Quanterix Corporation Releases Operating Results for Fourth Quarter and Full Year 2019
46% Q4 revenue growth; 51% full year growth
“We’re pleased to close out another year of compelling growth, product launches, productive capital raises, key hires and technology adoption, marking our ninth consecutive quarter of strong performance since going public two years ago,” said
Fourth Quarter 2019 Financial Highlights
Key financial results for the fourth quarter of 2019 are shown below:
-
Q4 revenue was
$15.9M versus prior year Q4 of$10.9M , an increase of 46%; -
Q4 product revenue was
$11.4M versus prior year Q4 of$7.5M , an increase of 53%; -
Q4 service revenue was
$4.3M versus prior year Q4 of$3.4M , an increase of 26%; - Q4 GAAP gross margin was 43.1% versus prior year Q4 of 47.9%; Q4 non-GAAP gross margin was 47.3%, versus prior year Q4 of 47.9%. Q4 2019 gross margins include 410 bps of adverse impact from our successful HD-X trade-in program.
Full Year 2019 Financial Highlights
Key financial results for FY 2019 are shown below:
-
FY revenue was
$56.7M versus prior year FY of$37.6M , an increase of 51%; excluding$1.3M in revenue recognized in Q3 2018 in connection with the termination of a license agreement, non-GAAP year-over-year revenue growth was 56%; -
FY product revenue was
$40.5M versus prior year FY of$23.4M , an increase of 73%; -
FY service revenue was
$16.1M versus prior year FY of$12.1M , an increase of 33%; and, - FY gross margin was 47.3% versus prior year FY of 47.7%, FY non-GAAP gross margin was 49.7% versus prior year FY of 45.9%, an increase of 380 bps.
For additional information on the non-GAAP financial measures included in this press release, please see “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financials” below.
Fourth Quarter and Full Year 2019 Business Highlights
- Our Simoa technology was highlighted in a record-breaking 246 publications in 2019, bringing total Simoa-specific inclusions to over 650 publications.
-
Launched Simoa HD-X Analyzer, Quanterix’ new, fully automated Simoa bead-based immunoassay instrument model; and extended our technology bench with the launch of the Simoa SP-X™ Imaging and Detection System, 10-
Plex Simoa CorPlex Cytokine Panel , and broad menu of additional multiplex panels to further revolutionize research, disease monitoring and drug development across core therapeutic applications. -
Acquired UmanDiagnostics AB , the world’s leading Nf-L antibody supplier, solidifying Quanterix’ position as the world leader in Nf-L assays as the Nf-L biomarker continues to draw global attention as a promising neurodegenerative disease indicator. A follow-on licensing and supply agreement with Siemens Healthineers for access to the proprietary Nf-L antibodies signed in November marks a critical step toward a clinically viable Nf-L test. -
Reinforced growing utility of Simoa in neurology research, with increased citations demonstrating its critical role in identifying, monitoring and supporting treatment validation for neurodegenerative diseases through ultra-sensitive detection of serum Nf-L. Major research highlights include:
- Nf-L as an indicator of Alzheimer’s disease 16 years before symptoms, supporting its potential utility as a clinically useful biomarker. (Nature)
-
Powering more than 85 percent of the Nf-L abstracts presented at the
American Academy of Neurology (AAN)’s Annual Meeting, supporting the biomarker’s utility as an indicator of neurodegenerative disease onset and progression. -
The Simoa Nf-L assay being utilized in a record 50 publications presented at the 35th
Congress of theEuropean Committee for Treatment and Research in Multiple Sclerosis (ECTRIMS). Notable Nf-L papers included an application of Simoa to validate treatments for relapsing-remitting or primary progressive MS and use of Simoa to demonstrate the efficacy of treatments in patients with relapsing MS, which received FDA and EMA filing acceptance onFeb. 26, 2020 . - Advanced critical infectious disease research valuable to the acceleration of a rapid triage test for adults with persistent cough suspected to have active pulmonary tuberculosis (TB).
-
Successfully raised nearly
$120 million through at-the-market equity (ATM) facility and follow-on offering, attracting marquee investors, and further enhancing Quanterix’ liquidity and potential for value creation. -
Expanded our leadership team with the addition of
Amol Chaubal as Chief Financial Officer (CFO) following his tenure in the position at Smith & Nephew and Novartis; 18-year Biogen veteran Tatiana Plavina as Vice President of Clinical Biomarkers; seasoned Thermo Fisher commercial leaderHether Ide as Vice President, Commercial,North America ; and the election of 25-year business growth veteranSarah Hlavinka to its Board of Directors. -
Received EY’s Entrepreneur Of The Year® 2019 Award in
New England recognizing Hrusovsky’s achievements in healthcare technology innovation, Quanterix’ outstanding financial performance, his commitment to advancing precision health through the founding of thePowering Precision Health (PPH) foundation. -
Invited to present its disruptive approach to leadership and company growth at several high-profile executive venues, including the
SVB Leerink Healthcare CEO Summit, theLaguna Biotech CEO Forum and the Healthcare CEO Summit in partnership with theCleveland Clinic . -
Completed the move to our expanded 92,000 square-foot state-of-the-art headquarters in
Billerica, Mass. , which includes a CLIA-certified laboratory to support the needs of our growing pharmaceutical customer base. -
Sponsored the 2019 PPH Summit in
Barcelona, Spain , attended by more than 250 opinion leaders and researchers from around the world. The event featured more than 40 speakers who presented research across two full, concurrent neurology and oncology tracks. Key takeaways and the precision health mission were echoed in the inaugural “At the Edge of Biotech” leadership series created by Nasdaq, which reinforced the importance of biomarkers in accelerating disease detection, measurement of treatment efficacy and disease progression.
