Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Quantum-Si Fourth Quarter Fiscal Year 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today's conference is being recorded.

to Relations conference for like Head Juan now Investor of Quantum-Si. would turn to the Avendano, I Juan, please go ahead.

Juan Avendano

fiscal the Good morning, Quantum-Si quarter XXXX. for today, the of available the website. us. joining December press and A fourth release copy everyone. Thank released you financial for year XX, ended on is Earlier Company's results

Financial Patrick Officer; and Operating Joining are me Chief Jeff today Drayton, Hawkins, Officer. Chief Schneider, Chief Executive Officer; Claudia

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

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

description complete factors, made For risk filings Company's and please Commission. the the a Securities Exchange with more of and see list

information any time-sensitive broadcast required accurate contains disclaims Company today, call obligation forward-looking revise statements. X, any as live by XXXX, March conference that except as to update intention of the the or is This or law, only

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

call the Jeff. will to I over that, turn With

Jeff Hawkins

call, In XXXX an quarter Good provide Juan. will fourth financial XXXX. today's today. you, morning a Thank we for and us business you everyone outlook performance thank year present joining provide and fiscal and our update, for

landmark the was open line XXXX then a We year for Quantum-Si. questions. will for

variation of development protein name This a our XX milestones on Proteome to major few; proteins, understanding development research and XX ability demonstrated during well We of and the of coverage product represents Human as as a more greater successfully front, out XX% the identification the acids. recognize to a to post-translational path sequence we achieved year modifications. XX% the of and than the up to accelerated of efforts amino several

in Science. Our sequencing technology was published protein the Journal

Quantum-Si's acid features domain reminder, fashion a next-generation a amino allows sequencing peptides the level a As semiconductor molecule proprietary chip. protein parallel us in our to method at using massively time single sequence that sequencing

The important publication is in science of next-generation protein this any an demonstrating peer-reviewed technology the in paper our first a as validation major company technology sequencing journal. is from

On contract instruments, and product internal the development we reagent supply of and launch. build front, support of manufacturers in supply up commercial needs closely ships, chain with work the suppliers our and to kits

successfully capacity packaging our we addition, completed and Valley, technology In transfer increase Pennsylvania. Garnet and in at chip activities facility assembly

our shows trade we our On the last in products marketing year. front, of commercial at including the increased exhibiting several quarter fourth efforts, industry

and Chief development appointed and personnel added Officer December. We market Commercial Grace sales as Johnston also in key Dr.

commercialization are brings Life Grace board from depth Merck Grace developing have welcome in lead as and the We Fortis technologies recently Sciences. global to experience Millipore, markets new to companies activities. and of most commercializing Sartorius, very on and our her new pleased such

world's most XXXX single and Platinum, of concluded protein Furthermore, molecule the we system only. research the first notably, launch use commercial for with sequencing next-generation

XXXX. we XX% discipline annual are milestones to rationalization of increasing gap our well we achieve financial increasing entered increase initiatives is implemented while Last able cost we the guidance original a year-over-year. on XX% that all operating several to fiscal when below year, in our This expenses Lastly, front, these XX% rigor. of proactively and resulted

for more Company. XXXX for be the was I Quantum-Si, as but will a year even significant believe to look forward this I XXXX landmark year, year an

creating the of previous is about because new companies technologies Quantum-Si I am and markets. our in I enjoy and As call, new reasons passionate of joined mentioned the one earnings I building challenges

three now Quantum-Si guide year, the for our set has as across through execution sequencing. established protein next priorities the the Quantum-Si To company to commercialize is corporate first generation XXXX. chasm

first chip. Our priority Carbon and XM is to Platinum, the commercialize

system that initial December, orders. in the expect feedback we line last January, and against We and are the we expectations our so revenue in announced Customer shipping completed demand the began Overall, with book our XXXX. of pleased of far. with to is launch in Platinum market we we QX

this to as part more on will provide on roadmap, remarks. Carbon track of prep our instrument in addition, to In automated activities the launch are timing details product his the later we sample year. our related Carbon of Patrick

sequencing is field innovation. of the priority Quantum-Si protein lead we and and expertise proteomics. second novel is technology intend our deep transform the the leader and technical in Our space democratize to with to leverage to

robust Our pending over state technology in and also with by not protected X,XXX a space. we is That being applications. done patent said, patent this issued are innovating

and on the in push and improve activities further in to our will continue technology As leading coverage comment forward more proteome Patrick the about research optimistic capability later our call, development we industry XXXX. our of ability with to

be long-term company is protein de sequencing. novo clear we to want enable first Our the goal to

strength. Our priority third is to preserve financial

I project that into position now have the yielded savings. am details tangible initiatives more cost will cash Claudia several operations have glad XXXX. that, of financial supporting our to executed during our cost current we already results, review share report We improvement our but

stronger. to our been discipline has never continuously fiscal commitment Our improving

believe productive summary, to financial have execute and its In we and Quantum-Si confident technical I'm our we for team XXXX. on an management well-positioned strategy. Company The resources the that, strengthened is and has exciting

