Quantum-Si Reports Fourth Quarter and Full Year 2023 Financial Results
- Recorded revenue of $400,000 in Q4 2023
- Finalizing commercial readiness for full commercial launch by Q1 2024
- Launched version 2 of sequencing kit in February 2024
- Added third international distribution partner, TOMY Digital Biology Co. Ltd.
- Planned release of version 3 sequencing kit by end of Q3 2024
- Full year 2024 financial guidance provided
- None.
Insights
The announcement from Quantum-Si regarding its fourth-quarter financial results and the progress towards the full commercial launch of its Platinum® instrument is significant for investors and stakeholders. The reported revenue of $400,000, while modest, indicates initial market penetration and the potential for revenue growth as the company scales up. The launch of the version 2 sequencing kit and the addition of a third international distributor are pivotal steps in expanding the company's market reach, particularly in the high-growth Asian markets represented by the new Japanese partner, TOMY Digital Biology Co. Ltd.
Investors should note the company's guidance for the full year 2024 as a benchmark for evaluating future performance. Such guidance is often used to assess the management's confidence in their business strategy and operational execution. However, it is crucial to consider the biotechnology sector's volatility and the inherent risks associated with scaling commercial operations in a highly competitive and regulated market. The anticipation of a version 3 sequencing kit release by Q3 2024 suggests a commitment to continuous product development, which could be a driver for sustained long-term growth.
The protein sequencing market is a niche but rapidly evolving segment within the broader life sciences and biotechnology industry. Quantum-Si's focus on protein sequencing positions the company in a market with significant growth potential, as protein analysis is crucial for both academic research and pharmaceutical development. The launch of an upgraded sequencing kit and the establishment of international distribution channels are strategic moves that could increase the company's market share and enhance its competitive positioning.
Moreover, the timing of the full commercial launch by the end of Q1 2024 is crucial as it coincides with the beginning of the fiscal year for many organizations, potentially aligning with their budget cycles for new capital expenditures. This could positively influence the adoption rate of the Platinum® instrument. The company's performance in the next few quarters will be a key indicator of its ability to capitalize on these opportunities and convert them into sustainable revenue streams.
From a scientific and technological standpoint, the progression from version 2 to version 3 of the sequencing kit within the same year could reflect significant advancements in protein sequencing technology that Quantum-Si is pursuing. The ability to rapidly innovate and improve upon sequencing technology is critical in the biotech industry, where research and development pace can determine market leadership. The adoption of new technology in labs and by researchers depends on the reliability, accuracy and cost-effectiveness of these innovations.
Quantum-Si's commercial strategy, including international partnerships, indicates a push to establish a global footprint. This is particularly important as the company may benefit from diverse revenue streams and reduced dependency on any single market. However, the success of such a strategy relies heavily on the company's ability to navigate regulatory hurdles, adapt to different market needs and provide adequate support and training for its new technologies.
Finalizing Commercial Readiness for Expected Full Commercial Launch by the End of Q1 2024
Releases Full Year 2024 Financial Guidance
Press Release Highlights
-
Recorded revenue of
$400,000 - Finalizing commercial readiness for expected full commercial launch by the end of Q1 2024
- Launched version 2 of its sequencing kit in early February 2024 and has begun shipping to customers
-
Announced the Company’s third international distribution partner, TOMY Digital Biology Co. Ltd., based in
Japan - Announced the planned release of a version 3 of its sequencing kit by the end of Q3 2024
- Provides full year 2024 financial guidance
“We made great progress in the fourth quarter of 2023 and are seeing the early results of that work now, including the launch of our version 2 sequencing kit in early February 2024, significant progress on scaling up our commercial resources, and the addition of our third distributor to our international network”, said Jeff Hawkins, President and Chief Executive Officer of Quantum-Si. “We are pleased with our ability to launch the version 2 sequencing kit well within the previously provided timeline. We are excited about the acceleration we are seeing in our R&D pipeline and believe we are in a strong position to deliver a steady cadence of product enhancements and new capabilities to the market in 2024 and beyond. A version 3 of our sequencing kit is under development now and we expect to deliver it to the market by the end of Q3 2024. We are also making solid progress across library prep and instrument development programs that we believe will fuel the future growth of the Company for years to come.”
Hawkins continued, “With all the progress that we have made over the last year, coupled with finalizing our commercialization readiness, I am pleased to announce that we expect to commence our full commercial launch of our Platinum® instrument by the end of Q1 2024. We have also released full year 2024 financial guidance.”
Fourth Quarter 2023 and Full Year 2023 Financial Results
During the fourth quarter of 2023, the Company continued its controlled commercial launch of its Platinum instrument, recording revenue of
Total operating expenses were
Net loss was
As of December 31, 2023, the Company’s cash and cash equivalents and investments in marketable securities were
2024 Financial Guidance
For the full year 2024, the Company provided the following financial guidance:
| Revenue | ||
| Adjusted total operating expenses | Less than |
|
| Total cash usage | Less than |
The Company also maintains the expectation that the balance in cash and cash equivalents and investments in marketable securities of
Webcast and Conference Call Information
Quantum-Si will host a conference call to discuss its fourth quarter and full year 2023 financial results on Thursday, February 29, 2024, at 4:30 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by joining the live webcast in the Investors section of the Quantum-Si website under Events & Presentations. Alternatively, individuals can register online to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the event will be available for replay following the event.
