908 Devices Inc.

Hello, thank you for standing by and welcome to the 908 Devices second quarter 2022 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. Please be advised that today's conference may be recorded. I would now like to hand the conference over to your speaker today, Kelly Gurra, Investor Relations. Please go ahead.

Thank you. This morning, 908 Devices released financial results for the second quarter and at June 30th, 2022. If you've not received this news release, or if you'd like to be added to the company's distribution list, please send an email to ir at 908devices.com. Joining me today from 908 is Kevin Knopf, Chief Executive Officer and Co-Founder, and Joe Griffiths, Chief Financial Officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal security laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appear in the section entitled forward-looking statements in the press release 908 devices issued today. For a more complete list and description, please see the risk factors section of the company's annual report on Form 10-K for the year ended December 31st, 2021, and its other filings with the Securities and Exchange Commission. Except as required by law, 908 devices disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, August 9, 2022. With that, I would like to turn the call over to Kevin.

Thanks, Kelly. Good morning, and thank you for joining our second quarter 2022 earnings conference. Since we last updated you in early May, the 908 Devices team has continued to make great progress across our business. To start, our second quarter revenue increased 34% over the prior year period to $11.1 million. We placed 124 devices, bringing our installed base to more than 2,100 handheld and desktop devices. I'm really pleased with our team's effort to deliver on our commitments to customers in the face of ongoing macroeconomic and supply chain challenges. In June, our team had a strong showing at the American Society for Mass Spectrometry Conference, or ASMS. We presented 11 posters and one oral presentation, many alongside our collaborators, including Boring Ingelheim, the University of Connecticut, Fudan University, and Dana-Farber Cancer Institute. There were multiple additional posters by customers and academic institutions that noted the speed and sensitivity of our microfluidic separations technology. It is exciting to see us enabling their work and investigation. A week later, we held our inaugural discovery day for the investor community at our Boston headquarters. It was great to see many of you in person show off our team's expertise and provide an opportunity for investors to get their hands on our products and truly see the ease of use and value they bring to our customers. And earlier today, we were excited to announce the acquisition of Trace Analytics GmbH based in Brunswag, Germany. We look forward to bringing this online bioprocessing capability to our customers, and we'll talk more about how this technology enables and broadens our bioanalytics roadmap. Discovery, technology, and innovation make up the ethos of 908 Devices. Since our founding 10 years ago, we've been focused on transforming how and where mass spec technology is being used. I'm delighted that we are recognized this month as one of the 100 best workplaces for innovators by Fast Company Magazine. Truly honored to work with such a dedicated, inspiring team of people, and I share this recognition with all of them. Now, I'll give you an update on our progress across the five focus areas that are driving growth for 2022 and over the longer term. Starting with our first objective of driving customer adoption. For our handhelds, we continue to build a pipeline of testing, trials, and pilot programs to drive enterprise adoption. I've previously noted our efforts in Ohio, which is often referenced as ground zero for the nation's opioid crisis. Multiple drug task forces in the Attorney General's office began deploying the MX-908 device for field testing of narcotics in early 2021. And later that year, the AG's office implemented an MX-908 pilot program for police departments in three cities. In May of this year, we held a half-day summit for 45 state prosecutors to educate them on how the MX-908 works. how it is used for enforcement, and the potential for case backlog reduction. This group has significant influence in driving statewide adoption of the MX-908, including legislative action and funding allocation. Recently, the Ohio State Prosecutor's Office and the Bureau of Criminal Investigation stated their objectives, which includes ensuring that the current backlog of cases will not increase by more than 20%. Data from the MX-908 pilot program for the first five months of this year shows a 72% reduction in laboratory submissions from the period prior to the pilot program. Also in May and in Ohio, U.S. Representative Kevin McCarthy, the House Minority Leader, attended a roundtable on border security where attendees received a demo of the MX-908 for drug detection and identification. At the roundtable, Ohio Attorney General Dave Yost noted that our device can change the pace in prosecuting people that bring poison into our communities. We are working to replicate the success of Ohio across other states and within various local health, safety, and enforcement organizations. In fact, we have received more orders from such organizations to date this year than all of 2021. We see organizations acquiring the MX908 for a broad range of use cases, including for trace detection of chemicals in incoming mail. As an example, in Bowling Green, Kentucky, our handheld device was recently procured by the Warren County Regional Jail, which has seen a huge increase in drugs coming in personal mail and legal correspondence. And after extensive testing and evaluation, the U.S. Postal Inspection Service has placed their first order for several MX908 devices to be used within their dangerous mail investigations program. Overall, we are pleased with the continued adoption of the MX-908 in these organizations and the breadth of use cases our handheld customers have for trace chemical detection at the point of need. For our desktops, we are employing a penetrate and radiate strategy in which we work to penetrate new accounts, creating foothold, and then radiate across these enterprise accounts, driving broader adoption and acceptance. To that end, we have seen over the past several quarters, a fairly even split between new and existing customers. And during the second quarter, approximately two thirds of orders for our desktops came from new customers. I'm really pleased with our commercial team's ability to penetrate new accounts. In terms of radiating across accounts, we saw great traction for Rebel during the second quarter in several of the top 20 pharma companies with some of these companies ordering their fifth and sixth Rebel devices. Fate Therapeutics, a biopharma company developing cell therapies for cancer