Sales Pipeline is Accelerating and New Kits
Remain on Track for Q4 Launch
Quantum-Si Incorporated (Nasdaq: QSI) (“Quantum-Si,” “QSI” or
the “Company”), The Protein Sequencing Company™, today announced
financial results for the third quarter ended September 30,
2024.
Press Release Highlights
- Reported revenue of $787,000 for the third quarter of 2024
- Announced that Liberate Bio has integrated Platinum®
Next-Generation Sequencing into their platform for developing novel
gene therapies with improved targeting capabilities
- Announced appointments of industry veteran Todd Bennett as
Chief Commercial Officer (“CCO”), John Vieceli, Ph.D. as Chief
Product Officer and Lindsay Thompson as Chief Human Resources
Officer
- Highlighted Platinum-based advances in proteomic analysis
presented at Human Proteome Organization World Congress 2024 in
Dresden, Germany
- Highlighted a manuscript from researchers at the University of
Virginia published on BioRxiv highlighting Platinum’s capability to
discriminate peptide variants at single amino acid resolution
- New library preparation kit and barcoding kit remain on track
for launch before year end
- Highlighted the Company’s upcoming Investor Day on Wednesday,
November 20, 2024, beginning at 10:00 a.m. ET
“We are pleased to see continued adoption of Platinum across
multiple market segments, including academic research,
pharma/biotech and most recently, adoption by our first customer
from the contract research organization market. Under the
leadership of our new CCO, there has been clear improvement in
commercial execution and the overall acceleration of our sales
pipeline,” said Jeff Hawkins, President and Chief Executive Officer
of Quantum-Si. “Even with this acceleration, we, like others in the
tools space, have observed some lengthening of the sales cycle in
the third quarter, making it likely that we will not achieve our
full year guided revenue range of $3.7 million to $4.2 million. We
have clear strategies in place that we believe will allow us to get
as close to the guidance range as possible and despite the
potential short fall, we remain very confident in the long-term
commercial opportunity for Platinum and the growth of the
proteomics market in general. We are excited for the future and
believe that we will continue to deliver solid quarter over quarter
growth as we move forward.”
Hawkins continued, “In addition, we continue to execute on our
innovation roadmap and are on track to deliver two new kits by end
of the year, which we believe will continue to drive broader market
adoption. We are looking forward to revealing more details on our
exciting technology roadmap and expanding commercial opportunities
at our upcoming Investor Day on November 20th.”
Third Quarter 2024 Financial Results
For the third quarter of 2024, the Company recorded revenue of
$787,000. Gross profit was $367,000 and gross margin was 47%. For
the nine months ended September 30, 2024, the Company recorded
revenue of $1.9 million, gross profit of $990,000, and gross margin
of 53%. The periodic gross margin rate is expected to be variable
in the near term as the Company works through the initial stages of
commercialization as well as the timing and mix of product sales
between instruments and consumable kits.
Total operating expenses were $28.5 million in the third quarter
of 2024, compared to $27.3 million for the same period in the prior
year, and $78.9 million for the nine months ended September 30,
2024, compared to $83.6 million for the same period in the prior
year. Adjusted total operating expenses were $26.0 million in the
third quarter of 2024 compared to $23.9 million for the same period
in the prior year, and adjusted total operating expenses for the
nine months ended September 30, 2024 were $72.3 million compared to
$72.6 million for the same period in the prior year. The Company
has successfully reduced overall adjusted operating expenses on a
year to date basis while funding the ramp up in commercialization
efforts. This reduction was driven by the Company’s 2023 R&D
realignment initiative to streamline and focus R&D efforts on
delivering product enhancements to customers. Overall, the Company
has been able to reduce core areas of spend while accelerating
R&D focus, efficiency, and delivery while still funding the
Company’s full commercial launch of its Platinum® instrument.
Net loss was $25.3 million in the third quarter of 2024,
compared to a net loss of $24.7 million in the same period of the
prior year, and a net loss of $67.9 million for the nine months
ended September 30, 2024, compared to a net loss of $73.9 million
for the same period in the prior year. Adjusted EBITDA was negative
$24.5 million in the third quarter of 2024, compared to negative
$22.6 million in the same period of the prior year, and negative
$67.7 million for the nine months ended September 30, 2024,
compared to negative $69.2 million for the same period in the prior
year. A reconciliation of the non-GAAP financial measures adjusted
total operating expenses and adjusted EBITDA is provided in a table
included in this press release.
As of September 30, 2024, the Company’s cash and cash
equivalents and investments in marketable securities were $196.3
million.
Financial Guidance
The Company provided updated full year 2024 financial guidance
for adjusted operating expenses and cash usage as follows:
Adjusted total operating
expenses
Approximately $100 million
Total cash usage
Approximately $92 million
The Company also updated its expectation that the balance in
cash and cash equivalents and investments in marketable securities
of $196.3 million as of September 30, 2024 will provide a runway
into the second half of 2026.
