Quanterix Corporation (NASDAQ:QTRX) Q4 2020 Earnings Conference Call March 2, 2021 4:30 PM ET Company Participants Amol Chaubal - Chief Financial Officer Kevin Hrusovsky - Chief Executive Officer Conference Call Participants Puneet Souda - SVB Leerink Sung Ji Nam - BTIG Operator Ladies and gentlemen, thank you for standing by and welcome to the Quanterix Corporation Q4 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instr ...

Financial Data and Key Metrics Changes - The company's GAAP revenue for Q3 2020 was $31.4 million, which included $11.2 million from a nonexclusive license agreement with Abbott and $1.9 million from the RADx Phase I award. Excluding these nonrecurring items, non-GAAP revenue was $18.3 million, representing a 22% increase compared to Q3 of the previous year [60][61] - Instrument revenues increased by 8%, and consumables revenue increased by 9%, despite challenges due to COVID-19 [61] - Year-to-date total revenues reached $60.2 million, with non-GAAP year-to-date revenues of $47.1 million, marking a 50% increase [64] Business Line Data and Key Metrics Changes - Service revenue saw a significant increase of 56%, finishing at $6.6 million, driven by the expansion of Accelerator services to support customers [63] - The revenue mix for the full year is approximately 40% consumables, 40% services, and 25% instruments [25] Market Data and Key Metrics Changes - Growth was strongest in Europe, with North America following closely in Q3. Approximately 60% of revenue is derived from pharma/biotech, particularly in the neuro sector and increasingly in oncology [26] - The company has run 128 Phase I/II/III drug trials within its Accelerator, with a focus on neurology and oncology [16][18] Company Strategy and Development Direction - The company is focused on advancing noninvasive early detection technologies, particularly in the fields of neurology and COVID-19, with a vision to revolutionize proteomics [27][28] - There is a strategic pivot towards digital opportunities in life sciences, aiming to enhance sensitivity and reduce invasiveness in testing [29][52] - The total addressable market (TAM) is estimated at $1 billion, with aspirations for a compound annual growth rate (CAGR) of 30% to 40% in the long term [57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand in the U.S. and Europe, although concerns about a potential second wave of COVID-19 could impact operations [65] - The company is focused on gross margin expansion by evolving its mix towards high-margin consumables and services [66] Other Important Information - The company raised $91.4 million in net proceeds through a public offering during Q3 2020, with a strong balance sheet showing approximately $173 million in unrestricted cash [68][69] - The company has established significant relationships with the NIH and FDA, which are expected to enhance its capabilities in COVID-19 testing [96][97] Q&A Session Summary Question: Impact of FDA's positive stance on aducanumab on neurology trials - Management noted that the FDA's guidance on biomarkers could encourage the use of assays like Nf-L and pTau in trials, potentially leading to a resurgence in the pharmaceutical base for neurology [82][86] Question: Next steps in the RADx program - Management highlighted the ongoing collaboration with the NIH to scale up antigen assay kits, with a focus on improving detection in asymptomatic individuals [90][92] Question: Update on HD-X instrument upgrade cycle - Management indicated that there is expected to be a reacceleration of placements as academic customers return to labs, with a goal of converting about 50% of HD-1 customers to HD-X by year-end [97][100]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Quanterix Corporation for the period ended September 30, 2020 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2020, shows a significant increase in total assets to $264.1 million from $170.0 million at year-end 2019, driven by a rise in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $173,162 | $109,155 | | Accounts receivable, net | $26,262 | $10,906 | | Total current assets | $214,928 | $132,661 | | Total assets | $264,105 | $169,951 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $28,092 | $19,833 | | Total liabilities | $55,064 | $41,293 | | Total stockholders' equity | $209,041 | $128,658 | | Total liabilities and stockholders' equity | $264,105 | $169,951 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 2020, Quanterix reported a net income of $2.2 million, a significant turnaround from