patients, received its second and third Rebel devices. In addition to driving multiple device sales, we are also seeing traction for consumable usage. In fact, more than a third of our global install base for Rebel has open blanket purchase orders for consumables with a nominal one kit per month consumption plan as devices are adopted into their workflow and process. Turning to our second objective, accelerating commercialization. At the end of the second quarter, we reached a milestone surpassing 200 employees as we thoughtfully expand our commercial team and add employees across key regions. With the acquisition of Trace Analytics, we have bolstered our European presence with a legal entity and a base of operations in Germany to better serve our European customers and to support our growing sales and applications team in the region. Turning to our third objective, developing and advancing our product portfolio, I'm so excited by the acquisition of Trace Analytics, which strengthens our core technology and unlocks more of our total addressable market. Trace Analytics provides us with online aseptic bioreactor sampling and biosensor technology, which is a central addition to our microfluidic technology pillar. Their team consists of nine people who bring more than 20 years of technical experience in bioprocess sampling and analysis. Their technology and single-use and reusable configurations has been proven in mammalian cell culture and microbiome fermentations at all levels of the bioprocess chain, from research and development to large-scale production. Trace analytics technology includes devices for cell-free, sterile, and safe sampling online, with no prep required or even sample consumed in many cases. They also manufacture novel biosensors for glucose and lactate, adding additional priority analytes we can measure to our portfolio. Combined, these technologies allow online aseptic sampling, online analysis, and automated bioprocessor feedback control. Importantly, these technologies are validated by third-party customers. Trace Analytics is an OEM partner to Sartorius, providing its online sampler and sensors for bioreactor monitoring and control, and has a legacy program with Sanofi for online sampling and monitoring their insulin production. We will look to foster these relationships as well as establish additional OEM relationships for future generations of the base trace analytics technology. We've previously shared elements of our future product roadmap that include development of an online rebel, and we are confident that the addition of trace analytics technology will help us realize our online development efforts. It also allows us to take a measurable step forward in our goal to build out a connected and comprehensive bioanalytics platform. thereby unlocking our existing total adjustable market. Turning to our fourth objective, broadening our bioanalytics platform, I've just shared how Trace Analytics will expand our bioanalytics capability, and now I would like to provide some recent examples on how our Rebel and Zip Chip devices are enabling our customers to measure and monitor both process and product attributes. Researchers at Emory University are striving to prolong anti-tumor activity in CAR-T cell therapies for cancer patients, with the development of novel microbead libraries for CAR T cell manufacturing. Our rebel device is being used at line to measure amino acids as process attributes for CAR T cell activated using these microbeads. Researchers now have a tool to quickly monitor and inform feeding strategies to control and optimize T cell activation. Likewise, researchers at MIT are optimizing recombinant AAV processes used in gene therapies to enable higher yields and efficiency through the monitoring and control of key process attributes. These have designed a continuous perfusion process and have employed REVL to rapidly monitor and profile nutrient consumption of recombinant AAV producing cells. As mentioned earlier, We have had nearly a dozen posters at the major mass spec conference ASMS in June, many with collaborators from academic and research institutions, as well as biopharma companies. Several posters highlighted the use of our ZipChip for analysis of oligonucleotides and their quality attributes. Traditional workflows for oligoanalysis require the use of lengthy liquid chromatography methods along with harsh ion-pairing reagents. A Boring-Inglerheim scientist noted that our ZipChip device provided rapid, high-resolution analysis of oligos with an extremely low amount of sample and without the use of corrosive reagents. And finally, our fifth objective, laying an omics foundation. As proteomics and metabolomics research steadily increases, there's a rising demand for accelerating mass spec-based workflows, which is critical when working with large sample sets. As we have shared, we are advancing our microfluidic chips to address the limitations of liquid chromatography for these unmet needs. We are defining our directions of research with world leaders on our scientific advisory board who convened in Q2 for a collaborative exchange. We are further partnering with leading research institutions and mass spec instrument companies to evaluate the speed and sensitivity of our prototype chip. During the second quarter, there were several collaborative presentations and publications that highlight our progress in this area. Dr. Jared Marchow and his team at the Dana-Farber Cancer Institute are one of our collaborators. Through posters at the past two ASMS conferences, a presentation at the HPLC 2022 conference, and a recent peer-reviewed paper published in Analytical Chemistry, Dr. Marchow's team have demonstrated what they term warp speed profiling of small molecule protein inhibitors using our prototype ZIP chip coupled with the Brooker mass spec. which is 5 to 10 times faster than traditional chromatography methods. In collaboration with the University of Washington and Thermo Fisher Scientific, we are evaluating the coupling of our prototype chips with very fast ion trap mass spec for proteomics applications. In the oral presentation at ASMS in June titled, Pushing the Boundaries of Speed and Sensitivity in Proteomics, Dr. Will Thompson, Principal Scientist at 908 Devices, demonstrated the ability to target hundreds of proteins from dilute plasma samples in just six minutes. We are excited about the direction and research progress reported this quarter to the scientific community with these advanced microfluidic chips. While these are prototypes, these results serve to demonstrate the ultimate reach of our technology platform. Overall, I'm encouraged by the enthusiasm we're seeing across our end market for real-time analytics at the point of need, and I'm very excited to welcome the Trace Analytics team and technology both of which will no doubt accelerate our online bioanalytics roadmap. With that, I will turn the call over to Joe for more detail on our financials.