Quanterix Corporation (NASDAQ: QTRX), a company fueling
scientific discovery through ultrasensitive biomarker detection,
today announced financial results for the three months ended
September 30, 2023.
Third Quarter Financial Highlights
- Revenue was $31.3 million, an 18% increase from $26.6 million
for the corresponding prior year period.
- GAAP gross margin was 56.8% as compared to 41.1% for the
corresponding prior year period. Non-GAAP gross margin was 48.6% as
compared to 34.9% for the corresponding prior year period.
- Net loss was $7.8 million as compared to $35.1 million for the
corresponding prior year period.
- Net cash use was approximately $1.9 million. Cash, cash
equivalents, marketable securities, and restricted cash were $330.4
million as of September 30, 2023, as compared to $332.2 million as
of June 30, 2023.
“We’re on track to achieve the six-quarter transformation plan
we laid out by year end,” said Masoud Toloue, President and Chief
Executive Officer of Quanterix. “This will not only yield highly
scaled production lines but serve as the foundation for an
accelerated innovation rate going into next year. Last month’s
launch of our LucentAD p-Tau 217 blood-based test puts us in a
leading position to address broad-based, non-invasive patient
testing for Alzheimer’s disease. We expect a faster release pace of
pioneering, high sensitivity Simoa products going into 2024.”
Operational and Business Highlights
- In October, the Company launched LucentAD p-Tau 217, a new
blood-based biomarker laboratory developed test (LDT) using
well-validated Johnson & Johnson Innovative Medicine (Janssen)
antibodies to assist in the evaluation of patients suspected of
having or developing Alzheimer’s disease. p-Tau 217 is the
only blood-based biomarker recognized in the new draft
NIA-AA Revised Criteria for Diagnosis and Staging of Alzheimer's
Disease capable of meeting a stringent 90% accuracy criterion
necessary to diagnose Alzheimer’s.
- In data presented by Eli Lilly at the CTAD conference, the
Simoa® platform was used for analytical validation and initial
clinical evaluation of Eli Lilly’s plasma p-Tau 217 immunoassay for
a new blood-based diagnostic for Alzheimer’s disease. The study of
over 1,000 patients from TRAILBLAZER-ALZ 2 demonstrated high
positive and negative agreement to amyloid PET, with an AUC of 0.92
and the assay could prove to be a useful diagnostic test to
identify the presence or absence of amyloid pathology.
Full Year Business Outlook
Management has increased full-year revenue expectations to be in
the range of $118 to $120 million versus the prior range of $110 to
$116 million. GAAP gross margin percentage is expected to be in the
high 50’s, and non-GAAP gross margin percentage is expected to be
approximately 50%. Both measures increased from prior guidance of
low 50’s and high 40’s, respectively. The Company now anticipates
2023 cash usage in the range of $20 to $25 million, compared to
prior guidance of $30 to $35 million.
For additional information on the non-GAAP financial measures
included in this press release, please see “Use of Non-GAAP
Financial Measures” and “Reconciliation of GAAP to Non-GAAP
Financial Measures” below.
Conference Call
In conjunction with this announcement, the Company will host a
conference call on November 7, 2023 at 8:30 a.m. E.T. Click here to
pre-register for the conference call and obtain your dial-in number
and passcode.
Interested investors can also listen to the live webcast from
the Event Details page in the Investors section of the Quanterix
website at http://www.quanterix.com. An archived webcast replay
will be available on the Company’s website for one year.
