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Quanterix(QTRX) - 2023 Q2 - Quarterly Report
2023-08-08 14:20
PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited consolidated financial statements for Quanterix Corporation as of June 30, 2023, show a slight decrease in total assets to $429.2 million from $434.2 million at year-end 2022, with total revenues of $59.5 million and a reduced net loss of $12.2 million for the six months ended June 30, 2023 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2023, the company's total assets were $429.2 million, a slight decrease from $434.2 million at December 31, 2022, with cash and cash equivalents at $329.5 million, total liabilities at $73.9 million, and total stockholders' equity at $355.4 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $329,525 | $338,740 | | Total current assets | $379,058 | $381,403 | | Total assets | $429,210 | $434,199 | | **Liabilities & Equity** | | | | Total current liabilities | $31,947 | $30,958 | | Total liabilities | $73,854 | $75,259 | | Total stockholders' equity | $355,356 | $358,940 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2023, total revenues increased 32% to $31.0 million, and net loss significantly reduced to $6.1 million from $24.9 million in Q2 2022, while for the six-month period, revenues grew 12% to $59.5 million, and net loss narrowed to $12.2 million from $43.1 million Q2 2023 vs Q2 2022 Performance (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Total Revenues | $31,029 | $23,500 | | Gross Profit | $19,138 | $8,711 | | Loss from Operations | $(9,561) | $(24,959) | | Net Loss | $(6,064) | $(24,902) | | Net Loss per Share | $(0.16) | $(0.67) | H1 2023 vs H1 2022 Performance (in thousands, except per share data) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Total Revenues | $59,485 | $53,052 | | Gross Profit | $36,064 | $23,270 | | Loss from Operations | $(18,981) | $(43,146) | | Net Loss | $(12,167) | $(43,055) | | Net Loss per Share | $(0.33) | $(1.17) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2023, net cash used in operating activities significantly reduced to $8.9 million from $29.6 million in the prior-year period, primarily due to a lower net loss, with cash, cash equivalents, and restricted cash at $332.2 million Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,869) | $(29,635) | | Net cash used in investing activities | $(784) | $(5,934) | | Net cash provided by financing activities | $690 | $1,190 | | **Net decrease in cash** | **$(8,963)** | **$(34,379)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on the company's accounting policies and financial activities, highlighting strong growth in consumables and research services, $1.4 million in revenue from its UltraDx agreement in H1 2023, and the impact of the 2022 restructuring plan - The company's business is centered on its proprietary **"Simoa" digital immunoassay platforms** for ultra-sensitive protein biomarker detection, serving life sciences research and diagnostics, and also provides contract research services through its CLIA-certified Accelerator Laboratory[29](index=29&type=chunk)[30](index=30&type=chunk) Disaggregated Revenue for Six Months Ended June 30, 2023 (in thousands) | Revenue Type | North America | EMEA | Asia Pacific | Total | | :--- | :--- | :--- | :--- | :--- | | Product Revenue | $20,454 | $12,439 | $6,086 | $38,979 | | Service Revenue | $15,380 | $2,880 | $871 | $19,131 | | Collaboration/License | $997 | $0 | $0 | $997 | | Grant Revenue | $378 | $0 | $0 | $378 | | **Total Revenues** | **$37,209** | **$15,319** | **$6,957** | **$59,485** | - In Q2 2023, the company received **one million ordinary shares of UltraDx valued at $1.0 million** as part of the UltraDx Agreement, which was recognized as revenue[48](index=48&type=chunk)[49](index=49&type=chunk) - The company recognized **$3.0 million in revenue** from the Lilly Collaboration Agreement in H1 2023, compared to $5.4 million in H1 2022[52](index=52&type=chunk) - As of June 30, 2023, there was **$39.8 million of total unrecognized stock-based compensation expense**, expected to be recognized over a weighted-average period of 2.9 years[82](index=82&type=chunk) - The 2022 Restructuring Plan led to a **$25.6 million impairment charge in 2022**, including $8.2 million for goodwill, with no further impairment charges recorded in H1 2023 and a restructuring reserve of $0.3 million remaining at June 30, 2023[109](index=109&type=chunk)[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **12% revenue growth** in the first six months of 2023 to increased sales of consumables and higher average selling prices, with significant improvement in operating and net loss due to the 2022 Restructuring Plan, and believes current liquidity is sufficient for at least the next 12 months - The company launched **LucentAD in July 2023**, a blood-based biomarker test to aid in evaluating patients with cognitive symptoms consistent with early Alzheimer's disease[128](index=128&type=chunk) - The Restructuring