QSI - Earnings call transcript Q1 2022 | Quantum-Si incorporated

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Quantum-Si First 2022 Earnings Call. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to turn the conference over to Juan Avendano, Head of Investor Relations for Quantum-Si. Juan, please go ahead.

Juan Avendano

Good evening, everyone. us. joining for you Thank Today, after first results the released close, ending March Quantum-Si quarter financial XX, for market XXXX. A copy company's the available is of the website. press release on

Interim Schneider, Joining Executive and Claudia Officer. and Jonathan are Financial me Officer; Rothberg, Chief today Chief Operating Officer; newly our Patrick Drayton, appointed President Dr. Chief

uncertainties statements actual to statements of meaning federal or laws. These I'd Before that materially those will the we like differ begin, cause be anticipated. within management material that risks events to and involve you results remind making could certain forward-looking from securities

appears Additional our information regarding in these the release. entitled risks of and Statements uncertainties Forward-Looking section press

call description company's accurate is time-sensitive as a the complete the as information of Exchange with only For any today, broadcast law, update the by Except factors, company forward-looking conference or please or and XXXX. of disclaims filings list May intention statements. contains made revise required to any see X, the and that Securities more live This risk obligation Commission.

this be comparable measures is are release. will Jonathan of accounting in EBITDA. financial certain reconciliation to or with most accordance the that, GAAP, With to also measures will generally principles, Dr. U.S. Rothberg. A referring we prepared call in I that including over now non-GAAP measures GAAP adjusted press financial financial the to directly During call, included accepted the turn

Jonathan Rothberg

today's call, XXXX. first provide Juan. you, will quarter you for and Good for Thank we performance outlook afternoon, In everyone. business us. present financial update joining our and our Thank

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Patrick Schneider

honored I'm impressive future this sequencing. protein to Jonathan. you, Thank next of help company generation into the lead

instruments Benchtop acquisition, technologies of led to new During the molecule my Flow single kits. many privatization and counting proteomics I market sensitive past and appointments, from ultra introduction Cytometry

concert experience done and big throughout protein exactly talented joined technology to developing now challenge powered protein a deeply with deep are applying team sequencing to is it the done single of with productization They've what before instruments has the way, their a digital I and thread, And potential challenging it proteins impressed transition is product, molecule unique proteomics and again. to and gen a problems that emphasize in It instruments is with are these to deeper working a next-gen solutions doing and the of development. are All have their knowledge their collection understanding career. and unlock common market, has in in drug That's that here. sequencing. DNA sequencing next drive it I've to to I'm for level which skills technology my the company disease. and and variations I platform any a talent introduce Quantum-Si's because most some of analysis. deliver the reagents by research software and had into health a of associated adoption. of the proteome,

solving last action, of are drugs too need mechanisms career difficult average, develop class, better of to it or On action. years Digital first develop with And or too to Back expensive. named XX% drug single happen their drug of which work target launch novel conception need sequencing from medical slow to technology as gave to clinicians, pharmaceuticals genomics, off, pursuit have and in wide this development. I'm digital in what mechanisms challenges XX this technology scientists sequencing as proteomics dynamic, not faster, and levels might to takes approaches approved of find protein over the fueled individual Proteins half in our be today's field, law, protein Again, needs. and Moore's difficult That's Quantum-Si's modified of scientists we finding of a and approaches. protein I too expensive help past next-gen is billion excited $X.X understandings coming of analytics with team with to Rothberg being in are build a find on spent Quantum-Si. all sequencing proteins target. DNA a per of and is next the in and technology during this to ecosystem. The unique range increasing protein proteins. Dr. promise expression, several tell unmet and ultimately answer transformative what develop. protein the I'm ecosystem in death insights order the center of honored generation are and sequencing now. In my XX envision decreasing and new drugs or about find new associated importantly, targets way to and applications I year. downstream that in technologies an happening the Quantum-Si's of for I'm help estimated proteomics to into new means sample next-gen new new building The company. and drive to potential part President of turning rest to about years using health. and Next-gen that of Jonathan. in to of dedicated questions drugs the and profound with chip to lifetime. ecosystem impact ways on why molecule upstream I've the to no an answer to start life processes to or been the most to closely years first current the the that power eager processes scalability semiconductor have the next we its bring have their you, of and a we COO proteomics Jonathan

