relations section of our website. Additionally, I'd like to remind you that management will make statements during this call that are forward looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward Looking Statements in the press release Nano eight devices issued today. Speaker 100:01:30For a more complete list and description, please see the Risk Factors section of the company's annual report on Form 10 ks for the year ended December 31, 2023, and in its other filings with the Securities and Exchange Commission. Except as required by law, 908 Devices disclaims any intention or obligation to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise. This conference call contains time sensitive information and is accurate only as of the live broadcast August 6, 2024. With that, I would like to turn the call over to Kevin. Speaker 200:02:07Thanks, Kelly. Good morning and thank you for joining our Q2 2024 earnings call. We delivered solid execution on a multitude of fronts in the quarter and we ended the 2nd quarter with revenue of $14,000,000 representing 16% growth year over year. This included $3,100,000 of revenue from Red Wave Technology, which we acquired on April 29. We are excited to add Red Wave's devices for BAW Chemical Identification to our commercial engine, complementing our handheld MX908 mass spec for trace chemical detection. Speaker 200:02:43We now have an expanded portfolio of handheld chemical analysis devices for forensics workflows. Our customers value our point of need offerings as demonstrated by consistent recurring revenue, which for the first half of the year represented 41% of our revenues. Our goal has always been to win point of need chemical analysis During the quarter, our team completed the commercial During the quarter, our team completed the commercial integration of RedWig Technology, including product training for the sales teams, plus CRM and website integration. Also, we received our 1st multi system order, 13 devices in total from the same customer that included both our handheld MX-nine zero eight and Red Wave Explorer devices. Overall, we sold 153 devices in total in the quarter. Speaker 200:03:40I want to thank our team for their enthusiasm and relentless work to quickly bring Red Wave into 908 devices and for the tremendous momentum they have created as a result. We also recently welcomed Michelle Leonhardt, former Administrator of the U. S. Drug Enforcement Administration to our Board of Directors. Michelle is a determined leader in the fight against illegal drugs and a passionate advocate for substance abuse prevention in young adults. Speaker 200:04:08She brings extensive government knowledge and experience, which will support our efforts to further penetrate the forensics market. For our desktop portfolio that serves the life science, instrumentation and bioprocessing markets, macro market pressures have persisted and we continue to see an overall conservatism towards adopting innovative technologies and CapEx spending. Despite ongoing pressures, we continue to focus on building a foundation that will position us well for the future. Building a foundation that will position us well for the future. As we launched 2 new desktop devices last year, we're focused on capability upgrades to our existing products this year. Speaker 200:04:51This includes developments to enable integrations and simplifying and hardening our technology with the ultimate goal to present as a simple process sensors. For our REVEL device introduced in 2019, we are optimizing the device's software and hardware that begun initial testing with key pharma customers. Feedback has been positive with one customer noting that they now plan to use Revol for routine manufacturing support in addition to its current use in process development lab. You're truly appreciative of our customers' input and support in these product enhancements and improvements. Now I'd like to provide more detail on the progress we have made across our 3 focus areas during the Q2. Speaker 200:05:35Starting with our first objective, market expansion. Our focus is to expand our market outreach by engaging with new key accounts, fostering strategic partnerships and extending our reach across global enterprise accounts. We are proud that first responders choose our handheld devices in their mission to protect the public and key infrastructure from chemical hazards. Of particular concern, especially at large public events is the ability to detect and identify unknown gases, vapors and aerosols. Our Explorer handheld FTIR device can quickly identify thousands of gases and vapors, including complex mixtures and our MX908 Beacon complements this by providing remote detection and monitoring of vapors and aerosol at trace levels. Speaker 200:06:23Both devices were used by local response team at the Indianapolis 500 on the VO race and Republican National Convention and at both events, the Explorer was integrated onto Boston Dynamics' SPOT robot. In addition, several beacons were deployed at large open air events in our nation's capital over the July 4th holiday. We value the confidence these response teams have in our first of its kind air monitoring technology and the partnership we have with these leading organizations. Turning to our desktop portfolio, I'm excited to announce that we have officially launched our Maven configuration for Terumo Blood and Cell Technologies Quantum Flex Cell expansion system that enables real time monitoring and control glucose and lactate without the cost and risk of manual sampling. The Quantum Flex cell expansion system is used throughout the cell therapy process from process development through clinical manufacturing. Speaker 200:07:20In a webinar in July posted by BioInsights, a Terumo scientist noted that real time automated glucose and lactate sampling allows more frequent data that can be used to maintain tight control over cell culture condition. He further noted that automated systems like Maven ensure reproducibility and reduce the amount of hands on time required from operators. Our respective teams are excited to offer cell therapy developers the ability to gain valuable process insights in order to reduce cost of goods and accelerate progress for these personalized treatments. Earlier this year, we announced a development collaboration with Solaris to integrate our Maverick in line analyzer into Solaris' cell shuttle system, a fully integrated, scalable cell therapy manufacturing platform. Maverick, a Raman based PET solution, provides real time monitoring and control of critical bioprocess parameters. Speaker 200:08:16In addition to Solaris and Terumo, we are actively engaged with a handful of other hardware innovators and continue to seek other alliances as there is a need for simple automated PAT tools such as our novel devices to enhance process understanding and ensure batch to batch reproducibility for these personalized treatments. It is critical to address cost and access for cell therapies and our products directly contribute to this. Ultimately, we believe this integration strategy could create an inflection point for our desktop and an efficient path to market that complements our direct sales pursuits. To further the value of our desktop portfolio for cell therapy applications, we recently entered into a research collaboration with CTMC, a joint venture between National Resilience and MD Anderson Cancer Center. From process development to integrated regulatory support, CTMC aims to usher novel cell therapies seamlessly and efficiently through every step of the development journey. Speaker 200:09:17During cell therapy production, there are multiple points where sampling is required, which is a manual process that is labor intensive and time consuming. Our collaboration aims to demonstrate the benefit of continuous monitoring of glucose and lactate in GRX bioreactors, today's industry standard. Maven is an easy to implement solution for hands off monitoring of cell therapy manufacturing and we believe will ultimately lead to higher efficiency and more robust therapies. We've also expanded our partnership with the National Institute of Bioprocessing Research and Training or NIBRT based in Ireland. NIBRT's research focus is to make transformative discoveries that revolutionize the manufacturing of recombinant proteins, vaccines and cell and gene therapies. Speaker 200:10:06Earlier this year, we began the collaboration that demonstrates how our desktop portfolio can add value in bioproduction and includes Maven, Maverick for real time process analytics with Revel providing at line cell culture analysis and Zip Chip for rapid product quality assessment. At the upcoming bioprocessing summit in Boston this month, Doctor. Jonathan Bones, principal investigator at NIBRT will present findings on an integrated platform of Maverick, Revel and Zip Chip that enables rapid generation of informative data on manufacturing process behavior for monoclonal antibody. We believe these strategic partnerships and research collaborations lay a solid foundation for demonstrating and realizing the value of our innovative PAC solutions. Turning to our second objective, portfolio engagement. Speaker 200:10:59We are leveraging our expanded product portfolios to maximize opportunities and strengthen engagements with our customers. In June, we launched enhanced quantification software package for our Explorer handheld gas and vapor analyzer enabling first responders to identify and quantify nearly 5,000 airborne chemicals. Explorer is the 1st handheld product of its kind that uses FTR spectroscopy to identify, quantify, frac gases and vapor. The device is simple to use and can automatically and accurately identify multiple compounds simultaneously at the parts per million level. We believe Explorer is a game changer for firefighters. Speaker 200:11:42According to the National Fire Protection Agency, approximately 1.3% of all calls are for hazardous materials compared to 4% of calls for fire. Many calls are the result of unknown odors detected by civilians and fire departments need advanced technology in the field such as the Explorer so that they can effectively manage and mitigate potential hazards. We continue to diligently monitor the evolving drug landscape and included new drug targets in version 3.5 software for our MX-nine zero eight handheld mass spectrometer, which was released electronically during the quarter, enabling all in the field devices to be easily updated. Drug target additions include 3 synthetic cannabinoids, 1 synthetic cathinone and protanitazine, anitazine that has been identified in combination with other drugs of abuse. Concerningly, recent data has also shown that it is even more potent than Fentanyl. Speaker 200:12:40Our MX-nine zero eight is currently the only handheld device used by first responders that can identify prodamidazine at trace level. In addition to MX-nine zero eight, analytic target updates released in software, our team of forensic chemists monitors new drug targets and concoctions that appear in the field through our reach back data service, informing and educating our internal application team and importantly, making