Plan initiated in August 2022 is expected to yield **annualized operating expense savings of approximately $25 million**[141](index=141&type=chunk) - Management believes that current cash and cash equivalents of **$329.5 million**, along with cash from sales, will be sufficient to meet operating cash requirements for at least the next 12 months[171](index=171&type=chunk)[182](index=182&type=chunk) [Comparison of Results of Operations for the Three Months Ended June 30, 2023 and 2022](index=38&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030,%202023%20and%202022) In Q2 2023, total revenues increased **32% to $31.0 million**, with gross profit surging **120% to $19.1 million** and operating expenses decreasing **15% to $28.7 million**, leading to a **62% reduction in loss from operations** to $9.6 million Q2 2023 vs Q2 2022 Results (in thousands) | Item | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $31,029 | $23,500 | 32% | | Gross Profit | $19,138 | $8,711 | 120% | | Total Operating Expenses | $28,699 | $33,670 | (15)% | | Loss from Operations | $(9,561) | $(24,959) | 62% | - The increase in product revenue was primarily due to higher consumables sales, increased average selling prices, and a **$1.0 million one-time revenue from UltraDx shares**, which offset lower instrument sales[144](index=144&type=chunk) - The decrease in operating expenses was primarily due to **reductions in headcount from the Restructuring Plan**, with R&D down **10%** and SG&A down **20%**[150](index=150&type=chunk)[151](index=151&type=chunk) [Comparison of Results of Operations for the Six Months Ended June 30, 2023 and 2022](index=41&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030,%202023%20and%202022) For H1 2023, total revenues grew **12% to $59.5 million**, gross profit increased **55% to $36.1 million**, and total operating expenses fell **17% to $55.0 million**, resulting in a **56% reduction in operating loss** to $19.0 million H1 2023 vs H1 2022 Results (in thousands) | Item | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $59,485 | $53,052 | 12% | | Gross Profit | $36,064 | $23,270 | 55% | | Total Operating Expenses | $55,045 | $66,416 | (17)% | | Loss from Operations | $(18,981) | $(43,146) | 56% | - Cost of product revenue decreased **31% to $14.3 million** due to improved inventory management and lower instrument sales[163](index=163&type=chunk) - R&D and SG&A expenses decreased by **22% and 19% respectively**, primarily due to headcount reductions from the Restructuring Plan[164](index=164&type=chunk)[165](index=165&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's principal source of liquidity is its **$329.5 million in cash and cash equivalents** as of June 30, 2023, with net cash used in operating activities for H1 2023 significantly improving by **70% to $8.9 million**, and management believing current capital is sufficient for at least the next 12 months Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(8,869) | $(29,635) | 70% | | Net cash used in investing activities | $(784) | $(5,934) | 87% | | Net cash provided by financing activities | $690 | $1,190 | (42)% | - The company's future funding requirements depend on market acceptance of products, costs of sales and R&D, and the success of its restructuring and assay improvement programs[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that as of June 30, 2023, there have been no material changes to the market risk information from what was described in its Annual Report on Form 10-K for the year ended December 31, 2022 - There were no material changes to the company's market risk disclosures as of June 30, 2023, compared to the end of 2022[197](index=197&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that due to previously disclosed material weaknesses in internal control over financial reporting, the company's disclosure controls and procedures were not effective as of June 30, 2023, with a remediation plan underway, though financial statements are believed to be fairly presented - Management concluded that disclosure controls and procedures were **not effective** at a reasonable assurance level as of June 30, 2023, due to ongoing remediation of material weaknesses identified as of December 31, 2022[198](index=198&type=chunk)[202](index=202&type=chunk) - The company is actively implementing a remediation plan, which includes hiring a Corporate Controller, engaging accounting and third-party consultants, enhancing the ERP system, and providing regular training to finance personnel[205](index=205&type=chunk) - Management will not consider the material weaknesses remediated until the new controls have operated effectively for a sufficient period of time[207](index=207&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2023, Quanterix was not a party to any legal proceedings that would be expected to have a material adverse effect on its financial condition or results of operations - The company is not currently party to any pending or threatened litigation expected