Quanterix Corporation Releases Operating Results for First Quarter 2022

Rhea-AI Summary

Quanterix (NASDAQ: QTRX) announced a 9% year-over-year revenue growth for Q1 2022, totaling $29.6M, driven by a 13% increase in product revenue. However, the company's gross margin dropped to 49.3% from 60.1% in the prior year, prompting a reevaluation of inventory management. Significant business milestones include new agreements with Lilly for Alzheimer's diagnostics, funding from the Alzheimer's Drug Discovery Foundation, and notable academic publications utilizing Quanterix's Simoa technology.

Positive

• Q1 total revenue increased to $29.6M from $27.2M year-over-year, a 9% rise.
• Product revenue rose 13% to $20.7M from $18.2M year-over-year.
• Service and other revenue surged 37% to $8.8M from $6.4M year-over-year.
• Established agreements with Lilly to enhance Alzheimer's disease diagnostics.
• Received funding from the Alzheimer's Drug Discovery Foundation to accelerate diagnostic test development.

Negative

• Gross margin decreased to 49.3% from 60.1% in the prior year.
• Net loss widened to -18.15M compared to -10.1M in Q1 2021.
• Total operating expenses increased to $32.7M from $26.1M year-over-year.

Quanterix reports continued revenue growth as it scales to support transformational advances in neurology research

BILLERICA, Mass.--(BUSINESS WIRE)-- Quanterix Corporation (NASDAQ: QTRX), a company digitizing biomarker analysis with the goal of advancing the science of precision health, today announced financial results for the three months ended March 31, 2022.

“This is a pivotal time for growth in neurology and therapeutics, marked by breakthroughs in some of the world’s biggest health threats, including Alzheimer’s disease and multiple sclerosis (MS),” said Masoud Toloue, Chief Executive Officer, Quanterix. “I’m excited for the opportunity to lead Quanterix through this next chapter, and looking ahead, we’ll focus on several transformational changes around scaling with quality, innovation, and our ability to translate ultra-sensitive biomarker detection to help researchers and pharmaceutical companies drive earlier disease detection, better prognoses, and enhanced treatment methods.”

Toloue continued, “Q1 revenue was in line with our expectations and full-year goals; however, gross margin fell well short of our expectations. As part of our larger goal of scaling with quality, we are implementing specific changes to our inventory management and quality processes, which we expect will improve our gross margins going forward.”

First Quarter 2022 Financial Highlights

Key financial results for the first quarter of 2022 are shown below:

• Q1 total revenue was $29.6M versus prior year Q1 of $27.2M⁽¹⁾, an increase of 9%;
• Q1 product revenue was $20.7M versus prior year Q1 of $18.2M, an increase of 13%;
• Q1 service and other revenue was $8.8M versus prior year Q1 of $6.4M, an increase of 37%; and
• Q1 gross margin was 49.3% versus prior year Q1 gross margin of 60.1%.
  ____________________
  ⁽¹⁾ Q1 2021 total revenue includes $2.3M in RADx-related grant revenue.

First Quarter Business Highlights

• Quanterix announced new agreements with Lilly to advance Alzheimer’s disease diagnosis and treatment; the agreements provide Quanterix access to Lilly’s P-tau217 antibody technology to create pathways for plasma-based biomarkers for use in Alzheimer’s disease and establishes framework for future collaboration and supports development of Quanterix tests to advance diagnosing and treating life-threatening diseases. Quanterix recognized $2.7M in service revenue during the first quarter of 2022 under these agreements.
• Quanterix received funding from the Alzheimer’s Drug Discovery Foundation (ADDF) to accelerate Alzheimer’s disease diagnostic plasma test development; the funding will power a series of prospective clinical trials to validate Quanterix’ multi-analyte test in collaboration with Amsterdam University Medical Centers (Amsterdam UMC).
• Quanterix’ Simoa^® technology powered a major breakthrough in Epstein-Barr Virus and MS, which was featured in the Journal of Science.
• Academic publication pull-through performance continued to be strong; Quanterix’ Simoa technology was highlighted in a record 151 new publications in the first quarter 2022, bringing total Simoa-specific inclusions to over 1,735.

Conference Call

In conjunction with this announcement, Quanterix Corporation will host a conference call on May 10, 2022 at 8:30 a.m. EST. 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: 4589034.

A live webcast will also be available at: https://edge.media-server.com/mmc/p/vt3rqy39. 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 (in thousands)

Quanterix Income Statement
in '000 USD		Q1 2022		Q1 2021
Product Revenue		20,656		18,248
Service and Other Revenue		8,810		6,409
Collaboration and License Revenue		86		261
Development Revenue		0		2,291
Total Revenue		29,552		27,209
Cost of Product Revenue		10,746		7,480
Cost of Services Revenue		4,247		3,380
Gross Profit		14,559		16,349
Gross Margin %		49.3%		60.1%
Research and Development		7,034		6,683
Selling, General and Administrative		25,712		19,455
Total Operating Expenses		32,746		26,138
Loss From Operations		-18,187		-9,789
Interest Income (Expense), net		52		-163
Other Expense, net		-217		-194
Tax		199		42
Net Loss		-18,153		-10,104

Quanterix Balance Sheet
in '000 USD		At 3/31/22		At 12/31/21
Cash and Cash Equivalents		374,317		396,465
Accounts Receivable		22,616		23,786
Inventory		22,669		22,190
Prepaid Expenses and Other		14,104		6,514
Total Current Assets		433,706		448,955
Restricted Cash		2,577		2,577
Property and Equipment, Net		19,683		17,960
Intangible Assets, Net		9,692		10,534
Goodwill		9,323		9,632
Right-of-Use Assets		29,298		11,491
Other Non-Current Assets		378		378
Total Assets		504,657		501,527
Accounts Payable & Accrued Expenses		20,425		28,947
Deferred Revenue		9,194		6,361
Current Portion of Long Term Debt		0		0
Lease Liabilities		1,886		1,428
Other Current Liabilities		268		241
Total Current Liabilities		31,773		36,977
Deferred Revenue, Net of Current Portion		1,222		1,099
Lease Liabilities, Net of Current Portion		43,563		20,464
Other Non-Current Liabilities		1,691		2,035
Total Liabilities		78,249		60,575
Total Stockholders’ Equity		426,408		440,952
Total Liabilities and Stockholders’ Equity		504,657		501,527

About Quanterix

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005736/en/

Media:

PAN Communications

Lauren Force

(610) 574-0565

pan.quanterix@pancomm.com

Investor Relations:

Stephen Hrusovsky

(774) 278-0496

ir@quanterix.com

Source: Quanterix Corporation

FAQ

What are the Q1 2022 revenue results for Quanterix (QTRX)?

Quanterix reported Q1 2022 total revenue of $29.6M, up 9% from $27.2M in Q1 2021.

How did Quanterix's gross margin perform in Q1 2022?

Quanterix's gross margin decreased to 49.3% in Q1 2022, down from 60.1% in the same quarter last year.

What significant partnerships did Quanterix establish recently?

Quanterix announced new agreements with Lilly to advance diagnostics for Alzheimer's disease.

What funding did Quanterix receive for Alzheimer’s research?

Quanterix received funding from the Alzheimer's Drug Discovery Foundation to support the development of diagnostic plasma tests.

What was Quanterix's net loss in Q1 2022?

Quanterix reported a net loss of -18.15M in Q1 2022, compared to -10.1M in Q1 2021.