Officer additional President and I would Operating Patrick? the call turn now like Patrick, to discuss business updates. to over to our Chief

Patrick Schneider

our with engineering Jeff. programs. progress protein are directed making evolution on we good development, Thank and Starting product you,

are our advance well-positioned amino recognizer acid to proteome capabilities we XXXX. to systems, We this, given our continue in of increase coverage technology

the post-translational by millions the including canonical reminder, not proteoform we a As but XX,XXX proteins proteome, only of mean modifications. also

matter including calls. we hit they very running leader software the in high-quality earnings the a Bioinformatics customer improvements we already a peptide talent of made notable to last last experienced and Since weeks, facing added our ground mentioned the in our our algorithms As call, enhancing have are team. In for software. update,

Quantum-Si we ongoing improvements Cloud expect our feedback continuous in be in nature to said, to to customer rollout. being That commercial from address the order Analytics

We also with inroads strategy. our partnership making are

Earlier a we database this technology visualization partnership to proteomics analytics with an and to licensing year, agreement and visit research development a applications. we into AI-driven cloud into Quantum-Si's entered advance and Biovista's biomarker Biovista, that drug announced and help bioscience firm integrate discovery tool

co-develop the Platinum, protein At antibody protein sequencing research time, partnership analysis. kits preparation leading Systems Aviva products a targeted a of proteoform with announced immunoassay reagent Biology, we same sample for to with including workflows provider and

of of the instrument prep, automated streamline are sample in platform. we track on will launch end-to-end workflow Carbon, on protein Carbon subject our the our to Staying XXXX. help to sample prep

Although that can might in not protein techniques. the in be prep not move We sample the to and second of who for half Carbon sophisticated our suggests data required, onto protein Platinum to enhance customers XXXX testing those launch then begin QX loading proteomic sequencer. in beta plan year. for preliminary Particularly Carbon

across On needs the internal our supply product in ability chain support customer front, external our consumables. we remain development to and sequencing instruments demand and supply and confident both chain

Carbon scaling we're manufacturing in in Valley, addition, facility this of consumables Garnet preparation the production to year, for In transfer Pennsylvania. and our up later launch Carbon the

our commercialization, set first on to Moving instruments of previously customers. shifted as to disclosed, we've

interest. the So far, with level customer of we're pleased

our been the we're directly sequencing expected, research be one On instrument. focus protein most seeing of want and an and the buying to first customers As in academic These forward market. with explored has the moving are with interest technology. who hand, tinker customers

they On the other folks and hand, technology to needs mind, address purchase. the before who but committing are are interested there can want in studies to their a ensure have

order show Investor As process testing these we're folks samples, sales we service offering a data in and which three can us modest this to interested two the process, year, through and mentioned Conference fee. for can through they those a them advance samples or earlier send in proof-of-concept

If do a to more decision. plan We testing only want that help to would make the in. in-source and may that of them we're who don't it validation volume we customers to those a buy purchase we succeed, high technology, extent clear business service we business. require the we acquire run will it expect to not technology intend This is but ahead the to us this

labs that model. implement the in mostly Initial on to install Platinum for a should This their expectations. fact bar-coding. Applications our pleased we're feedback and demand of the the and their advantageous of design our progressing with We're of as with us market in we the own. far. key the been protein proteome so customer be interest prove analysis to scale the encouraged platform, factor PTMs, sales Overall, by line include funnel in was customers are and have business able forms, also and

and Annual So to far year. projections the presentation. attending we HUPO inbound the a increase year, our outbound sales demand the we Conference second our support This as In and the this poster are been sufficient marketing booth plan Chicago, and U.S. of majority of the from we the is for have in has internal week, of first to half the a activities. half activity, where

our turn financial now to Claudia will the over I to results. review call

Claudia Drayton

Hello Thank Patrick. everyone. you,

external primarily of compared of quarter increase in development activities product development and fourth higher costs details in quarter and QX to personnel headcount. year XXXX million internal expenses million our increased discuss Let's to were $XX.X due result fiscal The fourth as and the Research $XX.X financial of in performance. was the of higher the XXXX a XXXX.

associated quarter combination fourth the in administrative a other services, expense to partially costs primarily expenses the increase year, and offset fourth $XX.X of compensation consulting quarter decrease of headcount. million fees, higher that of as million of lower Selling, in a $XX.X an last were by the XXXX. with The took stock-based reduction the in general result compensation compared was insurance in professional result business and XXXX place

included of fourth recorded quarter expenses were impairment acquisition fourth to operating XXXX. In total the quarter a in the XXXX in goodwill Majelac fourth $XX.X XXXX. for of $XX.X expenses part the as compared million non-cash aggregate, million charge million XXXX quarter of in Operating in $X.X of the

million the $XX.X in million Total fourth $XX was loss million to $XXX.X loss compared compared XXXX. a to of the Net was million $XX.X XXXX. net quarter in quarter loss of year in for XXXX

quarter loss $XX.X was loss compared million million Adjusted of $XX.X EBITDA a to fourth XXXX. a in the of of

of net in loss a our $XXX.X a in adjusted filed loss EBITDA $XX reconciliation A million year earlier EBITDA loss to XXXX is the XXXX. of of adjusted to compared million press table release was in provided today. For GAAP

had As XX, marketable we and cash of XXXX, in in investments cash securities. December equivalents and $XXX.X million

disclosed of XXXX. previously we orders year, at earlier an Platinum As began shipping in QX investor this conference

book expect to As in a result, revenue we QX.

