Quanterix Releases Operating Results for Fourth Quarter and Full Year 2023

Rhea-AI Summary

Quanterix Corporation (NASDAQ: QTRX) reports strong financial results for Q4 and full year 2023, showcasing revenue growth, improved gross margins, and reduced net losses. The company's focus on research and diagnostics, along with strategic partnerships, positions it well for future growth.

Positive

• Revenue for Q4 2023 was $31.5 million, a 22% increase from the previous year, with a GAAP gross margin of 53.2% and a non-GAAP gross margin of 46.5%.
• Net loss for Q4 was $12.4 million, an improvement from $18.6 million in the prior year, with net cash usage of $6.4 million.
• For the full year 2023, revenue was $122.4 million, a 16% increase from the prior year, with a GAAP gross margin of 57.7% and a non-GAAP gross margin of 51.1%.
• Net loss for the full year was $32.3 million, significantly lower than the $96.7 million loss in the previous year, with net cash usage of $17.4 million.
• Quanterix completed its corporate transformation program, launched collaborations with major health networks for Alzheimer's Disease management, and progressed in clinical studies and product development.
• The company expects revenue for 2024 to be in the range of $139 to $144 million, with anticipated gross margins and cash usage outlined for the year.
• A conference call discussing the financial results and outlook will be held on February 29, 2024, providing investors with more insights into Quanterix's performance and future plans.

Negative

• None.

Insights

Financial Analyst

The reported increase in revenue by 22% in Q4 and 16% for the full year by Quanterix Corporation is a positive indicator of the company's growth trajectory. The improvement in both GAAP and non-GAAP gross margins suggests enhanced operational efficiency and better cost management. A reduction in net loss from the previous year also reflects a more sustainable financial position, which could be attractive to investors looking for companies with narrowing losses and potential for future profitability.

However, the increase in net cash usage for the quarter is a point of concern as it indicates higher cash burn rate, which may impact the company's liquidity in the short term. The cash reserves have decreased from the previous year, which could limit the company's ability to invest in growth initiatives or weather unforeseen expenses. Investors should monitor the company's cash management strategies closely.

Medical Research Analyst

Quanterix's focus on ultrasensitive biomarker detection and its application in Alzheimer's disease diagnostics is timely given the growing demand for blood-based biomarker testing. The completion of the corporate transformation and the launch of new assays can potentially expand the company's market share in the diagnostics sector. The collaborations with health networks and the use of the Quanterix platform by Eli Lilly for their p-Tau 217 diagnostic test are significant steps towards commercialization and could lead to increased adoption in clinical settings.

Furthermore, the progress in the CANTATE and BioHermes trials and the prospective clinical studies are crucial for the validation of Quanterix's technology. Positive outcomes from these studies could reinforce the company's credibility and drive demand for its products, potentially leading to long-term revenue growth.

Market Research Analyst

Quanterix's strategic positioning in the biomarker detection market, especially in the context of Alzheimer's diagnostics, aligns with the increasing emphasis on personalized medicine and early detection of diseases. The projected revenue growth for 2024 indicates confidence in the company's research business and its ability to capitalize on market opportunities. However, it is noted that the diagnostics testing revenues have not been material to date, suggesting that the company's growth is still predominantly driven by its research segment.

The company's operational highlights and collaborations with prestigious health networks hint at a strong market presence and potential for expansion. These factors combined with the financial results could be leveraged by the company to strengthen its competitive edge in the precision health industry.

BILLERICA, Mass.--(BUSINESS WIRE)-- 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, 2023.

“The fourth quarter marked the successful completion of our corporate transformation. We now have a strong, scalable foundation for growth and innovation,” said Masoud Toloue, President and Chief Executive Officer of Quanterix. “Our research business is in a solid position, and we see continued high demand among our research customers. Additionally, we are making progress on our diagnostics efforts, with a dedicated commercial team now in place for our LucentAD p-Tau 217 LDT. We believe we are well positioned to meet the demand for blood-based biomarker testing to support the rollout of new Alzheimer’s therapies and to aid providers in the diagnosis of the disease.”

Fourth Quarter Financial Highlights

• Revenue was $31.5 million, a 22% increase from $25.8 million for the corresponding prior year period.
• GAAP gross margin was 53.2% as compared to 48.8% for the corresponding prior year period. Non-GAAP gross margin was 46.5% as compared to 41.3% for the corresponding prior year period.
• Net loss was $12.4 million as compared to $18.6 million for the corresponding prior year period.
• Net cash usage in the quarter was $6.4 million as compared to $5.0 million for the corresponding prior year period.