Webcast and Conference Call Information
Quantum-Si will host a conference call to discuss its third
quarter 2024 financial results on Tuesday, November 12, 2024, at
8:00 a.m. Eastern Time. Individuals interested in listening to the
conference call may do so by joining the live webcast in the
Investors section of the Quantum-Si website under Events &
Presentations. Alternatively, individuals can register here to
receive a dial-in number and personalized PIN to participate in the
call. An archived webcast of the event will be available for replay
following the event.
Investor Day
The Company will host an Investor Day on Wednesday, November
20th beginning at 10:00 a.m. ET. To access the event, a live audio
webcast will be available on the Investors section of the Company’s
website.
About Quantum-Si Incorporated
Quantum-Si, The Protein Sequencing Company™, is focused on
revolutionizing the growing field of proteomics. The Company’s
Platinum® instrument enables Next-Generation Protein Sequencing™
that advances proteomic research, drug discovery, and diagnostics
beyond what has been possible with existing proteomic tools. Learn
more at quantum-si.com or follow us on LinkedIn or X.
Use of Non-GAAP Financial Measures
This press release presents the non-GAAP financial measures
“adjusted total operating expenses” and “adjusted EBITDA.” The most
directly comparable measures for these non-GAAP financial measures
are total operating expenses and net loss. The Company has included
below adjusted total operating expenses, which presents the
Company’s total operating expenses after excluding goodwill
impairment, stock-based compensation and restructuring costs. In
addition, adjusted EBITDA further excludes interest, taxes,
depreciation, amortization, dividend income, unrealized and
realized gains and losses on marketable securities, changes in fair
value of warrant liabilities and other income or expense.
A discussion of the reasons why management believes that the
presentation of non-GAAP financial measures provides useful
information to investors regarding the Company’s financial
condition and results of operations is included as Exhibit 99.2 to
the Company’s Current Report on Form 8-K filed with the Securities
and Exchange Commission (the “SEC”) on November 12, 2024.
Forward Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. The actual
results of the Company may differ from its expectations, estimates,
and projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, the
Company’s expectations with respect to future performance and
development and commercialization of products and services, its
anticipated cash runway and its financial guidance for the full
year 2024. These forward-looking statements involve significant
risks and uncertainties that could cause the actual results to
differ materially from those discussed in the forward-looking
statements. Most of these factors are outside the Company’s control
and are difficult to predict. Factors that may cause such
differences include, but are not limited to: the inability to
maintain the listing of the Company’s Class A common stock on The
Nasdaq Stock Market; the ability of the Company to grow and manage
growth profitably and retain its key employees; the Company’s
ongoing leadership transitions; changes in applicable laws or
regulations; the ability of the Company to raise financing in the
future; the success, cost and timing of the Company’s product
development and commercialization activities; the commercialization
and adoption of the Company’s existing products and the success of
any product the Company may offer in the future; the potential
attributes and benefits of the Company’s commercialized Platinum®
protein sequencing instrument and kits and the Company’s other
products once commercialized; the Company’s ability to obtain and
maintain regulatory approval for its products, and any related
restrictions and limitations of any approved product; the Company’s
ability to identify, in-license or acquire additional technology;
the Company’s ability to maintain its existing lease, license,
manufacture and supply agreements; the Company’s ability to compete
with other companies currently marketing or engaged in the
development or commercialization of products and services that
serve customers engaged in proteomic analysis, many of which have
greater financial and marketing resources than the Company; the
size and growth potential of the markets for the Company’s products
and services, and its ability to serve those markets once
commercialized, either alone or in partnership with others; the
Company’s estimates regarding future expenses, future revenue,
capital requirements and needs for additional financing; the
Company’s financial performance; and other risks and uncertainties
described under “Risk Factors” in the Company’s most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q and in the
Company’s other filings with the SEC. The Company cautions that the
foregoing list of factors is not exclusive. The Company cautions
readers not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. The Company does
not undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any change in its expectations or any change in events,
conditions, or circumstances on which any such statement is
based.