Conference Call
In conjunction with this announcement,
Financial Highlights (in thousands)
Quanterix Income Statement |
|||||||||||||
in ' |
Q4 2019 |
Q4 2018 |
YTD 2019 |
YTD 2018 |
|||||||||
Product Revenue |
11,431 |
7,458 |
40,491 |
23,365 |
|||||||||
Service Revenue |
4,302 |
3,419 |
16,059 |
12,117 |
|||||||||
Collaboration Revenue |
184 |
0 |
184 |
2,150 |
|||||||||
Total Revenue |
15,917 |
10,877 |
56,734 |
37,632 |
|||||||||
Cost of Product Revenue |
6,684 |
3,734 |
20,900 |
12,729 |
|||||||||
Cost of Services Revenue |
2,368 |
1,935 |
8,998 |
6,955 |
|||||||||
Gross Profit |
6,865 |
5,208 |
26,836 |
17,948 |
|||||||||
Gross Margin % |
43.1% |
47.9% |
47.3% |
47.7% |
|||||||||
Research and Development |
4,398 |
4,045 |
16,190 |
15,805 |
|||||||||
Selling, General and Administrative |
13,953 |
10,577 |
52,246 |
33,693 |
|||||||||
Total Operating Expenses |
18,351 |
14,622 |
68,436 |
49,498 |
|||||||||
Loss From Operations |
-11,486 |
-9,414 |
-41,600 |
-31,550 |
|||||||||
Interest income (expense), net |
282 |
24 |
627 |
46 |
|||||||||
Other income (expense), net |
139 |
81 |
-10 |
-7 |
|||||||||
Tax |
-107 |
25 |
-187 |
25 |
|||||||||
Net Loss |
-10,958 |
-9,334 |
-40,796 |
-31,536 |
Quanterix Balance Sheet |
|||||||
in ' |
At |
At |
|||||
Cash and Cash Equivalents |
109,155 |
44,429 |
|||||
Accounts Receivable |
10,906 |
6,792 |
|||||
Inventory |
10,463 |
5,945 |
|||||
Prepaid Expenses and Other |
2,137 |
2,330 |
|||||
Total Current Assets |
132,661 |
59,496 |
|||||
Restricted Cash |
1,026 |
1,000 |
|||||
Property and Equipment, Net |
12,047 |
2,923 |
|||||
Intangible Assets, Net |
14,307 |
2,348 |
|||||
|
9,353 |
1,308 |
|||||
Other Non-Current Assets |
557 |
536 |
|||||
Total Assets |
169,951 |
67,611 |
|||||
Accounts Payable & Accrued Expenses |
14,845 |
12,688 |
|||||
Deferred Revenue |
4,697 |
5,437 |
|||||
Current Portion of Long Term Debt |
75 |
0 |
|||||
Other Current Liabilities |
216 |
0 |
|||||
Total Current Liabilities |
19,833 |
18,125 |
|||||
Deferred Revenue, Net of Current Portion |
466 |
520 |
|||||
Long Term Debt, Net of Current Portion |
7,587 |
7,623 |
|||||
Other Non-Current Liabilities |
13,407 |
278 |
|||||
Total Liabilities |
41,293 |
26,546 |
|||||
Total Stockholders’ Equity |
128,658 |
41,065 |
|||||
|
|
|
|||||
Total Liabilities and Stockholders’ Equity |
169,951 |
67,611 |
Use of Non-GAAP Financial Measures
To supplement the Company’s financial statements presented on a GAAP basis, the Company has provided certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross profit and non-GAAP gross margin. Management uses these non-GAAP measures to evaluate the Company’s operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. Management believes that such measures are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company’s operating performance. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth below.
Reconciliation of Non-GAAP Financials
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|
2019 |
2018 |
|
2019 |
2018 |
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|
|
Three months ended |
|
Year ended |
||||||||||||||
|
|
|
|
|
||||||||||||||
Total revenue |
|
$ |
15,917 |
$ |
10,877 |
|
$ |
56,734 |
$ |
37,632 |
||||||||
Revenue from termination of license agreement (Note 1) |
|
— |
— |
|
— |
$ |
(1,342) |
|||||||||||
Non-GAAP total revenue |
|
$ |
15,917 |
$ |
10,877 |
|
$ |
56,734 |
$ |
36,290 |
||||||||
|
|
|
|
|
|
|
||||||||||||
Gross profit |
|
$ |
6,865 |
$ |
5,208 |
|
$ |
26,836 |
$ |
17,948 |
||||||||
Revenue from termination of license agreement (Note 1) |
|
— |
— |
|
— |
$ |
(1,342) |
|||||||||||
Acquisition-related purchase accounting charges (Note 2) |
|
$ |
667 |
$ |
5 |
|
$ |
1,378 |
$ |
49 |
||||||||
Non-GAAP gross profit |
|
$ |
7,532 |
$ |
5,213 |
|
$ |
28,214 |
$ |
16,655 |
||||||||
GAAP gross margin % |
|
|
43.1% |
|
47.9% |
|
|
47.3% |
|
47.7% |
||||||||
Non-GAAP gross margin % |
|
|
47.3% |
|
47.9% |
|
|
49.7% |
|
45.9% |
______
Note 1: During Q3 of the year ended
Note 2: During the three and twelve months ended
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend" and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements in this news release are based on Quanterix’ expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Factors that may cause Quanterix’ actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in Quanterix’ filings with the
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achaubal@quanterix.com
quanterix@pancomm.com
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