QTRX - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the Quanterix Q2 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Francis Pruell, Head of Investor Relations.

Francis Pruell

Thank you, and good afternoon. With me on today's call are Masoud Toloue, Quanterix's President and CEO; as well as Vandana Sriram, our Chief Financial Officer.

would remind I few of begin, things. we like you to a Before be replay will and on call the recorded This will a within meaning section our U.S. statements the of will website. Today's forward-looking call contain the of Investors available be Litigation Private Reform Act. Securities available may expectations These information not statements. the intentions based or actually in and are date our the statements management's beliefs achieve of forward-looking assumptions of disclosed forward-looking and on on as this call. We plans,

Securities business earnings today. website presentation are in in our financial encouraged believe forth measures measures important reconciliation other GAAP. Investors measures review information and risks, to and GAAP as presented our that comparing materially meaningful considered allows uncertainties, implied measures. financial our cause to with the in performance Commission. To unknown GAAP and conjunction issued our any operating accordance statements in other Exchange a performance a on their posted and performance may filings appendix and be used are Forward-looking in financial that performance expressed with by and presented these involve non-GAAP results, presented comparable and to a assessing we with the have periods' that not with of for the certain supplement basis, assumptions our financial current risks in described statements. The evaluate industry. or directly such uncertainties factors known results our and period-to-period of information or Non-GAAP measures the non-GAAP future comparison financial trends forward-looking achievements in or to release are of in results achievements different most substitute the that analysis operating results, the our our provided are actual we to statements be the These non-GAAP competitors. We and the from within manner herein for face should set

percentage otherwise any will discuss a basis changes on year-over-year unless be we Finally, noted.

to over Now, I'd the Toloue. like to call Masoud turn

Masoud Toloue

with Starting to constrained revenue Francis. funding continues muted million in Simoa for total sensitivity by you, second a demand overall environment double-digits. Despite growth grew space, and expand our the results, capital quarter tool $XX.X Thank of XX%.

quarter's by our access very and signs customers CapEx, our XX% This progress driven and business were lab consumables X% of results where from without from Accelerator enablement growth with tech our can diagnostics. partner growth the early

XX.X% will invest assay was Second and of we growth. ] our solid continue quarter yield in future non-GAAP expect we which gross [ margin as development,

for BD-Tau in are 'XX QX, quarter our assay on and building end a markers combines track culminate NXPD BD-Tau a of multiplex neurology-focused successful additional relevant in total with to diagnostic three, for strong into in growth two, and core in neurology, more updated by the allocating assays on resources menu, X growing leadership a of nearly will remains maintaining neurology complete with we're an our approximately expect on the Cash new in labs, to multiplex our objectives in and high position in of and we pushing these leadership In and half test. touch and in this specifically year. into one, guidance adjacencies; are: position Alzheimer's new Simoa which that detection a protein for million sheet $XXX ubiquity liquidity. testing platform; ultrasensitive new first was we results X in launch heavy growth usage detail. Recall, our forward investment We frontier of of XX with $X are all commercialized oncology immunology where in balance Vandana Our the million. a plan menu. of disease. Starting launch period will X and

back which this Nature demonstrate position and half powering researchers TDP-XX Simoa menu in the also We publication targeting. dementia that evaluating to we this has panels clear discuss Medicine, were using vesicle neurology. clinical biomarkers accelerate and frontal able and later tau and to will expect our suggesting launch with extracellular of In continues new to and a lead, plasma were year. Simoa both progression leadership June cytokine in research, ALS, disease modalities recent 'XX, for neurology, of temporal exciting effective in several a neurotherapies. Starting trial trials exciting clinical