a $9.9 million net loss in Q3 2019, driven by a 110% increase in total revenue Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $31,389 | $14,944 | $60,246 | $40,816 | | Gross profit | $21,106 | $7,033 | $33,132 | $19,969 | | Income (loss) from operations | $2,278 | $(10,243) | $(21,651) | $(30,116) | | Net income (loss) | $2,203 | $(9,870) | $(21,709) | $(29,838) | | Net income (loss) per share, diluted | $0.07 | $(0.37) | $(0.75) | $(1.24) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2020, net cash provided by financing activities was a substantial $94.2 million, mainly from a public offering, resulting in a $64.0 million net increase in cash Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(28,019) | $(21,652) | | Net cash used in investing activities | $(2,149) | $(24,832) | | Net cash provided by financing activities | $94,160 | $115,473 | | **Net increase in cash and cash equivalents** | **$63,992** | **$68,989** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical context, detailing a $91.4 million net proceed from a public offering, a $10.0 million initial license fee from Abbott, and $1.9 million in NIH grant revenue - In August 2020, the company completed an underwritten public offering of approximately 3.0 million shares, resulting in net proceeds of **$91.4 million**[36](index=36&type=chunk)[150](index=150&type=chunk) - On September 29, 2020, Quanterix entered into a non-exclusive license agreement with Abbott Laboratories, granting Abbott a license to its bead-based single molecule detection patents. This agreement resulted in an initial license fee of **$10.0 million** recognized in Q3 2020[136](index=136&type=chunk)[138](index=138&type=chunk) - The company entered into a contract with the National Institutes of Health (NIH) under the RADx program to develop a SARS-CoV-2 antigen test. In Q3 2020, **$1.9 million** of grant revenue was recognized from this program[84](index=84&type=chunk)[85](index=85&type=chunk) Disaggregated Revenue by Type - Nine Months Ended Sep 30, 2020 (in thousands) | Revenue Type | Amount | | :--- | :--- | | Product revenues | $28,285 | | Service and other revenues | $18,631 | | Collaboration and license revenue | $11,401 | | **Total Revenue (excluding Grant)** | **$58,317** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant revenue growth in Q3 2020, the impact of COVID-19, and a strong liquidity position with $173.2 million in cash, bolstered by a recent public offering [Overview](index=55&type=section&id=Overview) The overview describes Quanterix's Simoa technology, the impact of COVID-19 on operations and new opportunities, and the strategic license agreement with Abbott Laboratories - The company is developing a novel SARS-CoV-2 antigen test, supported by an NIH RADx program contract with a total award value of **$18.2 million**. The company recognized **$1.9 million** of grant revenue from this program in Q3 2020[169](index=169&type=chunk) - A non-exclusive license agreement was signed with Abbott Laboratories on September 29, 2020, which included an initial license fee of **$10.0 million**[167](index=167&type=chunk) - The COVID-19 pandemic has caused interruptions in customer laboratories and limited access for instrument installations, impacting revenues. However, the company has expanded its Accelerator Laboratory capacity to support affected customers[168](index=168&type=chunk)[169](index=169&type=chunk) [Results of Operations](index=60&type=section&id=Results%20of%20Operations) This section details a 110% surge in Q3 2020 total revenue to $31.4 million, driven by collaboration and grant revenues, and an improved gross margin of 67% Comparison of Three Months Ended September 30 (in thousands) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Total revenue | $31,389 | $14,944 | 110% | | Gross profit | $21,106 | $7,033 | 200% | | Gross Margin | 67% | 47% | N/A | | Income (loss) from operations | $2,278 | $(10,243) | 122% | Comparison of Nine Months Ended September 30 (in thousands) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Total revenue | $60,246 | $40,816 | 48% | | Gross profit | $33,132 | $19,969 | 66% | | Gross Margin | 55% | 49% | N/A | | Income (loss) from operations | $(21,651) | $(30,116) | 28% | - The increase in Q3 2020 revenue was primarily driven by **$11.2 million** in collaboration and license revenue from the Abbott agreement and **$1.9 million** in grant revenue from the RADx award[176](index=176&type=chunk)[177](index=177&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong with $173.2 