LOWELL, Mass. - Rapid Micro Biosystems, Inc. (NASDAQ:RPID), a provider of automated microbial quality control testing technology, reported a 45% increase in fourth-quarter revenue, but projected softer revenue for fiscal year 2024, which sent its shares down 1% in market response.
For the fourth quarter ended December 31, 2023, the company posted revenue of $6.3 million, up from $4.4 million in the same quarter last year, surpassing the analyst consensus of $6.15 million. The increase was attributed to higher product sales and service revenue, with product revenue climbing 45% to $4.1 million and service revenue also up 45% to $2.2 million. Adjusted EPS for the quarter was -$0.26, which was $0.04 better than the analyst estimate of -$0.30.
President and CEO Robert Spignesi expressed satisfaction with the company's performance, stating, "We exceeded our guidance for both the fourth quarter and the year and delivered our strongest quarter for system placements in over two years." He highlighted the improved gross margin and the company's focus on accelerating system placements and launching the new Rapid Sterility application.
Despite the strong fourth-quarter performance, the company's forecast for fiscal year 2024 fell short of analyst expectations. Rapid Micro Biosystems anticipates revenue of at least $27 million, which represents at least 20% growth compared to 2023. However, this guidance is below the consensus estimate of $28.121 million, which may have contributed to the slight decline in stock price following the announcement.
The company ended the year with a strong cash position of $95.0 million and no outstanding debt, expecting this to provide a cash runway into the second half of 2026. The full-year 2023 revenue stood at $22.5 million, marking a 31% increase from the previous year, with recurring revenue up 23% to $13.5 million.
Rapid Micro Biosystems' continued investment in its Growth Direct platform, including its selection by Samsung (KS:005930) Biologics for automating critical microbiology quality control testing, demonstrates the company's commitment to innovation and growth in the life sciences technology sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.