customers aware of emerging trends. As an example, our team recently became aware of Tujig, known as pink cocaine, a drug cocktail that does not contain cocaine, but usually a mixture of Ketamine, MDMA, Methamphetamine and other substances such as opioids, While pink cocaine has been seen mostly in Latin America and Europe to this point, it is gaining traction in the U. S. And in fact our reach back team is now seeing it in U. Speaker 200:13:36S. Field data. It remains hypercritical that law enforcement personnel and other first responders have advanced and upgradable technology in the field such as the MX-nine zero eight along with the 20 fourseven support they need to stay current and to quickly and accurately identify illicit drugs. Turning to our desktop, we had a strong technical showing at the American Society For Mass Spectrometry or ASMS conference in June At the launch of the Thermo Scientific Stellar Mass Spectrometer, the pairing with our Zip Chip CE device was used to demonstrate fast metabolite acquisition speed and high quality quantitative data. Results noted quantitative accuracy and precision for 124 compounds in less than 2 minutes covering a wide concentration rate. Speaker 200:14:26It's great to see these newly launched mass specs that can exploit the full speed of our Zip Trip. Also at ASMS, the collaborators at NIBERT and the University of Wisconsin Madison gave 3 oral presentations on their research using Zip Chip. Research applications included metabolomics, proteomics and upstream production of monoclonal antibodies. Our team also presented 13 posters, which included collaborators from Bio Techne, AstraZeneca, Thermo Fisher Scientific and the University of North Carolina at Chapel Hill. Zip Chip's ability to provide high resolution separations in minute was also highlighted in several peer review articles published in the scientific journals in the quarter. Speaker 200:15:11In the publication in the journal Analytica Chemica Acta, scientists from AstraZeneca highlighted Zip Chip's high sensitivity and the short analysis time of less than 8 minutes in the metabolite study of ATP, which serves as a primary energy source for living cells. In the publication in the Journal of Pharmaceutical and Biomedical Analysis, scientists from Poel Pharma Biologics, Nibert and the Center For Analytical Sciences in Amsterdam noted that charge variant analysis data from Zip Chip enables rapid selection of the most promising cell lines during process development of a biosimilar. Finally, in the publication in the Journal of Pharmaceutical Sciences, scientists from Regeneron noted that Zip Chip's high resolution analysis enables identification of charged variant species under various stress conditions, thus supporting rapid process and formulation development of biotherapeutics. Overall, I'm pleased that we continue to strengthen customer engagement with our newly expanded handheld and desktop portfolio. Finally, our third objective, operational excellence. Speaker 200:16:20We are executing to a framework for sustained growth with a path to profitability. We've enhanced our financial profile significantly by acquiring Red Wave Technology, a profitable company that's accretive to both revenue growth and gross margins, and we have identified more than $5,000,000 in forecasted annual cost synergies to be realized in 2026. Our integration is progressing smoothly and our commercial team is effectively managing our broader portfolio of forensic solutions. We're pleased with Redwave's contributions to margins and revenues in Q2, which we view as an early evidence that our overlapping customer bases and Call Point will support improved scale and better leverage of sales and marketing investments. As we enter a seasonally strong second half for our forensics portfolio, we plan to leverage existing relationships with government accounts to further penetrate this opportunity with Red Wave's complementary solutions, again creating efficiencies of scale. Speaker 200:17:21We believe these strategic efforts will accelerate our path to over $100,000,000 in annualized revenues and accelerate our crossover to cash flow breakeven with a steeper profitability ramp thereafter. And importantly, we continue to expect that we'll be able to reach breakeven with our cash on hand. With that, I will now turn the call over to Joe for more details on our financials. Speaker 300:17:45Thanks, Kevin. Revenue for the Q2 2024 was $14,000,000 up 16% from $12,100,000 in the prior year period, primarily driven by an increase in handheld device revenue. This included approximately $3,100,000 of Redwave revenue. Handheld revenue serving the forensics market was $11,100,000 for the Q2 2024, up 26% from $8,800,000 for the Q2 2023. This increase was driven primarily by revenue related to our recently acquired FTIR products and an increase in service revenue. Speaker 300:18:22We shipped 143 handheld devices in the 2nd quarter, bringing our installed base to 2,618. Revenue from our desktop products serving the life science, instrumentation and bioprocessing markets for the Q2 2024 was 2,900,000 dollars decreasing 9% from $3,100,000 in the prior year period. 10 desktop devices were placed in the 2nd quarter. Desktop revenues include a small contribution from Red Wave in line with our expectations, which drove an 11% increase sequentially from Q1 2024. We ended the Q2 2024 with a cumulative handheld and desktop installed base of 3,067 devices, up 18% from 2,590 at the end of the Q2 2023. Speaker 300:19:16Recurring revenue, which consists of consumables, accessories and service revenue, represented 38% of total revenues this quarter and was $5,300,000 a $1,300,000 increase over the prior year period, largely driven by Speaker 200:19:30service. Recurring revenue Speaker 300:19:32in the Q2 consisted of $3,300,000 related to handhelds and $2,000,000 related to desktops. Revel utilization remained at approximately 0.5 kip per month for our active users, which has been a consistent run rate. Looking ahead, we continue to expect recurring revenue for our product portfolio to be around a third of product and service revenue for the full year 2024. Gross profit was $7,400,000 for the Q2 of 2024 compared to $5,800,000 for the prior year period. Gross margin was 53% for the Q2 of 2024 compared to 48% for the prior year period. Speaker 300:20:10Adjusted gross profit was $8,200,000 for the Q2 of 2024 compared to $6,000,000 for the prior year period. Adjusted gross margin was 58% as compared to 50% for the prior year period. The increase in gross margin was partly due to favorable timing of production, including preparation for strong back half seasonal demand for MX908. In addition, we continue to build scale with higher handheld service revenues, which contributed to higher gross margin in the Q2 of 2024. Over the longer term, we continue to expect volume based improvements to our gross margins as we achieve better leverage over fixed costs. Speaker 300:20:51Additionally, we expect adjusted gross margin to be in the mid-50s in 2024 with further expansion in 2025 with the integration of Redwave. Total operating expenses for the Q2 of 2024 were $21,000,000 compared to $16,700,000 in the prior year period. This increase was driven by approximately $2,000,000 in non recurring acquisition and integration costs as well as the inclusion of 2 months of operating expenses related to our Red Wave acquisition and a $900,000 increase in stock based compensation. Net loss for the Q2 of 2024 was $12,500,000 compared to $9,300,000 in the prior year period. Adjusted EBITDA for the Q2 was a loss of $7,300,000 compared to $7,700,000 for the prior year period. Speaker 300:21:43We ended the Q2 of 2024 with $77,400,000 in cash, cash equivalents and marketable securities with no debt outstanding. We anticipate that our cash on hand continues to be sufficient to support our path to cash flow breakeven. Looking ahead in 2024, we continue to expect revenue to be in the range of $63,000,000 to $65,000,000 representing reported growth of 25% to 29% over full year 2023. Our updated revenue guidance includes the following assumptions. First, we continue to expect $11,000,000 in 2024 reported revenue from Redwave, which reflects 8 months of ownership. Speaker 300:22:242nd, we are reiterating our $52,000,000 to $54,000,000 revenue guidance for the core 908 business, representing 4% to 8% year over year growth. Compared to prior expectations, we now expect the mix to shift more toward our handhelds with slightly lower contribution from desktops in the second half of twenty twenty four. Consistent with our historical second half seasonality, we have a number of 20 plus unit handheld orders that we need to execute on with the closeout of the U. S. Government fiscal year. Speaker 300:22:56Additionally, while we are seeing interest with our newer desktop products launched last year, the sales cycle is taking longer than expected as customers desire to evaluate and trial our novel technology in this recovering market for preclinical instrumentation. Thus, we now anticipate less of an immediate contribution from new product placements than we did entering the year. On a pro form a basis, assuming Red Wave ownership for the full year 2023, our reiterated revenue guidance implies 6% to 9% year over year pro form a growth. Following our acquisition of Redwave, we shifted our focus from GAAP to adjusted gross margins. We delivered a strong 56% adjusted gross margin in the first half of twenty twenty four with outperformance largely due to the timing of MX908 production ahead of a seasonally strong second half. Speaker 300:23:49For the full year, we expect adjusted gross margins to be in the mid-50s range, a slight improvement from our prior expectations. At this point, I would like to turn the call back to Kevin. Speaker 200:24:00Thanks, Joe. We are building a solid foundation for growth this year with our expanded handheld portfolio for forensics workflows and believe we are well differentiated and well positioned to take advantage of the sizable opportunity for bioprocessing analytics as momentum in the space returns. As mentioned at the outset of our call today, our goal has always been to win point of need chemical analysis in life altering applications broadly from forensics through the biopharma process control and characterization and beyond. We are pleased with our progress towards this goal this quarter and the trajectory where we are on for the full year. Lastly, I'd like to again thank our team for their hard work towards our first half performance, the successful integration of Red Wave into our commercial structure and ensuring Red Wave is an integral part of 908 devices. Speaker 200:24:51With that, we'll now open it up to questions. Operator00:24:56Thank Our Our first question comes from Steven Ma with TD Cowen. Your line is open. Please go ahead. Speaker 400:25:17Cohen. Congrats on the quarter and thanks for taking the questions. Yes, so one question. Yes, sorry. So a question, you said you completed the commercial integration of Red Wave. Speaker 400:25:32So does that mean the sales reps on both sides are now completely cross trained on all