Quanterix Corporation (NASDAQ: QTRX), a company fueling scientific discovery through ultrasensitive biomarker detection, today announced financial results for the three months ended March 31, 2023.
“Our corporate transformation initiated in August 2022 to maximize Quanterix’s full potential is on track. We remain confident that we have taken the right steps to build a strong foundation in preparation for future growth,” said Masoud Toloue, President and Chief Executive Officer of Quanterix. “This progress takes on added importance with the FDA’s recent decision to approve tofersen for the treatment of superoxide dismutase 1 amyotrophic lateral sclerosis, in large part based on strong surrogate neurofilament light chain biomarker data. This decision adds significant momentum to the use of biomarkers for predicting disease severity and clinical benefit in neurodegenerative diseases, and we believe Quanterix will continue to be at the forefront of these developments.”
First Quarter 2023 Financial Highlights
- Q1 total revenue was $28.5 million versus prior year Q1 of $29.6 million, a decrease of 4% driven by a decline in instrument revenue. Q1 total revenue increased 10% from Q4 2022 driven by increased consumable revenue.
- Gross margin, a key success indicator of the strategic realignment, saw strong quarter over quarter improvement. Q1 2023 GAAP gross margin was 59.5% versus Q1 2022 GAAP gross margin of 49.3% and Q4 2022 GAAP gross margin of 48.8%. Q1 2023 non-GAAP gross margin was 53.1% versus Q1 2022 non-GAAP gross margin of 43.2% and Q4 2022 non-GAAP gross margin of 41.3%.
- Q1 net loss was $6.1 million versus prior year Q1 of $18.2 million, a decrease of 66%.
- Cash burn for Q1 was $9.1 million, leaving us with $329.4 million of unrestricted cash as of March 31, 2023.
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.
2023 Business Highlights
- In January 2023, the Company expanded its lab developed test (LDT) menu with the launch of an NfL LDT, which can be used as an aid in the evaluation of individuals for possible neurodegenerative conditions or other causes of neuronal or central nervous system damage. Quanterix’s Simoa NfL is the most widely published NfL test with hundreds of research papers, demonstrating its validity for assessing neuronal damage, and Simoa NfL has become widely adopted in therapeutic clinical trial designs. We believe the recent FDA approval of tofersen, which relied on neurofilament light chain biomarker data, also validates the importance of this test.
- The Company participated in the 2023 Alzheimer’s Disease/Parkinson’s Disease conference in Gothenburg, Sweden. Simoa-based biomarkers were highlighted in more than 11 panel discussions and over 30 poster presentations.
- Published discoveries enabled through Quanterix’s Simoa technology continue to illustrate industry reliance on the Company’s ultra-sensitive technology for breakthrough discovery in research and clinical applications. The technology was highlighted in more than 140 new publications in the first quarter 2023, bringing total Simoa-specific inclusions to over 2,200 as of March 31, 2023.
Full Year Business Outlook
Quanterix has made a modest increase to its guidance for the full year 2023. The Company expects revenues to be in the range of $104 to $111 million. The Company expects GAAP gross margin percentage to be in the high 40s and non-GAAP gross margin percentage to be in the mid 40s. Expected cash burn for 2023 is unchanged, and the Company expects an approximately 10% improvement compared to 2022.
Conference Call
In conjunction with this announcement, Quanterix Corporation will host a conference call on May 9, 2023, at 4:30 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by pre-registering here and obtaining a dial-in number and passcode.
A live webcast will also be available at: https://edge.media-server.com/mmc/p/n9hbuqvf. You may also access the live webcast by visiting the News & Events page within the Investors section of the Quanterix website at www.quanterix.com. The webcast will be available on the Company’s website for one year following completion of the call.
