Investing.com -- Shares of 908 Devices Inc. (Nasdaq: MASS) surged 60% following the company’s announcement of its desktop portfolio divestiture to Repligen (NASDAQ:RGEN) for $70 million and a strong revenue performance in the fourth quarter and full year of 2024.
The Boston-based analytical tools provider reported a significant increase in revenue, with a 31% rise in the fourth quarter and a 19% increase for the full year compared to the previous year. The company’s strategic focus on the handheld market and recent divestiture has positioned it for accelerated growth and improved profitability.
908 Devices’ divestiture of its desktop portfolio, which includes the MAVEN, MAVERICK, REBEL, and ZipChip products, has strengthened its balance sheet and allowed the company to concentrate on the highest-growth handheld markets. The transaction is expected to catalyze value creation, with the company now expecting 11% to 15% growth in continuing operations for 2025, and an even greater acceleration above 20% in 2026.
The company’s CEO, Kevin J. Knopp, highlighted the transformative nature of the deal, stating, "Today marks a transformative milestone for 908 Devices—one that sharpens our strategic focus, enhances margins, and significantly accelerates our path to profitability, bringing our Adjusted EBITDA crossover into this year."
For the fourth quarter of 2024, 908 Devices reported revenue of $18.8 million, driven by a 22% increase in handheld revenue and a 56% increase in desktop revenue. The full year’s revenue reached $59.6 million, with recurring revenue growing by 42% year over year, representing 39% of the total revenue, driven by service.
The company also provided guidance for 2025, expecting full year revenues from continuing operations to be between $53 million and $55 million, which includes approximately $1 million of desktop revenues in the first quarter prior to divestiture.
908 Devices’ financial results and strategic divestiture reflect its commitment to growth in its core markets, particularly in response to the opioid crisis and increasing global security threats. The company’s focus on innovative handheld mass spec devices and the integration of FTIR products from its RedWave Technology acquisition have positioned it to capitalize on these secular trends.
Investors reacted positively to the news, as the company’s stock movement indicates confidence in its growth trajectory and path to profitability.
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