About Quantum-Si Incorporated
Quantum-Si, The Protein Sequencing Company™, is focused on revolutionizing the growing field of proteomics. The Company's suite of technologies is powered by a first-of-its-kind semiconductor chip designed to enable next-generation single-molecule protein sequencing and digitize proteomic research in order to advance drug discovery and diagnostics beyond what has been possible with DNA sequencing. Learn more at quantum-si.com or follow us on LinkedIn or X.
Use of Non-GAAP Financial Measures
This press release presents the non-GAAP financial measures “adjusted total operating expenses” and “adjusted EBITDA.” The most directly comparable measures for these non-GAAP financial measures are total operating expenses and net loss. The Company has included below adjusted total operating expenses, which presents the Company’s total operating expenses after excluding goodwill impairment, stock-based compensation and restructuring costs. In addition, adjusted EBITDA further excludes interest, taxes, depreciation, amortization, dividend income, unrealized and realized gains and losses on marketable securities, changes in fair value of warrant liabilities and other income or expense.
A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations is included as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of the Company may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance and development and commercialization of products and services, its anticipated cash runway and its financial guidance for the full year 2024. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the inability to maintain the listing of the Company's Class A common stock on The Nasdaq Stock Market; the ability of the Company to grow and manage growth profitably and retain its key employees; the Company’s ongoing leadership transitions; changes in applicable laws or regulations; the ability of the Company to raise financing in the future; the success, cost and timing of the Company's product development and commercialization activities; the commercialization and adoption of the Company’s existing products and the success of any product the Company may offer in the future; the potential attributes and benefits of the Company’s commercialized Platinum™ protein sequencing instrument and kits and the Company’s other products once commercialized; the Company's ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company's ability to identify, in-license or acquire additional technology; the Company's ability to maintain its existing lease, license, manufacture and supply agreements; the Company's ability to compete with other companies currently marketing or engaged in the development or commercialization of products and services that serve customers engaged in proteomic analysis, many of which have greater financial and marketing resources than the Company; the size and growth potential of the markets for the Company's products and services, and its ability to serve those markets once commercialized, either alone or in partnership with others; the Company's estimates regarding future expenses, future revenue, capital requirements and needs for additional financing; the Company's financial performance; and other risks and uncertainties described under "Risk Factors" in the Company’s most recent Annual Report on Form 10-K, and in the Company's other filings with the SEC. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
QUANTUM-SI INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts) (Unaudited) |
||||||||||||
Three months ended December 31, |
Years ended December 31, |
|||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
| Revenue | ||||||||||||
| Product | $ |
377 |
$ |
- |
$ |
1,031 |
$ |
- |
||||
| Service | 23 |
- |
51 |
- |
||||||||
| Total revenue | 400 |
- |
1,082 |
- |
||||||||
| Cost of revenue | 222 |
- |
594 |
- |
||||||||
| Gross profit | 178 |
- |
488 |
- |
||||||||
| Operating expenses: | ||||||||||||
| Research and development | 16,437 |
18,157 |
67,025 |
72,062 |
||||||||
| Selling, general and administrative | 11,624 |
11,203 |
44,634 |
42,296 |
||||||||
| Goodwill impairment | - |
9,483 |
- |
9,483 |
||||||||
| Total operating expenses | 28,061 |
38,843 |
111,659 |
123,841 |
||||||||
| Loss from operations | (27,883) |
(38,843) |
(111,171) |
(123,841) |
||||||||
| Dividend income | 2,262 |
2,013 |
9,536 |
5,301 |
||||||||
| Gain (loss) on marketable securities, net | 3,774 |
2,180 |
5,587 |
(20,603) |
||||||||
| Change in fair value of warrant liabilities | (197) |
1,122 |
(278) |
6,243 |
||||||||
| Other (expense) income, net | (4) |
388 |
366 |
458 |
||||||||
| Loss before provision for income taxes | (22,048) |