their for a generated Annexon screenings. Staying data that with Sciences, in lab, Biosciences. Syndrome, III researchers temporal metastases the was primary Next, and used intent risk to these brain the indicator brain oncology, results as treatment by National FDA and Institute our recently, to qualify an on III Journal drug MRI which biological agency's by those to clinical ALS, May, its trial NfL levels. Guillain-Barre is International in in effectively by Phase and there's relied can FDA which lung the NfL, important promising extended of the met cancer. of accelerated effective serum demonstrate nervous review, In drug improve again line biomarker the development for patients immune announced approval condition positive pivotal upon high higher recognition the trial growing system. Utilizing for GFAP a frontal potentially degeneration. This QX, was tofersen showed able the in part attacks Accelerator in show Health Patients evaluating this Annexon and of to metastases the NfL as reducing that More in efficiency builds system acceptance their were identify top foundation its compared trials. the from that NfL GFAP using peripheral in Molecular for suggesting evaluate in Biogen's XXXX biomarkers in trends NfL NfL biomarker of upon Phase Simoa targets received Annexon endpoint. a body's at with without, patients of of

weeks of in therapy. endpoints, pre-specified demonstrated of X with reduction Annexon secondary In improvements compared which between addition, X established one other early therapy delivered and NfL biomarker their placebo to the

Association Moving market biomarker. Simoa's this trials forward, pharma clinical incorporate leadership AAIC, levels customers opinion evident field build to and among will key at Alzheimer's as evidenced will expect and or International for our ready cited the monitoring NfL conference. the leader approximately neurology XXX the was has Simoa highly helped by be more leaders, as in at in researchers of and support biomarker presentations technology our we last Conference, detection sensitive platform posters the week.

of continue approach Alzheimer's Our to to pharma was to with and our generate platform for our is important for highlight and new week with at evidence multi-marker key academia we entrenched AAIC trials. The testing. data on work pivotal our data clinical customers publications and

follow in can other therapy biomarkers blood-based multi the ] patients the will and data believe trials, that an cohorts improve provide. have independent map. XX% XX/XX, from believe combining agnostic CANTATE that U.S. clarity with and the multi-marker Our today with analyte derived of diagnostic and was BioHermes GFAP Beta Alzheimer's accuracy of road presented than from the will diverse X Alzheimer's. selection diagnosis We can XXX p-Tau to future test pathologies XXX Alzheimer's approximately Amyloid these a X and algorithm test. We a of [ compared p-Tau symptomatic patients million and using NfL, standalone highlighted benefit

for patients a clear We fall. Staying to provided a that Alzheimer's used. It the is limits our data visiting CTAD I patients to is than for results due p-Tau not will on get numerical if early at we'll share sample results get Simoa up a to for best-in-class to detection a progresses on able date, later other disease. Other of test may year point means to provide sensitivity. To of every make further platforms' tested. XX% are blood this over why well platforms diagnostics, every numerical single result patient want launch time. that To up this Simoa platform be Simoa multi-marker XXX a of is X,XXX on and testing, LDT to clear, platform Lucent competing has amyloid understood for those not neurologist XXX

Of we reason measuring is best that value blood-based test late with the family each get Simoa measure clinic. in numerical and there tested to progression testing. early for a should someone believe memory Someone the history is available, simple is the time blood-based early this for to concerns

are efforts Our commercialization for progressing. also Alzheimer's diagnostics

X reference large approximately the we U.S., X UCSF, geographic with which including quarter, labs patients in broad partnerships Health Mount million Sinai, reach. see specifically, the both new announced and engaged representing partners, systems X we new annually. and hospital More Within Banner

and announced our building partnership our partnerships early also testing. Vandana We has relationships in in labs our and will Kong detail. more set up the with discuss XX Hong steps KingMed, for Mainland performance announced now previously financial in build Alzheimer's infrastructure the upon which Macau. These China,