million in cash, significantly bolstered by a $91.4 million public offering, deemed sufficient for at least the next 12 months - As of September 30, 2020, the company had cash and cash equivalents of **$173.2 million**[173](index=173&type=chunk) - In August 2020, an underwritten public offering generated net proceeds of **$91.4 million**[200](index=200&type=chunk)[221](index=221&type=chunk) - Net cash used in operating activities for the nine months ended September 30, 2020 was **$28.0 million**, an increase from **$21.7 million** in the prior year period, primarily due to increases in accounts receivable and inventory[214](index=214&type=chunk)[216](index=216&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[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risk disclosures since its Annual Report on Form 10-K for the year ended December 31, 2019 - There have been no material changes to the market risk information previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2019[234](index=234&type=chunk) [Item 4. Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[235](index=235&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[236](index=236&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any material legal proceedings - The company is not currently a party to any material legal proceedings[238](index=238&type=chunk) [Item 1A. Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights that the $18.2 million NIH RADx funding is milestone-based and subject to government's right to unilaterally terminate or modify the contract - A new risk factor was added concerning the WP2 contract with NIH under the RADx program for the development of a SARS-CoV-2 antigen test[239](index=239&type=chunk) - The contract's total award value of **$18.2 million** is contingent on achieving certain milestones, and there is no assurance the company can meet them to access the full funding[239](index=239&type=chunk) - The government contract contains provisions that are not typical in commercial agreements, such as the U.S. government's right to unilaterally terminate or modify the contract at its convenience, which could adversely affect revenue[241](index=241&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Non-Exclusive License Agreement with Abbott Laboratories and officer certifications - Key exhibits filed include the Non-Exclusive License Agreement with Abbott Laboratories, dated September 29, 2020, and certifications by the CEO and CFO[249](index=249&type=chunk)

Financial Performance - Q3 2020 GAAP总收入为3140万美元，同比增长110%[15]，调整后收入为1830万美元，同比增长22%[15]。 - 2020年至今，GAAP总收入为6020万美元，同比增长48%[15]，调整后收入为4710万美元，同比增长15%[15]。 - Q3 2020仪器收入为450万美元，同比增长8%[142]；耗材收入为720万美元，同比增长9%[142]；服务收入为660万美元，同比增长56%[142]。 - 2020年至今，仪器收入为1100万美元，同比增长7%[142]；耗材收入为1730万美元，同比下降8%[142]；服务收入为1860万美元，同比增长58%[142]。 - Q3 2020 GAAP毛利率为67.2%[142]，调整后毛利率为51.5%[142]；2020年至今，GAAP毛利率为55.0%[142]，调整后毛利率为48.4%[142]。 Strategic Focus and Market Opportunity - 公司战略重点转向COVID-19和神经系统疾病领域，以推动突破性业绩[6, 11]。 - 公司正在扩大诊断窗口，以覆盖无症状和症状前患者[82]。 - 公司正在抓住主要市场机会，目标是长期实现30%-40%的复合年增长率[121, 124, 127]。 Neurology and Biomarkers - Simoa®技术正在推动神经系统生物标志物测量领域的革命，尤其是在脑脊液和血液中[56, 59]。 - 血清Nf-L正在为主要的药物试验提供动力，市场规模达220亿美元，涉及16种药物[51]。 - 阿尔茨海默病血液检测即将实现，可以非常早期地检测到疾病[68, 72]。 COVID-19 Initiatives - 公司正在扩大对COVID-19的关注，包括高灵敏度抗原检测和血清学检测[79]。 - 公司获得了美国国立卫生研究院（NIH）RADx计划的2000万美元奖励[79]。

Financial Data and Key Metrics Changes - Revenue in Q2 2020 was $13.1 million, a decrease of 3% compared to the previous year, primarily impacted by the COVID-19 pandemic [64] - Year-to-date total revenues reached $28.9 million, reflecting a 12% increase [65] - Non-GAAP gross margin for Q2 was 44.1%, down from 51.2% in the prior year, influenced by the HD-1 trade-in program and lower cost absorption due to reduced consumables revenue [66][67] Business Line Data and Key Metrics Changes - Instrument revenue was $2.8 million, consistent with the prior year despite access challenges [64] - Consumables revenue finished at $4 million, a decline of 34% compared to the previous year [65] - Services revenue increased by 33% to $6.3 million, driven by expanded Accelerator services capacity [65] Market Data and Key Metrics Changes - North America saw a growth of 27%, while Europe and Asia experienced faster growth [53] - The academic sector has been slower to recover compared to pharma, with a strong focus on COVID-related research [99] Company Strategy and Development Direction - The company aims to leverage its Simoa technology for earlier and less invasive disease detection, particularly in neurology