Quanterix Corporation Releases Operating Results for First Quarter 2020

 $15.7M revenues, 27% Q1 YOY revenue growth

BILLERICA, Mass.--()--Quanterix Corporation (NASDAQ:QTRX), a company digitizing biomarker analysis to advance the science of precision health, today announced financial results for the three months ended March 31, 2020.

“Q1 2020 was yet another strong quarter for Quanterix underscored by strong execution and revenue growth, particularly given the COVID-19 pandemic,” said Kevin Hrusovsky, President, Chairman and Chief Executive Officer, Quanterix. “We are making continuous advances in many neurology, immunity and COVID-19 applications. We are also utilizing our Accelerator Laboratory to run trials and studies for customers experiencing disruptions in their laboratories. Despite the present near-term challenges, we remain positive and committed to the unprecedented market opportunity.”

First Quarter 2020 Financial Highlights

Key financial results for the first quarter of 2020 are shown below:

  • Q1 revenue was $15.7M versus prior year Q1 of $12.3M, an increase of 27%;
  • Q1 product revenue was $9.8M versus prior year Q1 of $9.5M, an increase of 3%;
  • Q1 service and other revenue was $5.8M versus prior year Q1 of $2.8M, an increase of 107%;
  • Q1 GAAP gross margin was 43.3% versus prior year Q1 of 48.7%; Q1 non-GAAP gross margin was 48.5% versus prior year Q1 of 48.7%. Q1 2020 gross margin includes 200 bps of adverse impact from our successful HD-X trade-in program.

For additional information on the non-GAAP financial measures included in this press release, please see “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financials” below.

First Quarter 2020 Business Highlights

  • Early in the progression of COVID-19, we took aggressive steps to protect our employees and their families, while rapidly implementing a resilience plan to maintain our operations and support our global customer base. As a result, we have successfully maintained our operations and have expanded our Accelerator capacity to support customer disruptions and sustain clinical trials.
  • To support the global public health response, we are engaging closely with researchers and KOLs around the world. We have implemented a set of important and differentiated tools for COVID-19 investigators to immediately deploy to study disease progression, life-threatening cytokine release syndrome and patient-treatment response. Researchers are leveraging Simoa’s extreme sensitivity and specificity of cytokine panels to measure levels and profiles in non-critical and critical COVID-19 patients to identify ways to combat the virus and help prevent cytokine storm. We are also working toward developing a SARS-COV-2 quantitative IgG assay, developing an antigen early detection assay in blood and a high-definition SARS-COV-2 assay to enable research pursuits.
  • Sponsored a webinar with Powering Precision Health, “Highly Sensitive and Accurate Multiplex Test to Monitor the Immune Response to Viral Infection,” which featured insights from several researchers actively treating COVID-19 patients in Europe and China. Specifically, the webinar discussed capabilities to conduct highly sensitive and accurate multiplexed tests for cytokines and chemokines in serum and plasma.
  • Reinforced the growing utility of Simoa in neurology research, including results published in JAMA Network Open, demonstrating the promise of blood biomarkers to serve as clinical tools for objectively identifying and monitoring sports-related concussions (SRCs) and mild traumatic brain injuries (mTBIs), marking a notable advance in the pursuit of a concussion diagnostic test. Conducted as part of the CARE Consortium, and funded by the US Department of Defense (DOD) and the National Collegiate Athletic Association (NCAA), the study used Simoa to evaluate a total of 504 collegiate athletes in what is considered the largest athletic cohort for a biomarker concussion study to date.
  • Quanterix’ Simoa technology was highlighted in 53 new publications, bringing total Simoa-specific inclusions to over 789 publications.

Conference Call

In conjunction with this announcement, Quanterix Corporation will host a conference call on May 5, 2020, at 4:30 p.m., EDT to discuss the Company’s financial results and business outlook. To access this call, dial (833) 686-9351 for domestic callers, or (612) 979-9890 for international callers. Please reference the following conference ID: 4994882.

A live webcast will be accessible on the Investors section of Quanterix’ website: http://www.quanterix.com.The webcast will be available on the Company’s website following completion of the call.

Financial Highlights (in thousands)

Quanterix Income Statement

 

 

 

 

 

 

 

 

 

 

 

in '000 USD

Q1 2020

 

Q1 2019

 

Product Revenue

9,833

 

9,547

 

Service and Other Revenue

5,762

 

2,790

 

Collaboration Revenue

132

 

0

 

Total Revenue

15,727

 

12,337

 

 

 

 

Cost of Product Revenue

6,186

 

4,248

 

Cost of Services Revenue

2,728

 

2,082

 

Gross Profit

6,813

 

6,007

 

Gross Margin %

43.3%

 

48.7%

 

 

 

 

Research and Development

4,268

 

3,852

 

Selling, General and Administrative

14,273

 

11,512

 

Total Operating Expenses

18,541

 

15,364

 

 

 

 

Loss from Operations

-11,728

 

-9,357

 

Interest Income (Expense), net

161

 

21

 

Other Income (Expense), net

-167

 

-47

 

Tax

124

 

-22

 

Net Loss

 

-11,610

 

-9,405

 

   

Weighted average shares outstanding was 28.2 million for Q1 2020.

