QTRX - Earnings call transcript Q4 2023

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Operator

Good day, and thank you for standing by. Welcome to the Quanterix Corporation Q4 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Vandana Sriram, CFO. Please go ahead.

Vandana Sriram

afternoon. good and you, Thank With me CEO Toloue, and is today's Quanterix. call of Masoud President on

Before would recorded, begin, Relations things. will we I available section This a you be call few of of our will the be on and website. replay like a Investor to remind

the of available and These or of call are forward-looking the date Today's meaning based contain as assumptions Securities may Private on achieve our statements forward-looking U.S. will beliefs and expectations forward-looking statements information on Litigation of the management's We actually call. within the Reform in this disclosed Act. statements. not intentions plans,

different Forward-looking our and risks expressed and uncertainties, the are our from assumptions results, The statements performance may or risks, described face forward-looking in or cause statements. filings Exchange and the actual Commission. that involve recent unknown and results, implied other materially achievements by any uncertainties or known Securities future achievements we with factors performance most that be to

trends such appendix website the the should set information most the Investors directly in release be GAAP. and presentation meaningful a with here issued accordance results in forth comparing analysis measures business. and operating To these supplement of certain Management presented review believes company's for useful manner financial for reconciliation in that encouraged are not its statements measures. and allows period-to-period posted non-GAAP results company with measures information comparison to GAAP substitute The in a evaluate presented in GAAP financial non-GAAP important to has on uses comparable these are The our their period financial the that financial presented performance. non-GAAP as are earnings company measures performance basis, in considered today. provided to in operating a and the in to non-GAAP current company's measures the of other assessing the financial the conjunction of with

now will over call turn Masoud. to the I

Masoud Toloue

$XX.X fourth you, points revenue, Non-GAAP Thank to we million XXXX, delivering $XX.X versus million in QX basis consumables production, improved revenue. with Starting contributing XXX total Vandana. of gross margins hit record of on million sheet use a deploy cash balance million, and over liquidity strong and investment. of prior was capital leaving us our $XXX position in with growth quarter year, for to $X.X

a and manufacturing a with of to began principles: are improving value As from innovation transformation and Testing by improved we Quanterix assays, XX% respectively, reminder, newly-formulated output X corporate positioning X accelerator focus In markets. built margins XXX%, core new with manufacturability. ago process each [translational] and quarters and where on unlock a 'XX, to we in capacity today. quality, they capacity our threefold the the grow

New first off assays now production getting our of rolling customers. hands into lines the are

and 'XX. result are operating higher faster to our efforts of burn X are compared all financial with over million the XX%, discipline. over accomplishments team's innovation reduced focus, gross cash for better quarters quality, positioned points, have improving The non-GAAP These basis X,XXX reflected strong $XX 'XX in performance growing throughput, determination while our in by revenue margin 'XX, us and we for as

the to approximately In XX tech development small is year. in diagnostics. first assays This are innovation end feat. disease not menu, Starting XXXX, X product this Alzheimer's we with objective, by introducing in our a engine of objectives growth and new intend the our strategic new leverage by newly-built

technology Second, to we're platform. our expand allocating resources

to not neuro is satisfies vast While have today, of majority Simoa specialty goal X- in programs labs, to but just labs. our Simoa in X-plex the neuro all

and be of multiple distinguished of research protein improving sensitivity, absence maintaining measurements will of expect enable immunology and work we'll year. this channels. clinical discuss a significant be plex, end protein can multi-channel toward means on laboratories. Expanding the which more breakthrough. working the across would that and the in Developing of lossless resolution, footprint quantity We're the I loss oncology from no cost lowest that reducing

Finally, believe infrastructure Alzheimer's and abundant by methods including therapies scalable best patients to the lumbar Identifying therapies. showing be than There's access now to testing on for puncture, is for stated is methods, evidence invasive blood-based biomarkers equal and newly-available the disease-modifying to better methods, testing invasive goal to global solution disease. non-invasive are limits using to diagnostics, broadening build not Alzheimer's and or access will we patients. PET they our

this technology better become It in where also play identifying disease Simoa outcomes. we critical that And is believe clear a early patient will patients cascade results has in a role.