and infectious diseases [12][19] - There is a focus on expanding into the diagnostics market, with aspirations to partner with IVD companies [24][48] - The company anticipates a long-term revenue growth target of 30% to 40%, primarily driven by research, with potential for diagnostics to enhance this growth [78][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovering to a strong growth trajectory in the second half of the year despite ongoing challenges from the pandemic [69] - The company is seeing positive momentum in its Accelerator services and anticipates further growth in consumables as pharma trials ramp up [94] Other Important Information - The company has secured significant contracts, including a $1 million contract with a large payer group and a feasibility study with the NIH [75][80] - The number of third-party peer-reviewed publications has approached 900, with a significant focus on neurology [49] Q&A Session Summary Question: What is the source of incremental demand for the Accelerator? - Management noted that demand is coming from both new customers and existing customers utilizing newer technologies for immune system studies and COVID-related research [72][74] Question: How does the recent progress impact long-term revenue growth targets? - The growth target remains strong, with advancements in diagnostics expected to enhance the research business, although significant revenue from diagnostics may take a year or two to materialize [77][81] Question: What is the expected recovery trajectory for the services business? - The services business is expected to continue growing, supported by large population studies and the ability to conduct testing with small sample sizes [92][93] Question: How is the academic sector expected to recover? - The academic sector is beginning to reopen, with interest in COVID-related research, and the company anticipates good instrument and consumable pull-through as labs return to normal operations [98][99]

PART I — FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Quanterix Corporation [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Quanterix Corporation's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and comprehensive notes [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$162.9 million**, while total liabilities rose to **$51.9 million**, leading to a decline in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $88,806 | $109,155 | | Total current assets | $114,238 | $132,661 | | Total assets | $162,940 | $169,951 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $18,897 | $19,833 | | Long term lease liabilities | $22,458 | $— | | Total liabilities | $51,906 | $41,293 | | Total stockholders' equity | $111,034 | $128,658 | | Total liabilities and stockholders' equity | $162,940 | $169,951 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2020 revenue decreased **3%** to **$13.1 million** with a wider net loss, while year-to-date revenue grew **11.5%** to **$28.9 million**, also with an increased net loss Statements of Operations Summary (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $6,790 | $8,776 | $16,623 | $18,322 | | Service and other revenue | $6,317 | $4,760 | $12,079 | $7,550 | | **Total revenue** | **$13,130** | **$13,536** | **$28,857** | **$25,872** | | Gross profit | $5,213 | $6,931 | $12,026 | $12,936 | | Loss from operations | $(12,201) | $(10,514) | $(23,929) | $(19,873) | | **Net loss** | **$(12,302)** | **$(10,563)** | **$(23,912)** | **$(19,968)** | | Net loss per share | $(0.43) | $(0.46) | $(0.85) | $(0.88) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$20.6 million**, while investing cash outflow decreased and financing cash inflow significantly dropped Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(20,600) | $(12,820) | | Net cash used in investing activities | $(1,361) | $(9,830) | | Net cash provided by financing activities | $1,476 | $50,272 | | **Net (decrease) increase in cash** | **$(20,485)** | **$27,622** | | Cash at end of period | $89,806 | $73,051 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain business operations, accounting policies, revenue recognition, the UmanDiagnostics acquisition, and the adoption of ASC 842 - The company develops and sells ultra-sensitive digital immunoassay platforms based on its proprietary "**Simoa**" technology for life sciences research and diagnostics, with key products including the **Simoa HD-X**, **SR-X**, and **SP-X** instruments[23](index=23&type=chunk)[24](index=24&type=chunk) - On January 1, 2020, the