RAPID MICRO BIOSYSTEMS, INC. Q1 FY2025 earnings call

• First quarter revenue increased 28% to $7.2 million, marking tenth consecutive quarter of meeting or exceeding guidance. • Service revenue increased 64% year over year and was a quarterly record. • Placed 3 GrowthRx systems in Q1, with 165 cumulative global placements (146 fully validated). • First quarter gross margins improved 33 percentage points to 6% compared to prior year quarter. • Multiple revenue streams drove performance, including growing base of durable, recurring revenue ($4 million in quarter). • Rob spent time meeting with customers, with strong demand for GrowthDirect reported. • Progress in achieving product cost reductions, manufacturing efficiencies, and service productivity. • Collaboration with MilliporeSigma off to strong start, working on joint initiatives to advance priorities.

Total first quarter revenue increased 28% to $7.2 million. Product revenue (comprised of systems and consumables) increased 10% to $4.1 million. Service revenue increased 64% to $3.1 million. First quarter recurring revenue (consists of consumables and service contracts) increased 6% to $4 million. Non-recurring revenue (comprised mainly of systems and validation revenue) increased 73% to $3.2 million. Product margins were negative 23% in Q1 2025 compared to negative 39% in Q1 2024. Service margins were 43% in Q1 2025 compared to negative 3% in Q1 2024. Combined first quarter gross margins were 6% compared to negative 27% in Q1 2024. Revenue contribution: Product revenue was $4.1 million (approx. 57% of total revenue), service revenue was $3.1 million (approx. 43% of total revenue).

• Reaffirmed full-year 2025 total revenue guidance of at least $32 million with between 21 and 25 system placements. • Q2 revenue expected to be in range of $6.75 million to $7.75 million, assuming 4-7 system placements. • Consumable revenue expected relatively consistent in Q2, then step up in Q3 and Q4. • Service revenue expected to step down to $2 million - $2.5 million in Q2. • Expect Q2 gross margins relatively consistent with Q1, then increase in second half due to product margin improvement. • Full-year 2025 gross margins expected in range of high single digits to low teens.

• Uncertainty around timing and scale of customer purchase decisions, particularly for larger multi-system opportunities. • Tariff environment adding incremental uncertainty to revenue outlook. • Potential impact of general macroeconomic conditions on business and customers. • Risks associated with ability to meet publicly announced guidance, deliver products, and recognize revenue.

Q: Good morning, guys. Thank you. Sean or maybe Rob, maybe just can you start on the environment and just how you're feeling about business prospects right now, relative to the last time we spoke?

A: Yes. Hey, Dan, good morning. It's Rob. Obvious reasons, I'll keep my comments brief, but do a lot of traveling with customers, and the takeaway is key projects are being prioritized. In many cases, GrowthDirect is part of that, which gives us confidence. I also heard, especially in Europe, some incremental, I would say uncertainty around the tariff situation. However, the multisystem orders in our funnel give us confidence in the guide and the year. We feel like they're being prioritized, which is supported by conversations we've had with senior leaders at these companies. So while the environment is, I would say, incrementally more uncertain from our last call, high ROI key projects are being prioritized.

Q: You mentioned 18 validations this year. How many were last year?

A: In Q1, Paul, that's for the year. Last year we did 16 validations. So it's slightly up. We see potential for upside on that guide number right now. We're still early in the year. Some of these validations take time to clarify timing due to high levels of customer engagement. So we feel good about guiding at 18%. That would be up slightly from last year. There's opportunity for us to potentially do better than that as well.

Q: Hey, guys. This is Chad Oyatroski on for Brendan Smith. Just giving the automation and unique data generation GrowthDirect provides, you'd assume that maybe long-term, there are ways AI could value this machine. How material is AI to your long-term strategy? Are there updates on that front?

A: Yes. In reverse order, updates will come in the future, but software advancements to include AI are in our R&D roadmap. Our automation creates an immense amount of digital data, and helping customers manage that data across a fleet of GrowthDirects is high on our R&D radar. We are bullish on AI’s future impact on business coupled with our software development pipeline.