products? And then secondly, when should we expect to see potential revenue synergies from the combined Speaker 200:25:56During the quarter, we were focusing on just that, the commercial integration of the team and that includes we did product training of the sales team, we integrated the CRM and the website. From a rep standpoint, we added 4 direct sales reps that came from the Red Wave acquisition to our forensics team and a number of field applications professionals, which is so important on the customer success side. So if you think about it, that's kind of an incremental add to the about 70 people we had at the end of 2023 in our sales and marketing team. And again, very importantly, that includes sales application and support people. I think we are starting to see the initial benefits of that and having people cross trained as you touched on. Speaker 200:26:42Certainly, super excited that we saw our first multi system order within the quarter. It was probably 60 days in. We saw that and that was a single order with purchasing 13 single customer, I should say, purchasing 13 handheld devices in total and included our MX-nine zero eight flagship, but also a Red Wave Explorer devices. So I think it's a good testament of where we've come so far, but we're still going to take a few quarters here as we wrap our arms around the total potential and keep introducing the Red Wave products into existing 908 accounts. Speaker 400:27:18Okay, great. Thanks. And then maybe pivoting to bioprocessing, I know you said the sales cycle is taking a little bit longer for your desktop instruments. How do you square that away with some companies have stated there's a sign of improvement in BAW processing? And a second part of the question, are you seeing the sales cycle taking longer from early stage customers versus large stage customers? Speaker 400:27:46And any color you can provide would be great. Thank you. Speaker 200:27:51Yes, sure. Happy to touch on those points. Absolutely, the macro side continues to be a bit of a headwind for us. We're still largely driven by placements versus recurring consumables. Recurring has been a meaningful part of our business, about 2 thirds of our H1 revenues, but really we need to drive more device placements, the hardware for that long term growth. Speaker 200:28:15And we had about 10 in Q2 desktop placements. And definitely encouraged by those in the bioprocessing space seeing some order growth recovery, particularly those large tool players. And that's particularly in our view been around the consumable side of things. And I think that is a good positive leading indicator of some normalization that's happening. But maybe not a perfect read through given our reliance on placements and our reliance on the CapEx side of things. Speaker 200:28:43And we're for sure seeing whether it's the large biopharma being more thoughtful on their instrumentation spend is really high. I would look at where we're participating there with their CapEx and particularly for novel technologies. And then for the smaller biotechs, we've certainly seen many of those call it waiting for some corporate level funding. And I do have one example of a unit here in July that did close once a corporate funding event happened. So we do have a handful of those in our pipeline. Speaker 200:29:15So I think the biotech funding will help, but it's probably over more of that 6 to 9 month period perhaps. So yes, in short, sales like cycles really have been prolonged, but I would say the customer interest has really been as strong as it's ever been. And we did see a quarter to quarter step up in our total desktop device placements. And really that next milestone is seeing if we can get on a cadence more at the levels of 2021 and the beginning of 2022. Great. Speaker 200:29:43Thank you. Super helpful. Operator00:29:48We now turn to Matt Larew with William Blair. Your line is open and please go ahead. Speaker 500:29:54Hey guys, this is Ekabon for Matt. Thanks for taking the questions. I just wanted to focus a little bit still on that desktop portfolio and maybe like a similar question. But we have seen biotech funding has had strong improvements in the first half of the year, which clearly a positive indicator, but recognize it takes time to be reflected in revenue growth and other companies have referenced 2 to 4 quarters. And you just noted that macro pressures really at CapEx have persisted and you're now expecting less contribution from desktops in the back half of the year. Speaker 500:30:27So just kind of wanted to maybe get you to elaborate more on what you're seeing in the market and what sort of lag you anticipate before you start seeing improved ordering activity and just any visibility into 2025s, and if you see demand returning or anything like that? Speaker 200:30:43Yes, happy to further elaborate as much as we can there. But yes, I think you hit it. I mean, we're still seeing some of those macro pressures and that conservatism towards the innovative technology technologies. And there's the bioprocessing recovery on the, call it, large manufacturing side of things and the destocking and perhaps the consumables are again a leading indicator there. We're more participating in the CapEx side of things for instrumentation, more modest priced instrumentation, I realize, but it's yet, it is. Speaker 200:31:18So if you look across our portfolio, we're super excited that we now have multiple products participating in there and we think that is a distinct advantage because you're talking about a complete portfolio of products and across a various range of price points. So I think that helps us engage a bit broader and be there for when the demand is recurring. But you're just seeing people taking their time, being a little more thoughtful. Maybe one example to give you a bit of color, but we have a customer that's quite interested in our new Maverick product. They have an existing ramen product that could be a decade old or more, and it's broken. Speaker 200:31:56And it's a large pharma company and their CapEx is very limited. So they're having to make that decision of I don't have the dollars for both. Do I replace with a new innovative technology like Maverick or do I repair? And again, I can't do both. So that really makes them think very hard and we're seeing our products remain incredibly amount of interest and differentiated, but it's taking people to have some pause, some thoughtfulness more on the evaluation side and we're kind of building up a pipeline of those evaluations, particularly for our novel products. Speaker 200:32:29So maybe that adds a little bit more color to the previous response for you. Speaker 500:32:34Got it. Yes, that's helpful. And then maybe switching to the handhelds. I think you said you got into soon as 20 plus orders or so that you need to close out in the back half of the year. Can you just kind of speak to your confidence and be able to close those out? Speaker 500:32:47And are those for sure going to be able to be delivered or just, yes, some color there would be helpful. Speaker 200:32:55Yes, maybe I'll start and pass it to Joe here. But yes, to hit our second half revenue target, we absolutely need to continue to deliver with our large enterprise accounts and we've been making great progress on that over the first half of the year. It's always a little bit challenging on the timing of exactly pinpointing those down, but we do feel pretty good at this moment in time here about the guidance we provided. Probably a little bit more on the error bars for our desktops that we've been speaking to, but let me pass it to Joe? Speaker 300:33:24Yes. So I think specifically on handhelds, consistent with our historical second half seasonality, as you mentioned, we have a number of 20 plus unit handheld placement opportunities that we'll need to execute on ahead of the closeout of the U. S. Government fiscal year. And we've done a, let's say, a great job capitalizing on these opportunities in the past. Speaker 300:33:42And our sales team is hard at work to continue this trend here in 2024. So similar past years, we'll have better visibility around some of these larger, I call it, needle moving handheld orders at the time of our Q3 call, and we'll definitely keep you updated as we progress. Speaker 500:34:01Got it. Thanks for the question, guys. Operator00:34:11We now turn to Daniel Arias with Stifel. Your line is open. Please go ahead. Speaker 600:34:17Good morning. It's Paul on for Dan. Just want to touch on the outlook first. So you mentioned some seasonality assumptions for the back half. Can you just touch on is that assuming a return to kind of historically normal budget flush or is that attenuated a little bit? Speaker 600:34:37What are the assumptions there? What kind of scenarios would get you to the top end of the range versus the bottom end of the range for this for the full year? Speaker 300:34:44Sure. Happy to give some color on that. So, I'd say similar to overall similar to 2023, our product diversification we feel continues to support our positive top line growth trajectory with solid handheld growth that you touched on, helping to offset the slower recovery with our desktop products. And we were pleased to be reiterating today our 2024 revenue guidance despite some unique challenges related to the U. S. Speaker 300:35:08Government budget delay until March and slower than expected recovery in CapEx spending for the Life Sciences instrumentation. Importantly, we are reiterating our 2024 revenue guidance for Red Wave, which we view as a key driver of long term sustainable growth in the handheld portfolio. But drilling down a bit more on the desktops, maybe elaborating another layer. Related to 2024, we now expect our core desktops to be down on a full year basis and relatively flat in H2 2024 with a similar trend as prior years where we realized a certain level of year end kind of capital funding being available. We previously communicated our expectations on desktops to rebound to the double digit top line growth if and when that instrument market recovery occurs. Speaker 300:35:52And the growth recovery has taken, I'd say, a longer to play out with our visibility here in 2024. We see the pace of growth in 2025 to likely be more muted, maybe not snapping back. But I'd say while the instrumentation macro recovery will be the key determining factor, I believe the instrumentation portfolio is positioned even better coming out of the challenge macro period than it was going into it. So definitely some year end budget for us assumed in our baseline guide and hopefully gives you some color Speaker 200:36:19on our thought as we turn the corner into next year as well. Speaker 600:36:24Yes, that's really helpful. Thank you. And just a quick follow-up. In terms of sort of you mentioned the gross margin, what the kind of trend has been in the outlook. But can you touch on OpEx just in terms of this lower assumption for desktop? Speaker 600:36:41Is there an opportunity for a little bit of savings on the OpEx line, as you kind of scale back the business on that side, given the lower revenue expectations? Or does that do those resources just sort of get put into