company adopted the new lease accounting standard, **ASC 842**, resulting in the recognition of operating lease Right-of-Use (ROU) assets of **$12.2 million** and operating lease liabilities of **$22.8 million** on the balance sheet[46](index=46&type=chunk)[50](index=50&type=chunk) - The acquisition of **UmanDiagnostics AB** was completed on August 1, 2019, for an aggregate purchase price of **$21.2 million**, securing a long-term supply of critical Nf-L antibodies[26](index=26&type=chunk)[122](index=122&type=chunk) Disaggregated Revenue by Geography - Six Months Ended June 30, 2020 (in thousands) | Revenue Type | North America (NA) | EMEA | Asia Pacific | Total | | :--- | :--- | :--- | :--- | :--- | | Product revenues | $7,631 | $6,336 | $2,656 | $16,623 | | Service and other revenues | $9,846 | $1,486 | $747 | $12,079 | | Collaboration and license revenue | $144 | $11 | $— | $155 | | **Total** | **$17,621** | **$7,833** | **$3,403** | **$28,857** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, attributing Q2 revenue decrease and year-to-date increase to COVID-19 impacts on product and service revenues, and details liquidity and capital resources - The **COVID-19 pandemic** has had a mixed impact on the business, negatively affecting instrument and consumables revenue but partially offset by increased demand for services from the company's Accelerator Laboratory[147](index=147&type=chunk)[148](index=148&type=chunk)[155](index=155&type=chunk) - As of June 30, 2020, the company had cash and cash equivalents of **$88.8 million**, which management believes will be sufficient to meet operating cash requirements for at least the **next 12 months**[150](index=150&type=chunk)[202](index=202&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) Q2 2020 total revenue decreased **3%** to **$13.1 million**, while year-to-date total revenue increased **12%** to **$28.9 million**, both periods showing gross margin contraction Revenue Comparison - Q2 2020 vs Q2 2019 (in thousands) | Revenue Stream | Q2 2020 | Q2 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $6,790 | $8,776 | $(1,986) | (23)% | | Service and other revenue | $6,317 | $4,760 | $1,557 | 33% | | **Total revenue** | **$13,130** | **$13,536** | **$(406)** | **(3)%** | Revenue Comparison - YTD 2020 vs YTD 2019 (in thousands) | Revenue Stream | YTD 2020 | YTD 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $16,623 | $18,322 | $(1,699) | (9)% | | Service and other revenue | $12,079 | $7,550 | $4,529 | 60% | | **Total revenue** | **$28,857** | **$25,872** | **$2,985** | **12%** | - **Gross margin declined** in both the three and six-month periods of 2020 compared to 2019, primarily due to a higher proportion of instrument sales versus consumables, and amortization costs from the Uman acquisition-related inventory and intangible assets[156](index=156&type=chunk)[165](index=165&type=chunk) - **SG&A expenses decreased by $0.3 million** for Q2 2020 year-over-year, mainly because the prior-year period included **$0.9 million** in acquisition costs for Uman[159](index=159&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is primarily from equity offerings and debt, with **$112.5 million** raised in 2019 and **$20.6 million** net cash used in operations for H1 2020 - In 2019, the company raised a total of **$112.5 million** in net proceeds from two equity offerings: an "at-the-market" offering (**$48.0 million**) and an underwritten public offering (**$64.5 million**)[174](index=174&type=chunk)[175](index=175&type=chunk) Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(20,600) | $(12,820) | | Net cash used in investing activities | $(1,361) | $(9,830) | | Net cash provided by financing activities | $1,476 | $50,272 | - The company has a loan agreement with **Hercules Capital**, with an amendment in April 2019 extending the interest-only payment period through July 1, 2021, and the maturity date to October 1, 2021[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures have occurred since the 2019 Annual Report on Form 10-K - There were **no material changes** to the company's market risk disclosures as of June 30, 2020[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2020[213](index=213&type=chunk) - **No changes in internal control** over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[214](index=214&type=chunk) PART II — OTHER INFORMATION This section covers legal proceedings, risk factors, and a list of exhibits filed with the quarterly report [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - As of the filing date, Quanterix is **not involved in any material legal proceedings**[217](index=217&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the prior 2019 Annual Report and Q1 2020 Quarterly Report - **No material changes** to the company's risk factors have occurred since the filing of the Q1 2020 10-Q[218](index=218&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including officer certifications and XBRL data - The exhibits filed with this report include **certifications** from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act of 2002, as well as **XBRL data files**[225](index=225&type=chunk)

