Quanterix(US:QTRX)2020-08-09 09:06Financial 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]