Full Press Release Details
Quanterix Releases Operating Results for First Quarter 2023
BILLERICA, Mass.- May 9, 2023 - 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
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
Full Year Business Outlook
We have made a modest increase to our guidance for the full year 2023. We expect revenues to be in the range of $104 to $111 million. We expect 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 we expect an approximately 10% improvement over 2022.
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) |
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.