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, 2020 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 ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Quanterix provides ultra-sensitive digital immunoassay platforms using Simoa technology for life sciences research, generating revenue from instruments, consumables, and lab services - The company's core offering is its proprietary Simoa technology, providing ultra-sensitive protein detection for research in neurology and oncology[18](index=18&type=chunk) - Quanterix targets a life science research market estimated at **$3 billion annually**, with potential growth to **$8 billion**, and future opportunities in diagnostics and precision health markets exceeding **$30 billion**[22](index=22&type=chunk)[23](index=23&type=chunk) - In August 2019, Quanterix acquired UmanDiagnostics AB to secure the supply of premier neurofilament light (Nf-L) antibodies for its neurology assays[33](index=33&type=chunk)[37](index=37&type=chunk) Product Portfolio Overview | Product/Service | Technology | Key Features | | :--- | :--- | :--- | | **HD-X** | Bead-based | Fully automated, high-throughput, multiplexing (up to 6-plex). Launched in H2 2019 | | **SR-X** | Bead-based | Compact benchtop, lower price point, flexible assay prep | | **SP-X** | Planar array | Benchtop, higher multiplexing capabilities (up to 10-plex), ideal for oncology/immunology | | **Consumables** | Bead & Planar | ~80 bead-based assay kits and ~100 planar array biomarkers. Homebrew kits available | | **Accelerator Lab** | Service | CLIA-certified lab providing sample testing, custom assay development. Completed over 800 projects | - Consumables revenue grew significantly from **$7.6 million in 2017** to **$25.6 million in 2019**, comprising approximately **45% of total revenue** in 2019[43](index=43&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including historical losses, market acceptance of Simoa technology, reliance on single-source manufacturers, costly FDA approvals, intellectual property protection, and global event disruptions - The company has a history of financial losses, reporting a net loss of **$40.8 million in 2019** and an accumulated deficit of **$216.2 million** as of December 31, 2019[227](index=227&type=chunk) - Revenue from Nf-L related services and consumables constituted approximately **33% of total revenue** for fiscal year 2019, indicating significant concentration[250](index=250&type=chunk) - The company relies on single contract manufacturers, STRATEC for HD-X and Paramit for SR-X instruments, posing significant supply chain risk[278](index=278&type=chunk) - Future clinical diagnostic products require costly, time-consuming, and uncertain FDA clearance or approval, as current products are labeled "For Research Use Only" (RUO)[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk) - The core Simoa bead-based technology is exclusively licensed from Tufts University, and losing this license would critically harm the business[342](index=342&type=chunk)[343](index=343&type=chunk) - The COVID-19 pandemic is identified as a risk potentially disrupting operations, supply chains, and customer demand[251](index=251&type=chunk) [Unresolved Staff Comments](index=73&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - Not applicable[399](index=399&type=chunk) [Properties](index=73&type=section&id=Item%202.%20Properties) The company's principal facility is a **91,600 square foot** leased space in Billerica, Massachusetts, with its Uman subsidiary leasing **6,500 square feet** in Umeå, Sweden - The company leases its **91,600 square foot** headquarters in Billerica, MA, under an 11-year and five-month lease term starting April 1, 2019[400](index=400&type=chunk) - Subsidiary Uman leases approximately **6,500 square feet** in Umeå, Sweden, with leases expiring between May 2020 and February 2023[401](index=401&type=chunk) [Legal Proceedings](index=73&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - As of the filing date, Quanterix is not involved in any material legal proceedings[402](index=402&type=chunk) [Mine Safety Disclosures](index=73&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[403](index=403&type=chunk) Part II [Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=70&type=section&id=Item%205.