the handheld side and ends up netting out? Speaker 300:37:02Yes, I think a few factors in play. We're excited to layer on the resources and OpEx, innovative R and D team and Kevin mentioned some of the selling team from the Red Wave acquisition. So that will be incremental to our overall spend. But, yes, I think there is the opportunity to continue to look and it's something that we're ongoing looking to optimize our OpEx efforts. With the Red Wave acquisition, we highlighted some cost synergy opportunities as much as $5,000,000 starting in 2026 as we look to prioritize whether it's the R and D or selling and marketing spend. Speaker 300:37:36And I think specifically on the commercial and desktop side, we will continue to take a look at that growth trajectory and look to align the resources with that. Speaker 600:37:45Okay. Appreciate the color. Thanks for the question. Speaker 300:37:49You're welcome. Operator00:37:51Our next question comes from Jacob Johnson with Stephens. Your line is open. Please go ahead. Speaker 700:37:58Good morning. This is Hannah on for Jacob. Thanks for taking my questions. Just to start, 153 placements in the quarter is impressive. It's better than we expected, but perhaps it didn't translate to quite the same revenue outperformance that we would have expected. Speaker 700:38:16Does this placement number include Redwave? Or were there some of these placements to OEM? Speaker 300:38:24Yes. It does include Red Wave placements, the 3 FIR products that we got through acquisitions sort of 2 months of placements within the handheld. So that 143 not only included our MX, but also our new Explorer, protector and threat ID products. Speaker 700:38:47Great. Thank you. And then, you've talked about some of the cell and gene therapy partnerships and you said there's some other opportunities that you're looking at. What about more traditional bioprocessing players, things like monoclonal antibodies and biosimilars like TRACE's work with Sartorius? Are you doing partnerships there as well or is this more on the cell and gene therapy side? Speaker 200:39:13Yes. No, a great question. I mean, I think across the board there, we really see that these strategic collaborations and call it partnerships with these hardware innovators could be very impactful. We've definitely been highlighting the work we're doing in this with the cell therapy innovators. Yes, we do have some in our pipeline, which would be more, call it, traditional monoclonal antibodies as well. Speaker 200:39:35And you pointed out, we already do have relationship with Sartorius with one of our products there. And I think we see opportunity in both as you look at, call it, the next generation hardware platforms that people are launching out there. If you think about the cell therapy area and you think about the automation that's required to meet the access and lower cost goals, yield is a part of that. Being able to do that with process sensors is incredibly important to help meet those goals. And we think there's just a very ripe opportunity as that really develops and as there's a ton of efforts out there by some leaders in these areas that are just doubling down and trying to make that a reality. Speaker 200:40:17And we really want to seek design wins in there and then succeed as they succeed. So, a bit across the board in those 6, but definitely weighted towards the cell therapy side. Speaker 700:40:32Great. Thanks. I'll leave it there. Operator00:40:37Our next question comes from Puneet Souda with Leerink Partners. Your line is open. Please go ahead. Speaker 800:40:44Yes. Hi, guys. Thanks for the question. So maybe just on forensics, I mean, ahead of the elections and just wondering, are you seeing any effect on the ordering on the forensic side? What are you hearing from the different state agencies and overall the U. Speaker 800:41:05S. Agencies and internationally as well? Speaker 200:41:09Yes. Happy to touch on that. I mean, I think as Q2 showed, we had pretty strong demand for our handhelds across the board. Big drivers there are that need for trace and point of need chemical analysis and identification as it probably feels to all of us on the call, the global insecurity and uncertainty is quite high at this time. And then you layer that on with the federal crisis that we explained on our last Q1 call is really now expanding internationally. Speaker 200:41:37A lot of big drivers there as we see it in the near end, the longer term. And then if you think about now we can access more with our FTIR products, and then the fact that the international pipelines are growing out. So I think all of those are helping to the Q2 success and helping towards the ramp that we're envisioning here as we go through the second half. But the election in particular, I don't think there's going to be a material impact on our business in either outcomes, if you will. If you do look back through history, DEA and military spending lines just as two examples of areas that funds come to 908 devices from. Speaker 200:42:20I mean, those have trends consistently higher really regardless of administration. And if you look back over the last 20 ish years or so, those budgets have grown in the, call it, low mid single digits range in the U. S. And in that global perspective, there's really been positive additions out there and more of the NATO member countries are pushing to spend more of their GDP on technology. And in some cases, they have goals of 20% of their budgets to be invested in new major technologies and to support modernization, which we think is a positive from our innovative handheld tools there. Speaker 800:43:02Okay. That's helpful. And then on the PAT side with the desktop and cell therapies, Just wondering, I think you're calling out for lesser desktop in the second half. Just wanted to understand, I mean, now that you have multiple products, shouldn't we expect some more cross selling opportunities, Maybe just as we look at recovery in the markets, what's the conservatism in terms of lower second half? Is it just more seasonality? Speaker 800:43:39Is there pull forward? Is there any other things that you're baking in with respect to the Rebel boxes and other cross sell opportunities that you have with Maven and products? Speaker 200:43:54Yes. Sure, absolutely. I can give some color to that point. We really do as you said, we do have a broader desktop portfolio now, right? We've got 4 products serving that PAT space, really expanding the out line online and the in line analysis capability. Speaker 200:44:10So that to us really does, as you alluded to, really kind of strengthens your ability to have a customer engagement there and maybe improves our ability to cap that spending, capture those dollars as the recovery happens. And if you think of all of them together, they can provide a pretty complex view. But that said, they are new technologies. In the quarter, we did see placements across all of our products in the second quarter, about 10 in total for our desktop. But each and every one, especially our newer products in that preclinical space, and I gave a couple of examples earlier, where customers are just being conservative with that. Speaker 200:44:48And so there's definitely more of a prolonged evaluation cycle, which we do have goals to do 10 plus of those double digits, I would say, in the second half here of our new products. But it just takes a little bit of time. So, I think we're factoring that in, in the environment. Speaker 800:45:08And Kevin, lastly, just quickly, is there any obviously, these are new products in the marketplace, but just wanted to see if there are any impact that you would assume from a BioSecure or facilities changing hands that might be utilizing your instruments? Speaker 200:45:27Well, I certainly can touch on the facility side. I mean, we've certainly seen consolidation across the space and some of our customers consolidating facilities and labs. We've certainly had our share of purchase orders to move equipment from one lab to another, where people contract you, our service team to come out and move it from one lab to another. So I think that's has certainly not progressed things quickly because these companies are still call it going through that digestion phase. The BioSecure Act, I don't think we've seen anything we can tag directly to that at this point. Speaker 200:46:08If we see the construction of new process development labs, probably more on the upfront side, right, process development versus call it late stage or in the manufacturing side. I think that would be a benefit to us over time. But today, we haven't seen that. And then as you know, our position in APAC is quite small. Speaker 300:46:28That's less than 5% from across all of our revenue perspective. Speaker 600:46:34Got it. Okay. Helpful, guys. Thank you. Operator00:46:41This concludes our Q and A. I'll now hand back to Kevin Knott for closing remarks. Speaker 200:46:47Yes, thank you. Thank you very much. We're pleased to have you all on the call with us today and happy to answer any other questions. Please reach out to the company if we can provide any additional information. Thank you. Operator00:46:58Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference Call908 Devices Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) 908 Devices Earnings Headlines908 Devices Equips rescEU Disaster Preparedness Reserve with Advanced Chemical DetectionApril 30, 2025 | finance.yahoo.com908 Devices (NASDAQ:MASS) Earns "Sell (D-)" Rating from Weiss RatingsApril 26, 2025 | americanbankingnews.comBuffett’s favorite chart just hit 209% – here’s what that means for goldA Historic Gold Announcement Is About to Rock Wall Street For months, sharp-eyed analysts have watched the quiet buildup behind the scenes. Now, in just days, the floodgates are set to open. The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent — and four tiny miners could be your ticket to 100X gains.May 6, 2025 | Golden Portfolio (Ad)Leerink Partners Remains a Hold on 908 Devices (MASS)April 24, 2025 | markets.businessinsider.com908 Devices reports preliminary Q1 revenue $11.5M. consensus $11.9MApril 16, 2025 | markets.businessinsider.com908 Devices Announces Preliminary First Quarter 2025 Financial ResultsApril 15, 2025 | finance.yahoo.comSee More 908 Devices Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like 908 Devices? Sign up for Earnings360's daily newsletter to receive timely earnings updates on 908 Devices and other key companies, straight to your email. Email Address About 908 Devices908 Devices (NASDAQ:MASS), a commercial-stage technology company, provides various purpose-built handheld and desktop mass spectrometry devices to interrogate unknown and invisible materials in life sciences research, bioprocessing, pharma/biopharma, forensics, and adjacent markets. The company's products include MX908, a handheld, battery-powered, and Mass Spec device that is designed for rapid analysis of solid, liquid, vapor, and aerosol materials of unknown identity; Rebel, a small desktop analyzer that provides real-time information on the extracellular environment in bioprocesses; and Maverick, an optical in-line analyzer that offers real-time monitoring and control of multiple bioprocess parameters, including glucose, lactate, and total biomass in mammalian cell cultures, as well as provides process fingerprint data to support large-scale efforts in predictive bioprocess modeling. Its products also comprise Maven and Trace C2, an online device for bioprocess monitoring and control; and ZipChip solution, a plug-and-play, high-resolution separation platform that optimizes Mass Spec sample analysis. The company operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, and rest of the Americas. 