Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify which metrics are effective for assessing momentum in stocks [2] Group 2: Quantum-Si Incorporated (QSI) Analysis - Quantum-Si Incorporated currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating potential for outperformance [3][4] - Over the past week, QSI shares increased by 6.4%, significantly outperforming the Zacks Electronics - Semiconductors industry, which rose by 1.74% [7] - In the last month, QSI's price surged by 191.5%, compared to the industry's 5.8% [7] - Over the past quarter, QSI shares rose by 130.59%, and by 46.75% over the last year, while the S&P 500 increased by 10.27% and 32.66%, respectively [8] Group 3: Trading Volume and Earnings Outlook - QSI's average 20-day trading volume is 24,780,828 shares, indicating strong interest and potential bullish sentiment [9] - In terms of earnings outlook, QSI's consensus estimate improved from -$0.71 to -$0.65 over the past 60 days, with one upward revision for the next fiscal year [11] - The combination of positive price trends and earnings estimate revisions supports QSI's classification as a 2 (Buy) stock with a Momentum Score of B [12]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was approximately $787,000, which was below expectations [12][27] - Gross profit was $367,000, resulting in a gross margin of 47% [28] - Net loss for Q3 2024 was $25.3 million compared to $24.7 million in Q3 2023 [32] - Adjusted EBITDA for Q3 2024 was negative $24.5 million, compared to negative $22.6 million in Q3 2023 [32] - As of September 30, 2024, the company had $196.3 million in cash and cash equivalents [33] Business Line Data and Key Metrics Changes - Revenue consisted of sales from the Platinum instrument, consumable kits, and related services [27] - Operating expenses for Q3 2024 were $28.5 million, up from $27.3 million in Q3 2023 [30] - Year-to-date operating expenses decreased to $78.9 million from $83.6 million in the prior year, reflecting a 6% decrease [31] Market Data and Key Metrics Changes - The company observed a lengthening of the sales cycle in Q3 2024, impacting revenue [11] - There is an expectation of an uptick in capital spending in Q4 as customers look to utilize remaining budgets [15] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [9][26] - New Chief Commercial Officer Todd Bennett has been appointed to enhance sales processes and training [14] - The company plans to launch new library preparation and barcoding kits in Q4 2024 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving sequential revenue growth in Q4 2024, expecting to surpass $1 million in quarterly revenue for the first time [16] - The company is focused on improving sales force execution and expanding its sales pipeline [19] - Management acknowledged that the full impact of recent changes in the sales team is still forthcoming [19] Other Important Information - The company received the Technology Innovation Leadership Award from Frost & Sullivan for its contributions to proteomic research [23] - An Investor Day is scheduled for November 20, 2024, to provide further insights into the company's innovation pipeline [8][25] Q&A Session Summary Question: Why was visibility lacking in Q3 and confidence in future revenue guidance? - Management noted that a few delayed sales can significantly impact revenue outcomes, with instrument prices around $85,000 being a key factor [37] Question: What are the bottlenecks preventing higher placements? - Management indicated that the bottlenecks are not due to technology limitations but rather the ramp-up of new sales professionals and their productivity [44] Question: How have sales placements been driven? - Sales placements have been a mix of direct sales and distribution partner-driven sales [45] Question: Feedback on the version 3 kits? - The transition to version 3 kits has been smooth, with customers reporting better output and performance improvements [46] Question: Thoughts on the clinical potential of protein sequencing? - Management acknowledged ongoing adoption in biopharma and indicated that clinical stage programs are still in the future [50]

