Good day, and thank you for standing by. Welcome to the 908 Devices Third Quarter 2021 Financial Results Conference Call [Operator Instructions]. I would now like to hand the conference over to your speaker today, Kelly Gura, Investor Relations. Please go ahead.

Thank you. This morning, 908 Devices released financial results for the quarter ended September 30, 2021. 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 e-mail to ir@908devices.com. Joining me today from 908 is Kevin Knopp, Chief Executive Officer and Co-Founder; and Joe Griffith, 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 securities 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 appears in the section entitled Forward-Looking Statements in the press release finally 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 31, 2020, and in its other filings with the Securities and Exchange Commission. Except as required by law, 908 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, November 4, 2021. With that, I would like to turn the call over to Kevin.

Thanks, Kelly. Good morning, and thank you for joining our third quarter 2021 earnings call. We are continuing to make excellent progress broadening our global presence, strengthening our relationships and expanding our offering to deliver even more value to our customers. We ended the third quarter with $12.5 million in total revenue, up 52% from the second quarter of 2021, and up 107% year-over-year. I'm pleased with our performance, which was in line with our expectations that our revenue would step up in the back half of the year as we continue to ramp our commercial efforts and benefit from seasonal year-end budget cycles. We placed more than 180 devices during the quarter, bringing our install base to over 1,700 devices across our 3 products. We have made meaningful progress scaling our commercial team, demonstrating traction within our growing customer base and highlighting the needs for our technology within our core forensics, research and biopharma applications. As we think about our growth, we remain focused on expanding the install base, driving utilization and investing in our technology platform. Starting with our sales channels and commercial organization, we ended the third quarter with 57 employees across sales, marketing and product management. I'm excited by the talent we continue to bring to the 908 team, and we are well on our way to reaching our goal of 60 commercial employees by the end of Q1 2022. We are ramping our efforts in engaging existing new and prospective customers on the value of our technologies. To that end, in September, we hosted our first integrated user meeting, Critical Mass 2021, which covered the full breadth of our product platforms and their applications. This event brought more than 150 attendees together, both virtually and in person, to hear our customers share their success using…

Thanks, Kevin. Revenue for the third quarter of 2021 was $12.5 million compared to $8.3 million in the second quarter and $6 million in the prior year period. Product and service revenue for the third quarter 2021 was $12.3 million compared to $5.8 million in the prior year period, representing growth of 111%. The increase was primarily driven by our handheld devices, including initial shipments to the U.S. Army under the multiyear purchase order. Desktop revenue from our REBEL and ZipChip products grew 70% in the third quarter of 2021 compared to the prior year period, and more than 50% of the device placements were with new customers. Recurring revenues, consisting of consumables, accessories and service revenue, grew 134% in the third quarter of 2021 compared to the prior year period. Service revenue from our extended warranty and service plans from our install base and an increase in consumable revenue related to REBEL kits and initial sales of the Aero module, a new accessory for our handheld were key growth drivers in the third quarter of 2021. License and contract revenue for the third quarter 2021 was approximately $0.3 million, relatively flat with the prior year period. Currently, we do not expect license and contract revenues to be a significant contributor of revenue on a go-forward basis. Our install base grew to 1,714 units, with 184 devices shipped during the third quarter. We shipped 164 handheld devices and 20 desktop devices within the quarter. Gross profit was $6.8 million for the third quarter of 2021 compared to $3.8 million for the prior year period. The increased gross profit was driven primarily due to the higher MX908 sales volume, which leveraged our fixed costs related to our manufacturing facility, and, to a lesser extent, our desktop devices. Offsetting this increase were…

Thanks, Joe. It's been an exciting year for us thus far at 908 devices as we continue to expand our installed base, deepen our customer relationships and broaden the capabilities of our platform to deliver more value to our customers. I'm encouraged by our progress and growing enthusiasm we are seeing across our end market. We look forward to updating you on our progress. With that, we will now open it up for questions.

[Operator Instructions] Our first question comes from the line of Puneet Souda with SVB Leerink.

Your next question comes from Max Masucci with Cowen Company.

And your next question comes from Dan Arias with Stifel.

[Operator Instructions] At this time, there are no further questions on queue. I'll hand the call back to Kevin.

Yes. Thank you all. Thank you all for your time this morning. Have a great day.

All right. Thank you, ladies and gentlemen, and that concludes today's conference. Thank you all for joining. You may now disconnect.