belt. our do the we operating needs a under have on and That stage R&D and continue efforts quarters With commercialization, increase investments revenue expenses, activities. to not providing our early of despite optimize regards ongoing commercial being to investment efficiencies, said, commercialization improve higher we of costs we until plan guidance given to in few activity and

earlier, our one corporate in flat mentioned XXXX. To financial year. priorities XXXX to expenses As strength to prior Jeff expect preserving approximately three of is non-GAAP relative operating the for this be end, we our

In cost our position project we initiative, support addition, current the improvement to operations now our cash XXXX. can thanks into our that year

turn call to Jeff like for over now the would closing remarks. to back I

Jeff Hawkins

Claudia. you, Thank

We are demonstrate sequencing with our Platinum protein to of to the our and look commercializing excited partnering technology. next about customers generation forward capabilities

proteoforms amino turning for milestone industry healthcare. sequence drug truly diagnostics, novel also that our The as acids post-translational insights, important but and and believe improved transform for Platinum point future better an lead we ability is and unique the development Quantum-Si, proteomic characterize only of modifications to can to launch not and the of

for the Operator, line questions. please open

Operator

Genuity. Our comes first Instructions] with question Alex Canaccord from [Operator Vukasin

Alex Vukasin

on for is call Alex Thanks this Nixon. the guys. Kyle Hi, for update

Just question. a quick

the number in the be you color to that'd I additionally, if as on Carbon, of you will any was you that, current of just terms background So could in the as provide of expect Platinums order timing XXXX color if wondering on ship volume, or provide more some and well appreciated. could shipped be on some

Jeff Hawkins

a you then Carbon the first to rollout. two color more little who can Patrick, take it and on over I'll with the respect to give hand

how remarks, we in out will quantitative guidance ramp quantitative timeframe, Claudia of the not implementation give her we're people to questions using measure asked we utilization, be quickly as mentioned of this initial types today. that full guidance. start rollout As yet We're know giving to to really sort the

the be the demand reiterate implementation, the feedback we're throughout as done moving machine, support to said, to the these line all we things very demand the for getting well the customer, pleased building funnel able what in to the we're our But are being the as expectations, with and with by year.

little Patrick, like to guidance Carbon? you more provide would a around

Patrick Schneider

I focused Obviously, just that's so to you Platinum reiterate. question. big we're a now thank mean, and on push. right and Sure, that for

For intention prep our of do it's brings with us sample that testing sample basically automated really is launch well as It Carbon, for to end if for to and solution in an QX end-to-end end-to-end. together beta all XXXX. prep. The at the goes

Operator

Our comes from B. Yuan next with Riley. question Zhi

Your line is open.

Yuan Zhi

you have couple of Good a for our morning. questions. Thank I taking them.

just to commercial clarify top progress First, the and you in you what launch to related Platinum, share when shipped metrics addition you there curious would the units of share line revenue? can

Jeff Hawkins

question. Thanks for that

to to we're they rate. said, the measuring the up when at rolled when utilization studies timeframe instrument from really looking We're would all that receives the revenue. line begin obviously placements. metrics top as those we run to and be metric And placements Platinum then get measuring such As their that a somebody pull-through generate,

of we're pleased models early is using with early metrics our data the Again, quite are today. so in So, sort those progress. line the with internal internal

Yuan Zhi

Thank that for for it. test the that here. Got conducting In test are view, color. customers. you after them Thank color potential you the your provide interaction customers? the what's update holding runs with an for around Can you of up you runs? back Follow

Jeff Hawkins

So, back today, the test holding after there's nothing runs. customers

in to to the research today, had -- centers his platform they going the leaders. think and acquiring opinion of maybe technology mentioned various the industry in what us those and key that there They in -- looking straight perform. studies build customers Patrick are what consider who are people are into upon would I are academic remarks,

technology There are and tested mind of where address though mentioned, going samples Patrick to demonstration, some the is want in. funnel design platform in to then the sort as other customers number have the the It's to people quickly study service work. a more in-source that's and the sales a get the demonstrate small who, of technology proof-of-concept of and really have that to to comes through that ultimately method sort move to and enable testing really move early acquire they

two So, progressing today. that's types sort customers how of the of are different

Operator

at for any call Juan any turn showing not back further remarks. to over time. like this the I'm questions closing to I'd

Juan Avendano

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

Operator

does today's presentation. that conclude gentlemen, and Ladies

a have You may now day. and disconnect wonderful

Quantum-Si (QSI) 6 Mar 232022 Q4 Earnings call transcript