Quanterix(US:QTRX)2023-11-08 00:56Financial Performance - The company reported net losses of $7.8 million and $19.9 million for the three and nine months ended September 30, 2023, respectively, compared to $35.1 million and $78.1 million for the same periods in 2022[129]. - Total revenues increased by $4.7 million, or 18%, to $31.3 million for the three months ended September 30, 2023, compared to $26.6 million for the same period in 2022[146]. - Total revenues for the nine months ended September 30, 2023, increased by $11.1 million, or 14%, to $90.8 million compared to $79.7 million for the same period in 2022[162]. - Product revenue was $19.7 million, an increase of $2.0 million, or 11%, compared to $17.7 million in the prior year, driven by a $6.1 million increase in sales of consumables[147]. - Service revenue rose to $10.9 million, up $2.6 million, or 31%, primarily due to a $3.3 million increase in Accelerator Laboratory revenue[148]. - Product revenue for the nine months ended September 30, 2023, was $58.6 million, an increase of $5.5 million, or 10%, compared to $53.1 million for the same period in 2022[163]. - Service revenue increased by $4.3 million, or 17%, to $30.1 million for the nine months ended September 30, 2023, driven by higher volumes in sample testing and assay development services[165]. - Collaboration and license revenue rose to $1.2 million, a 158% increase from $0.5 million in the prior year, primarily due to a one-time increase from the Abbott License Agreement[166]. - Grant revenue increased by $0.5 million, or 146%, to $0.9 million for the nine months ended September 30, 2023, attributed to the receipt of a portion of the NIH Grant[167]. Expenses and Cost Management - The company expects to incur significant expenses and operating losses for at least the next 24 months due to expansion in sales, marketing, and research and development efforts[130]. - Total costs of goods sold and services decreased by $2.2 million, or 14%, to $13.6 million for the three months ended September 30, 2023[150]. - Cost of goods sold and services decreased by $8.5 million, or 19%, to $37.0 million for the nine months ended September 30, 2023, compared to $45.5 million in the prior year[168]. - Research and development expenses rose by $0.6 million, or 9%, to $7.2 million, mainly due to professional services fees for product development[153]. - Research and development expenses decreased by $2.4 million, or 12%, to $17.9 million for the nine months ended September 30, 2023, due to reduced headcount from the Restructuring Plan[171]. - Selling, general, and administrative expenses increased by $3.6 million, or 18%, to $23.6 million, attributed to higher professional services and consulting fees[154]. - GAAP total operating expenses decreased to $31,553 million in Q3 2023 from $47,547 million in Q3 2022, a reduction of 33.6%[200]. - Non-GAAP total operating expenses for Q3 2023 were $29,000 million, down from $45,908 million in Q3 2022, a decrease of 36.8%[200]. Profitability and Margins - Gross profit increased by $6.8 million, or 62%, to $17.8 million, representing 57% of total revenues[150]. - GAAP gross profit for Q3 2023 was $17,783 million, up from $10,944 million in Q3 2022, representing a 62.5% increase[200]. - Non-GAAP gross profit for Q3 2023 was $15,230 million, compared to $9,305 million in Q3 2022, reflecting a 63.8% increase[200]. - GAAP gross margin improved to 56.8% in Q3 2023 from 41.1% in Q3 2022[200]. - Non-GAAP gross margin increased to 48.6% in Q3 2023, up from 34.9% in Q3 2022[200]. - GAAP loss from operations for Q3 2023 was $13,770 million, compared to a loss of $36,603 million in Q3 2022, showing an improvement of 62.4%[200]. - Non-GAAP loss from operations remained at $13,770 million for Q3 2023, consistent with the loss reported in Q3 2022[200]. Cash and Investments - As of September 30, 2023, the company had cash, cash equivalents, and marketable securities totaling $327.7 million[129]. - As of September 30, 2023, the company had cash and cash equivalents of $201.3 million and marketable securities of $126.4 million[180]. - Net cash used in operating activities was $12.9 million for the nine months ended September 30, 2023, a reduction of $31.3 million from $44.2 million in the prior year[184]. - Net cash used in investing activities was $126.8 million for the nine months ended September 30, 2023, primarily for the purchase of marketable securities[186]. - Interest income, net increased by $2.5 million, or 144%, to $4.2 million, primarily due to higher interest rates on cash and cash equivalents[157]. - Interest income, net increased by $9.2 million, or 397%, to $11.5 million for the nine months ended September 30, 2023, primarily due to higher interest rates on cash and marketable securities[177]. Strategic Initiatives - In October 2023, the company entered into a license agreement with Janssen Sciences Ireland UC, granting worldwide rights to J&J's p-Tau 217 antibodies for clinical research and diagnostic products[130]. - The company launched Lucent Diagnostics in July 2023, introducing initial blood-based biomarker LDTs for evaluating cognitive symptoms related to Alzheimer's disease[131]. - The NIH Grant awarded the company a total value of $1.7 million for developing point-of-care diagnostic technologies, with $0.5 million received as of September 30, 2023[133]. - The company continues to utilize non-GAAP measures to assess operational performance and progress against the Restructuring Plan[197]. - Approximately 81% of the HD instrument installed base was comprised of HD-X instruments as of September 30, 2023[122]. - The company has completed over 2,200 projects for more than 470 customers globally using its Simoa platforms[127].