%20Market%20For%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "QTRX", with **28.2 million shares outstanding** as of March 2020, and IPO proceeds of **$65.6 million** fully utilized - Common stock trades on Nasdaq under the symbol **QTRX**[406](index=406&type=chunk) - As of March 1, 2020, **28,225,653 shares** of common stock were outstanding[406](index=406&type=chunk) - Net proceeds of approximately **$65.6 million** from the 2017 IPO have been fully utilized for operating expenses, capital investments, debt payments, and the Aushon acquisition[409](index=409&type=chunk) [Selected Financial Data](index=70&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes five years of consolidated financial data, showing consistent revenue growth to **$56.7 million** in 2019, but increasing net losses reaching **$40.8 million**, with total assets growing to **$170.0 million** Consolidated Statement of Operations Data (in thousands) | | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $ 56,734 | $ 37,632 | $ 22,874 | $ 17,585 | $ 12,180 | | **Gross profit** | 26,836 | 17,948 | 9,987 | 7,748 | 5,715 | | **Loss from operations** | (41,600) | (31,550) | (26,005) | (21,711) | (14,523) | | **Net loss** | (40,796) | (31,536) | (27,019) | (23,173) | (15,943) | Consolidated Balance Sheet Data (in thousands) | | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $109,155 | $ 44,429 | $ 79,682 | $ 29,671 | $ 2,323 | | **Total assets** | $169,951 | $ 67,611 | $ 91,779 | $ 37,117 | $ 7,351 | | **Total stockholders' equity (deficit)** | $128,658 | $ 41,065 | $ 65,866 | $(115,109) | $ (88,640) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=71&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2019, total revenue grew **51% to $56.7 million**, but net loss widened to **$40.8 million** due to a **55% increase in SG&A**, while liquidity remains strong with **$109.2 million** in cash, bolstered by **$112.5 million** from equity offerings Financial Performance Comparison (FY 2019 vs. FY 2018) | Metric | FY 2019 (in thousands) | FY 2018 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $56,734 | $37,632 | 51% | | Product Revenue | $40,491 | $23,365 | 73% | | Service & Other Revenue | $16,059 | $12,117 | 33% | | Gross Profit | $26,836 | $17,948 | 50% | | Gross Margin | 47% | 48% | -1 ppt | | R&D Expense | $16,190 | $15,805 | 2% | | SG&A Expense | $52,246 | $33,693 | 55% | | Net Loss | $(40,796) | $(31,536) | 29% | - The **55% increase in SG&A expense** in 2019 was driven by headcount additions, public company costs, a new headquarters lease, and approximately **$1.9 million** in Uman acquisition costs[469](index=469&type=chunk) - The company significantly improved its cash position in 2019, ending the year with **$109.2 million** in cash and cash equivalents, up from **$44.4 million** in 2018, primarily due to **$48.0 million** from an "at-the-market" offering and **$64.5 million** from an underwritten public offering[425](index=425&type=chunk)[486](index=486&type=chunk)[488](index=488&type=chunk) - The company has a minimum purchase commitment with its HD-X manufacturer, STRATEC, through May 2021, with potential fees up to **$9.6 million** for non-compliance based on 2019 year-end purchases[522](index=522&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=92&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are foreign currency exchange rates and interest rates, impacting investment income and variable-rate debt, with no current hedging instruments - The company is exposed to foreign currency exchange risk with growing international operations, though a **10% adverse change** would not have been material as of December 31, 2019[528](index=528&type=chunk) - Interest rate risk exists for **$109.2 million** in cash and cash equivalents and **$7.7 million** in outstanding variable-rate debt, with a **10% change** in rates not expected to materially affect income or expense[530](index=530&type=chunk)[531](index=531&type=chunk) [Financial Statements and Supplementary Data](index=93&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2017-2019, including the independent auditor's report and detailed notes on accounting policies and