to have a material adverse effect on its financials[211](index=211&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors described in its Annual Report on Form 10-K for the year ended December 31, 2022 - As of the filing date, there were no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K[213](index=213&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) On August 4, 2023, the Board of Directors adopted amended and restated bylaws addressing SEC Rule 14a-19 (universal proxy rule) and modifying stockholder meeting adjournment procedures, with no directors or officers adopting or terminating Rule 10b5-1 trading plans during Q2 2023 - On August 4, 2023, the company's Board of Directors approved and adopted amended and restated bylaws[217](index=217&type=chunk) - The bylaw amendments address new SEC universal proxy rules (Rule 14a-19) and update stockholder meeting adjournment procedures per Delaware law[217](index=217&type=chunk) - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended June 30, 2023[219](index=219&type=chunk) [Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Restated Bylaws, certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and XBRL data files - Filed exhibits include the Restated Bylaws (Exhibit 3.2), Sarbanes-Oxley Act Section 302 and 906 certifications, and XBRL interactive data files[221](index=221&type=chunk)
Quanterix(QTRX) - 2023 Q1 - Earnings Call Transcript
2023-05-13 22:47
Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $28.5 million, a decline of $1.1 million or 3.7% from Q1 2022, primarily due to a non-recurring licensing revenue of $1.2 million in the previous year [11][31] - GAAP gross margin was 59.5%, and non-GAAP gross margin was 53.1%, both representing sequential increases of over 1,000 basis points from Q4 2022 [8][37] - Operating expenses decreased from $32.7 million in Q1 2022 to $26.3 million in Q1 2023, contributing to a reduced net loss of $6.1 million compared to $18.2 million in the previous year [14][39] Business Line Data and Key Metrics Changes - Product revenue was $19.3 million, a decline of $1.4 million or 6.6% year-over-year, with instrument revenue being the largest contributor to this decrease [11][36] - Consumable revenues increased by 25% quarter-over-quarter, indicating a positive trend in this segment [31] - Services and other revenue were $8.6 million, down $0.2 million or 2.6% from Q1 2022 [12] Market Data and Key Metrics Changes - Softness in instrument demand was noted primarily in the Asia Pacific region, with significant volume activity declines from large distributors [21] - The company expects this softness to persist throughout the year, impacting overall instrument revenue [21] Company Strategy and Development Direction - The company is focused on a comprehensive transformation plan aimed at improving customer experience and operational efficiencies, with new product SKUs expected by the end of the year [7][30] - The strategy includes transitioning customer demand from existing assays to new assays through 2024, which is anticipated to enhance margins and scale revenue profitably [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation plan and noted that Q1 performance exceeded expectations, leading to a modest increase in revenue guidance for 2023 [10][33] - The company anticipates gross margin headwinds in the second half of 2023 due to increased staffing and initial runs of new assays [15][32] Other Important Information - The company ended Q1 2023 with $329 million in unrestricted cash, a decrease of approximately $9.1 million from the previous quarter [9][39] - The FDA's recent approval of blood-based biomarkers is expected to play a significant role in neuro research and therapeutic development, positioning the company favorably in this market [41][43] Q&A Session Summary Question: Can you elaborate on the customer segments experiencing softness in instrument revenues? - Management indicated that softness is primarily observed in the Asia Pacific region, with large distributors showing reduced volume activity [21] Question: What is the go-to-market strategy for the Alzheimer's assay? - The company confirmed that their products are available for reference and specialty labs, focusing on P-tau assays and potential multiplex offerings [22][23] Question: Can you provide more details on the assay redevelopment program? - Management confirmed progress in the assay redevelopment program, with expectations to insert new materials into manufacturing lines in the coming quarters [50][51] Question: What is the expected mix shift between instruments, consumables, and Accelerator services? - Management noted a higher percentage mix of consumables and Accelerator services, with a lower percentage from instruments expected throughout the year [52]
Quanterix(QTRX) - 2023 Q1 - Quarterly Report
2023-05-09 21:15
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-38319 QUANTERIX CORPORATION (Exact name of registrant as specified in its charter) Delaware 20-8957988 (Sta ...
