Full Press Release Details
Quanterix Corporation Releases Operating
Results for Third Quarter 2020
GAAP revenue including one-time License and Grant revenue $31.4M; Non-GAAP revenue $18.3M,
an increase of 22% versus prior year
Billerica, Mass. - November 5, 2020 - Quanterix
Corporation (NASDAQ: QTRX), a company digitizing biomarker analysis to advance the science of precision health, today announced
financial results for the three months ending September 30, 2020.
"We have made important advances in Alzheimer's,
MS and COVID testing and with our platform in Q3 2020 delivering another strong quarter of growth, despite continued headwinds
associated with the pandemic," said Kevin Hrusovsky, Chairman, Chief Executive Officer, President, Quanterix. "We
launched important Neurology assays including pTau-181 and a comprehensive N4PE four plex, secured an $18.2M NIH RADx contract
to accelerate development, manufacturing scale-up and deployment of our novel high-throughput SARS-CoV-2 Antigen test, entered
a non-exclusive IVD license agreement with Abbott, initiated surveillance studies with a large US Payer and raised nearly $100m
in capital, making Q3'2020 one of our more successful quarters in our history. We are encouraged by our operational and
strategic momentum and believe our unique ability to detect Neurology biomarkers such as Nf-L and pTau-181 is delivering on the
promise of early disease detection from minimally invasive samples. Most importantly, we are pleased with our growth potential
associated with COVID, MS and upcoming Alzheimer's trials."
Third Quarter 2020 Financial Highlights
Key financial results from the third quarter of 2020 are shown
YTD 2020 Financial Highlights
Key financial results for YTD 2020 are shown below:
information on the non-GAAP financial measures included in this press release, please see "Use of Non-GAAP Financial Measures"
and "Reconciliation of Non-GAAP Financials" below.
Third Quarter 2020 Business Highlights
In conjunction with this announcement, Quanterix Corporation
will host a conference call on November 5 at 4:30 p.m., EDT. Individuals interested in listening to the conference call may do
so by dialing (833) 686-9351 for domestic callers, or (612) 979-9890 for international callers. Please reference the following
conference ID: 3039608.
A live webcast will also be available at: https://edge.media-server.com/mmc/p/h4mngg92.
The webcast will be available on the Company's website,
https://www.quanterix.com/, for one year following completion of the call.
Financial Highlights (in thousands)
| Quanterix Income Statement | ||||||||||||||||
| in '000 USD | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | ||||||||||||
| Product Revenue | 11,662 | 10,737 | 28,285 | 29,059 | ||||||||||||
| Service and Other Revenue | 6,552 | 4,207 | 18,631 | 11,757 | ||||||||||||
| Collaboration and License Revenue | 11,246 | 0 | 11,401 | 0 | ||||||||||||
| Grant Revenue | 1,929 | 0 | 1,929 | 0 | ||||||||||||
| Total Revenue | 31,389 | 14,944 | 60,246 | 40,816 | ||||||||||||
| Cost of Product Revenue | 6,387 | 5,513 | 17,989 | 14,217 | ||||||||||||
| Cost of Services Revenue | 2,896 | 2,398 | 8,125 | 6,630 | ||||||||||||
| Cost of License Revenue | 1,000 | 0 | 1,000 | 0 | ||||||||||||
| Gross Profit | 21,106 | 7,033 | 33,132 | 19,969 | ||||||||||||
| Gross Margin % | 67.2 | % | 47.1 | % | 55.0 | % | 48.9 | % | ||||||||
| Research and Development | 5,377 | 3,924 | 13,957 | 11,792 | ||||||||||||
| Selling, General and Administrative | 13,451 | 13,352 | 40,826 | 38,293 | ||||||||||||
| Total Operating Expenses | 18,828 | 17,276 | 54,783 | 50,085 | ||||||||||||
| Income (Loss) From Operations | 2,278 | (10,243 | ) | (21,651 | ) | (30,116 | ) | |||||||||
| Interest Income (Expense), net | (160 | ) | 282 | (107 | ) | 346 | ||||||||||
| Other Expense, net | (26 | ) | (34 | ) | (204 | ) | (149 | ) | ||||||||
| Tax | 111 | 125 | 253 | 81 | ||||||||||||
| Net Income (Loss) | 2,203 | (9,870 | ) | (21,709 | ) | (29,838 | ) |
Basic and diluted weighted average shares outstanding was 30.1
million and 31.4 million, respectively, for Q3 2020.