important make proteins of a exquisite here. where digitally beyond amplitudes quantitation technology. technologies detection magnitude reside. combination signal-to-noise an The couple and of limits other lower orders separation femtoliter I want providing and ultra-sensitivity precision floor Simoa of and and interrogates to enables noise point wells, much than their

test part if not the a can range patient's XXX p-Tau a they track physician full if precision is the as treatment. used concentrations a may follow-up, diagnostic or or throughout sensitivity tech do of levels symptoms diagnostically to the XXX Other progress So across have of workup, Simoa that relevant. p-Tau a are if diagnostic undergo this

low blood small allows very amyloid concentration high pathology. to need the corresponding high changes given assays XXX resolve around diagnostic to the to at of cutoffs likelihood present levels Precision and Simoa that low accuracy, is p-Tau provide in

lumbar test confidence the has pathology. scans the and amyloid uses to during X-cutoff both diagnostic Our design, in out to the expert to NIA-AA as potential process. ruling and of result, groups, XX% reduce extending This PET ruling high a and providing Alzheimer's punctures by approximately other XX% recommended

to allocate the X diagnostic million advance will of our tests. capital next we years, of access $XX the Over

main multi-marker a systems prospective biomarkers diagnosis one, also clinical as for in part to and of areas: health studies blood-based and Alzheimer's focus our of will diagnostics X establish We test, a and studies with routine development validation blood treatment.

significant from important sites studies, phases across and BioHermes BioHermes that prospective complete expected publications X and blood test including PET is populations study multi-marker of enrolled later up Phase and development collected first this wrapping well as year. the of images. the with a For numbers validation, we're CANTATE. is U.S., I XX and as individuals underrepresented X the of samples the study now

is collaboration researchers collected, CANTATE Medical CSF, where at well is to the assess corresponding as Center, with being measurements biomarker with our as Amsterdam blood ongoing amyloid.

Alzheimer's We biomarkers announce taking blood year. these new expect and to results part studies sponsoring I in also to of Phase studies this and later several treatment. of from is establish Quanterix routine diagnosis as part

of Simoa validation an data technology, FDA studies submission these support multi-marker helping provide on to addition expand and test planned expected diagnostic. to an the to for blood clinical biomarker our offering, tests In future laboratory-developed adoption XXX as plasma Alzheimer's based such are

disease reach own the CLIA-certified U.S., LucentAD XXX testing out hospitals our laboratory-developed over for our what assays infrastructure build provide to validate now In develop networks dedicated our their support an in the XX with to team, we have we and efforts on and expect XXXX, at Each building on-boarded X corresponding health patients. tests step ground our that as important leading this approximately lab, We've to tests. pleased These would working they've carrying commercial and to we a running. be will or already will will uptick networks out to therapies. to the hit instruments the and We're disease. a for of focus the access Alzheimer's that adoption in new supports diagnosis capabilities we're of commercial announce million

now over turn cover will Vandana the call financial our to to I results.

Vandana Sriram

I provide will fourth you, guidance of quarter Masoud. details performance and Thank additional for now XXXX. will cover our and full-year

capped our XXXX over the mentioned, we've significant corporate year-end Masoud made progress execution As program. transformation, X-quarter and the

XXXX fourth the million, increase the fourth of Our XX% of quarter total an was XXXX. for revenue $XX.X quarter from

Our to quarter, consumables strong last and quarter supporting demand we This noted $XX.X offering our in from or the million, a year. high fourth record revenue was neurology. compared for increased consumables of interest coming to XX% continued

of decline a other of quarter similar net to We the instruments we was to revenue continuing Instrument half and of our XXXX, in second quarter XXXX. install $X.X added the over XX XXXX. fourth fourth saw trends the companies the in base tools of XX% million,

Lab Accelerator increase quarter XXXX. million, was the XX% over $X.X Fourth an from quarter of revenue of our fourth

