Quanterix(QTRX) - 2023 Q4 - Annual Report

Financial Performance - Total revenues for Quanterix Corporation were $122.4 million in 2023, up from $105.5 million in 2022, representing a growth of approximately 16.5%[275] - The company incurred a net loss of $32.3 million in 2023, compared to a net loss of $96.7 million in 2022, indicating a significant reduction in losses[275] - Total revenues increased by $16.8 million, or 16%, to $122.4 million for the year ended December 31, 2023, compared to $105.5 million for 2022[302] - Product revenue was $79.5 million, consisting of instrument sales of $15.7 million and consumables sales of $63.8 million, representing a 14% increase from $69.8 million in 2022[303] - Service revenue increased by $5.8 million, or 17%, to $40.3 million, primarily due to a $9.0 million increase in Accelerator Laboratory revenue[304] - Gross profit rose to $70.6 million, a 51% increase from $46.8 million in 2022, resulting in a gross margin of 58%[307] - Total costs of goods sold and services decreased by $7.0 million, or 12%, to $51.7 million, with cost of product revenue down by 20% to $32.6 million[307][308] - Interest income increased by $10.7 million, or 209%, to $15.8 million, driven by higher interest rates on cash and marketable securities[316] - Net cash used in operating activities was $18.9 million, an improvement from $48.3 million in 2022[326] - Net cash used in operating activities decreased by $29.4 million to $18.9 million in 2023 from $48.3 million in 2022, primarily due to reduced net loss and improved gross margin[328] - Net cash used in investing activities was $148.4 million in 2023, consisting of $175.6 million in marketable securities purchases and $3.8 million in property and equipment purchases[330] - Financing activities provided $2.7 million in cash during 2023, an increase from $2.3 million in 2022, from sales of common stock and exercise of options[332] - GAAP gross profit increased to $70.646 million in 2023 from $46.806 million in 2022, with GAAP gross margin rising to 57.7% from 44.4%[360] - Non-GAAP gross profit for 2023 was $62.5 million, up from $39.595 million in 2022, with non-GAAP gross margin improving to 51.1% from 37.5%[360] - Total operating expenses decreased to $120.347 million in 2023 from $148.510 million in 2022, reflecting cost management efforts[360] Product Development and Launches - Quanterix launched the LucentAD blood test for Alzheimer's disease in July 2023, with an improved version, LucentAD p-Tau 217, launched in October 2023; however, these tests are not expected to generate material revenues until late 2024 or later[278] - Quanterix completed a restructuring plan in 2022, eliminating 119 positions and launching five new Simoa Advantage PLUS assays, which began shipping in Q1 2024[279] - The company plans to expand its sales and marketing efforts and invest in its diagnostics business, including the launch of additional Laboratory Developed Tests (LDTs)[276] - Research and development expenses are expected to increase as the company focuses on improving existing products and launching new ones, particularly in diagnostics[289] Customer Base and Market Presence - The company has completed over 2,200 projects for more than 480 customers globally using Simoa platforms, showcasing its extensive customer base[273] - Approximately 82% of the HD Instrument installed base were HD-X instruments by the end of 2023, reflecting strong adoption of the upgraded technology[267] - Quanterix's Simoa technology has been cited in over 2,700 scientific publications, indicating significant scientific validation and interest in its applications[265] - Approximately 37% of total revenue in 2023 was generated from customers outside the United States, compared to 38% in 2022[363] Financial Position and Capital Management - As of December 31, 2023, the company had cash and cash equivalents of $174.4 million and $146.9 million in marketable securities[319] - The company is assessing potential acquisitions and may need to raise additional capital if existing resources are insufficient[322] - The company expects to continue incurring additional capital expenditures to support expanding infrastructure and workforce in future periods[329] - The STRATEC Supply Agreement includes a total purchase commitment of $3.7 million, with $1.0 million due within one year from December 31, 2023[337] - Remaining lease payments due within one year total $7.1 million, with additional payments of $14.7 million, $15.5 million, and $15.7 million due in subsequent years[335] Market Risks - The company is exposed to market risks including fluctuations in foreign currency exchange rates and interest rates affecting returns on cash and marketable securities[362] - A hypothetical 10% decrease in overall interest rates would have reduced interest income by approximately $1.3 million for the year ended December 31, 2023[368] - The company has not entered into any foreign currency hedging contracts to date, but may consider doing so in the future[364] - A 10% adverse change in foreign exchange rates would decrease potential cash inflows from foreign denominated receivables by $0.8 million[363] - The company’s expenses are primarily denominated in U.S. dollars, with some incurred in Canada, Europe, Japan, and China[363] - The company does not expect its operating results or cash flows to be materially affected by sudden changes in market interest rates[367] - The company has the ability to hold marketable securities until maturity, mitigating potential risks from interest rate fluctuations[367] - Fluctuations in foreign exchange rates could potentially harm the business in the future[363]