Jonathan Rothberg

on in will continued enable being progress, strong encouraged this launch from a for go start focused this We're in I we to quarter, half of I continue committed to all second launch. XXXX. like saw team the that you, us Patrick. off year. Thank launching Patrick, systems go and to the to be to

number chips, received On our we the the in completed are on we're the our have manufacturer. a our And already facility. Valley, front, builds successfully operations well we for readiness. Commercial semiconductor executing tech contract With from of to Garnet to progress. chain transfer supply instruments regards Pennsylvania platinum units

packaging this reminder, of we Majelac in-house acquisition last Technologies in a chip facility brought the of assembly to As is year. that a and QX

are future support production up chip We and year this capacity years. for scaling our demand to

by well our are multiple team These I'm most library group In for closely with and prep placing are has and working a consumables advanced vendors, in. of addition, we the industry have some a we as produced. are protein key to complex both the confident orders internal as sequencing great launch heartened vendors components. of reagents, preparing consumables And to

ability by in XXX we doing will doing We are best to R&D. instrument investment our well During significant as What XX QX, is in retain activities. of our affect accelerated and attract application What are unique. What as headcount increased and we talent, our to game science to all class we Thanks changing. development research aspects life healthcare. are is doing human employees. and

advanced sales for front, funnel establishing XXX than and more On the growing. leads a we commercialization are

will Our Among business the other robust the marketing development include half strategic initiatives. attending industry has team plan year. of in a conferences second which several

in coming will We specific events the announce months.

we application notes use single day. be sequencing the context most understand the people must to demonstrating over goals fit of continue interrogate clinical of applications on beta-amyloid website. and in to progression of key page significance technology Information newly release today. is and to workflows white variants the end, every products, and several of and of our the this application we molecule One sequencer months on can how papers be customers we the an successful, our recently work the our into common our demonstrating technology To protein platinum note in found and the To next the Quantum-Si's describing released Alzheimer's resources pathological use approaching created in Quantum-Si disease.

system to financial support performance access call review partners prepare our to to own these projects. to initiate Claudia they to continue In over research and now results. addition I as validate initiatives, their early turn the will we our

Claudia Drayton

Thank you, everyone. Hello, Jonathan.

total a company. the being quarter aggregate, million up and the XXXX earlier million was to to details the $XX.X loss compensation SG&A of and associated $XX.X including of The to million were the first stock the first $X.X table and of of reconciliation the provided of the to a compared quarter by release costs quarter the financial first In in EBITDA expenses XXXX in the general by filed employees increase quarter EBITDA the $XX.X million quarter compared $XX.X expenses $XX.X XXXX. loss first $XX.X loss increased first primarily $X a related in were product of $X.X quarter were was development R&D to discuss XXXX XXXX. The XXXX. million expenses expenses with XXXX. activities. driven driven GAAP in first based of Selling, of XXXX. our is Net was Research million press compared loss quarter expenses was in to for quarter of performance. a quarter expense in of number A to of Let's in Adjusted in in employees, additional million adjusted the increase our of operating in in compared million first administrative scale first today. public XXXX QX, million development $XX.X million compared net of and

$XXX.X can securities. As had March cash this The equivalents the reflects $XX.X quarter. marketable in balance we during XX, believe XXXX. million of support and that XXXX, cash losses we position marketable in million We recorded the securities through year unrealized operations our cash, in

to expect to like GAAP closing now I'd range operating the turn we Jonathan over the Finally, to of XX% remarks. to in for XXXX. grow back expenses within XX% call

Jonathan Rothberg

you, world's science bring evangelize the love. leadership first to our open summary, day-to-day COO. We've help save strategy life Operator, and driving transform of exciting life to questions. and and parallel, will operations, that generation the made next Patrick, technology gifted focused the I'm In of to software the projects operational you ultimately, protein the and company Thank someone massively identifying to for substantial the on Claudia. and towards I'm progress of please technology, sequencing world system. excited launching research pass new President research, teams commercial,

Operator

with [Operator Canaccord. first Instructions] you. Kyle Please Our comes Mikson question Thank from proceed.

Kyle Mikson

questions. welcome Patrick, board. for thanks you And the guys, have to Hey, on good to

be So continuing it's know It if I to grow of your the but in to I a this half big kind I assume it's many be the that continued to to full to [this safe nearing want convert you guess. would might guess could place. then that remains year year]. just leads so here any guess the I'm throughout there of first that that to that Thanks. like frame launch. we to launch And the talking launch heard to wanting XXX plus post modifications or about need be before optimizations way or first the kind be And sales target funnel second if just here. good the, quarter. like are how platform the I think day, expand to of commentary, done maybe in wondering the basically

Jonathan Rothberg

Great question.