QUANTUM-SI
INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and
par value amounts)
(unaudited)
September 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
42,268
$
133,860
Marketable securities
154,076
123,876
Accounts receivable, net of allowance of
$0 and $0, respectively
1,022
368
Inventory
4,091
3,945
Prepaid expenses and other current
assets
4,371
4,261
Total current assets
205,828
266,310
Property and equipment, net
16,254
16,275
Internally developed software, net
—
532
Operating lease right-of-use assets
13,677
14,438
Other assets
695
695
Total assets
$
236,454
$
298,250
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
2,153
$
1,766
Accrued payroll and payroll-related
costs
4,603
4,943
Accrued contracted services
2,133
1,519
Accrued expenses and other current
liabilities
2,839
1,815
Current portion of operating lease
liabilities
3,614
1,566
Total current liabilities
15,342
11,609
Warrant liabilities
357
1,274
Operating lease liabilities
10,211
13,737
Other long-term liabilities
24
11
Total liabilities
25,934
26,631
Stockholders’ equity
Class A Common stock, $0.0001 par value;
600,000,000 shares authorized as of September 30, 2024 and December
31, 2023; 122,775,352 and 121,832,417 shares issued and outstanding
as of September 30, 2024 and December 31, 2023, respectively
12
12
Class B Common stock, $0.0001 par value;
27,000,000 shares authorized as of September 30, 2024 and December
31, 2023; 19,937,500 shares issued and outstanding as of September
30, 2024 and December 31, 2023
2
2
Additional paid-in capital
773,873
767,239
Accumulated other comprehensive loss
153
-
Accumulated deficit
(563,520
)
(495,634
)
Total stockholders’ equity
210,520
271,619
Total liabilities and stockholders’
equity
$
236,454
$
298,250
QUANTUM-SI
INCORPORATED
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share
amounts)
(unaudited)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Revenue:
Product
$
764
$
216
$
1,776
$
654
Service
23
7
90
28
Total revenue
787
223
1,866
682
Cost of revenue
420
115
876
372
Gross profit
367
108
990
310
Operating expenses:
Research and development
16,171
16,587
42,653
50,588
Selling, general and administrative
12,284
10,696
36,236
33,010
Total operating expenses
28,455
27,283
78,889
83,598
Loss from operations
(28,088
)
(27,175
)
(77,899
)
(83,288
)
Dividend and interest income
2,688
2,572
9,149
7,274
Unrealized gain on trading securities
—
1,953
—
8,302
Realized loss on trading securities
—
(1,901
)
—
(6,489
)
Change in fair value of warrant
liabilities
121
(162
)
917
(81
)
Other income (expense), net
9
(15
)
(10
)
370
Loss before provision for income taxes
(25,270
)
(24,728
)
(67,843
)
(73,912
)
Provision for income taxes
(43
)
—
(43
)
—
Net loss
$
(25,313
)
$
(24,728
)
$
(67,886
)
$
(73,912
)
Net loss per common share attributable to
common stockholders, basic and diluted
$
(0.18
)
$
(0.17
)
$
(0.48
)
$
(0.52
)
Weighted-average shares used to compute
net loss per share attributable to common stockholders, basic and
diluted
142,399
141,660
142,039
141,154
Other comprehensive gain
(loss):
Net unrealized gain on marketable
securities, net of tax
$
163
$
—
$
163
$
—
Foreign currency translation
adjustment
(3
)
—
(10
)
—
Total other comprehensive gain, net of
tax
160
—
153
—
Comprehensive loss
$
(25,153
)
$
(24,728
)
$
(67,733
)
$
(73,912
)
QUANTUM-SI
INCORPORATED
RECONCILIATION OF U.S. GAAP TO
NON-GAAP FINANCIAL MEASURES
(in thousands)
(unaudited)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net loss
$
(25,313
)
$
(24,728
)
$
(67,886
)
$
(73,912
)
Adjustments to reconcile to
EBITDA:
Dividend and interest income
(2,688
)
(2,572
)
(9,149
)
(7,274
)
Depreciation and amortization
1,158
1,170
3,606
3,063
Income tax provision
43
—
43
—
EBITDA
(26,800
)
(26,130
)
(73,386
)
(78,123
)
Adjustments to reconcile to Adjusted
EBITDA:
Unrealized gain on trading securities
—
(1,953
)
—
(8,302
)
Realized loss on trading securities
—
1,901
—
6,489
Change in fair value of warrant
liabilities
(121
)
162
(917
)
81
Other (income) expense, net
(9
)
15
10
(370
)
Stock-based compensation
2,394
1,141
6,403
6,914
Restructuring costs
23
2,251
197
4,131
Adjusted EBITDA
$
(24,513
)
$
(22,613
)
$
(67,693
)
$
(69,180
)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Total operating expenses
$
28,455
$
27,283
$
78,889
$
83,598
Adjustments to reconcile to Adjusted
total operating expenses:
Stock-based compensation
(2,394
)
(1,141
)
(6,403
)
(6,914
)
Restructuring costs
(23
)
(2,251
)
(197
)
(4,131
)
Adjusted total operating
expenses
$
26,038
$
23,891
$
72,289
$
72,553
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112920059/en/
Investor Contact: Doug Farrell VP, Investor Relations
ir@quantum-si.com
Media Contact: Katherine Atkinson SVP, Commercial
Marketing media@quantum-si.com
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