Vandana Sriram

updated go over our second Masoud. results I for now you, guidance and XXXX. Thank will our quarter

for growth remains million, of quarter as was the million, sensitivity. to was year. Accelerator of lab instrument $XX.X demand quarter was of $XX.X a was robust XX% strong another revenue the revenue increase the for million, Simoa was QX XXXX described, prior of compared Consumable revenue and decrease executions compared an double-digit to an an $X.X X% increase Masoud year. Total million, XX%. revenue of of $XX.X with XX% increase prior As second

customer the [ our at Accelerator between XX% pharma academia of assay terms In was of and states. and mix revenue both stratification, disease for sales, in neurology ] our period XX-XX approximately

for under consumables the we quarter patient to to In and testing our by recognized partners the our in million $X.X LDT perform quarter. addition, platform from instruments, was of them Lucent enabling diagnostics testing immaterial revenue related selling licenses. Revenue

Our was by which led grew respectively, and XX% growth in revenue Europe, and the America North quarter. XX%,

the the in size end market remains down region a relatively Asia despite in was period, its Pacific XX% portfolio. small challenging business in our China Our as

have a QX that 'XX In onetime repeat revenue adjustment addition, a of not did region. we in from

performance For installed base the quarter, mirrored our total QX. increase our in

persist surprise, XX.X% of this compared a up approximately the gross down to points through margin and gross balance we XXX for basis QX. GAAP prior remains respectively, budget $X.X not overhang million were to and and year. to $XX.X continue million margin and to the While difficult expect profit next the environment XXXX. Shifting capital

was XXX profit was gross non-GAAP up second non-GAAP XX.X%, basis approximately and down of compared and to $XX the million quarter respectively, Second points, gross $X.X XXXX. quarter million margin

items the gross operations in is basis change margin of compared investments quality reminder, we the made had to part revenue As in which XXX gross quarter The 'XX to included of approximately flows QX compared margin. points the remainder onetime gross at incremental on of of impact $X and a our as year second to in several an XXX% million 'XX, the margin, transformation. framework through impacting prior due margin of that positively

the As reminder, in place half investments these of a XXXX. took second

Moving P&L. down the

targeted compared the to operating higher the to $XX.X of towards growth Advantage pillars, call. More clearly million, GAAP $X million, start are specifically, investments 'XX. and prior increase to of year. due an operating the prior expenses, an platform, QX quarter new menu compared These R&D our $X.X defied of regulatory continued in million spending Second Non-GAAP are marketing our highlighted compared and to primarily million in our year assay commercial allocating expenses efforts. we the Within which our and our increase Masoud investments were to sales, expenses $XX.X near-term to resources were diagnostics. PLUS operating efforts build-out was

we of securities cash, cash to making these are of quarter $X.X a We Cash of period the the ended balance with cash. outflow We second million. because equivalents, see the net marketable demand. Pivoting restricted clear million of sheet. and XXXX flow signs in was investments $XXX.X

And growth. continue organic we investment to Our strong. liquidity in prioritize remains

of This the be by full from growth XXXX. The change midpoint. is of XX% a $XXX to $XXX diagnostic which XXXX revenue guidance in from backdrop second instruments. on for driven Moving a range representing outlook expect excludes updated at revenue LucentAD challenging testing, our the will we range million, is revenue immaterial million year our double-digit in quarter,

that be the guidance to an also for by whereas knock-on on QX will will weak that revenue pull-through. These cautious robust. anticipated Accelerator assuming of had approach a demand half sensitivity a changes XXXX, have assuming environment uptick and Simoa in partially second consumables QX the taking we are half. are our strong in capital and in remains offset where We consumables effect similar execution expected are the instrument first to previously, We're forecasting

in us result to in total, in slightly then being QX addition an We flat in to guidance in compared QX. In these expect normal updated uptick this and also full double-digit our that will sequential execute continue growth, year strong for expect strategic Throughout that our XXXX a to setting and we indicates priorities, to growth challenging. remains while macroenvironment in well on period, up down QX our to business updates revenue seasonality beyond. acknowledging

We margin of and to are XX% XX% to margin guidance maintaining non-GAAP guidance our our GAAP of gross gross XX%. XX%

to previous at lower cash million, we $XX assumption of Finally, of cash now burn higher $XX of our end expect the million impact to primarily usage be to revenue. the due

use-only at final flow opening will $XXX and be to levels cash research will questions. over breakeven it million. I to for $XXX We call turn business million thoughts back revenue now between Masoud before his our continue believe for that the