mentioned, And because But as proteome. desire DNA makes you proteome. are as the immunology now sequencing the understand adopted point, cancer this of now don't the we're the sense, answer seeing majority of interest. an diseases And what's that to is questions measures sense, of labs makes COVID As the of of watched target surrogate on through and rule, and going generation they had XXs At to this Historically, we complex And the to which at a XXXXs sequencing we're to know, of disease through in diseases proteome. intense of in gone the next the because you immune-oncology protein give before. genome. have we oncology a are long seeing we've majority RNA. this drive ready drugs quantitative do sequencing, level. that terms general with And a

mass or which million with they a moment facility dollars plus access to intensive capital. where a half a cumbersome there's experiments, of proteins, Now, it's and needs either core but and want spec, slow

we're interest moving all projects, elucidated. wave understanding next protein biomarkers DNA the now of huge from driven, DNA organizations their that drug problems a work of has So it's analysis continues seeing be focused the step on because development, their and behind or are that whether to in

FOMO strong is of all growing and it's world because the XXX that are driving positive those And shifting is demographics So growing. us.

by being are analog how competing other protein modified. is can there, technologies you it's The about analog not your that realizing do people and is which protein it's but technologies, are whether

XX,XXX proteins ways. a modified So million be those different over in can

having from an from now with a using need, right to understand really urgent for and COVID and world about immunobiology surrogate especially So proteins it's genes proteins. as shifting RNA the studying

Kyle Mikson

a lot Okay. It That Thanks Jonathan. awesome great. was was answer.

with you've I know these did early what QM that you applications are Thanks. of know these of you million this density now commercialization. projects confirmed can -- by in But chip, I like watching I the conductor you're like obviously chip stages drill And confirmed chip noticed to before. X on Khoisan, has now with again, now just users been be you're that actually you're allow on I So that already I down to this at. that touched of going looking kind but will two confident [indiscernible]. bound it's the application QM the

Jonathan Rothberg

concentration questions orders analogies proteins, from I in on to four for off with love sequencing. ideal the questions. and again, blood, fluid And the as in columns, are your chromatography magnitude panels range right focused on cases, X generation coming I'm to match be who next three cerebral of launch, at us of terms these drawing XX over but now, And from they're can spinal most proteins. of people

if example, interested are modifications or XX you mTOR on For and to development, want see you're work down if pathway, in those the the drug you there proteins, of proteins pull proteins. new cancer

the together; we throw of what to in one the or else the any targeted, of molecule generation way, problem, on what in Venn framed X now. RNAs do; XX. you, comers we chip got do now, to an like single the company new I got happen who no modifications [indiscernible]. diagrams, there very And wants a and can can fragments that worked to diagram But we same discovered at on problem, thing next can protein that wrong the do going can often small people it fly great and I So answer. proteomics same see and we is when Because are want get grants, coming see, as biology, direction to Venn look questions, the famous, sequencing, small that two world tell and the two all circles what

sequencing was to that sequencing. translates mechanism it XX get focus want focus and use next aging, into will COVID, whether targeted. those the problems, terms be million way you But problem, distribution. in work at general So or [indiscernible] to where in wells, But immunology, or generation transform X of their action. X first, answers they're biomarkers, have protein you able by of of people this ask drug will same an proteins who driven the and Again, is

XXX,XXX X get of statistics did recognize like difference. and reads, only the X four people great with is be happy proteins the XX, we chip to just over on XXX that concentration we'll magnitude giving you that when you XXX,XXX will break [indiscernible] they three to or million to on So DNA But start.

save focus So you, investigators get loved. I the somebody us you problems and will famous, drugs grants, promise absolutely that working of will will get with get biomarkers and will life

Kyle Mikson

Perfect. Okay.

applications of they gen lot to to capabilities, other the scalable actually, of and do respect to and platforms, drives the Quantum-Si ask, PTMs PTM. of in some underlying just post leverage [degradation], maybe I confidence kind protein what confidence thinking maybe with them that modifications kinetics level sticking companies else know with next platform? a Just it's or the about I that that or the Jonathan, like have I relative is something generally of the translational just yours, of want given technology

Jonathan Rothberg

question. the love I

you have thing So to when four DNA C, you platform can sequencing, T. have a distinguish do that G, A,

a have XX we're things, the watching of our plus distinguish binding kinetics platform We can that because events.

most are [indiscernible] first we acid, why common we so potentially can and trained see [indiscernible] confidence of to tyrosine have modifications atom, this change one a means when have on single is our most the of translational is start, what recognizers, And common [indiscernible]. Methionine, the single it's important a I that oxygen when next post formulations the amino will to system and recognize which we

there realize XX be look as as modifications. you at when However, many post you modifications, types may of translational that

have a until sample but an with tell we mass may be what we will And set, all those have in tell confidence you spec a people to we'll able training. be with able you won't that sample. up you or modifications that be versus proof, modification identify so those way, important this will truth able see to often by But follow is to without of the