Financial Highlights
Quanterix Corporation Consolidated Statements of
Operations (Unaudited and in thousands, except per share
data) Three Months Ended September
30, Nine Months Ended September 30,
2023
2022
2023
2022
Revenues: Product revenue $
19,660
$
17,693
$
58,639
$
53,134
Service revenue
10,938
8,370
30,069
25,728
Collaboration and license revenue
237
301
1,234
479
Grant revenue
499
282
877
357
Total revenues
31,334
26,646
90,819
79,698
Costs of goods sold and services: Cost of product revenue
8,342
10,511
22,611
31,178
Cost of service and other revenue
5,209
5,191
14,361
14,306
Total costs of goods sold and services
13,551
15,702
36,972
45,484
Gross profit
17,783
10,944
53,847
34,214
Operating expenses: Research and development
7,200
6,631
17,866
20,290
Selling, general, and administrative
23,595
19,966
66,069
72,723
Other lease costs
758
609
2,696
609
Impairment and restructuring
—
20,341
(33)
20,341
Total operating expenses
31,553
47,547
86,598
113,963
Loss from operations
(13,770)
(36,603)
(32,751)
(79,749)
Interest income, net
4,185
1,712
11,520
2,316
Other income (expense), net
2,030
(101)
1,884
(676)
Loss before income taxes
(7,555)
(34,992)
(19,347)
(78,109)
Income tax expense
(203)
(72)
(578)
(10)
Net loss $
(7,758)
$
(35,064)
$
(19,925)
$
(78,119)
Net loss per common share, basic and diluted $
(0.21)
$
(0.95)
$
(0.53)
$
(2.12)
Weighted-average common shares outstanding, basic and
diluted
37,657
37,005
37,494
36,927
Quanterix Corporation Consolidated Balance
Sheets (Unaudited and in thousands)
September 30, 2023 December 31, 2022 ASSETS
Current assets: Cash and cash equivalents $
201,261
$
338,740
Marketable securities
126,449
—
Accounts receivable
24,083
19,017
Inventory
19,945
16,786
Prepaid expenses and other current assets
9,273
6,860
Total current assets
381,011
381,403
Restricted cash
2,647
2,597
Property and equipment, net
17,517
20,162
Intangible assets, net
6,003
7,516
Operating lease right-of-use assets
19,860
21,223
Other non-current assets
2,004
1,298
Total assets $
429,042
$
434,199
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $
4,786
$
3,836
Accrued compensation and benefits
9,775
10,658
Accrued expenses and other current liabilities
6,672
5,133
Deferred revenue
9,827
8,644
Operating lease liabilities
4,093
2,687
Total current liabilities
35,153
30,958
Deferred revenue, net of current portion
1,126
1,415
Operating lease liabilities, net of current portion
38,306
41,417
Other non-current liabilities
1,105
1,469
Total liabilities
75,690
75,259
Total stockholders’ equity
353,352
358,940
Total liabilities and stockholders’ equity $
429,042
$
434,199
Quanterix Corporation Consolidated
Statements of Cash Flows (Unaudited and in thousands)
Nine Months Ended September 30,
2023
2022
Cash flows from operating activities: Net loss $
(19,925)
$
(78,119)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization expense
4,788
4,186
Credit losses on accounts receivable
311
102
Foreign currency losses
359
167
Unrealized losses on marketable securities
(241)
—
Amortization of (discount) premium on marketable securities
(1,249)
—
Operating lease right-of-use asset amortization
1,518
1,099
Stock-based compensation expense
12,438
11,779
Impairment
—
16,915
Deferred income taxes
242
(134)
Loss on disposal of fixed assets
46
6
Changes in assets and liabilities: Accounts receivable
(5,615)
5,045
Inventory
(2,966)
3,919
Prepaid expenses and other current assets
(2,829)
(262)
Other non-current assets
(716)
(859)
Accounts payable
948
(7,085)
Accrued compensation and benefits, accrued expenses, and other
current liabilities
876
(3,021)
Deferred revenue
894
3,108
Operating lease liabilities
(1,690)
(1,156)
Other non-current liabilities
(107)
128
Net cash used in operating activities
(12,918)
(44,182)
Cash flows from investing activities: Purchases of marketable
securities
(125,200)
—
Purchases of property and equipment
(1,572)
(10,131)
Proceeds from RADx grant on assets purchased
—
520
Net cash used in investing activities
(126,772)
(9,611)
Cash flows from financing activities: Proceeds from common stock
issued under stock plans
2,632
1,597
Payments for employee taxes withheld on stock-based compensation
awards
(142)
—
Net cash provided by financing activities
2,490
1,597
Net decrease in cash, cash equivalents, and restricted cash
(137,200)
(52,196)
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash
(229)
(507)
Cash, cash equivalents, and restricted cash at beginning of period
341,337
399,042
Cash, cash equivalents, and restricted cash at end of period $
203,908
$
346,339
Use of Non-GAAP Financial Measures
To supplement our financial statements presented on a U.S. GAAP
basis, we present non-GAAP gross profit, non-GAAP gross margin,
non-GAAP total operating expenses, and non-GAAP loss from
operations, which are calculated by including shipping and handling
costs for product sales within cost of goods sold instead of within
selling, general, and administrative expenses. Management uses
these non-GAAP measures to evaluate our operating performance in a
manner that allows for meaningful period-to-period comparison and
analysis of trends in our business and our competitors. Management
believes that presentation of these non-GAAP measures provides
useful information to investors in assessing our operating
performance within our industry and in order to allow comparability
to the presentation of other companies in our industry where
shipping and handling costs are included in cost of goods sold for
products. Management also uses these non-GAAP measures as a factor
in assessing our progress against our restructuring plan. The
non-GAAP financial information presented here should be considered
in conjunction with, and not as a substitute for, the financial
information presented in accordance with U.S. GAAP.