Basic and diluted weighted average shares outstanding was 28.9
million for YTD 2020.
| Quanterix Balance Sheet | ||||||||
| in '000 USD | At 9/30/20 | At 12/31/19 | ||||||
| Cash and Cash Equivalents | 173,162 | 109,155 | ||||||
| Accounts Receivable | 26,262 | 10,906 | ||||||
| Inventory | 13,274 | 10,463 | ||||||
| Prepaid Expenses and Other | 2,230 | 2,137 | ||||||
| Total Current Assets | 214,928 | 132,661 | ||||||
| Restricted Cash | 1,000 | 1,026 | ||||||
| Property and Equipment, Net | 12,827 | 12,047 | ||||||
| Intangible Assets, Net | 13,242 | 14,307 | ||||||
| Goodwill | 9,714 | 9,353 | ||||||
| Right-of-Use Assets | 12,019 | 0 | ||||||
| Other Non-Current Assets | 375 | 557 | ||||||
| Total Assets | 264,105 | 169,951 | ||||||
| Accounts Payable & Accrued Expenses | 17,177 | 14,845 | ||||||
| Deferred Revenue | 3,793 | 4,697 | ||||||
| Current Portion of Long-Term Debt | 5,744 | 75 | ||||||
| Lease Liabilities | 1,166 | 0 | ||||||
| Other Current Liabilities | 212 | 216 | ||||||
| Total current liabilities | 28,092 | 19,833 | ||||||
| Deferred Revenue, Net of Current Portion | 363 | 466 | ||||||
| Long Term Debt, Net of Current Portion | 1,907 | 7,587 | ||||||
| Lease Liabilities, Net of Current Portion | 22,159 | 0 | ||||||
| Other Non-Current Liabilities | 2,543 | 13,407 | ||||||
| Total Liabilities | 55,064 | 41,293 | ||||||
| Total Stockholders' Equity | 209,041 | 128,658 | ||||||
| Total Liabilities and Stockholders' Equity | 264,105 | 169,951 |
Use of Non-GAAP Financial Measures
To supplement the Company's
financial statements presented on a GAAP basis, the Company has provided certain non-GAAP financial measures, including non-GAAP
revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses and non-GAAP loss from operations. 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 in its business. Management
believes that such measures are important in comparing current results with prior period results and are useful to investors and
financial analysts in assessing the Company's operating performance. 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 non-GAAP measures to their most directly comparable GAAP financial measures
of Non-GAAP Financials
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| Total revenue | 31,389 | 14,944 | 60,246 | 40,816 | ||||||||||||
| License agreement revenue (Note 1) | (11,200 | ) | - | (11,200 | ) | - | ||||||||||
| Grant revenue (Note 2) | (1,929 | ) | - | (1,929 | ) | - | ||||||||||
| Non-GAAP revenue | 18,260 | 14,944 | 47,117 | 40,816 | ||||||||||||
| Gross profit | 21,106 | 7,033 | 33,132 | 19,969 | ||||||||||||
| License agreement revenue (Note 1) | (11,200 | ) | - | (11,200 | ) | - | ||||||||||
| Grant revenue (Note 2) | (1,929 | ) | - | (1,929 | ) | - | ||||||||||
| Acquisition-related purchase accounting charges (Note 3) | 422 | 711 | 1,818 | 711 | ||||||||||||
| Cost of license revenue (Note 4) | 1,000 | - | 1,000 | - | ||||||||||||
| Non-GAAP gross profit | 9,399 | 7,744 | 22,821 | 20,680 | ||||||||||||
| GAAP gross margin % | 67.2 | % | 47.1 | % | 55.0 | % | 48.9 | % | ||||||||
| Non-GAAP gross margin % | 51.5 | % | 51.8 | % | 48.4 | % | 50.7 | % | ||||||||
| GAAP total operating expenses | 18,828 | 17,276 | 54,783 | 50,085 | ||||||||||||
| Grant research and development expenses (Note 5) | (1,302 | ) | - | (1,302 | ) | - | ||||||||||
| Acquisition-related purchase accounting charges (Note 6) | (20 | ) | (20 | ) | (61 | ) | (20 | ) | ||||||||
| Non-GAAP total operating expenses | 17,505 | 17,256 | 53,420 | 50,065 | ||||||||||||
| GAAP income (loss) from operations | 2,278 | (10,243 | ) | (21,651 | ) | (30,116 | ) | |||||||||