So those have intelligence code together start And for modifications. protein, have and identify cannot, over the understand our we're I the genes or see confidence, different we'll but modifications XX,XXX over to only more. common you months, to won't a to but will systems them, competence we'll common we'll a because analog training But probably them. for million able proteoforms, proteoforms, can't artificial time, while be the able next see see few over million phosphorylations, Again, technologies do reagents.

a platform. So This not but is atom is this literally platform. single learning modifications. molecule, it's a single powerful And examples only of

law XXXs to Moore's enrich that have in that it's drug aging really and degradation those And all problems investigators proteins on with biomarkers just technologies. So of exciting the I samples, time. an like that protein can't will will by discoveries one, unaccessible, are crazy of for focus this and But or know real other and understanding you couldn't for be uncovered differences matter key profound things be day dark XXs DNA sequencing. we have Again, modifications platform. samples like going protein make answer and that

Kyle Mikson

guys type projects Okay, running? strategy. sort great. And of that what Patrick was little the I in order ground a before training, for on was customer maybe prepared a team remarks, mean, to sales, hit the happen whole of guess, this like for bit in to you has initial on or I launch What touched question

Patrick Schneider

question. a Yes. Thank you It's question. great the for

really obviously us For that place the that with the diagram was and technology Jonathan applications understand running, in ground about. need key to to talking we Venn the hit

application adoption the driving around training doing sales well the so, working with but we're in as certainly technology. technology, of closely so team And customers areas, those also the as

we as so And this process. key go through that's really

academic to as things need and for different do and the example, we is biotech of One well also pharma as they'll have needs. that researchers, target,

develop For with to example, academic researcher, research, and in areas. you'll more application particular the be able closely application

the the announcing more a leads. trade market interest, perspective shows and, soon be will and of some that of One more more year, attend we're is more doing from and last things development of commercial course, that in half generating the we'll

in terms getting commercial for sales lot launch, of with a organization getting be also happening ready, ready so will closely of activity working us the And throughout and year customers. our

Kyle Mikson

Got it.

from final Okay. of currently? That supply you for right like, positive, my Obviously, have on super earlier that. enough still chain. just the in And quite wasn't you pretty ask Maybe inventory clear just do was are lot awesome. opinion. remarks. now. commentary I that the Jonathan, wanted building Thanks kind it the was Or question a like to topical on

a bit want So just I to little better. understand

Jonathan Rothberg

God, great decades worked on And Mina number these key been has of really a Mike question. me for that. with issues. has on Michael

for item I who the any people have parts this platform So creating and chain. to with reagents say hoarded of the gone in but on We pandemic. year XXX paper of stockpiling the year next all supply our demand. we're beginning the doing the hate it, where reagents. toilet key through like to platinum stockpiled meet same and We're and we're key literally

supply We've ahead game. of So we're the chain, of on game. been the ahead the

seeing and of the assembly we as supply are well equation part world is seeing the labor a issue both a as Second issue. entire and the chain is

with we're we're assembled working but to we don't fully actually So just our deliver the make parts, now them have units. sure having suppliers closely

this verticalizing. meet in you've to ready that are some with seen And cases, and we we're us, So demand.

enough mount into them capacity, wasn't example wafers there for So and chips. dice to

there. and our So we bought transferred our have supplier technologies

before. Some that is McKenna assemblies, I've this take may we verticalization this has have happen before. has in of done our Mike to Patrick sub news done good where this other of before. The done over.

for last ahead. together we're the have months. ability And parts ship both and going been But and getting XX it's has labor, it things them. been a confident the we So huge put I'm to on and the quite

question. no stockpile. ahead now before do of in to just you as is different great There we've inventory of type ever But is thing than activity it time to have it. because We're such a anymore. had So

Kyle Mikson

great. Right,

the say least. encouraging Okay, to that's fair, though,

Appreciate I'll there. leave it So it. guys. Thanks,

Operator

at waiting There this time. no further are questions

management the conference for closing to I'll remarks. over team So the pass any

Jonathan Rothberg

earnings We for on quarterly Have updating you the you forward good participation look to in our progress a next today. your evening. Thank call. all

Operator

That Thank participation. your QX, earnings concludes the Quantum-Si call. you for XXXX

disconnect You now may your lines.

Quantum-Si (QSI) 10 May 222022 Q1 Earnings call transcript