We tools current in especially strong our has very observe in unique services, for continue technology. this we to our where expect purchases, has capital-constrained, customer service that to the limited accelerated to been pressure us in and demand have industry environment environment been capital access and rebalancing mix. instrument not budget the changes to Simoa of When our CapEx some more favorable be to valuable

million quarter and gross XX.X%, quarter, XX.X%, and to $XX.X profit fourth respectively, gross on XXXX. $XX.X Moving XXXX million higher-margin respectively, reflects and profit services. of of and quarter year. our and of efforts margin mix in margin the quarter fourth margin for as XX.X%, quarter GAAP and the respectively, compared and million million to year-over-year in increased fourth in Non-GAAP transformation was consumables fourth compared $XX.X was and the $XX.X of XX.X%, respectively, for of sales margin gross the the The from expansion to our impact favorable accelerated the last

million similar the fourth XXXX impairment restructuring million, operating corresponding compared quarter with of and of prior to $X.X charges a included the in from Our $X were primarily $XX.X fourth million impairment million in GAAP $XX.X The compared quarter lease quarter as fourth of XXXX charges XXXX. period. expenses one-time of

R&D non-GAAP of million impairments, and impact increased the and higher expenses $X.X million, to operating costs. operating increased expenses $X.X Excluding GAAP due personnel-related

million in in million declined gross the the higher quarter due of fourth loss $XX quarter to of margins. operating fourth sales Our and to $XX consumables XXXX from and improved accelerated XXXX

us year, growth. full to $XXX.X delivering results revenue, of bring the XX% For these million

America, Europe mid-teens we and Over XX% revenue to all will highly-differentiated on I context of provide full-year geographies. Now some XX% North Asia-Pacific, a from from came where have revenue. position. our came neurology, XX% XX% our growth revenue across from continue from additional of with

to of of fourth $X.X equivalents, quarter of with securities during usage total Moving the quarter cash cash marketable the restricted ended cash, $XXX.X compared to a $X XXXX. million in on in million cash, quarter liquidity, million as fourth usage net we and the

$XX.X For the year, usage usage was $XX.X full cash our in of million. a million, reduction cash

sheet, fund have continue ample with strong a cash to We growth. to balance

turn Let's to for guidance XXXX.

is be million been time, premature range $XXX of a million. full-year revenue in closely include Diagnostics it does We guide material. $XXX from to this provide is for testing, revenues and, not to correlated nascent is to have to and adoption guidance. our expect to XXXX date research-only This area therapy not which the at business diagnostics in

will the with unique in on commercial However, uptake, and position we now blood in we systems, our is measure neurology testing team updates to with hospital contact centers regular and quarterly are progress. provide a that

For year, the be gross to to expect we margin and in XX%. margin to be approximately to non-GAAP XX% XX% the XX% GAAP gross full range

excludes from this guide As with revenue, margins testing. diagnostics

allocation usage. Lastly, cash on to and capital

of usage for in full cash to the usage to million million, approximately the $XX million cash our at year $XX increase of expect an be We midpoint. range the $XX in

As and our growth in in menu, priorities XXXX in Masoud innovation will diagnostics. be mentioned, up tech ramping

X diagnostics, approximately We $X This reduced to be million $XX million $XX approximately investment offset will million strategic approximately margin million cash spend in additional by approximately spend our with on burn will from the to diagnostics initiatives growth. XXXX. in million on first expected revenue $XX $XX and initiatives of on million $XX and

grow expect point to At is the comments RUO We drive same flow cash our in to cash the still break-even invest $XXX this includes will cash and, to premature for our achieve on will time, guide revenue. capital incremental break-even consistent innovation. to reduce provide This $XXX flow it million with business to at approximately a and revenue, investment million diagnostics. we to on menu of diagnostics continue burn business and

areas. In to our work to areas our to aligning drive will growth and of summary, priorities our put we in allocation we exciting capital these capital are opportunity,

to turn before your over will it Masoud we questions. now I back take

Masoud Toloue

we're This Thank company. I in started to It's the output at would have if changes made very want density of who you, has super not in and the difficult been not team believe of talent or Vandana. completed painful say Quanterix. the proud did we the work.