   

Quanterix Balance Sheet

 
   

in '000 USD

At 3/31/20

 

At 12/31/19

Cash and Cash Equivalents

96,359

 

109,155

Accounts Receivable

12,065

 

10,906

Inventory

11,392

 

10,463

Prepaid Expenses and Other

2,722

 

2,137

Total Current Assets

122,538

 

132,661

Restricted Cash

1,000

 

1,026

Property and Equipment, Net

11,992

 

12,047

Intangible Assets, Net

13,115

 

14,307

Goodwill

8,914

 

9,353

Right-of-Use Assets

12,221

 

0

Other Non-Current Assets

525

 

557

Total Assets

170,305

 

169,951

   

Accounts Payable & Accrued Expenses

12,083

 

14,845

Deferred Revenue

5,438

 

4,697

Current Portion of Long Term Debt

0

 

75

Lease Liabilities

305

 

0

Other Current Liabilities

184

 

216

Total Current Liabilities

18,010

 

19,833

Deferred Revenue, Net of Current Portion

396

 

466

Long Term Debt, Net of Current Portion

7,608

 

7,587

Lease Liabilities, Net of Current Portion

22,741

 

0

Other Non-Current Liabilities

2,504

 

13,407

Total Liabilities

51,259

 

41,293

   

Total Stockholders’ Equity

119,046

 

128,658

 

 

 

 

Total Liabilities and Stockholders’ Equity

170,305

 

169,951

 

 

 

 

 

 

 

 

Use of Non-GAAP Financial Measures

To supplement the Company’s financial statements presented on a GAAP basis, the Company has provided certain non-GAAP financial measures, including non-GAAP gross margin. Management uses these non-GAAP measures to evaluate the Company’s operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. Management believes that such measures are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company’s operating performance. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth below.

 

Reconciliation of Non-GAAP Financials
(in thousands)
(unaudited)

 

 

 

 

2020

 

2019

 

 

 

Three months ended

 

 

 

March 31

Total revenue

 

 

$ 15,727

 

$ 12,337

 

 

 

 

 

 

Gross profit

 

 

$ 6,813

 

$ 6,007

Acquisition-related purchase accounting charges (Note 1)

 

 

$ 820

 

$ –

Non-GAAP gross profit

 

 

$ 7,633

 

$ 6,007

GAAP gross margin %

 

 

43.3%

 

48.7%

Non-GAAP gross margin %

 

 

48.5%

 

48.7%

______

Note 1: During the three months ended March 31, 2020, we incurred $438 thousand of acquisition-related

amortization of inventory valuation in connection with our acquisition of UmanDiagnostics. Also during the

three months ended March 31, 2020, we incurred $382 thousand of acquisition-related amortization of

intangible assets in connection with our acquisition of UmanDiagnostics.

About Quanterix

Quanterix is a company that’s digitizing biomarker analysis with the goal of advancing the science of precision health. The company’s digital health solution, Simoa, has the potential to change the way in which healthcare is provided today by giving researchers the ability to closely examine the continuum from health to disease. Quanterix’ technology is designed to enable much earlier disease detection, better prognoses and enhanced treatment methods to improve the quality of life and longevity of the population for generations to come. The technology is currently being used for research applications in several therapeutic areas, including oncology, neurology, cardiology, inflammation and infectious disease. The company was established in 2007 and is located in Billerica, Massachusetts. For additional Information, please visit https://www.quanterix.com.

Forward-Looking Statements

This press release 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. Forward-looking statements in this news release are based on Quanterix’ expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Factors that may cause Quanterix’ actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in Quanterix’ filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" sections contained therein. Except as required by law, Quanterix assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.

Contacts

Quanterix, Inc.
Amol Chaubal, CFO, 617-301-9495
achaubal@quanterix.com

PAN Communications
Staci Didner, 617-502-4300
quanterix@pancomm.com

Release Summary

Quanterix Corporation Releases Operating Results for First Quarter 2020

Contacts

Quanterix, Inc.
Amol Chaubal, CFO, 617-301-9495
achaubal@quanterix.com

PAN Communications
Staci Didner, 617-502-4300
quanterix@pancomm.com