Full Press Release Details
Quanterix Releases Operating Results for Fourth
Quarter and Full Year 2022; Aligned with Expectations
Corporate Transformation:
Mass.- March 6, 2023 - Quanterix Corporation (NASDAQ: QTRX), a company fueling
scientific discovery through ultrasensitive biomarker detection, today announced financial results for the fourth quarter and twelve
months ended December 31, 2022.
Simoa technology continues to be on the forefront of research, testing, therapeutic trials and has been an integral part of recent advances
in Alzheimer's disease. In order to best capture and lead in this area, two quarters ago
we began a corporate transformation and we're pleased announce the program is on track, with good progress quarter over quarter,
"said Masoud Toloue, President and Chief Executive
Officer of Quanterix.
Sequential Progress with Strategic Business Realignment
August 2022, the Company initiated a
strategic business realignment
to maximize its full potential to enable access to current and future Simoa technology. As part of the realignment, the
Company established an assay redevelopment program with the goal of improving its capability
to manufacture high-quality assays at scale.
Quanterix's fourth quarter and full year revenue results were
in line with expectations set forth with this plan. Gross margin, a key success indicator of the Company's strategic realignment,
saw strong quarter over quarter improvement. Q4 GAAP Gross Margin was 48.8% versus Q3 GAAP gross margin of 41.1%. Q4 Non-GAAP gross margin
was 41.3% versus Q3 non-GAAP gross margin of 34.9%.
GAAP Operating loss of $22.3 million for the fourth quarter of 2022
included approximately $10 million of restructuring and impairment related charges. As a result of the restructuring, SG&A costs
were $19.3M for the quarter, down $9.1M from last year Q4.
Year over Year Financial
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.
Fourth Quarter and Full Year
conjunction with this announcement, Quanterix Corporation will host a conference call on March 6, 2023 at 8:30 a.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.
live webcast will also be available at: https://edge.media-server.com/mmc/p/e6rxupm5 . 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 December 31, | Year Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Product revenue | $ | 16,674 | $ | 23,476 | $ | 69,808 | $ | 81,062 | ||||||||
| Service and other revenue | 8,767 | 5,674 | 34,495 | 23,629 | ||||||||||||
| Collaboration revenue | 170 | 162 | 649 | 648 | ||||||||||||
| Grant revenue | 213 | 975 | 570 | 5,217 | ||||||||||||
| Total revenue | 25,824 | 30,287 | 105,522 | 110,556 | ||||||||||||
| Costs of goods sold: | ||||||||||||||||
| Cost of product revenue | 9,631 | 9,916 | 40,809 | 34,149 | ||||||||||||
| Cost of service and other revenue | 3,601 | 4,110 | 17,907 | 14,679 | ||||||||||||
| Total costs of goods sold and services | 13,232 | 14,026 | 58,716 | 48,828 | ||||||||||||
| Gross profit | 12,592 | 16,261 | 46,806 | 61,728 | ||||||||||||
| Gross margin | 48.8 | % | 53.7 | % | 44.4 | % | 55.8 | % | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 5,600 | 7,734 | 25,890 | 27,978 | ||||||||||||
| Selling, general and administrative | 19,272 | 28,423 | 91,995 | 92,336 | ||||||||||||
| Other lease costs | 669 | - | 1,278 | - | ||||||||||||
| Restructuring | 329 | - | 3,755 | - | ||||||||||||
| Goodwill impairment | - | - | 8,220 | - | ||||||||||||
| Impairment expense | 8,677 | - | 17,372 | - | ||||||||||||
| Total operating expenses | 34,547 | 36,157 | 148,510 | 120,314 | ||||||||||||
| Loss from operations | (21,955 | ) | (19,896 | ) | (101,704 | ) | (58,586 | ) | ||||||||
| Interest income (expense), net | 2,815 | 15 | 5,131 | (403 | ) | |||||||||||
| Other income (expense), net | 614 | (213 | ) | (62 | ) | 1,265 | ||||||||||
| Loss before income taxes | (18,526 | ) | (20,094 | ) | (96,635 | ) | (57,724 | ) | ||||||||
| Income tax (expense) benefit | (75 | ) | 4 | (65 | ) | 36 | ||||||||||
| Net loss | $ | (18,601 | ) | $ | (20,098 | ) | $ | (96,700 | ) | $ | (57,760 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.50 | ) | $ | (0.55 | ) | $ | (2.61 | ) | $ | (1.60 | ) | ||||