It is improve delivery not discovery tangible, statement a Our just Web active goes mission or is the and to mode. enable very outcomes. in a is real tools that This and patient provide our team wall. and page to is on

take Now can we questions. some

Operator

Goldman question Thank you. with Sachs. And Sykes come [Operator to of is Instructions] our from going the first line Matt

Matthew Sykes

Accelerator you're just included Maybe that had X, timing potential said partnership, mix, terms diagnostics couple systems. it the you be through? do to sort out, And of back want is the One, thinking about Lab. you that over that got point assuming are And coming assays, I've announcement things. just the guys guide? the of made other time? I'm And instruments a could And of How X, that's follow-up. about, the Monday is, revenue of know the go including. think to I about I on the health in mix starting that a the portion you of in you how not

Masoud Toloue

the think did] partnership days our super-exciting. is offering had X a I the One, yes, ago things. we couple twofold. was And So of announcements versatility [it

we're same testing, able hospitals and First, access our the Accelerator time, and the can able enabling the offer XXX physicians or to own to to services Lab, the do there. and enable samples the to platform hospitals at testing. lab, also where But their we're send we're offer Lucent to test,

So up-to-date we're really on what's latest in the touch and able with offering, it's and stay really a keep unique to of happening. neurologists

Right we're guide. revenue in diagnostics You're put that's right not guidance this that diagnostics. for guide, the not or the including not imputed into in now, is

I mix from, send-out or other? versus mean, are [enablement], test mix perspective, to you on referring the then some And

Matthew Sykes

how mix, send but where expect you think could to do buy do of from partnership? the many that of this And themselves? to it you? do for How out come the you think sort revenues Yes, do bulk many instruments will you

Masoud Toloue

I good that the there's question. we Yes, different X mean, that's ranges. listed, a

getting to of test at some as a offer ready platform. own off together going want as then right and send-out putting and our and laboratory, testing they're start them to tests some the So their with up bat platform are their

going a little to shake the good get for it's a So sense how of still year. out of that's it's early a and mix, bit to

Matthew Sykes

maybe of very Vandana, balance we're of, any you versus but versus made XXXX the that guide. for services aware some instrument course mix on what that you How sort which all environment, the on to that just out? comments on And see I know year? the over shift do of color within be then capital you consumable equipment shaking some perceive of maybe of lab well the color kind

Vandana Sriram

Yes.

looking first the similar seeing So start year on at at least we constraints very XXXX, some XXXX, that demand But mix in this still the so side. the side. at really, in to the to really point, we're the really being good with on half, again, accelerator saw of amount instrument expecting

of, We I'd a activity have of interest lot accelerators. on lot quoting and say, for now a right going

out pretty to also continue strong. we really accelerators see So to be strong, consumables and come

expect to customers assets, new on where year all Now there about will some eventually support have initial there transition then part new bring consumables, be the assays. to the we of will period be the and converting to them the to so the we on customers older assays

be be So quarter get through But steady. we in growth there might we to point as expect amount that onwards, from that. of choppiness really consumables some the first

Operator

come And our to Souda Partners. of next Leerink from going is the question line Puneet with

Puneet Souda

or multi-marker at sort test the just would comes questions of that FDA? couple of XXX, the Maybe LDT FDA that XXX I p-Tau it first you're a approval, out does submission, should recognize one on the be And what will like So look that that and tests, standalone here. what of already. it's there? of of timing seeing we assume be a traction

FDA sort I So you're how just want product. understand And approval for have a then to of follow-up. the contemplating

Masoud Toloue

thanks for the Puneet, Yes. question.

We've XXX, XXX you biomarker year. said, as LDT. to to this already So FDA committed discussions. the some it's the submitting begun We've in

IVD that, running, we're LDT submission are multi-marker have sequencing multi-marker our to trials LDT subsequent something said from in on clinical in additional from designed we've submission we standpoint, multi-marker. multi-marker prospective trials, data year. And going IVD future, or that that's do standpoint, validation All and the we're for that. then, a and for this a the IVD for XXX get submission, of 'XX, And the we'd on to also LDT, then today, a But well as something FDA as released do XXX.

the then a clinical future. not collaborations in And all so of reimbursement provide we're working the BioHermes, development with the and just CANTATE but now new IVD evidence couple for