908 Devices Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.View 908 Devices ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback Plan Upcoming Earnings Fortinet (5/7/2025)ARM (5/7/2025)DoorDash (5/7/2025)AppLovin (5/7/2025)MercadoLibre (5/7/2025)Lloyds Banking Group (5/7/2025)Manulife Financial (5/7/2025)Novo Nordisk A/S (5/7/2025)Uber Technologies (5/7/2025)Johnson Controls International (5/7/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 9 speakers on the call. Operator00:00:00Hello and welcome to the 908 Devices Second Quarter 20 24 Financial Results Conference Call. My name is Elliot, and I'll be coordinating your call today. I would now like to hand over to Kelly Gura, Investor Relations. Please go ahead. Speaker 100:00:22Thank you. This morning, 908 Devices released financial results for the Q2 ended June 30, 2024. If you've not received this news release or if you'd like to be added to company's distribution list, please send an e mail to ir908devices.com. Joining me today from 908 Kevin Knopf, Chief Executive Officer and Co Founder and Joe Griffith, Chief Financial Officer. Before we begin, our commentary today will include the presentation of some non GAAP financial measures. Speaker 100:00:51These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today's earnings press release, which is available in the Investor Relations section of our website. Additionally, I'd like to remind you that management will make statements during this call that are forward looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward Looking Statements in the press release Nano eight devices issued today. Speaker 100:01:30For a more complete list and description, please see the Risk Factors section of the company's annual report on Form 10 ks for the year ended December 31, 2023, and in its other filings with the Securities and Exchange Commission. Except as required by law, 908 Devices disclaims any intention or obligation to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise. This conference call contains time sensitive information and is accurate only as of the live broadcast August 6, 2024. With that, I would like to turn the call over to Kevin. Speaker 200:02:07Thanks, Kelly. Good morning and thank you for joining our Q2 2024 earnings call. We delivered solid execution on a multitude of fronts in the quarter and we ended the 2nd quarter with revenue of $14,000,000 representing 16% growth year over year. This included $3,100,000 of revenue from Red Wave Technology, which we acquired on April 29. We are excited to add Red Wave's devices for BAW Chemical Identification to our commercial engine, complementing our handheld MX908 mass spec for trace chemical detection. Speaker 200:02:43We now have an expanded portfolio of handheld chemical analysis devices for forensics workflows. Our customers value our point of need offerings as demonstrated by consistent recurring revenue, which for the first half of the year represented 41% of our revenues. Our goal has always been to win point of need chemical analysis During the quarter, our team completed the commercial During the quarter, our team completed the commercial integration of RedWig Technology, including product training for the sales teams, plus CRM and website integration. Also, we received our 1st multi system order, 13 devices in total from the same customer that included both our handheld MX-nine zero eight and Red Wave Explorer devices. Overall, we sold 153 devices in total in the quarter. Speaker 200:03:40I want to thank our team for their enthusiasm and relentless work to quickly bring Red Wave into 908 devices and for the tremendous momentum they have created as a result. We also recently welcomed Michelle Leonhardt, former Administrator of the U. S. Drug Enforcement Administration to our Board of Directors. Michelle is a determined leader in the fight against illegal drugs and a passionate advocate for substance abuse prevention in young adults. Speaker 200:04:08She brings extensive government knowledge and experience, which will support our efforts to further penetrate the forensics market. For our desktop portfolio that serves the life science, instrumentation and bioprocessing markets, macro market pressures have persisted and we continue to see an overall conservatism towards adopting innovative technologies and CapEx spending. Despite ongoing pressures, we continue to focus on building a foundation that will position us well for the future. Building a foundation that will position us well for the future. As we launched 2 new desktop devices last year, we're focused on capability upgrades to our existing products this year. Speaker 200:04:51This includes developments to enable integrations and simplifying and hardening our technology with the ultimate goal to present as a simple process sensors. For our REVEL device introduced in 2019, we are optimizing the device's software and hardware that begun initial testing with key pharma customers. Feedback has been positive with one customer noting that they now plan to use Revol for routine manufacturing support in addition to its current use in process development lab. You're truly appreciative of our customers' input and support in these product enhancements and improvements. Now I'd like to provide more detail on the progress we have made across our 3 focus areas during the Q2. Speaker 200:05:35Starting with our first objective, market expansion. Our focus is to expand our market outreach by engaging with new key accounts, fostering strategic partnerships and extending our reach across global enterprise accounts. We are proud that first responders choose our handheld devices in their mission to protect the public and key infrastructure from chemical hazards. Of particular concern, especially at large public events is the ability to detect and identify unknown gases, vapors and aerosols. Our Explorer handheld FTIR device can quickly identify thousands of gases and vapors, including complex mixtures and our MX908 Beacon complements this by providing remote detection and monitoring of vapors and aerosol at trace levels. Speaker 200:06:23Both devices were used by local response team at the Indianapolis 500 on the VO race and Republican National Convention and at both events, the Explorer was integrated onto Boston Dynamics' SPOT robot. In addition, several beacons were deployed at large open air events in our nation's capital over the July 4th holiday. We value the confidence these response teams have in our first of its kind air monitoring technology and the partnership we have with these leading organizations. Turning to our desktop portfolio, I'm excited to announce that we have officially launched our Maven configuration for Terumo Blood and Cell Technologies Quantum Flex Cell expansion system that enables real time monitoring and control glucose and lactate without the cost and risk of manual sampling. The Quantum Flex cell expansion system is used throughout the cell therapy process from process development through clinical manufacturing. Speaker 200:07:20In a webinar in July posted by BioInsights, a Terumo scientist noted that real time automated glucose and lactate sampling allows more frequent data that can be used to maintain tight control over cell culture condition. He further noted that automated systems like Maven ensure reproducibility and reduce the amount of hands on time required from operators. Our respective teams are excited to offer cell therapy developers the ability to gain valuable process insights in order to reduce cost of goods and accelerate progress for these personalized treatments. Earlier this year, we announced a development collaboration with Solaris to integrate our Maverick in line analyzer into Solaris' cell shuttle system, a fully integrated, scalable cell therapy manufacturing platform. Maverick, a Raman based PET solution, provides real time monitoring and control of critical bioprocess parameters. Speaker 200:08:16In addition to Solaris and Terumo, we are actively engaged with a handful of other hardware innovators and continue to seek other alliances as there is a need for simple automated PAT tools such as our novel devices to enhance process understanding and ensure batch to batch reproducibility for these personalized treatments. It is critical to address cost and access for cell therapies and our products directly contribute to this. Ultimately, we believe this integration strategy could create an inflection point for our desktop and an efficient path to market that complements our direct sales pursuits. To further the value of our desktop portfolio for cell therapy applications, we recently entered into a research collaboration with CTMC, a joint venture between National Resilience and MD Anderson Cancer Center. From process development to integrated regulatory support, CTMC aims to usher novel cell therapies seamlessly and efficiently through every step of the development journey. Speaker 200:09:17During cell therapy production, there are multiple points where sampling is required, which is a manual process that is labor intensive and time consuming. Our collaboration aims to demonstrate the benefit of continuous monitoring of glucose and lactate in GRX bioreactors, today's industry standard. Maven is an easy to implement solution for hands off monitoring of cell therapy manufacturing and we believe will ultimately lead to higher efficiency and more robust therapies. We've also expanded our partnership with the National Institute of Bioprocessing Research and Training or NIBRT based in Ireland. NIBRT's research focus is to make transformative discoveries that revolutionize the manufacturing of recombinant proteins, vaccines and cell and gene therapies. Speaker 200:10:06Earlier this year, we began the collaboration that demonstrates how our desktop portfolio can add value in bioproduction and includes Maven, Maverick for real time process analytics with Revel providing at line cell culture analysis and Zip Chip for rapid product quality assessment. At the upcoming bioprocessing summit in Boston this month, Doctor. Jonathan Bones, principal investigator at NIBRT will present findings on an integrated platform of Maverick, Revel and Zip Chip that enables rapid generation of informative data on manufacturing process behavior for monoclonal antibody. We believe these strategic partnerships and research collaborations lay a solid foundation for demonstrating and realizing the value of our innovative PAC solutions. Turning to our second objective, portfolio engagement. Speaker 200:10:59We are leveraging our expanded product portfolios to