Set forth below is a reconciliation of non-GAAP gross profit,
non-GAAP gross margin, non-GAAP total operating expenses, and
non-GAAP loss from operations to their most directly comparable
GAAP financial measures.
Reconciliation of GAAP to Non-GAAP Financial Measures
Quanterix Corporation Reconciliation of GAAP Financial
Measures to Non-GAAP Financial Measures (Unaudited and in
thousands, except percentages) Three Months
Ended September 30, Nine Months Ended September 30,
2023
2022
2023
2022
GAAP gross profit $
17,783
$
10,944
$
53,847
$
34,214
Shipping and handling costs (1)
(2,553)
(1,639)
(6,004)
(5,288)
Non-GAAP gross profit $
15,230
$
9,305
$
47,843
$
28,926
GAAP revenue $
31,334
$
26,646
$
90,819
$
79,698
GAAP gross margin (gross profit as % of revenue)
56.8%
41.1%
59.3%
42.9%
Non-GAAP gross margin (non-GAAP gross profit as % of revenue)
48.6%
34.9%
52.7%
36.3%
GAAP total operating expenses $
31,553
$
47,547
$
86,598
$
113,963
Shipping and handling costs (1)
(2,553)
(1,639)
(6,004)
(5,288)
Non-GAAP total operating expenses $
29,000
$
45,908
$
80,594
$
108,675
GAAP loss from operations $
(13,770)
$
(36,603)
$
(32,751)
$
(79,749)
Non-GAAP loss from operations $
(13,770)
$
(36,603)
$
(32,751)
$
(79,749)
(1) Shipping and handling costs, which include freight and other
activities costs associated with product shipments, are captured
within operating expenses in our consolidated statements of
operations. During the three months ended September 30, 2023 and
2022, we incurred $2.6 million and $1.6 million, respectively, of
shipping and handling costs recorded within operating expenses.
During the nine months ended September 30, 2023 and 2022, we
incurred $6.0 million and $5.3 million, respectively, of shipping
and handling costs within operating expenses.
About Quanterix
From discovery to diagnostics, Quanterix’s ultrasensitive
biomarker detection is driving breakthroughs only made possible
through its unparalleled sensitivity and flexibility. The Company’s
Simoa technology has delivered the gold standard for earlier
biomarker detection in blood, serum or plasma, with the ability to
quantify proteins that are far lower than the Level of
Quantification (LoQ) of conventional analog methods. Its
industry-leading precision instruments, digital immunoassay
technology and CLIA-certified Accelerator laboratory have supported
research that advances disease understanding and management in
neurology, oncology, immunology, cardiology and infectious disease.
Quanterix has been a trusted partner of the scientific community
for nearly two decades, powering research published in more than
2,200 peer-reviewed journals. Find additional information about the
Billerica, Massachusetts-based company at https://www.quanterix.com
or follow us on Twitter and LinkedIn.
Forward-Looking Statements
Quanterix’s current financial results, as discussed in this
press release, are preliminary and unaudited, and subject to
adjustment. This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Words such as "may," "will," "expect," "plan,"
"anticipate," "estimate," "intend" and similar expressions (as well
as other words or expressions referencing future events, conditions
or circumstances) are intended to identify forward-looking
statements. These forward-looking statements include, but are not
limited to, statements about Quanterix’s financial performance,
including statements under the header “Full Year Business Outlook”
set forth above, and are subject to a number of risks,
uncertainties and assumptions. Forward-looking statements in this
press release are based on Quanterix’s expectations and assumptions
as of the date of this press release. Each of these forward-looking
statements involves risks and uncertainties. Factors that may cause
Quanterix’s actual results to differ from those expressed or
implied in the forward-looking statements in this press release
include, but are not limited to, those described in the section
titled “Part I, Item 1A, “Risk Factors” in Quanterix’ Annual Report
on Form 10-K for the year ended December 31, 2022, as filed with
the U.S. Securities and Exchange Commission on March 6, 2023.
Except as required by law, Quanterix assumes no obligation to
update any forward-looking statements contained herein to reflect
any change in expectations, even as new information becomes
available.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106312259/en/
Media: PAN Communications Maya Nimnicht 510-334-6273
quanterix@pancomm.com Investor Relations: Ed Joyce
(610) 306-9917 ir@quanterix.com
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