Full Year Financial Highlights

• Revenue was $122.4 million, a 16% increase from $105.5 million for the prior year.
• GAAP gross margin was 57.7% as compared to 44.4% for the prior year. Non-GAAP gross margin was 51.1% as compared to 37.5% for the corresponding prior year.
• Net loss was $32.3 million as compared to $96.7 million for the prior year.
• Net cash usage for the year was $17.4 million as compared to $57.7 million for the corresponding prior year period. Cash, cash equivalents, marketable securities, and restricted cash were $323.9 million as of December 31, 2023, as compared to $341.3 million as of December 31, 2022.

Operational and Business Highlights

• Quanterix’s six quarter corporate transformation program is now complete. Newly developed assays are now in production and available to customers.
• Quanterix announced first collaborations with five health networks to aid the diagnosis and clinical management of individuals with Alzheimer’s Disease. AdventHealth, Mass General Brigham, Mayo Clinic, MUSC, and UPMC will leverage Quanterix technology and assays to streamline care for Alzheimer’s patients.
• Eli Lilly announced the launch of their p-Tau 217 blood-based diagnostics test, which runs on the Quanterix platform.
• Continued progress on two important studies for multi-marker test development and validation. Phase 1 is now complete for both the CANTATE and BioHermes trials, with readouts expected in 2024. Quanterix also advanced several US-based prospective clinical studies supporting leading academic research centers, the University of Pennsylvania Health System and UPMC, to evaluate Simoa® blood-based biomarkers as part of Alzheimer’s Disease clinical care workflows.

2024 Full Year Business Outlook

Management expects full-year 2024 revenue to be in the range of $139 to $144 million. This guide is for our research-only business and does not include revenues from Diagnostics testing, which to date have not been material. GAAP gross margin percentage is expected to be in the range of 57-61%, and non-GAAP gross margin percentage is expected to be in the range of 51-55%. Additionally, the Company anticipates 2024 cash usage in the range of $25 to $30 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.

Conference Call

In conjunction with this announcement, the Company will host a conference call on February 29, 2024 at 4:30 p.m. E.T. Click here to pre-register for the conference call and obtain your dial-in number and passcode.

Interested investors can also listen to the live webcast from the Event Details page in 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 December 31,								Year Ended December 31,
	2023				2022				2023				2022
Revenues:
Product revenue	$	20,821			$	16,674			$	79,460			$	69,808
Service and other revenue		10,230				8,767				40,299				34,495
Collaboration and license revenue		146				170				1,380				649
Grant revenue		352				213				1,229				570
Total revenues		31,549				25,824				122,368				105,522
Costs of goods sold and services:
Cost of product revenue		10,025				9,631				32,636				40,809
Cost of service and other revenue		4,725				3,601				19,086				17,907
Total costs of goods sold and services		14,750				13,232				51,722				58,716
Gross profit		16,799				12,592				70,646				46,806
Operating expenses:
Research and development		6,991				5,600				24,857				25,890
Selling, general, and administrative		24,172				19,272				90,241				91,995
Other lease costs		1,016				669				3,712				1,278
Impairment and restructuring		1,570				9,006				1,537				29,347
Total operating expenses		33,749				34,547				120,347				148,510
Loss from operations		(16,950	)			(21,955	)			(49,701	)			(101,704	)
Interest income (expense), net		4,319				2,815				15,839				5,131
Other income (expense), net		363				614				2,247				(62	)
Loss before income taxes		(12,268	)			(18,526	)			(31,615	)			(96,635	)
Income tax (expense) benefit		(141	)			(75	)			(719	)			(65	)
Net loss	$	(12,409	)		$	(18,601	)		$	(32,334	)		$	(96,700	)
Net loss per common share, basic and diluted	$	(0.33	)		$	(0.50	)		$	(0.86	)		$	(2.61	)
Weighted-average common shares outstanding, basic and diluted		37,890				37,160				37,594				36,991

Quanterix Corporation
Consolidated Balance Sheets
(Unaudited and in thousands)
	December 31, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	174,422		$	338,740
Marketable securities		146,902			—
Accounts receivable		25,414			19,017
Inventory		22,365			16,786
Prepaid expenses and other current assets		9,291			6,860
Total current assets		378,394			381,403
Restricted cash		2,604			2,597
Property and equipment, net		17,926			20,162
Intangible assets, net		6,034			7,516
Operating lease right-of-use assets		18,251			21,223
Other non-current assets		1,802			1,298
Total assets	$	425,011		$	434,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,048		$	3,836
Accrued compensation and benefits		13,659			10,658
Accrued expenses and other current liabilities		6,041			5,133
Deferred revenue		9,468			8,644
Operating lease liabilities		4,241			2,687
Total current liabilities		38,457			30,958
Deferred revenue, net of current portion		1,227			1,415
Operating lease liabilities, net of current portion		37,223			41,417
Other non-current liabilities		1,177			1,469
Total liabilities		78,084			75,259
Total stockholders’ equity		346,927			358,940
Total liabilities and stockholders’ equity	$	425,011		$	434,199

