RPID Earnings Prediction
The chart below shows how RPID performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RPID sees a +1.70% change in stock price 10 days leading up to the earnings, and a -0.21% change 10 days following the report. On the earnings day itself, the stock moves by +0.78%. This data can give you a slight idea of what to expect for the next quarter's release.
RPID Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
8.22M
29.68%
8.07%
Gross Margin
11.94%
540.59%
45.97%
Operating Margin
-124.47%
-35.28%
-21.38%
Net Margin
--
--
--
EPS
-0.22
-15.38%
-15.38%
No Data Available
RPID Earnings Analysis
Rapid Micro Biosystems Inc Corporation (RPID.O) Earnings Conference Call
Positive
Record Revenue Growth: Total revenue was $8.2 million in Q4, representing 30% year-over-year growth and a quarterly record.
Recurring Revenue Growth: Recurring revenue was $4.2 million, representing growth of 27% compared to the prior year quarter.
Growth Direct System Placements: Placed six Growth Direct systems in Q4, bringing total placements to 21 for the full year.
Gross Margin Improvement: Fourth quarter gross margins improved to 12%, up from 8% in Q3 and a 15 percentage point improvement compared to the prior year quarter.
Collaboration Agreement for Growth: Announced a distribution and collaboration agreement with Merck KGaA, which is expected to enhance Growth Direct system placements and improve gross margins.
Global Sales Expansion: MilliporeSigma has global co-exclusive rights to sell the Growth Direct system, which is expected to expand its reach and accessibility to customers.
Innovation Partnership Development: The partnership with MilliporeSigma is expected to drive innovation and develop new technologies and products.
Service Revenue Surge: Service revenue increased 35% to $3 million in Q4 compared to $2.2 million in Q4 2023, driven by double-digit growth across validation services, field service, and service contracts.
Recurring Revenue Surge: Fourth quarter recurring revenue increased 27% to $4.2 million, indicating strong customer retention and demand for consumables and services.
Margin Improvement Progress: Full year 2024 gross margins were effectively breakeven compared to negative 24% for the full year 2023, showing significant progress in margin improvement.
Negative
Sustainable Revenue Concerns: Total revenue was $8.2 million in Q4, which, while representing 30% year-over-year growth, indicates a reliance on growth that may not be sustainable in the long term.
Stagnant System Placements: The company placed six Growth Direct systems in Q4, which is consistent with the previous year, suggesting stagnation in system placements despite overall revenue growth.
Gross Margin Challenges: Gross margins improved to 12%, but this is still relatively low and indicates ongoing challenges in cost management and profitability.
Product Margin Challenges: Product margins were negative 8% in Q4, although improved from negative 14% in Q4 2023, highlighting persistent issues with product profitability.
Net Loss Improvement: The net loss was $9.7 million in Q4, which, while an improvement from $11.2 million in the prior year, still reflects significant financial strain.
Operating Expenses Decline: Operating expenses were $11.2 million in Q4, a decrease from $12 million in Q4 2023, but still represent a high cost structure relative to revenue.
Cash Burn Challenges: The company expects to burn roughly $30 million in cash for the full year 2025, indicating ongoing cash flow challenges and reliance on external funding.
Partnership Revenue Uncertainty: The guidance for 2025 does not assume any contribution from the partnership with MilliporeSigma, reflecting uncertainty in future revenue streams.
RPID FAQs
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RPID Earning Call Sentiment
Rapid Micro Biosystems, Inc. (NASDAQ:RPID) Q4 2024 Earnings Call Transcript
RPID.O
7.89%Positive
The company reported strong financial performance with a record high revenue, improved gross margins, and reduced net loss. Positive guidance for 2025, including revenue growth and gross margin improvement, suggests optimism. The Q&A highlighted potential market expansion and operational efficiencies through partnerships, which are positive indicators. However, lack of a shareholder return plan and cash burn remain concerns. Overall, the strong financial results, optimistic guidance, and strategic partnerships support a positive stock price reaction in the short term.