Revenue and Profit Growth - Total revenue increased by $0.6 million (252.9%) for the three months and $1.2 million (173.6%) for the nine months ended September 30, 2024, compared to the same periods in 2023[125][128] - Gross profit increased by $0.3 million (239.8%) for the three months and $0.7 million (219.4%) for the nine months ended September 30, 2024, compared to the same periods in 2023[125][128][129] - The company's Platinum instrument and related reagent kits and service maintenance contracts drove the increase in revenue[128] Cost and Expense Changes - Cost of revenue increased by $0.3 million (265.2%) for the three months and $0.5 million (135.5%) for the nine months ended September 30, 2024, compared to the same periods in 2023[125][128] - Research and development expenses decreased by $0.4 million (2.5%) for the three months and $7.9 million (15.7%) for the nine months ended September 30, 2024, compared to the same periods in 2023[125][131][132] - Selling, general and administrative expenses increased by $1.6 million (14.8%) for the three months and $3.2 million (9.8%) for the nine months ended September 30, 2024, compared to the same periods in 2023[125] - Selling, general and administrative expenses increased by $1.6 million (14.8%) for the three months ended September 30, 2024, primarily due to higher stock-based compensation and payroll costs[134] - Selling, general and administrative expenses increased by $3.2 million (9.8%) for the nine months ended September 30, 2024, driven by higher payroll, outsourced services, and marketing expenses[135] Net Loss and Financial Performance - Net loss decreased by $0.6 million (2.4%) for the three months and $6.0 million (8.2%) for the nine months ended September 30, 2024, compared to the same periods in 2023[125] - Dividend and interest income increased by $0.1 million (4.5%) and $1.9 million (25.8%) for the three and nine months ended September 30, 2024, respectively, due to higher earnings from marketable securities[137] - Unrealized gain on trading securities was $0 for the three and nine months ended September 30, 2024, compared to gains of $2.0 million and $8.3 million in the same periods of 2023[139] - Realized loss on trading securities was $0 for the three and nine months ended September 30, 2024, compared to losses of $1.9 million and $6.5 million in the same periods of 2023[140] - Change in fair value of warrant liabilities decreased by $0.1 million for the three months ended September 30, 2024, and decreased by $0.9 million for the nine months ended September 30, 2024[142] Cash Flow and Investments - Net cash used in operating activities was $64.9 million for the nine months ended September 30, 2024, primarily due to a net loss of $67.9 million and R&D spending[146] - Net cash used in investing activities was $26.8 million for the nine months ended September 30, 2024, compared to net cash provided by investing activities of $82.4 million in the same period of 2023[148] - The company had cash and cash equivalents and investments in marketable securities totaling $196.3 million as of September 30, 2024[152] - Marketable securities as of September 30, 2024, primarily consist of U.S. government-backed money market funds, Treasury bills, and high-quality corporate commercial paper, with minimal expected impact from interest rate changes[161] Lease and Licensing Commitments - Future lease payments under non-cancellable lease agreements were approximately $27.8 million as of September 30, 2024[156] - Annual minimum fixed payments for intellectual property licenses total approximately $0.1 million, with additional royalties based on net sales if they exceed the fixed payments[157] Business and Market Expansion - The company initiated a full commercial launch of the Platinum instrument at the end of the first quarter of 2024[123][129] - The company's platform is designed to streamline sequencing and data analysis at a lower instrument cost than legacy proteomic solutions[123] - The company's platform could be used for biomarker discovery, disease detection, pathway analysis, immune response, vaccine development, and quality assurance[123] - The company anticipates future expansion into Europe and other regions, which may increase foreign currency risk, though no hedging arrangements are currently in place[162][163] Financial and Operational Risks - The company's financial statements are prepared based on estimates and assumptions, which may differ under different conditions, impacting reported assets, liabilities, and expenses[158] - Inflation has impacted the cost of supplies and manufacturing components, potentially affecting the company's ability to offset higher costs through price increases or efficiencies[160]