Puneet Souda

XXX I question you're have the bigger on collaborations from talk already, in little the field then there feedback larger bit some here how you And the with for of about the know see a a do the folks already you out is, LDT? commercial maybe adoption can based you getting centers. that

the question Leqembi to as They have what come settled. down. here to bigger adoption view Street expectations a should things the drug how just with I'm and have trend. for is I donanemab, get think trying versus the see you're hearing But look we to to

Masoud Toloue

Yes.

is be the we exactly say these think it's being solution said, to speaking any a I that at able sensitivity, the study in are but comes look at at clear to if think biomarkers neurologists and demand levels to a way tools. main very as And probably levels drug going this decent additional for how incredibly proxy a of a out time, hard fairly monitor need you other when there. low the to I I speaks look want superior and and and this a data adoption is just period patients. lifecycle to at blood it's of hospitals, are them across to that, testing things the there, correlates, for that's the mean, you're That for doing the XXX test, just over require stages the one high early And the of patient and need itself XXX all increase. you that that

more what clinical that Alzheimer's are have with therapies, research other we're clinical as more so that's combinatorial recall trial tailwind and a a clear, as that having therapies, we companies And trials. is and pharma to work, of additional business part efforts good that's well that hearing. Also, and expect our at looking

But these it's think that, proxy. as more follow we So goes. drugs with think will We'll a new therapies, the information and just that, we perspective, have decent from start I Alzheimer's. for a a are year patient measurement

Puneet Souda

And us targeting you just plex RUO that? talked remind last you're you the the Can about, my what multi-channel one for then resolution. that on technology just lossless

Masoud Toloue

Yes. one Quanterix I I of that translational. would say mid- mean, we're very principles low-plex. of is the key to guiding

them, involved translation of in therapies, and of So and testing diagnostics. we're these markers eventually support identifying the markers these then for and

from plex discovery or that. becomes when today, usually that it's a you do at than than the and more side. or where that, on we're so, more what X are Xx translation look X anything anywhere we X you to And application, Xx, to And really how more

where at we that's look future we're when So technology. focusing

Operator

is next line question Genuity. from Canaccord going Mikson to our the And Kyle come of with

Kyle Mikson

I ask path want this the for for the longer-term question a Masoud, that to is test to is question. a reimbursement you, portfolio. I and neurology multi-part guess

current approval And to for including recent in you the year? but coverage, thing? third the work all the you're get not there's of XXX, that's with because point, Like, possibly? trying but what's Proteomics p-Tau reimbursement that MolDX for particularly and LucentAD companies get So more plan, to with a test this that's Medicare plan LCD impact Second, of does other expected to Quanterix CPT how that, kind this the this finally, test? are trying would near-term still for how protein-based

Masoud Toloue

Yes.

from XXX versus It's a XXX for biomarker, marker clear standpoint, is blood XXX. our specifically a a protein. the reimbursement really now seeking So CPT superior abundantly we're stated, you as Alzheimer's that

XXX, on there's still put of lot of XXX interest reimbursement there. testing. and and that's focus available focus our LDT, But still a from that said, comes for clinical shifted That So trial a XXX we've lot some work is when so being in XXX. it of has our standpoint, a on as to

multi-marker sensitivities on as could first diagnosis markers that that's VUMC work we're is study prospective the greater this could And own and than together doing collaboration single that's then, and And provide then, Now, [indiscernible] potentially all with so differential algorithm, be maybe step. that CANTATE, there any a its several biomarker. a schedule. our the with reimbursement this

obviously field and was important. on and MolDX we're We multi-marker question very on. MolDX, important From that read-through well-respected, super-pleased are up. picked the that path think your for these validates algorithms it's is we the were

Kyle Mikson

actually diagnostics. I Just another on, one guess,

know has data BioHermes. you test to please, one confirm, Is for got be CANTATE the think? you enough enough, And that the XXX approval, for the if just reimbursement. First, for and do I Vandana. going

Masoud Toloue

Yes.

paper results BioHermes, published are the with results. confident that together. Amsterdam cohort We've We some white XXX we the a with have on very

[sensen] accuracy combine you when patients. those cohorts, so, XX%. rounded something board XX% we over And up with above across spec to looked at X we the And that around had XXX

we think data solid. XXX the So for is

Kyle Mikson

And final for one Vandana.