Quanterix (QTRX) presents at Barclays Global Healthcare Conference - Slideshow
2023-03-17 18:58
OUR MISSION 3 Ultrasensitive biomarker detection to transform the future of healthcare (1) 808 GEOGRAPHY NA Europe Asia | --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | 60% | | CUSTOMER | --- | --- | |---------------|-------| | | | | Academia | 55% | | Pharma / CROs | 45% | | --- | --- | |-----------------|-----------------| | | | | INSTRUMENTS | ACCELERATOR | | Placements (2) | Projects (2) | | BIOMARKERS | PUBLICATIONS | | Cumulative (2) | Cumulative (2) | (2) (1) FY2022 a ...
Quanterix(QTRX) - 2022 Q4 - Earnings Call Transcript
2023-03-06 17:35
Quanterix Corporation (NASDAQ:QTRX) Q4 2022 Earnings Conference Call March 3, 2023 8:30 AM ET Company Participants Masoud Toloue - CEO Mike Doyle - CFO Conference Call Participants Matt Sykes - Goldman Sachs Puneet Souda - SVB Securities Kyle Mikson - Canaccord Genuity Operator Good day, and thank you for standing by. Welcome to the Quanterix Corporation Q4 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer sess ...
Quanterix(QTRX) - 2022 Q4 - Earnings Call Presentation
2023-03-06 14:17
Financial Performance & Guidance - Quanterix expects modest growth in 2023 and anticipates a return to double-digit growth by 2024[24] - The company aims to be cash flow positive at revenue between $170 million and $190 million in 2023[24] - Q4 2022 GAAP gross margin was 48.8%, while the non-GAAP gross margin was 41.3%[8, 12, 35] - Q4 2022 GAAP revenue was $25.8 million[8, 12, 35] - Quanterix anticipates GAAP gross margin in the mid-40s and non-GAAP gross margin in the low-40s for the end of 2023[2] - The company expects cash burn to improve by approximately 10% in 2023[2] Product & Scientific Advancements - Simoa pTau181 and NfL were associated with Alzheimer's Disease (AD) incidence within 9 years of diagnosis[31] - A study showed that 10 mg/kg of Leqembi every two weeks reduced mean plasma pTau-181 by 24% from baseline in 79 weeks[25] - Simoa GFAP was associated with clinical AD incidence 9 to 17 years before diagnosis[33] Revenue Streams - Lilly MCA (Master Collaboration Agreement) projects contributed to revenue, with a 28% increase[1, 20, 21] - The company estimates Lilly MCA license fee revenue between approximately $103 million and $109 million[1]
Quanterix(QTRX) - 2022 Q4 - Annual Report
2023-03-06 14:16
PART I [Business](index=6&type=section&id=Item%201.%20Business) Quanterix specializes in ultra-sensitive digital immunoassay platforms, providing instruments and services for life science and pharmaceutical markets, undergoing a 2022 restructuring to enhance quality and market focus - The company's proprietary Simoa technology enables the detection of protein biomarkers at extremely low concentrations, a significant advancement over conventional ELISA technology[20](index=20&type=chunk)[21](index=21&type=chunk) - Simoa technology has been cited in over **2,000 scientific publications** and the company serves a customer base of over **1,300**[22](index=22&type=chunk)[32](index=32&type=chunk) - In Q3 2022, Quanterix initiated a Restructuring Plan, which included eliminating **119 positions** and starting an assay redevelopment program to improve manufacturing and delivery of high-quality assays at scale[23](index=23&type=chunk) - The company's installed instrument base grew to **876 instruments** as of December 31, 2022, providing a recurring revenue stream from consumables[32](index=32&type=chunk) [Our Products and Services](index=6&type=section&id=Our%20Products%20and%20Services) Quanterix offers Simoa instruments and biomarker assays, with its CLIA-certified Accelerator Laboratory providing contract research and LDTs Quanterix Instrument Portfolio | Instrument | Technology | Key Features | | :--- | :--- | :--- | | **HD-X** | Bead-based | Fully automated, high productivity, upgraded version of HD-1 | | **SR-X** | Bead-based | Compact benchtop, lower price, flexible assay prep | | **SP-X** | Planar array | High multiplexing capabilities, ideal for oncology/immunology | - The Accelerator Laboratory has completed over **1,900 projects** for more than **400 customers** and launched LDTs for pTau-181 (Alzheimer's evaluation) and NfL (neurodegeneration evaluation)[27](index=27&type=chunk) - Through its subsidiary UmanDiagnostics, the company supplies premier Neurofilament light chain (NfL) antibodies and ELISA kits, critical for its neurology assays[28](index=28&type=chunk) [Our Strategy](index=10&type=section&id=Our%20Strategy) The company's strategy drives Simoa technology adoption in life science and pharma, leveraging neurological biomarkers before expanding into diagnostics - Initial focus is on the life science research/pharma market due to reduced regulatory and reimbursement risk[35](index=35&type=chunk) - A core part of the strategy is to expand into the diagnostics market, leveraging Simoa's sensitivity to enable less-invasive blood-based tests[35](index=35&type=chunk) - The company is capitalizing on the increasing relevance of neurological biomarkers (NfL, pTau-181, pTau-217) in clinical trials for drugs like lecanemab and donanemab[35](index=35&type=chunk) [Our Market Opportunities](index=24&type=section&id=Our%20Market%20Opportunities) Quanterix targets a **$75 billion** market opportunity across life science research/pharma (**$20 billion**) and diagnostics (**$55 billion**) markets Total Addressable Market (TAM) | Market Segment | Estimated TAM | | :--- | :--- | | Life Science Research/Pharma | ~$20 billion | | Diagnostics | ~$55 billion | | **Total** | **~$75 billion** | [Intellectual Property](index=51&type=section&id=Intellectual%20Property) The company's core strength is its extensive intellectual property, built around proprietary Simoa technology, with numerous owned and licensed patents - The core Simoa bead-based technology originated at Tufts University and is exclusively licensed to Quanterix[166](index=166&type=chunk)[194](index=194&type=chunk) - As of March 1, 2023, the company owned **29 issued U.S. patents** and had **17 pending U.S. patent applications**, in addition to numerous international patents and applications[174](index=174&type=chunk) - The patent portfolio for the planar array technology was acquired with Aushon Biosystems in 2018 and includes at least **ten issued U.S. patents**[186](index=186&type=chunk) [Government Regulation](index=57&type=section&id=Government%20Regulation) Most Quanterix products are Research Use Only, but its CLIA-certified lab offers LDTs subject to CLIA regulations, with potential for future FDA oversight - Most current products are labeled "For Research Use Only. Not for Diagnostic Procedures," which generally exempts them from FDA premarket review[197](index=197&type=chunk) - The company operates a CLIA-certified laboratory, which is subject to federal standards under the Clinical Laboratory Improvement Amendments of 1988 (CLIA)[218](index=218&type=chunk) - The FDA has granted Breakthrough Device designation for the Simoa pTau-181 blood test for Alzheimer's evaluation and the Simoa NfL plasma test for multiple sclerosis, potentially accelerating their review processes[86](index=86&type=chunk)[99](index=99&type=chunk)[214](index=214&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including net losses, operational challenges from restructuring, reliance on single-source manufacturers, and internal control weaknesses - The company has a history of annual net losses, incurring a **net loss of $96.7 million** in 2022, and expects losses to continue[254](index=254&type=chunk) - There is a risk that the company may fail to achieve the intended cost savings and quality benefits from its 2022 Restructuring Plan and assay improvement program[251](index=251&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk) - Quanterix relies on single contract manufacturers for its Simoa HD-X (STRATEC) and SR-X (Paramit) instruments, posing a significant supply chain risk[251](index=251&type=chunk)[292](index=292&type=chunk) - Management identified material weaknesses in internal control over financial reporting as of December 31, 2022, which could result in material misstatements if not remediated[251](index=251&type=chunk)[261](index=261&type=chunk) - A significant portion of revenue comes from a few large customers, and the loss of any of these could harm operating results[251](index=251&type=chunk)[277](index=277&type=chunk) [Properties](index=124&type=section&id=Item%202.