Financial Performance - Quantum-Si Incorporated reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.21, but worse than a loss of $0.15 per share a year ago, indicating an earnings surprise of 14.29% [1] - The company posted revenues of $0.79 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 25.76%, compared to revenues of $0.22 million in the same quarter last year [2] - Over the last four quarters, Quantum-Si has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Quantum-Si shares have declined approximately 50.3% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The current Zacks Rank for Quantum-Si is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.20 on revenues of $2.01 million, and for the current fiscal year, it is -$0.71 on revenues of $4.15 million [7] - The trend of estimate revisions for Quantum-Si is mixed, which could change following the recent earnings report [6] Industry Context - The Electronics - Semiconductors industry, to which Quantum-Si belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Financial Performance - Reported revenue of $787,000 for Q3 2024, with a gross profit of $367,000 and a gross margin of 47%[3] - Year-to-date revenue for the nine months ended September 30, 2024, totaled $1.9 million, with a gross profit of $990,000 and a gross margin of 53%[3] - Total revenue for the three months ended September 30, 2023, was $787,000, a 253% increase compared to $223,000 for the same period in 2022[18] - Gross profit for the three months ended September 30, 2023, was $367,000, compared to $108,000 for the same period in 2022, reflecting a significant improvement[18] Operating Expenses - Total operating expenses for Q3 2024 were $28.5 million, compared to $27.3 million in Q3 2023[4] - Adjusted total operating expenses for Q3 2024 were $26.0 million, compared to $23.9 million in Q3 2023[4] - Operating expenses for the three months ended September 30, 2023, totaled $28,455,000, an increase from $27,283,000 in the same period last year[22] - Selling, general and administrative expenses for the three months ended September 30, 2023, were $12,284,000, compared to $10,696,000 for the same period in 2022[18] - Research and development expenses for the three months ended September 30, 2023, were $16,171,000, slightly down from $16,587,000 in the same period last year[18] Net Loss - Net loss for Q3 2024 was $25.3 million, slightly higher than the net loss of $24.7 million in Q3 2023[4] - Net loss for the three months ended September 30, 2023, was $25,313,000, compared to a net loss of $24,728,000 for the same period in 2022[21] - Adjusted EBITDA for Q3 2024 was negative $24.5 million, compared to negative $22.6 million in the same period last year[4] - Adjusted EBITDA for the three months ended September 30, 2023, was $(24,513,000), compared to $(22,613,000) for the same period in 2022[21] - Comprehensive loss for the three months ended September 30, 2023, was $25,153,000, compared to $24,728,000 for the same period in 2022[19] Cash Position - Cash and cash equivalents, along with investments in marketable securities, amounted to $196.3 million as of September 30, 2024, providing a runway into the second half of 2026[5][6] Future Outlook - The company anticipates not achieving its full-year revenue guidance range of $3.7 million to $4.2 million due to lengthening sales cycles[2] - Two new kits are on track for launch before the end of 2024, aimed at driving broader market adoption[2] Executive Changes - The company has appointed new executives, including Todd Bennett as Chief Commercial Officer and John Vieceli, Ph.D. as Chief Product Officer[2]

Core Viewpoint - Quantum-Si Incorporated (QSI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Quantum-Si suggest an improvement in the company's underlying business, which could lead to higher stock prices [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9]. - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [10]. Earnings Estimate Revisions for Quantum-Si - Quantum-Si is expected to earn -$0.71 per share for the fiscal year ending December 2024, reflecting a year-over-year change of -9.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Quantum-Si has increased by 12.3%, indicating a positive revision trend [8].

Quantum-Si Incorporated (QSI) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.21. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 23.81%. A quarter ago, it was expected that this company would post a loss of $0.23 per share when it actually produced a loss of $0.14, delivering a surprise of 39.13%. Over the last four quarters, the company has ...

Revenue Growth - Total revenue for the three months ended June 30, 2024, increased to $622,000, a 203.4% increase compared to $205,000 for the same period in 2023[107] - Product revenue for the three months ended June 30, 2024, was $584,000, representing a 212.3% increase from $187,000 in the same period in 2023[107] - Total revenue for the six months ended June 30, 2024, was $1,079,000, a 135.1% increase from $459,000 in the same period in 2023[107] Profitability - Gross profit for the three months ended June 30, 2024, was $354,000, a 353.8% increase compared to $78,000 for the same period in 2023[111] - Gross profit for the six months ended June 30, 2024, was $623,000, a 208.4% increase compared to $202,000 for the same period in 2023[111] - The company reported a net loss of $23,099,000 for the three months ended June 30, 2024, a decrease from a net loss of $25,573,000 in the same period in 2023[107] Expenses - Research and development expenses decreased by $1.5 million, or 9.2%, for the three months ended June 30, 2024, compared to the same period in 2023[113] - Research and development expenses for the six months ended June 30, 2024, decreased by $7.5 million, or 22.1%, compared to the same period in 2023[113] - Selling, general and administrative expenses increased by $1.3 million, or 11.6%, for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to a $0.9 million increase in stock-based compensation[115] Cash Flow - Net cash used in operating activities was $41.8 million for the six months ended June 30, 2024, a decrease of $9.8 million compared to $51.6 million for the same period in 2023[125] - Net cash used in investing activities was $32.6 million for the six months ended June 30, 2024, compared to net cash provided of $55.2 million for the same period in 2023[126] - As of June 30, 2024, the company had cash and cash equivalents and investments in marketable securities totaling $218.1 million[129] Future Outlook - The company expects to incur negative operating cash flows on an annual basis for the foreseeable future until it can scale revenue growth[128] - The company initiated a full commercial launch of the Platinum instrument at the end of the first quarter of 2024, following a controlled launch in December 2022[105] - The company believes its platform could be utilized for various applications, including biomarker discovery and vaccine development[105] Market and Economic Factors - Inflation has impacted the underlying cost of supplies and manufacturing components, potentially harming the company's financial condition if costs cannot be offset[138] - As of June 30, 2024, the company's marketable securities primarily consist of investments in money market funds, U.S. Treasury bills, and high-quality corporate commercial paper, focusing on capital preservation[139] - The company currently operates mainly in the U.S. and anticipates future expansion into Europe and other regions, which may involve transactions in currencies other than the U.S. Dollar[140] - Foreign currency translation risk is not expected to have a material impact on the company's financial statements in the near term, but this may change as international operations grow[140] - The company has not entered into any hedging arrangements for foreign currency risk to date, but will reassess its approach as operations expand[140] Investment and Income - Dividend and interest income increased by $0.4 million, or 16.3%, for the three months ended June 30, 2024, and by $1.8 million, or 37.4%, for the six months ended June 30, 2024, compared to the same periods in 2023[118] - There was no gain or loss on marketable securities for the three and six months ended June 30, 2024, compared to a loss of $1.2 million and a gain of $1.8 million for the same periods in 2023[120] - The change in fair value of warrant liabilities decreased by $0.5 million for the three months ended June 30, 2024, compared to an increase of $0.3 million for the same period in 2023[121] - Other (expense) income, net, decreased by $0.3 million, or 103.7%, for the three months ended June 30, 2024, compared to the same period in 2023[122]