Masoud Toloue

want hard work I thank team for great our quarter. and to their another

sick Your exciting making shift a from difference health at care to time efforts are be an moving to the care. real It's Quanterix. in

detection you're want early super and those a give protein in call. to translating redefining boundaries disease, of If to talented detection to individual I participate and us a suggest

Our business growing is double-digits.

for are investment Alzheimer's. line cash a new asset an flow. X and of there of field the now approved scale basis FDA in will This, and the see Our stand-alone growing margins has and expand on sight protein positive gross incredibly to therapies said, is company tools. That reimbursed valuable

available. work diligently ensure access is treatment and to testing we to As broadened, access to will invest resources is

Let's take questions. some

Operator

first Sachs. with today Instructions] Our Matthew from [Operator Goldman comes question Sykes

Jake Allen

Allen for Sykes. This Matt on Jake is

I So you to thing given that potential rental to is, have capital to over the drive want or continue given instruments year, equipment instruments about reagent about pull-through for thought soft? past remained one the any talk in order fact financing weakness options have

Masoud Toloue

and fortunately, great -- option program. in that's with We're have. seeing reagent pull-through a platform that we the good instrument Yes, our it's Accelerator

So CapEx probably to our Accelerator. sending we our have cases demand. rental for good today. customer reagent programs been consumable it's who there's had where offset They've said, samples X, That large couple doesn't a had or where a somebody

to something been it's able absolutely have So offer. we that

Jake Allen

that blood-based approved drive offering? any Lilly's about gotten Lilly in has you the uptick? talk relationship And their Kisunla throughout therapeutic now And Lilly biomarkers FDA you've using [ with my can follow-up, for ], CertuitAD then to your LDT regards from to feedback

Masoud Toloue

Yes.

period, and we're the So test. together about collaboration both in this have that's done CertuitAD very the excited culminated and that Quanterix work Lilly over

yes, [indiscernible] details think were blood-based at therapy. tests was It these I teams for that zone. test have if and both that patients to presented candidates the So you the I spec, could work. In low look be be determinant that of. testing, of accuracy evaluate And excellent with to at high AAIC, type sense test lot are a mean, proud

with that going and the we're in continue access. test a it's So folks hopefully, future, to to support expand

Operator

next question Scotiabank. comes from Sung Our Nam from Ji

Sung Ji Nam

the be assay, on when you utilized Just the multi-marker feedback a on gotten couple at to to testing? AAIC this Alzheimer's approach you've love disease predominantly expect to Would hear you And XXX stand-alone the over this assay? do testing. launch p-Tau

Masoud Toloue

Yes, We -- I think that's -- the answer is yes.

test. the we're our can of future So multi-marker additional testing be first to keep the we is a that zone time algorithm. for of used cutoff we and think X XXX to able X-step biomarkers by blood-based when Sung We intermediate the going to Ji, additional at AAIC, the the alluded, for biomarkers, test. And you added three-fold, as while showed p-Tau test a high the accuracy we reduce

greater number certainty it very the with does a results. for pleased what of And more we were So symptomatic is provide that helps patients.

marker for multi-marker developed this of probably the about a is talked tests. some laboratory end absolutely exciting. before So And launching room test test. We've this year the single there's as

Sung Ji Nam

then you just as your it's expanding see to And collaborations guys the follow-up, large great health a care with system. on

the do Just likely if up, curious of that you? ramp-up samples color quickly the Just curious, could could any just the are they of they're more you you're making, sending or to also testing to -- progress ramp on kind standpoint? and from provide kind planning the they if how directly if internally

Masoud Toloue

Yes.

time and the quick the have order of exceeds to we've have in of say a that be ability themselves. around. ability things that there That would have -- platform some all sort flow to to taking look this if I send said, our the at ones them will they're Just to partners some their that, perform intake able testing Boston. of capacity, always at us listed

unique. performing partners lab, the have send that but out [ to option and I that's here test So lot of a this Simoa of think makes case, are ] offering themselves, think I them there's Quanterix the what in our we

Operator

Dan with TD comes Our Brennan next from Cowan. question

Unknown Analyst

on Tom is Dan. This for

Just another test. the on housekeeping one multi-marker

clearly, So we should first? do given to studies improved FDA later launching submission Or LDT your year. to see we need this prioritize the the performance, you're you for that But expect more test?

