Rapid Micro Biosystems' Q4 2024: Unpacking Contradictions in MilliporeSigma Partnership, Margins, and Sterility Adoption

These are the key contradictions discussed in Rapid Micro Biosystems' latest 2024Q4 earnings call, specifically including: MilliporeSigma relationship impact, Gross Margin Expectations, MilliporeSigma's role in new markets and supply chain efficiencies, and Sterility System adoption expectations:



Revenue and System Placement Growth:
- Rapid Micro Biosystems reported record revenue of $8.2 million for Q4 2024, marking a 30% year-over-year increase, with 6 Growth Direct systems placed in Q4 2024 and a total of 21 systems for the full year.
- The growth was driven by strong demand for the Growth Direct system and an increase in recurring revenue, which grew by 27% compared to the prior year quarter.

Gross Margin Improvement:
- The company achieved a gross margin of 12% in Q4 2024, up from 8% in Q3 and a 15 percentage point improvement compared to the prior year quarter.
- The improvement was due to continued progress in reducing product costs and enhancing operating leverage, supported by increased manufacturing efficiencies in the consumables business.

Distribution and Collaboration Agreement with MilliporeSigma:
- Rapid Micro Biosystems announced a global Distribution and Collaboration Agreement with MilliporeSigma, granting MilliporeSigma global co-exclusive rights to sell the Growth Direct system.
- This agreement aims to accelerate Growth Direct system placements by leveraging MilliporeSigma's scale and expertise to expand reach and increase sys