Financial Highlights
| Quanterix Corporation | |||||
| Condensed Consolidated Statements of Operations | |||||
| (Unaudited and in thousands, except share and per share data) | |||||
| Three Months Ended March 31, | |||||
2023 |
2022 |
||||
| Product revenue | $ | 19,287 |
$ | 20,656 |
|
| Service and other revenue | 8,579 |
8,810 |
|||
| Collaboration revenue | 368 |
86 |
|||
| Grant revenue | 222 |
— |
|||
| Total revenue | 28,456 |
29,552 |
|||
| Costs of goods sold: | |||||
| Cost of product revenue | 7,033 |
10,746 |
|||
| Cost of service and other revenue | 4,497 |
4,247 |
|||
| Total costs of goods sold and services | 11,530 |
14,993 |
|||
| Gross profit | 16,926 |
14,559 |
|||
| Gross margin | 59.5% |
49.3% |
|||
| Operating expenses: | |||||
| Research and development | 4,720 |
7,034 |
|||
| Selling, general and administrative | 20,883 |
25,712 |
|||
| Other lease costs | 776 |
— |
|||
| Restructuring | (33) |
— |
|||
| Total operating expenses | 26,346 |
32,746 |
|||
| Loss from operations | (9,420) |
(18,187) |
|||
| Interest income (expense), net | 3,449 |
52 |
|||
| Other income (expense), net | 8 |
(217) |
|||
| Loss before income taxes | (5,963) |
(18,352) |
|||
| Income tax (expense) benefit | (140) |
199 |
|||
| Net loss | $ | (6,103) |
$ | (18,153) |
|
| Net loss per share, basic and diluted | $ | (0.16) |
$ | (0.49) |
|
| Weighted-average common shares outstanding, basic and diluted | 37,326,559 |
36,850,894 |
|||
| Quanterix Corporation | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Unaudited and in thousands) | |||||
| March 31, 2023 | December 31, 2022 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 329,354 |
$ | 338,740 |
|
| Accounts receivable, net | 22,546 |
19,017 |
|||
| Inventory | 17,070 |
16,786 |
|||
| Prepaid expenses and other current assets | 7,002 |
6,860 |
|||
| Total current assets | 375,972 |
381,403 |
|||
| Restricted cash | 2,920 |
2,597 |
|||
| Property and equipment, net | 19,056 |
20,162 |
|||
| Intangible assets, net | 7,129 |
7,516 |
|||
| Right-of-use assets | 20,891 |
21,223 |
|||
| Other non-current assets | 1,345 |
1,298 |
|||
| Total assets | $ | 427,313 |
$ | 434,199 |
|
| Liabilities and stockholders’ equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 2,585 |
$ | 3,836 |
|
| Accrued compensation and benefits | 4,880 |
10,658 |
|||
| Other accrued expenses | 4,624 |
4,747 |
|||
| Deferred revenue | 10,682 |
8,644 |
|||
| Short-term lease liabilities | 3,875 |
2,687 |
|||
| Other current liabilities | 291 |
386 |
|||
| Total current liabilities | 26,937 |
30,958 |
|||
| Deferred revenue, net of current portion | 1,419 |
1,415 |
|||
| Long-term lease liabilities | 40,409 |
41,417 |
|||
| Other non-current liabilities | 1,216 |
1,469 |
|||
| Total liabilities | 69,981 |
75,259 |
|||
| Total stockholders’ equity | 357,332 |
358,940 |
|||
| Total liabilities and stockholders’ equity | $ | 427,313 |
$ | 434,199 |
|
Use of Non-GAAP Financial Measures
To supplement its financial statements presented on a GAAP basis, the Company presents non-GAAP gross profit and non-GAAP gross margin, 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 the Company’s operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends between the Company’s business and its competitors. Management believes that presentation of non-GAAP gross margin provides useful information to investors in assessing the Company’s operating performance within its industry and in order to allow comparability to the presentation of other companies in its industry where shipping and handling costs are included in cost of goods sold for products. Management also uses non-GAAP gross margin as a factor in assessing the Company’s progress against the strategic business realignment 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 GAAP. Investors are encouraged to review the reconciliation of these pro-forma measures to their most directly comparable GAAP financial measures set forth below.
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, | Three Months Ended, | |||||||||||
| March 31, 2023 | March 31, 2022 | March 31, 2023 | December 31, 2022 | |||||||||
| GAAP gross profit | $ | 16,926 |
$ | 14,559 |
$ | 16,926 |
$ | 12,592 |
||||
| Shipping and handling costs (1) | (1,829) |
(1,781) |
(1,829) |
(1,926) |
||||||||
| Non-GAAP gross profit | $ | 15,097 |
$ | 12,778 |
$ | 15,097 |
$ | 10,666 |
||||
| GAAP Revenue | 28,456 |
29,552 |
28,456 |
25,824 |
||||||||
| GAAP Gross margin (GAAP gross profit as % of revenue) | 59.5% |
49.3% |
59.5% |
48.8% |
||||||||
| Non-GAAP gross margin (non-GAAP gross profit as % of revenue) | 53.1% |
43.2% |
53.1% |
41.3% |
||||||||
| GAAP total operating expenses | $ | 26,346 |
$ | 32,746 |
$ | 26,346 |
$ | 34,547 |
||||
| Shipping and handling costs (1) | (1,829) |
(1,781) |
(1,829) |
(1,926) |
||||||||
| Non-GAAP total operating costs | $ | 24,517 |
$ | 30,965 |
$ | 24,517 |
$ | 32,621 |
||||
| GAAP loss from operations | $ | (9,420) |
$ | (18,187) |
$ | (9,420) |
$ | (21,955) |
||||
| Non-GAAP loss from operations | $ | (9,420) |
$ | (18,187) |
$ | (9,420) |
$ | (21,955) |
||||
(1) Shipping and handling costs, which include freight and other activities costs associated with product shipments, net of charges passed on to the customer, are captured within operating expenses in our consolidated statements of operations. During the three months ended March 31, 2023 and 2022, we incurred $1.8 million and $1.8 million, respectively, of shipping and handling costs recorded within operating expenses. During the three months ended December 31, 2022, we incurred $1.9 million 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). 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
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’ financial performance, including anticipated progress associated with Quanterix’ strategic business alignment plan, and are subject to a number of risks, uncertainties and assumptions. Forward-looking statements in this news release are based on Quanterix’ 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’ 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 “Part I, Item 1A, “Risk Factors” in Quanterix’ Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC 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.
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Contacts
Media:
PAN Communications
Maya Nimnicht
510-334-6273
quanterix@pancomm.com
Investor Relations:
Amy Achorn
(978) 488-1854
ir@quanterix.com