| Non-GAAP loss from operations | (8,107 | ) | (9,512 | ) | (30,599 | ) | (29,385 | ) |
| Note 1: During the three and nine months ended September 30, 2020, we recognized $10.0 million in license revenue in connection with a non-exclusive license agreement with Abbott Laboratories. Also, during the three and nine months ended September 30, 2020, we recognized $1.2 million of previously deferred license revenue as a result of entering into the license agreement with Abbott Laboratories. |
| Note 2: During the three and nine months ended September 30, 2020, we recognized $1.9 million in revenue in connection with our workplan 1 award under the National Institute of Health Rapid Acceleration of Diagnostics Program. |
| Note 3: During the three months ended September 30, 2020, we incurred $40 thousand of acquisition-related amortization of inventory valuation and $382 thousand of acquisition-related amortization of intangible assets adjustments in connection with our acquisition of UmanDiagnostics. During the nine months ended September 30, 2020, we incurred $671 thousand of acquisition-related amortization of inventory valuation and $1,147 thousand of acquisition-related amortization of intangible assets adjustments in connection with our acquisition of UmanDiagnostics. During the three and nine months ended September 30, 2019, we incurred $328 thousand of acquisition-related amortization of inventory valuation and $383 thousand of acquisition-related amortization of intangible assets adjustments in connection with our acquisition of UmanDiagnostics. |
| Note 4: During the three and nine months ended September 30, 2020, we incurred $1.0 million in license fees in connection with our non-exclusive license agreement with Abbott Laboratories. |
| Note 5: During the three and nine months ended September 30, 2020, we incurred $1.3 million in research and development expenses in connection with our workplan 1 award under the National Institute of Health Rapid Acceleration of Diagnostics Program. |
| Note 6: During the three and nine months ended September 30, 2020, we incurred $20 thousand and $61 thousand, respectively, of acquisition-related amortization of intangible assets adjustments in connection with our acquisition of UmanDiagnostics. During three and nine months ended September 30, 2019, we incurred $20 thousand of acquisition-related amortization of intangible assets adjustments in connection with our acquisition of UmanDiagnostics. |
Quanterix is a company that's digitizing biomarker analysis
with the goal of advancing the science of precision health. The company's digital health solution, Simoa, has the potential
to change the way in which healthcare is provided today by giving researchers the ability to closely examine the continuum from
health to disease. Quanterix' technology is designed to enable much earlier disease detection, better prognoses and enhanced
treatment methods to improve the quality of life and longevity of the population for generations to come. The technology is currently
being used for research applications in several therapeutic areas, including oncology, neurology, cardiology, inflammation and
infectious disease. The company was established in 2007 and is located in Billerica, Massachusetts. For additional information,
please visit https://www.quanterix.com.
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. 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 are discussed in Quanterix'
filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" sections contained therein.
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.
Quanterix Corporation
Stephen Hrusovsky, 774-278-0496
Staci Didner, 617-502-4300