$XX for something think guidance it's spending million think for assumed I so 'XX. That the I means, like to about for is million $X in million maybe $XX 'XX. investment diagnostic like, or

hypothetically, [would] margin? the just investments next, diagnostic the could you revenue that how walk secondly, years. I you're get for out any X specifically, that to diagnostic through be then just negative And interesting If this allocating would you gross guess, coming hear year, if of

Vandana Sriram

Yes.

between So total on earlier will we approximately spend we had that of 'XX. diagnostics, a and 'XX million signaled $XX

For most XXXX, on of the commercial side. that spend is

the [at well kinds So [very all we've we'll as get needed on to be of of as we that accelerators]. similarly year, late] really those much have test last to ready it and to XXXX, for along cost traction team. billing we but needed the There'll infrastructure then, street enough right there's that's to support more costs getting feet perspective. the from some a We commercial full of That the what capacity already be reach around those year the out primarily get team. of happened everything to We to have that so get message and going. And don't getting the the [team]. things, amount think think takes get costs more and really lines, our it's a for footprint expect onboarded out.

want we thing somewhat one fortunate balance is add we're have said that sheet. strong a Having I to that, do

can and as If it's pull well. moves move going it on spend we'll it, as worthwhile and to more it that, faster moving money need opportunity slower we're we it's to we So diagnostics a back, lever. do pace develops. to the If

for of face this, kind but broad framework this to continue is our now. we'll So

your stage about on margin don't to just to diagnostics, expect question negative be margin this portfolio. on now. we we then, our to right at or overly it don't dilutive But And know enough

So as what of information, more as back come a tests in, gather we it we to like. looks have better see we'll sense start and more

Operator

Nam is And Scotiabank. our come line going from next with Ji question to the Sung of

Sung Ji Nam

on it and endpoints Phase BioHermes are you the the studies, So could touched asked little I what for a on CANTATE are of and on measured? then both you questions being next the but just of steps Or the kind trial, bit, being for elaborate what what are the trials?

Masoud Toloue

the the sets dementia at individuals include and we Amsterdam patients look So and dementia, then that's AD trial. with the recruitment there AD with And MCI mild sample that clinical in through and MCI BioHermes was cohort. of

So the the or memory for BioHermes, and PETs our cohort, then had looked the where they they clinics at CSF; status. amyloid Amsterdam ADC,

test. and specs patients received came compared with those clinical from using they up thresholds of our we or those, of establish the standpoint. a PET, each CSF then, And So were of our and to test diagnostic our platform

X. And And so at for memory once. for just markers so going X but doing X a] to that's CANTATE, at what we're Phase phase [in be or patients to up we're prospective the single patients memory enrolling multi-marker markers able centers, second setting, then, this marker, centers, beyond for look is, testing to on

Sung Ji Nam

now? other as platform platforms they press launching much the Simoa Or blood-based in on are mentioned well? solely you they curious, was using for using the the just their XXX diagnostics that Eli p-Tau just Lilly platform. Quanterix then, release pretty Are And

Masoud Toloue

test. aware Yes, the Simoa for XXX of we're platform diagnostic their only

I presentation data very think the last that nice was conference. published interesting a at they some poster It had.

that's all we're So aware of.

Sung Ji Nam

increase it something And array new platform the is the different? planar totally Simoa on based is development, then, the Or just under platform the on that lastly [indiscernible], platform? or

Masoud Toloue

Yes. It's and based technology the Simoa platform. on the Simoa

single lossless the across it's So molecule sensitivity resolution channels. but multiple

you typically, look you and when add at to as people multi-plex, start things [plexes]. lose resolution you So

goal high it these is key precision so make to And for our biomarkers with lossless. and sensitivity

And lab. in based on the Walt original it's technology, invented which the and that was so platform

Operator

This further is to no This [Operator Instructions] going today's I'm is questions. to conference conclude also showing session. conclude call. question-and-answer today's going

Quanterix (QTRX) 29 Feb 242023 Q4 Earnings call transcript