%20Properties) Quanterix's headquarters are in a leased **91,600 sq ft** facility in Billerica, MA; a newly leased **85,800 sq ft** Bedford facility will be subleased - The company's principal facility is a **91,600 sq. ft.** leased space in Billerica, MA, with a lease term extending from April 2019[398](index=398&type=chunk) - A newly leased **85,800 sq. ft.** facility in Bedford, MA, will not be occupied as part of the 2022 Restructuring Plan; the company intends to sublease this space[398](index=398&type=chunk)[401](index=401&type=chunk) [Legal Proceedings](index=126&type=section&id=Item%203.%20Legal%20Proceedings) As of December 31, 2022, Quanterix was not a party to any material legal proceedings, only non-material matters - As of December 31, 2022, the company was not party to any material legal proceedings[402](index=402&type=chunk) PART II [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=126&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2022, total revenue decreased **5%** to **$105.5 million**, net loss widened to **$96.7 million** due to lower gross margin and restructuring/impairment charges [Results of Operations](index=147&type=section&id=Results%20of%20Operations) For FY2022, total revenue decreased **5%** to **$105.5 million**, product revenue fell, service revenue grew, leading to a **68%** increase in net loss to **$96.7 million** Comparison of Operations for Years Ended Dec 31, 2022 and 2021 | Financial Metric | 2022 (in thousands) | 2021 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$105,522** | **$110,556** | **(5)%** | | Product Revenue | $69,808 | $81,062 | (14)% | | Service & Other Revenue | $34,495 | $23,629 | 46% | | **Gross Profit** | **$46,806** | **$61,728** | **(24)%** | | Gross Margin | 44% | 56% | (12) p.p. | | **Total Operating Expenses** | **$148,510** | **$120,314** | **23%** | | Research & Development | $25,890 | $27,978 | (7)% | | Selling, General & Admin | $91,995 | $92,336 | (0)% | | Restructuring & Impairment | $29,347 | $0 | N/A | | **Loss from Operations** | **($101,704)** | **($58,586)** | **(74)%** | | **Net Loss** | **($96,700)** | **($57,688)** | **(68)%** | - The decrease in product revenue was primarily due to reducing production levels of consumables to ensure quality[485](index=485&type=chunk) - The increase in service and other revenue was primarily due to revenue recognized from the Lilly Collaboration Agreement[486](index=486&type=chunk)[487](index=487&type=chunk) - The company incurred significant one-time expenses in 2022, including **$3.8 million** in restructuring costs, **$8.2 million** in goodwill impairment, and **$17.4 million** in other long-lived asset impairment[495](index=495&type=chunk) [Liquidity and Capital Resources](index=151&type=section&id=Liquidity%20and%20Capital%20Resources) Quanterix ended 2022 with **$338.7 million** in cash, primarily from equity offerings, believing current reserves are sufficient for the next 12 months Key Liquidity Metrics (as of Dec 31, 2022) | Metric | Amount (in millions) | | :--- | :--- | | Cash and Cash Equivalents | $338.7 | | Accumulated Deficit | ($402.2) | | Net Cash Used in Operating Activities (FY 2022) | ($48.3) | - The company financed operations primarily through equity offerings, including raising approximately **$270 million** in net proceeds in February 2021[503](index=503&type=chunk)[504](index=504&type=chunk) - Management believes that current cash and cash equivalents will be sufficient to meet anticipated operating cash requirements for at least the next 12 months[517](index=517&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=157&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to credit, foreign currency, and interest rate risks, with foreign revenue at **38%** and interest rate risk considered minimal - One customer accounted for **13% of total revenue** for the year ended December 31, 2022[530](index=530&type=chunk) - Approximately **38% of total revenue in 2022** was generated from customers outside of North America, exposing the company to foreign currency exchange risk[531](index=531&type=chunk) - Interest rate risk