RAPID MICRO BIOSYSTEMS, INC. Q4 FY2024 earnings call

Fourth Quarter Performance - Total revenue was $8.2M, up 30% YOY; recurring revenue $4.2M, up 27% YOY; placed 6 Growth Direct systems in Q4, total 21 for the year; gross margins improved to 12%. ### Distribution and Collaboration Agreement - MilliporeSigma has global co-exclusive rights to sell Growth Direct system and consumables; aligns with accelerating Growth Direct placements, improving supply chain efficiencies, and driving innovation; MilliporeSigma committed to purchase a minimum number of systems in first two years of 5-year agreement. ### 2025 Outlook - Priorities include accelerating Growth Direct system placements, improving gross margins, developing innovative products, and managing cash; expects 2025 total revenue at least $32M with 21-25 system placements; Q1 revenue at least $6.5M with at least 3 system placements.

In the fourth quarter of 2024, total revenue was $8.2 million, representing 30% year-over-year growth and a quarterly record. Recurring revenue was $4.2 million, up 27% from the prior year quarter. Six Growth Direct systems were placed in Q4, with a total of 21 system placements for the full year. Fourth quarter gross margins improved to 12%, up from 8% in Q3 and a 15 percentage point improvement compared to Q4 2023. Product revenue increased 27% to $5.2 million in Q4, with consumable revenue growing over 30% and service revenue up 35% to $3 million. Product margins improved from negative 14% in Q4 2023 to negative 8% in Q4 2024, and service margins were a record 47% in Q4 2024.

2025 Outlook - Full year 2025 total revenue expected at least $32 million with 21-25 system placements. ### Q1 2025 - Revenue at least $6.5 million, including at least 3 system placements, with sequential decline consistent with seasonality. ### Gross Margin - Expected in the range of high-single digits to low-teens for full year 2025. ### Operating Expenses - Expected between $44 million and $48 million for full year 2025. ### Cash Burn - Roughly $30 million in 2025, a $14 million reduction from 2024. ### MilliporeSigma Contribution - No contribution from MilliporeSigma in 2025 guidance due to sales cycle and uncertainty in customer purchases.

Statements made during the call may be forward-looking, and actual results may differ due to factors such as financial condition, future performance assumptions, anticipated future cash usage, 2025 guidance, business development, customer adoption of Growth Direct system, and Rapid Sterility. Refer to the risk factors section of Rapid Micro Biosystems' most recent quarterly report on Form 10-Q filed with the SEC for detailed risks.

Q: Dan Arias asks about Millipore relationship accelerating entry into new areas and instrument placement outlook A: Rob says MilliporeSigma helps enter adjacent markets like personal care; Sean explains 2025 guidance is prudent, not including MilliporeSigma contribution due to sales cycle and customer purchase uncertainty.

Q: Paul Knight asks about Millipore collaboration scope, margin impact, and Lonza relationship A: Rob says MilliporeSigma sells into adjacent markets; margin improvement via supply chain efficiencies; Sean notes no current procurement from Millipore; Rob states Lonza example shows industry adoption potential.

Q: Brendan Smith asks about Millipore system purchase commitment and AI integration A: Rob says can't quantify Millipore's system purchase commitment, but significant in 2026; mentions AI integration as part of innovation strategy related to data from automation.