maximize opportunities and strengthen engagements with our customers. In June, we launched enhanced quantification software package for our Explorer handheld gas and vapor analyzer enabling first responders to identify and quantify nearly 5,000 airborne chemicals. Explorer is the 1st handheld product of its kind that uses FTR spectroscopy to identify, quantify, frac gases and vapor. The device is simple to use and can automatically and accurately identify multiple compounds simultaneously at the parts per million level. We believe Explorer is a game changer for firefighters. Speaker 200:11:42According to the National Fire Protection Agency, approximately 1.3% of all calls are for hazardous materials compared to 4% of calls for fire. Many calls are the result of unknown odors detected by civilians and fire departments need advanced technology in the field such as the Explorer so that they can effectively manage and mitigate potential hazards. We continue to diligently monitor the evolving drug landscape and included new drug targets in version 3.5 software for our MX-nine zero eight handheld mass spectrometer, which was released electronically during the quarter, enabling all in the field devices to be easily updated. Drug target additions include 3 synthetic cannabinoids, 1 synthetic cathinone and protanitazine, anitazine that has been identified in combination with other drugs of abuse. Concerningly, recent data has also shown that it is even more potent than Fentanyl. Speaker 200:12:40Our MX-nine zero eight is currently the only handheld device used by first responders that can identify prodamidazine at trace level. In addition to MX-nine zero eight, analytic target updates released in software, our team of forensic chemists monitors new drug targets and concoctions that appear in the field through our reach back data service, informing and educating our internal application team and importantly, making customers aware of emerging trends. As an example, our team recently became aware of Tujig, known as pink cocaine, a drug cocktail that does not contain cocaine, but usually a mixture of Ketamine, MDMA, Methamphetamine and other substances such as opioids, While pink cocaine has been seen mostly in Latin America and Europe to this point, it is gaining traction in the U. S. And in fact our reach back team is now seeing it in U. Speaker 200:13:36S. Field data. It remains hypercritical that law enforcement personnel and other first responders have advanced and upgradable technology in the field such as the MX-nine zero eight along with the 20 fourseven support they need to stay current and to quickly and accurately identify illicit drugs. Turning to our desktop, we had a strong technical showing at the American Society For Mass Spectrometry or ASMS conference in June At the launch of the Thermo Scientific Stellar Mass Spectrometer, the pairing with our Zip Chip CE device was used to demonstrate fast metabolite acquisition speed and high quality quantitative data. Results noted quantitative accuracy and precision for 124 compounds in less than 2 minutes covering a wide concentration rate. Speaker 200:14:26It's great to see these newly launched mass specs that can exploit the full speed of our Zip Trip. Also at ASMS, the collaborators at NIBERT and the University of Wisconsin Madison gave 3 oral presentations on their research using Zip Chip. Research applications included metabolomics, proteomics and upstream production of monoclonal antibodies. Our team also presented 13 posters, which included collaborators from Bio Techne, AstraZeneca, Thermo Fisher Scientific and the University of North Carolina at Chapel Hill. Zip Chip's ability to provide high resolution separations in minute was also highlighted in several peer review articles published in the scientific journals in the quarter. Speaker 200:15:11In the publication in the journal Analytica Chemica Acta, scientists from AstraZeneca highlighted Zip Chip's high sensitivity and the short analysis time of less than 8 minutes in the metabolite study of ATP, which serves as a primary energy source for living cells. In the publication in the Journal of Pharmaceutical and Biomedical Analysis, scientists from Poel Pharma Biologics, Nibert and the Center For Analytical Sciences in Amsterdam noted that charge variant analysis data from Zip Chip enables rapid selection of the most promising cell lines during process development of a biosimilar. Finally, in the publication in the Journal of Pharmaceutical Sciences, scientists from Regeneron noted that Zip Chip's high resolution analysis enables identification of charged variant species under various stress conditions, thus supporting rapid process and formulation development of biotherapeutics. Overall, I'm pleased that we continue to strengthen customer engagement with our newly expanded handheld and desktop portfolio. Finally, our third objective, operational excellence. Speaker 200:16:20We are executing to a framework for sustained growth with a path to profitability. We've enhanced our financial profile significantly by acquiring Red Wave Technology, a profitable company that's accretive to both revenue growth and gross margins, and we have identified more than $5,000,000 in forecasted annual cost synergies to be realized in 2026. Our integration is progressing smoothly and our commercial team is effectively managing our broader portfolio of forensic solutions. We're pleased with Redwave's contributions to margins and revenues in Q2, which we view as an early evidence that our overlapping customer bases and Call Point will support improved scale and better leverage of sales and marketing investments. As we enter a seasonally strong second half for our forensics portfolio, we plan to leverage existing relationships with government accounts to further penetrate this opportunity with Red Wave's complementary solutions, again creating efficiencies of scale. Speaker 200:17:21We believe these strategic efforts will accelerate our path to over $100,000,000 in annualized revenues and accelerate our crossover to cash flow breakeven with a steeper profitability ramp thereafter. And importantly, we continue to expect that we'll be able to reach breakeven with our cash on hand. With that, I will now turn the call over to Joe for more details on our financials. Speaker 300:17:45Thanks, Kevin. Revenue for the Q2 2024 was $14,000,000 up 16% from $12,100,000 in the prior year period, primarily driven by an increase in handheld device revenue. This included approximately $3,100,000 of Redwave revenue. Handheld revenue serving the forensics market was $11,100,000 for the Q2 2024, up 26% from $8,800,000 for the Q2 2023. This increase was driven primarily by revenue related to our recently acquired FTIR products and an increase in service revenue. Speaker 300:18:22We shipped 143 handheld devices in the 2nd quarter, bringing our installed base to 2,618. Revenue from our desktop products serving the life science, instrumentation and bioprocessing markets for the Q2 2024 was 2,900,000 dollars decreasing 9% from $3,100,000 in the prior year period. 10 desktop devices were placed in the 2nd quarter. Desktop revenues include a small contribution from Red Wave in line with our expectations, which drove an 11% increase sequentially from Q1 2024. We ended the Q2 2024 with a cumulative handheld and desktop installed base of 3,067 devices, up 18% from 2,590 at the end of the Q2 2023. Speaker 300:19:16Recurring revenue, which consists of consumables, accessories and service revenue, represented 38% of total revenues this quarter and was $5,300,000 a $1,300,000 increase over the prior year period, largely driven by Speaker 200:19:30service. Recurring revenue Speaker 300:19:32in the Q2 consisted of $3,300,000 related to handhelds and $2,000,000 related to desktops. Revel utilization remained at approximately 0.5 kip per month for our active users, which has been a consistent run rate. Looking ahead, we continue to expect recurring revenue for our product portfolio to be around a third of product and service revenue for the full year 2024. Gross profit was $7,400,000 for the Q2 of 2024 compared to $5,800,000 for the prior year period. Gross margin was 53% for the Q2 of 2024 compared to 48% for the prior year period. Speaker 300:20:10Adjusted gross profit was $8,200,000 for the Q2 of 2024 compared to $6,000,000 for the prior year period. Adjusted gross margin was 58% as compared to 50% for the prior year period. The increase in gross margin was partly due to favorable timing of production, including preparation for strong back half seasonal demand for MX908. In addition, we continue to build scale with higher handheld service revenues, which contributed to higher gross margin in the Q2 of 2024. Over the longer term, we continue to expect volume based improvements to our gross margins as we achieve better leverage over fixed costs. Speaker 300:20:51Additionally, we expect adjusted gross margin to be in the mid-50s in 2024 with further expansion in 2025 with the integration of Redwave. Total operating expenses for the Q2 of 2024 were $21,000,000 compared to $16,700,000 in the prior year period. This increase was driven by approximately $2,000,000 in non recurring acquisition and integration costs as well as the inclusion of 2 months of operating expenses related to our Red Wave acquisition and a $900,000 increase in stock based compensation. Net loss for the Q2 of 2024 was $12,500,000 compared to $9,300,000 in the prior year period. Adjusted EBITDA for the Q2 was a loss of $7,300,000 compared to $7,700,000 for the prior year period. Speaker 300:21:43We ended the Q2 of 2024 with $77,400,000 in cash, cash equivalents and marketable securities with no debt outstanding. We anticipate that our cash on hand continues to be sufficient to support our path to cash flow breakeven. Looking ahead in 2024, we continue to expect revenue to be in the range of $63,000,000 to $65,000,000 representing reported growth of 25% to 29% over full year 2023. Our updated revenue guidance includes the following assumptions. First, we continue to expect $11,000,000 in 2024 reported revenue from Redwave, which reflects 8 months of ownership. Speaker 300:22:242nd, we are reiterating our $52,000,000 to $54,000,000 revenue guidance for the core 908 business, representing 4% to 8% year over year growth. Compared to prior expectations, we now expect the mix to shift more toward our handhelds with slightly lower contribution from desktops in the second half of twenty twenty four. Consistent with our historical second half seasonality, we have a number of 20 plus unit handheld orders that we need to execute on with the closeout of the U. S. Government fiscal year. Speaker 300:22:56Additionally, while we are seeing interest with our newer desktop products launched last year, the sales cycle is taking longer than expected as customers desire to evaluate and trial our novel technology in this recovering market for preclinical instrumentation. Thus, we now anticipate less of an immediate contribution from new product placements than we did entering the year. On a pro form a basis, assuming Red Wave ownership for the full year 2023, our reiterated