Revenue and Profit - Reported revenue of $622,000 in the second quarter of 2024[2] - Gross profit of $354,000 with a gross margin of 57% in Q2 2024[3] - Total revenue for Q2 2024 increased to $622K, up 203% from $205K in Q2 2023[14] - Gross profit for Q2 2024 rose to $354K, a 354% increase from $78K in Q2 2023[14] Operating Expenses - Total operating expenses of $26.8 million in Q2 2024, compared to $27.0 million in the prior year[3] - Adjusted total operating expenses of $24.4 million in Q2 2024, compared to $24.0 million in the prior year[3] - Research and development expenses for Q2 2024 decreased to $14,381K from $15,834K in Q2 2023[14] - Selling, general and administrative expenses for Q2 2024 increased to $12,424K from $11,136K in Q2 2023[14] - Adjusted total operating expenses for Q2 2024 were $24,374K, compared to $24,038K in Q2 2023[16] Net Loss and Adjusted EBITDA - Net loss of $23.1 million in Q2 2024, compared to a net loss of $25.6 million in the prior year[3] - Adjusted EBITDA of negative $22.6 million in Q2 2024, compared to negative $22.9 million in the prior year[3] - Net loss for Q2 2024 improved to $(23,099)K, compared to $(25,573)K in Q2 2023[14] - Adjusted EBITDA for Q2 2024 was $(22,633)K, slightly better than $(22,870)K in Q2 2023[15] Cash and Investments - Cash and cash equivalents and investments in marketable securities totaled $218.1 million as of June 30, 2024[4] - Dividend and interest income for Q2 2024 was $2,887K, up from $2,483K in Q2 2023[14] Product Launches and Development - Expects to launch a version 2 library prep kit and a barcoding application specific library prep kit by the end of 2024[2] - Announced the launch of the version 3 sequencing kit[2] - Completed the first quarter of full commercial launch of the Platinum instrument in Q2 2024[2] Other Financial Metrics - Stock-based compensation for Q2 2024 was $2,400K, compared to $1,865K in Q2 2023[15] - Restructuring costs for Q2 2024 were $31K, down from $1,067K in Q2 2023[15]

Quantum-Si Incorporated (NASDAQ:QSI) Q1 2024 Earnings Conference Call May 9, 2024 4:30 PM ET Company Participants Katherine Atkinson - Senior Vice President-Commercial Marketing Jeff Hawkins - President and Chief Executive Officer Jeff Keyes - Chief Financial Officer Conference Call Participants Swayampakula Ramakanth - HCW Kyle Mikson - Canaccord Genuity Operator Ladies and gentlemen, thank you for standing by. Welcome to the Quantum-Si First Quarter 2024 Earnings Call. At this time, all participants are i ...