business combinations - The report includes the Independent Registered Public Accounting Firm's Report, Consolidated Balance Sheets, Statements of Operations, Comprehensive Loss, Cash Flows, and Stockholders' Equity[533](index=533&type=chunk)[570](index=570&type=chunk) - The company adopted ASC 606 on January 1, 2019, using the modified retrospective method, resulting in a **$0.4 million** cumulative adjustment to the opening accumulated deficit[573](index=573&type=chunk)[664](index=664&type=chunk) - Note 15 details purchase price allocation for the Aushon (January 2018) and Uman (August 2019) acquisitions, including acquired assets, assumed liabilities, goodwill, and intangible assets[767](index=767&type=chunk)[773](index=773&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=93&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable, indicating no changes in or disagreements with the company's accountants - Not applicable[534](index=534&type=chunk) [Controls and Procedures](index=93&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2019, excluding the Uman acquisition as permitted - Management concluded that disclosure controls and procedures were effective as of December 31, 2019[535](index=535&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2019[540](index=540&type=chunk) - The assessment of internal controls excluded the Uman acquisition, which occurred in August 2019[538](index=538&type=chunk) - As an emerging growth company, the report does not include an attestation report from the independent registered public accounting firm on internal control over financial reporting[541](index=541&type=chunk) [Other Information](index=94&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Not applicable[542](index=542&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=94&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the 2020 proxy statement[544](index=544&type=chunk) [Executive Compensation](index=94&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the 2020 proxy statement[545](index=545&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=94&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the 2020 proxy statement[546](index=546&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=94&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the 2020 proxy statement[547](index=547&type=chunk) [Principal Accountant Fees and Services](index=94&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the 2020 proxy statement[548](index=548&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=94&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed with the 10-K, including the Uman acquisition agreement, corporate governance documents, financing agreements, and key manufacturing and license contracts - This section provides a list of all exhibits filed with the 10-K, including material contracts and corporate governance documents[553](index=553&type=chunk) [Form 10-K Summary](index=100&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[562](index=562&type=chunk)

Financial Performance - Quanterix Q4 2019 revenue reached $15.9 million, a 46% increase compared to $10.9 million in Q4 2018[7, 79] - Full year 2019 revenue was $56.7 million, representing a 51% growth from $37.6 million in 2018[7, 79] - Consumables revenue showed significant growth, with full year 2019 consumables revenue increasing by 86%[6, 7] - Adjusted gross margin for full year 2019 was 49.7%, an increase of 380 bps compared to 45.9% in 2018[7] Product and Market Growth - Instruments revenue grew by 55% for the full year 2019[7, 9] - Neurology showed a growth of 121%[10] - The company raised approximately $120 million in growth capital[6] Technology and Innovation - Simoa technology enables a +3,000X increase in sensitivity[18] - The company aims for a 100x sensitivity increase by the end of 2021[62] - Nf-L publications increased significantly, demonstrating clinical utility in disease activity monitoring and drug efficacy[6, 44] Strategic Focus - The company is focused on neurology and oncology, with strategic mergers and acquisitions to expand capabilities[6, 62] - Quanterix has a methodical market penetration strategy targeting both research and diagnostics markets, with an aspiration to disrupt the $40B+ diagnostics market[25, 27, 67] - The company aims to achieve 50%+ utilization and 50% HD-X installed base by the end of 2020[62]

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 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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 (St ...