revenue guidance implies 6% to 9% year over year pro form a growth. Following our acquisition of Redwave, we shifted our focus from GAAP to adjusted gross margins. We delivered a strong 56% adjusted gross margin in the first half of twenty twenty four with outperformance largely due to the timing of MX908 production ahead of a seasonally strong second half. Speaker 300:23:49For the full year, we expect adjusted gross margins to be in the mid-50s range, a slight improvement from our prior expectations. At this point, I would like to turn the call back to Kevin. Speaker 200:24:00Thanks, Joe. We are building a solid foundation for growth this year with our expanded handheld portfolio for forensics workflows and believe we are well differentiated and well positioned to take advantage of the sizable opportunity for bioprocessing analytics as momentum in the space returns. As mentioned at the outset of our call today, our goal has always been to win point of need chemical analysis in life altering applications broadly from forensics through the biopharma process control and characterization and beyond. We are pleased with our progress towards this goal this quarter and the trajectory where we are on for the full year. Lastly, I'd like to again thank our team for their hard work towards our first half performance, the successful integration of Red Wave into our commercial structure and ensuring Red Wave is an integral part of 908 devices. Speaker 200:24:51With that, we'll now open it up to questions. Operator00:24:56Thank Our Our first question comes from Steven Ma with TD Cowen. Your line is open. Please go ahead. Speaker 400:25:17Cohen. Congrats on the quarter and thanks for taking the questions. Yes, so one question. Yes, sorry. So a question, you said you completed the commercial integration of Red Wave. Speaker 400:25:32So does that mean the sales reps on both sides are now completely cross trained on all products? And then secondly, when should we expect to see potential revenue synergies from the combined Speaker 200:25:56During the quarter, we were focusing on just that, the commercial integration of the team and that includes we did product training of the sales team, we integrated the CRM and the website. From a rep standpoint, we added 4 direct sales reps that came from the Red Wave acquisition to our forensics team and a number of field applications professionals, which is so important on the customer success side. So if you think about it, that's kind of an incremental add to the about 70 people we had at the end of 2023 in our sales and marketing team. And again, very importantly, that includes sales application and support people. I think we are starting to see the initial benefits of that and having people cross trained as you touched on. Speaker 200:26:42Certainly, super excited that we saw our first multi system order within the quarter. It was probably 60 days in. We saw that and that was a single order with purchasing 13 single customer, I should say, purchasing 13 handheld devices in total and included our MX-nine zero eight flagship, but also a Red Wave Explorer devices. So I think it's a good testament of where we've come so far, but we're still going to take a few quarters here as we wrap our arms around the total potential and keep introducing the Red Wave products into existing 908 accounts. Speaker 400:27:18Okay, great. Thanks. And then maybe pivoting to bioprocessing, I know you said the sales cycle is taking a little bit longer for your desktop instruments. How do you square that away with some companies have stated there's a sign of improvement in BAW processing? And a second part of the question, are you seeing the sales cycle taking longer from early stage customers versus large stage customers? Speaker 400:27:46And any color you can provide would be great. Thank you. Speaker 200:27:51Yes, sure. Happy to touch on those points. Absolutely, the macro side continues to be a bit of a headwind for us. We're still largely driven by placements versus recurring consumables. Recurring has been a meaningful part of our business, about 2 thirds of our H1 revenues, but really we need to drive more device placements, the hardware for that long term growth. Speaker 200:28:15And we had about 10 in Q2 desktop placements. And definitely encouraged by those in the bioprocessing space seeing some order growth recovery, particularly those large tool players. And that's particularly in our view been around the consumable side of things. And I think that is a good positive leading indicator of some normalization that's happening. But maybe not a perfect read through given our reliance on placements and our reliance on the CapEx side of things. Speaker 200:28:43And we're for sure seeing whether it's the large biopharma being more thoughtful on their instrumentation spend is really high. I would look at where we're participating there with their CapEx and particularly for novel technologies. And then for the smaller biotechs, we've certainly seen many of those call it waiting for some corporate level funding. And I do have one example of a unit here in July that did close once a corporate funding event happened. So we do have a handful of those in our pipeline. Speaker 200:29:15So I think the biotech funding will help, but it's probably over more of that 6 to 9 month period perhaps. So yes, in short, sales like cycles really have been prolonged, but I would say the customer interest has really been as strong as it's ever been. And we did see a quarter to quarter step up in our total desktop device placements. And really that next milestone is seeing if we can get on a cadence more at the levels of 2021 and the beginning of 2022. Great. Speaker 200:29:43Thank you. Super helpful. Operator00:29:48We now turn to Matt Larew with William Blair. Your line is open and please go ahead. Speaker 500:29:54Hey guys, this is Ekabon for Matt. Thanks for taking the questions. I just wanted to focus a little bit still on that desktop portfolio and maybe like a similar question. But we have seen biotech funding has had strong improvements in the first half of the year, which clearly a positive indicator, but recognize it takes time to be reflected in revenue growth and other companies have referenced 2 to 4 quarters. And you just noted that macro pressures really at CapEx have persisted and you're now expecting less contribution from desktops in the back half of the year. Speaker 500:30:27So just kind of wanted to maybe get you to elaborate more on what you're seeing in the market and what sort of lag you anticipate before you start seeing improved ordering activity and just any visibility into 2025s, and if you see demand returning or anything like that? Speaker 200:30:43Yes, happy to further elaborate as much as we can there. But yes, I think you hit it. I mean, we're still seeing some of those macro pressures and that conservatism towards the innovative technology technologies. And there's the bioprocessing recovery on the, call it, large manufacturing side of things and the destocking and perhaps the consumables are again a leading indicator there. We're more participating in the CapEx side of things for instrumentation, more modest priced instrumentation, I realize, but it's yet, it is. Speaker 200:31:18So if you look across our portfolio, we're super excited that we now have multiple products participating in there and we think that is a distinct advantage because you're talking about a complete portfolio of products and across a various range of price points. So I think that helps us engage a bit broader and be there for when the demand is recurring. But you're just seeing people taking their time, being a little more thoughtful. Maybe one example to give you a bit of color, but we have a customer that's quite interested in our new Maverick product. They have an existing ramen product that could be a decade old or more, and it's broken. Speaker 200:31:56And it's a large pharma company and their CapEx is very limited. So they're having to make that decision of I don't have the dollars for both. Do I replace with a new innovative technology like Maverick or do I repair? And again, I can't do both. So that really makes them think very hard and we're seeing our products remain incredibly amount of interest and differentiated, but it's taking people to have some pause, some thoughtfulness more on the evaluation side and we're kind of building up a pipeline of those evaluations, particularly for our novel products. Speaker 200:32:29So maybe that adds a little bit more color to the previous response for you. Speaker 500:32:34Got it. Yes, that's helpful. And then maybe switching to the handhelds. I think you said you got into soon as 20 plus orders or so that you need to close out in the back half of the year. Can you just kind of speak to your confidence and be able to close those out? Speaker 500:32:47And are those for sure going to be able to be delivered or just, yes, some color there would be helpful. Speaker 200:32:55Yes, maybe I'll start and pass it to Joe here. But yes, to hit our second half revenue target, we absolutely need to continue to deliver with our large enterprise accounts and we've been making great progress on that over the first half of the year. It's always a little bit challenging on the timing of exactly pinpointing those down, but we do feel pretty good at this moment in time here about the guidance we provided. Probably a little bit more on the error bars for our desktops that we've been speaking to, but let me pass it to Joe? Speaker 300:33:24Yes. So I think specifically on handhelds, consistent with our historical second half seasonality, as you mentioned, we have a number of 20 plus unit handheld placement opportunities that we'll need to execute on ahead of the closeout of the U. S. Government fiscal year. And we've done a, let's say, a great job capitalizing on these opportunities in the past. Speaker 300:33:42And our sales team is hard at work to continue this trend here in 2024. So similar past years, we'll have better visibility around some of these larger, I call it, needle moving handheld orders at the time of our Q3 call, and we'll definitely keep you updated as we progress. Speaker 500:34:01Got it. Thanks for the question, guys. Operator00:34:11We now turn to Daniel Arias with Stifel. Your line is open. Please go ahead. Speaker 600:34:17Good morning. It's Paul on for Dan. Just want to touch on the outlook first. So you mentioned some seasonality assumptions for the back half. Can you just touch on is that assuming a return to kind of historically normal budget flush or is that attenuated a little bit? Speaker 600:34:37What are the assumptions there? What kind of scenarios would get you to the top end of the range versus the bottom end of the range for this for the full year? Speaker 300:34:44Sure. Happy to give some color on that. So, I'd say similar to overall similar to 2023, our product diversification we feel continues to support our positive top line growth trajectory with solid handheld growth that you touched on, helping to offset the slower recovery with our desktop products. And we were pleased to be reiterating today our 2024 revenue