is considered immaterial due to the short-term nature of the company's **$338.7 million** in cash and cash equivalents[533](index=533&type=chunk) [Financial Statements and Supplementary Data](index=157&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2022, 2021, and 2020, including balance sheets and statements of operations Consolidated Balance Sheet Highlights (as of Dec 31) | Account (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $338,740 | $396,465 | | Total current assets | $381,403 | $448,955 | | Total assets | $434,199 | $501,527 | | **Liabilities & Equity** | | | | Total current liabilities | $30,958 | $36,977 | | Total liabilities | $75,259 | $60,575 | | Total stockholders' equity | $358,940 | $440,952 | Consolidated Statement of Operations Highlights (Year ended Dec 31) | Account (in thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total revenue | $105,522 | $110,556 | $86,377 | | Gross profit | $46,806 | $61,728 | $48,182 | | Total operating expenses | $148,510 | $120,314 | $79,766 | | Loss from operations | ($101,704) | ($58,586) | ($31,584) | | Net loss | ($96,700) | ($57,688) | ($31,530) | | Net loss per share | ($2.61) | ($1.60) | ($1.07) | [Controls and Procedures](index=159&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of Dec 31, 2022, due to material weaknesses in internal control, primarily from insufficient personnel - Management concluded that disclosure controls and procedures were **not effective** as of December 31, 2022[537](index=537&type=chunk) - Material weaknesses were identified in internal controls related to: (i) inventory accounting, (ii) salary and commissions expense, (iii) the financial statement close process, and (iv) property and equipment accounting[541](index=541&type=chunk)[549](index=549&type=chunk) - The primary cause of the control deficiencies was an insufficient number of qualified personnel in key accounting and finance functions[541](index=541&type=chunk) - A remediation plan is underway, which includes hiring more personnel, engaging consultants for technical accounting and system assessment, and providing additional training[544](index=544&type=chunk) PART III [Directors, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=165&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10-14, covering directors, executive compensation, security ownership, and accountant fees, is incorporated by reference from the 2023 proxy statement - The detailed information for Part III of the 10-K is not included directly in this report but is incorporated by reference from the forthcoming 2023 proxy statement[561](index=561&type=chunk)[562](index=562&type=chunk)[563](index=563&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=167&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the 10-K, including corporate governance documents, material contracts, and certifications - This section provides a comprehensive list of all exhibits filed with the 10-K, including key agreements like the Exclusive License Agreement with Tufts University and manufacturing agreements with STRATEC and Paramit[570](index=570&type=chunk)[572](index=572&type=chunk)[574](index=574&type=chunk)
Quanterix(QTRX) - 2022 Q3 - Quarterly Report
2022-11-09 14:07
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-38319 QUANTERIX CORPORATION (Exact name of registrant as specified in its charter) (State or other juri ...
Quanterix(QTRX) - 2022 Q3 - Earnings Call Transcript
2022-11-09 02:38
Start Time: 16:30 January 1, 0000 5:03 PM ET Quanterix Corporation (NASDAQ:QTRX) Q3 2022 Earnings Conference Call November 08, 2022, 16:30 PM ET Company Participants Masoud Toloue - CEO Michael Doyle - CFO Conference Call Participants Alex Vukasin - Canaccord Genuity Matt Sykes - Goldman Sachs Stephanie Yan - Cowen Operator Good day and thank you for standing by. Welcome to the Quanterix Corporation's Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speak ...
Quanterix(QTRX) - 2022 Q3 - Earnings Call Presentation
2022-11-09 02:37
November 8, 2022 Q3 2022 Earnings Call Forward-Looking Statements & Pro-Forma Financial Measures This presentation 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. Forwardlooking statements in th ...