Full Press Release Details
Quanterix Releases Operating Results for Third Quarter 2023
BILLERICA, Mass. - November 6, 2023 - 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
"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
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.
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 access the live webcast from the News & Events page within 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) |
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.