(33,140) |
(95,960) |
(132,442) |
||||||||
| Provision for income taxes | - |
- |
- |
- |
||||||||
| Net loss and comprehensive loss | $ |
(22,048) |
$ |
(33,140) |
$ |
(95,960) |
$ |
(132,442) |
||||
| Net loss per common share attributable to common stockholders, basic and diluted | $ |
(0.16) |
$ |
(0.24) |
$ |
(0.68) |
$ |
(0.95) |
||||
| Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 141,575 |
139,849 |
141,300 |
139,255 |
||||||||
QUANTUM-SI INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and par value amounts) (Unaudited) |
||||||||
December 31, |
December 31, |
|||||||
2023 |
2022 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
133,860 |
|
$ |
84,319 |
|
||
| Marketable securities |
|
123,876 |
|
|
266,990 |
|
||
| Accounts receivable, net of allowance of |
|
368 |
|
|
- |
|
||
| Inventory, net |
|
3,945 |
|
|
- |
|
||
| Prepaid expenses and other current assets |
|
4,261 |
|
|
6,873 |
|
||
| Total current assets |
|
266,310 |
|
|
358,182 |
|
||
| Property and equipment, net |
|
16,275 |
|
|
16,849 |
|
||
| Internally developed software |
|
532 |
|
|
- |
|
||
| Operating lease right-of-use assets |
|
14,438 |
|
|
15,757 |
|
||
| Other assets |
|
695 |
|
|
697 |
|
||
| Total assets | $ |
298,250 |
|
$ |
391,485 |
|
||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
1,766 |
|
$ |
3,903 |
|
||
| Accrued expenses and other current liabilities |
|
8,277 |
|
|
10,434 |
|
||
| Current portion of operating lease liabilities |
|
1,566 |
|
|
1,369 |
|
||
| Total current liabilities |
|
11,609 |
|
|
15,706 |
|
||
| Warrant liabilities |
|
1,274 |
|
|
996 |
|
||
| Operating lease liabilities |
|
13,737 |
|
|
16,077 |
|
||
| Other long-term liabilities |
|
11 |
|
|
- |
|
||
| Total liabilities |
|
26,631 |
|
|
32,779 |
|
||
| Stockholders' equity | ||||||||
| Class A Common stock, |
|
12 |
|
|
12 |
|
||
| Class B Common stock, |
|
2 |
|
|
2 |
|
||
| Additional paid-in capital |
|
767,239 |
|
|
758,366 |
|
||
| Accumulated deficit |
|
(495,634 |
) |
|
(399,674 |
) |
||
| Total stockholders' equity |
|
271,619 |
|
|
358,706 |
|
||
| Total liabilities and stockholders' equity | $ |
298,250 |
|
$ |
391,485 |
|
||
QUANTUM-SI INCORPORATED
RECONCILIATION OF (in thousands) (Unaudited) |
||||||||||||||||
Three months ended December 31, |
Years ended December 31, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
| Net loss | $ |
(22,048 |
) |
$ |
(33,140 |
) |
$ |
(95,960 |
) |
$ |
(132,442 |
) |
||||
| Adjustments to reconcile to EBITDA: | ||||||||||||||||
| Dividend income |
|
(2,262 |
) |
|
(2,013 |
) |
|
(9,536 |
) |
|
(5,301 |
) |
||||
| Depreciation and amortization |
|
1,093 |
|
|
795 |
|
|
4,156 |
|
|
2,584 |
|
||||
| EBITDA |
|
(23,217 |
) |
|
(34,358 |
) |
|
(101,340 |
) |
|
(135,159 |
) |
||||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||
| Goodwill impairment |
|
- |
|
|
9,483 |
|
|
- |
|
|
9,483 |
|
||||
| (Gain) loss on marketable securities, net |
|
(3,774 |
) |
|
(2,180 |
) |
|
(5,587 |
) |
|
20,603 |
|
||||
| Change in fair value of warrant liabilities |
|
197 |
|
|
(1,122 |
) |
|
278 |
|
|
(6,243 |
) |
||||
| Other expense (income), net |
|
4 |
|
|
(388 |
) |
|
(366 |
) |
|
(458 |
) |
||||
| Stock-based compensation |
|
1,339 |
|
|
4,107 |
|
|
8,253 |
|
|
11,206 |
|
||||
| Restructuring costs |
|
373 |
|
|
- |
|
|
4,504 |
|
|
- |
|
||||
| Adjusted EBITDA | $ |
(25,078 |
) |
$ |
(24,458 |
) |
$ |
(94,258 |
) |
$ |
(100,568 |
) |
||||
Three months ended December 31, |
Years ended December 31, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
| Total operating expenses | $ |
28,061 |
|
$ |
38,843 |
|
$ |
111,659 |
|
$ |
123,841 |
|
||||
| Adjustments to reconcile to Adjusted total operating expenses: | ||||||||||||||||
| Stock-based compensation |
|
(1,339 |
) |
|
(4,107 |
) |
|
(8,253 |
) |
|
(11,206 |
) |
||||
| Restructuring costs |
|
(373 |
) |
|
- |
|
|
(4,504 |
) |
|
- |
|
||||
| Goodwill impairment |
|
- |
|
|
(9,483 |
) |
|
- |
|
|
(9,483 |
) |
||||
| Adjusted total operating expenses | $ |
26,349 |
|
$ |
25,253 |
|
$ |
98,902 |
|
$ |
103,152 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229043793/en/
Investor Contact
Jeff Keyes, Chief Financial Officer
ir@quantum-si.com
Media Contact
Katherine Atkinson, SVP, Commercial Marketing
media@quantum-si.com
Source: Quantum-Si Incorporated
FAQ
What was Quantum-Si's revenue in Q4 2023?
When is Quantum-Si expected to have a full commercial launch?
Who is Quantum-Si's third international distribution partner?
What new product did Quantum-Si launch in February 2024?
What is the planned release timeline for Quantum-Si's version 3 sequencing kit?
Has Quantum-Si provided financial guidance for full year 2024?