| Weighted-average common shares outstanding, basic and diluted | 37,160,472 | 36,659,254 | 36,990,965 | 35,997,473 |
Quanterix Corporation
Condensed Consolidated Balance Sheets
| December 31, 2022 | December 31, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 338,740 | $ | 396,465 | ||||
| Accounts receivable, net | 19,017 | 23,786 | ||||||
| Inventory | 16,786 | 22,190 | ||||||
| Prepaid expenses and other current assets | 6,860 | 6,514 | ||||||
| Total current assets | 381,403 | 448,955 | ||||||
| Restricted cash | 2,597 | 2,577 | ||||||
| Property and equipment, net | 20,162 | 17,960 | ||||||
| Intangible assets, net | 7,516 | 10,534 | ||||||
| Goodwill | - | 9,632 | ||||||
| Right-of-use assets | 21,223 | 11,491 | ||||||
| Other non-current assets | 1,298 | 378 | ||||||
| Total assets | $ | 434,199 | $ | 501,527 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,836 | $ | 9,209 | ||||
| Accrued compensation and benefits | 10,658 | 13,252 | ||||||
| Other accrued expenses | 4,747 | 6,486 | ||||||
| Deferred revenue | 8,644 | 6,361 | ||||||
| Short-term lease liabilities | 2,687 | 1,428 | ||||||
| Other current liabilities | 386 | 241 | ||||||
| Total current liabilities | 30,958 | 36,977 | ||||||
| Deferred revenue, net of current portion | 1,415 | 1,099 | ||||||
| Long-term lease liabilities | 41,417 | 20,464 | ||||||
| Other non-current liabilities | 1,469 | 2,035 | ||||||
| Total liabilities | 75,259 | 60,575 | ||||||
| Total stockholders' equity | 358,940 | 440,952 | ||||||
| Total liabilities and stockholders' equity | $ | 434,199 | $ | 501,527 |
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
and in thousands, except percentages)
| Three Months Ended December 31, | Three Months Ended September 30, | Three Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||||
| 2022 | 2021 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||
| GAAP gross profit | $ | 12,592 | $ | 16,261 | $ | 10,944 | $ | 8,711 | $ | 46,806 | $ | 61,728 | ||||||||||||
| Shipping and handling costs (1) | (1,926 | ) | (1,976 | ) | (1,636 | ) | (1,868 | ) | (7,206 | ) | (6,892 | ) | ||||||||||||
| Non-GAAP gross profit | $ | 10,666 | $ | 14,285 | $ | 9,308 | $ | 6,843 | $ | 39,600 | $ | 54,836 | ||||||||||||
| GAAP Revenue | 25,824 | 30,287 | 26,646 | 23,500 | 105,522 | 110,556 | ||||||||||||||||||
| GAAP Gross margin (GAAP gross profit as % of revenue) | 48.8 | % | 53.7 | % | 41.1 | % | 37.1 | % | 44.4 | % | 55.8 | % | ||||||||||||
| Non-GAAP gross margin (non-GAAP gross profit as % of revenue) | 41.3 | % | 47.2 | % | 34.9 | % | 29.1 | % | 37.5 | % | 49.6 | % | ||||||||||||
| GAAP total operating expenses | $ | 34,547 | $ | 36,157 | $ | 47,547 | $ | 33,670 | $ | 148,510 | $ | 120,314 | ||||||||||||
| Shipping and handling costs (1) | (1,926 | ) | (1,976 | ) | (1,636 | ) | (1,868 | ) | (7,206 | ) | (6,892 | ) | ||||||||||||
| Non-GAAP total operating costs | $ | 32,621 | $ | 34,181 | $ | 45,911 | $ | 31,802 | $ | 141,304 | $ | 113,422 | ||||||||||||
| GAAP loss from operations | $ | (21,955 | ) | $ | (19,896 | ) | $ | (36,603 | ) | $ | (24,959 | ) | $ | (101,704 | ) | $ | (58,586 | ) | ||||||
| Non-GAAP loss from operations | $ | (21,955 | ) | $ | (19,896 | ) | $ | (36,603 | ) | $ | (24,959 | ) | $ | (101,704 | ) | $ | (58,586 | ) |
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 and
year ended December 31, 2022, we incurred $1.9 million and $7.2 million, respectively, of shipping and handling costs recorded within
operating expenses. During the three months and year ended December 31, 2021, we incurred $2.0 million and $6.9 million, respectively,
of shipping and handling costs recorded within operating expenses. During the three months ended September 30, 2022, we incurred $1.6
million of shipping and handling costs within operating expenses. During the three months ended June 30, 2022, we incurred $2.1 million
of shipping and handling costs within operating expenses.
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 2,000 peer-reviewed journals. Find additional information about the Billerica, Massachusetts-based
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, to be 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.