Rapid Micro Biosystems reports Q4 and full-year 2023 financial results

Rapid Micro Biosystems, Inc. announced its financial results for the fourth quarter and full year ended December 31, 2023.

“We are pleased with our strong finish to 2023,” said Robert Spignesi, President and CEO. “We exceeded our guidance for both the fourth quarter and the year and delivered our strongest quarter for system placements in over two years. We are also pleased with the strong improvement in our fourth quarter gross margin as the benefits of our actions to reduce product cost, improve manufacturing efficiency and increase service productivity continue to take hold. In 2024, we will continue to focus on our top priorities which include accelerating Growth Direct system placements, further improving our gross margin, successfully launching our new, innovative Rapid Sterility application and prudently managing our cash.”

Fourth quarter financial results
Total revenue for the fourth quarter of 2023 increased 45% to $6.3 million, compared to $4.4 million in the fourth quarter of 2022. A breakdown of fourth quarter revenue and key metrics follows:

• Product revenue (combined systems and consumables) increased 45% to $4.1 million in Q4 2023, compared to $2.8 million in Q4 2022. The increase was largely driven by the placement of four additional systems in Q4 2023.
• Service revenue increased 45% to $2.2 million in Q4 2023, compared to $1.5 million in Q4 2022. The increase was due to increased validation activity as well as higher service contract revenue compared to Q4 2022.
• Recurring revenue increased 13% to $3.3 million in Q4 2023, compared to $2.9 million in Q4 2022.
• Total cost of revenue decreased 7% despite a 45% increase in total revenue, driving significant gross margin improvement.
• Placed six systems and completed the validation of nine customer systems, increasing cumulative customer systems to 141 placed systems and 121 validated systems.

Total cost of revenue was $6.5 million in the fourth quarter of 2023, compared to $7.0 million in the fourth quarter of 2022. Gross margin percentage in the fourth quarter of 2023 was near breakeven (negative 3%) compared to negative 59% in the fourth quarter of 2022. The gross margin percentage improvement was driven by higher total revenue, higher production volumes and actions taken by the Company to reduce product costs as well as higher manufacturing efficiency and service productivity.

Total operating expenses decreased 18% to $12.0 million in the fourth quarter of 2023, compared to $14.7 million in the fourth quarter of 2022. The decrease was largely due to costs incurred in the fourth quarter of 2022 associated with the strategic review process initiated by our Board of Directors in that period, as well as cost savings in 2023 resulting from the restructuring plan implemented in August 2022.

Net loss for the fourth quarter of 2023 was $11.2 million, compared to $16.4 million in the fourth quarter of 2022. Net loss per share attributable to common shareholders for the fourth quarter of 2023 was $0.26, compared to $0.39 in the fourth quarter of 2022.

Cash, cash equivalents and investments were $95.0 million at December 31, 2023, with no debt outstanding, which the Company expects to provide cash runway at least into the second half of 2026.

Full year 2023 financial results
Total revenue for the full year was $22.5 million in 2023, compared to $17.1 million in 2022. A breakdown of full year revenue and key metrics follows:

• Product revenue increased 34% to $14.8 million in 2023, compared to $11.1 million in 2022.
• Service revenue increased 27% to $7.7 million in 2023, compared to $6.1 million in 2022.
• Recurring revenue increased 23% to $13.5 million in 2023, compared to $11.0 million in 2022.
• Placed 16 systems and completed the validation of 18 customer systems in 2023.

Total cost of revenue was $28.0 million in 2023, compared to $25.7 million in 2022.

Total operating expenses were $51.1 million in 2023, compared to $54.7 million in 2022.

Net loss was $52.5 million in 2023, compared to $60.8 million in 2022, and net loss per share attributable to common shareholders was $1.22 in 2023, compared to $1.43 in 2022.

Full year 2024 outlook
For the full year 2024, the Company expects total revenue of at least $27.0 million, including the placement of at least 20 systems.