guidance despite some unique challenges related to the U. S. Speaker 300:35:08Government budget delay until March and slower than expected recovery in CapEx spending for the Life Sciences instrumentation. Importantly, we are reiterating our 2024 revenue guidance for Red Wave, which we view as a key driver of long term sustainable growth in the handheld portfolio. But drilling down a bit more on the desktops, maybe elaborating another layer. Related to 2024, we now expect our core desktops to be down on a full year basis and relatively flat in H2 2024 with a similar trend as prior years where we realized a certain level of year end kind of capital funding being available. We previously communicated our expectations on desktops to rebound to the double digit top line growth if and when that instrument market recovery occurs. Speaker 300:35:52And the growth recovery has taken, I'd say, a longer to play out with our visibility here in 2024. We see the pace of growth in 2025 to likely be more muted, maybe not snapping back. But I'd say while the instrumentation macro recovery will be the key determining factor, I believe the instrumentation portfolio is positioned even better coming out of the challenge macro period than it was going into it. So definitely some year end budget for us assumed in our baseline guide and hopefully gives you some color Speaker 200:36:19on our thought as we turn the corner into next year as well. Speaker 600:36:24Yes, that's really helpful. Thank you. And just a quick follow-up. In terms of sort of you mentioned the gross margin, what the kind of trend has been in the outlook. But can you touch on OpEx just in terms of this lower assumption for desktop? Speaker 600:36:41Is there an opportunity for a little bit of savings on the OpEx line, as you kind of scale back the business on that side, given the lower revenue expectations? Or does that do those resources just sort of get put into the handheld side and ends up netting out? Speaker 300:37:02Yes, I think a few factors in play. We're excited to layer on the resources and OpEx, innovative R and D team and Kevin mentioned some of the selling team from the Red Wave acquisition. So that will be incremental to our overall spend. But, yes, I think there is the opportunity to continue to look and it's something that we're ongoing looking to optimize our OpEx efforts. With the Red Wave acquisition, we highlighted some cost synergy opportunities as much as $5,000,000 starting in 2026 as we look to prioritize whether it's the R and D or selling and marketing spend. Speaker 300:37:36And I think specifically on the commercial and desktop side, we will continue to take a look at that growth trajectory and look to align the resources with that. Speaker 600:37:45Okay. Appreciate the color. Thanks for the question. Speaker 300:37:49You're welcome. Operator00:37:51Our next question comes from Jacob Johnson with Stephens. Your line is open. Please go ahead. Speaker 700:37:58Good morning. This is Hannah on for Jacob. Thanks for taking my questions. Just to start, 153 placements in the quarter is impressive. It's better than we expected, but perhaps it didn't translate to quite the same revenue outperformance that we would have expected. Speaker 700:38:16Does this placement number include Redwave? Or were there some of these placements to OEM? Speaker 300:38:24Yes. It does include Red Wave placements, the 3 FIR products that we got through acquisitions sort of 2 months of placements within the handheld. So that 143 not only included our MX, but also our new Explorer, protector and threat ID products. Speaker 700:38:47Great. Thank you. And then, you've talked about some of the cell and gene therapy partnerships and you said there's some other opportunities that you're looking at. What about more traditional bioprocessing players, things like monoclonal antibodies and biosimilars like TRACE's work with Sartorius? Are you doing partnerships there as well or is this more on the cell and gene therapy side? Speaker 200:39:13Yes. No, a great question. I mean, I think across the board there, we really see that these strategic collaborations and call it partnerships with these hardware innovators could be very impactful. We've definitely been highlighting the work we're doing in this with the cell therapy innovators. Yes, we do have some in our pipeline, which would be more, call it, traditional monoclonal antibodies as well. Speaker 200:39:35And you pointed out, we already do have relationship with Sartorius with one of our products there. And I think we see opportunity in both as you look at, call it, the next generation hardware platforms that people are launching out there. If you think about the cell therapy area and you think about the automation that's required to meet the access and lower cost goals, yield is a part of that. Being able to do that with process sensors is incredibly important to help meet those goals. And we think there's just a very ripe opportunity as that really develops and as there's a ton of efforts out there by some leaders in these areas that are just doubling down and trying to make that a reality. Speaker 200:40:17And we really want to seek design wins in there and then succeed as they succeed. So, a bit across the board in those 6, but definitely weighted towards the cell therapy side. Speaker 700:40:32Great. Thanks. I'll leave it there. Operator00:40:37Our next question comes from Puneet Souda with Leerink Partners. Your line is open. Please go ahead. Speaker 800:40:44Yes. Hi, guys. Thanks for the question. So maybe just on forensics, I mean, ahead of the elections and just wondering, are you seeing any effect on the ordering on the forensic side? What are you hearing from the different state agencies and overall the U. Speaker 800:41:05S. Agencies and internationally as well? Speaker 200:41:09Yes. Happy to touch on that. I mean, I think as Q2 showed, we had pretty strong demand for our handhelds across the board. Big drivers there are that need for trace and point of need chemical analysis and identification as it probably feels to all of us on the call, the global insecurity and uncertainty is quite high at this time. And then you layer that on with the federal crisis that we explained on our last Q1 call is really now expanding internationally. Speaker 200:41:37A lot of big drivers there as we see it in the near end, the longer term. And then if you think about now we can access more with our FTIR products, and then the fact that the international pipelines are growing out. So I think all of those are helping to the Q2 success and helping towards the ramp that we're envisioning here as we go through the second half. But the election in particular, I don't think there's going to be a material impact on our business in either outcomes, if you will. If you do look back through history, DEA and military spending lines just as two examples of areas that funds come to 908 devices from. Speaker 200:42:20I mean, those have trends consistently higher really regardless of administration. And if you look back over the last 20 ish years or so, those budgets have grown in the, call it, low mid single digits range in the U. S. And in that global perspective, there's really been positive additions out there and more of the NATO member countries are pushing to spend more of their GDP on technology. And in some cases, they have goals of 20% of their budgets to be invested in new major technologies and to support modernization, which we think is a positive from our innovative handheld tools there. Speaker 800:43:02Okay. That's helpful. And then on the PAT side with the desktop and cell therapies, Just wondering, I think you're calling out for lesser desktop in the second half. Just wanted to understand, I mean, now that you have multiple products, shouldn't we expect some more cross selling opportunities, Maybe just as we look at recovery in the markets, what's the conservatism in terms of lower second half? Is it just more seasonality? Speaker 800:43:39Is there pull forward? Is there any other things that you're baking in with respect to the Rebel boxes and other cross sell opportunities that you have with Maven and products? Speaker 200:43:54Yes. Sure, absolutely. I can give some color to that point. We really do as you said, we do have a broader desktop portfolio now, right? We've got 4 products serving that PAT space, really expanding the out line online and the in line analysis capability. Speaker 200:44:10So that to us really does, as you alluded to, really kind of strengthens your ability to have a customer engagement there and maybe improves our ability to cap that spending, capture those dollars as the recovery happens. And if you think of all of them together, they can provide a pretty complex view. But that said, they are new technologies. In the quarter, we did see placements across all of our products in the second quarter, about 10 in total for our desktop. But each and every one, especially our newer products in that preclinical space, and I gave a couple of examples earlier, where customers are just being conservative with that. Speaker 200:44:48And so there's definitely more of a prolonged evaluation cycle, which we do have goals to do 10 plus of those double digits, I would say, in the second half here of our new products. But it just takes a little bit of time. So, I think we're factoring that in, in the environment. Speaker 800:45:08And Kevin, lastly, just quickly, is there any obviously, these are new products in the marketplace, but just wanted to see if there are any impact that you would assume from a BioSecure or facilities changing hands that might be utilizing your instruments? Speaker 200:45:27Well, I certainly can touch on the facility side. I mean, we've certainly seen consolidation across the space and some of our customers consolidating facilities and labs. We've certainly had our share of purchase orders to move equipment from one lab to another, where people contract you, our service team to come out and move it from one lab to another. So I think that's has certainly not progressed things quickly because these companies are still call it going through that digestion phase. The BioSecure Act, I don't think we've seen anything we can tag directly to that at this point. Speaker 200:46:08If we see the construction of new process development labs, probably more on the upfront side, right, process development versus call it late stage or in the manufacturing side. I think that would be a benefit to us over time. But today, we haven't seen that. And then as you know, our position in APAC is quite small. Speaker 300:46:28That's less than 5% from across all of our revenue perspective. Speaker 600:46:34Got it. Okay. Helpful, guys. Thank you. Operator00:46:41This concludes our Q and A. I'll now hand back to Kevin Knott for closing remarks. Speaker 200:46:47Yes, thank you. Thank you very much. We're pleased to have you all on the call with us today and happy to answer any other questions. Please reach out to the company if we can provide any additional information. Thank you. Operator00:46:58Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect your lines.Read morePowered by