Quanterix Corporation
Consolidated Statements of Cash Flows
(Unaudited and in thousands)
		Year Ended December 31,
	2023				2022
Cash flows from operating activities:
Net loss	$	(32,334	)		$	(96,700	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		6,364				5,349
Credit losses (gains) on accounts receivable		336				(301	)
Accretion of marketable securities		(1,964	)			—
Operating lease right-of-use asset amortization		2,015				715
Stock-based compensation expense		16,764				15,442
Impairment		1,570				25,592
Other operating activity		150				(439	)
Changes in assets and liabilities:
Accounts receivable		(6,695	)			5,156
Inventory		(5,364	)			5,386
Prepaid expenses and other current assets		(2,371	)			(568	)
Other non-current assets		(775	)			(909	)
Accounts payable		1,189				(5,362	)
Accrued compensation and benefits, accrued expenses, and other current liabilities		4,276				(3,976	)
Deferred revenue		635				2,599
Operating lease liabilities		(2,645	)			(266	)
Other non-current liabilities		(53	)			10
Net cash used in operating activities		(18,902	)			(48,272	)
Cash flows from investing activities:
Purchases of marketable debt securities		(175,613	)			—
Proceeds from marketable debt securities		31,000				—
Purchases of property and equipment		(3,788	)			(11,726	)
Proceeds from RADx grant on assets purchased		—				520
Net cash used in investing activities		(148,401	)			(11,206	)
Cash flows from financing activities:
Proceeds from common stock issued under stock plans		2,889				2,311
Payments for employee taxes withheld on stock-based compensation awards		(198	)			—
Sale of common stock in underwritten public offering, net		—				—
Payments on notes payable		—				—
Net cash provided by financing activities		2,691				2,311
Net increase (decrease) in cash, cash equivalents, and restricted cash		(164,612	)			(57,167	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		301				(538	)
Cash, cash equivalents, and restricted cash at beginning of period		341,337				399,042
Cash, cash equivalents, and restricted cash at end of period	$	177,026			$	341,337

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. 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 December 31,								Year Ended December 31,
	2023				2022				2023				2022
GAAP gross profit	$	16,799			$	12,592			$	70,646			$	46,806
Shipping and handling costs (1)		(2,141	)			(1,923	)			(8,146	)			(7,211	)
Non-GAAP gross profit	$	14,658			$	10,669			$	62,500			$	39,595
GAAP revenue	$	31,549			$	25,824			$	122,368			$	105,522
GAAP gross margin (gross profit as % of revenue)		53.2	%			48.8	%			57.7	%			44.4	%
Non-GAAP gross margin (non-GAAP gross profit as % of revenue)		46.5	%			41.3	%			51.1	%			37.5	%
GAAP total operating expenses	$	33,749			$	34,547			$	120,347			$	148,510
Shipping and handling costs (1)		(2,141	)			(1,923	)			(8,146	)			(7,211	)
Non-GAAP total operating expenses	$	31,608			$	32,624			$	112,201			$	141,299
GAAP loss from operations	$	(16,950	)		$	(21,955	)		$	(49,701	)		$	(101,704	)
Non-GAAP loss from operations	$	(16,950	)		$	(21,955	)		$	(49,701	)		$	(101,704	)
(1) Shipping and handling costs, which include freight and other activities costs associated with product shipments, are captured within operating expenses in our consolidated statements of operations. During the three months ended December 31, 2023 and 2022, we incurred $2.1 million and $1.9 million, respectively, of shipping and handling costs recorded within operating expenses. During the year ended December 31, 2023 and 2022, we incurred $8.1 million and $7.2 million, respectively, of shipping and handling costs within operating expenses.

About Quanterix

From 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 of conventional analog methods. 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 2,700 peer-reviewed journals. Find additional information about the Billerica, Massachusetts-based company at https://www.quanterix.com or follow us on Twitter and LinkedIn.

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 our periodic reports filed 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/20240229223646/en/

Media:

PAN Communications

Maya Nimnicht

510-334-6273

quanterix@pancomm.com



Investor Relations:

ir@quanterix.com

Source: Quanterix Corporation

FAQ

What was Quanterix's revenue for Q4 2023?

Quanterix reported revenue of $31.5 million for the fourth quarter of 2023.

What was the net loss for Q4 2023?

The net loss for Quanterix in the fourth quarter of 2023 was $12.4 million.

What is Quanterix's revenue outlook for 2024?

Quanterix expects revenue for the full year 2024 to be in the range of $139 to $144 million.

What are Quanterix's cash usage expectations for 2024?

The company anticipates 2024 cash usage to be in the range of $25 to $30 million.

When will Quanterix host a conference call to discuss the financial results?

Quanterix will host a conference call on February 29, 2024, at 4:30 p.m. E.T. to discuss the financial results.