Masoud Toloue

Yes, we submitted a single-marker that's that test talked We've a [ good question. that We received single breakthrough about. marker. ] for designation

clinical As of you completed and we've know, our we've earlier CANTATE. trials, calls, talked and kind about it in BioHermus-X

complete. single We're II the of multi-marker. So those are where the collecting on Phase and Phase and we're both Phase data, in marker I III

provide we're we're the effort with might data that I have And for we determine putting should ideal say application work be for what So would IVD in most the the the to that and going FDA. both.

Unknown Analyst

then And follow-up just on Simoa. one

signed the competitor was inferior. So with announced kind X that large where quarter up players was partnership different it in of a have a sensitivity

sensitivity you a speak other your using maybe how going the could all? be So strategy if platform that and to differ that of will fact partner hubs to when are considering at going large than kind forward,

Masoud Toloue

Yes.

So immunoassays built ability earlier has that stages clinical and quantify grade disease. X have platform it's levels been because p-Tau very the to at top the of XXX the clearly on the one there, that's Simoa,

out utility thing high is result. So, achieve receive accuracy, important is are patients that there can best XXX to while p-Tau the there clinical can when that remember a tests all the

Operator

from next Canaccord comes question from Our Mikson Genuity. Kyle

Alexander Vukasin

on is for Kyle. This Alex

that interest get portfolio? that to noticed of do any up sufficient the of closer to inflection take point in bit drugs AD start, donanemab [ effort? could believe in drugs? to regards I in diagnostics ] Or uptick moreover, an scale kind market curious was longer turn the to July, could a realistically help FDA it you Just in in getting diagnostics in And we're have since you approval the your

Masoud Toloue

Yes.

and ramp drug slower the been. are as probably most patients you're that there, for And prior folks But want obviously more calls to concerns PET infrastructure expect I from Clearly, testing invasive key now it's and discussions not testing it improve where anticipated. that there's therapies, see to test. and are the people be real the improve. And looking FDA-approved going there So then the we have has whether first-line been therapy, than to memory that it's just to more for X has ramp and prior think, for been -- tests. infrastructure that the going blood-based CSF-based that's

think going they blood. approach confirmatory. enough the And be good we is to tests that first So are be the that can

So think going overall, that. we're tick building the things should that more XXXX to and to I be up be ready in infrastructure for

Alexander Vukasin

customers? just ] And could the customers more. gotten number and perhaps helpful. assays have your just I feedback was to that the Thoughts converted if level or new percentage on a these ] commentary higher been existing you [ comment be would ] one perhaps [ that wondering on of [ just from you've any of

Vandana Sriram

Yes.

new new our menu. in we're that assays customers the feed of assays our and PLUS process converting also So still to releasing Advantage the

going That both of process are So activities ongoing. is those concurrently.

our slightly of we converted to than the QX, of less customers had As X% assays. new

of to As is closer number QX, now that XX%.

the assays bridging good et we they had cetera. slow. And as first, the little conversions but that on customers to complete number those of complete lot So assay a of through studies, these a require getting have bit shelf, to progress, anticipated,

at a least. to think do of us transition takes the unexpected, the through year we be going that this that is So not process but remainder

Operator

are and program. a in today's you no as evening. further this your at showing Have the Thank conference. participation session And today our Instructions] good question-and-answer for does conclude time, conclude this we does it questions [Operator

disconnect. now may You

Quanterix (QTRX) 8 Aug 242024 Q2 Earnings call transcript