Quantum-Si Inc Q1 FY2024 earnings call

Accelerate Commercial Adoption

• Full commercial launch of Platinum began at the end of March 2024.
• Expect steady quarter-over-quarter revenue growth in 2024.
• Direct commercial team has approximately 24 individuals.
• Secured first customers in government and pharma segments.
• Sales funnel has shown consistent growth in leads.

Deliver on Innovation Road Map

• Version 2 sequencing kit successfully transitioned to all customers with positive feedback.
• New version of Platinum analysis software launched with 55% more peptide alignments, 9% better precision, and 70% reduction in primary analysis time.
• Version 3 kit expected to be delivered by the end of Q3 2024 with meaningful performance improvement.

Preserve Financial Strength

• Reduced overall spend year-over-year while improving product delivery.
• Reaffirmed 2024 financial guidance, including revenue, adjusted operating expenses, and net cash usage targets.

In the first quarter of 2024, Quantum-Si reported revenue of $457,000. Gross profit was $269,000 with a gross margin of 59%. GAAP total operating expenses were $23.6 million compared to $29.3 million in the first quarter of 2023. Adjusted operating expenses were $21.9 million for Q1 2024 versus $24.6 million in Q1 2023. Net loss for Q1 2024 was $19.5 million, a decrease of $4.1 million from Q1 2023. Adjusted EBITDA was negative $20.5 million in Q1 2024, an improvement of $3.2 million from Q1 2023. As of March 31, 2024, the company had $235.4 million in cash and cash equivalents and investments in marketable securities. The 2024 financial guidance includes revenues ranging between $3.7 million and $4.2 million, adjusted operating expenses less than $103 million, and net cash usage less than $100 million.

Revenue

• 2024 revenue is expected to range between $3.7 million and $4.2 million.

Expenses

• Adjusted operating expenses are expected to be less than $103 million.

Cash Usage

• Net cash usage is expected to be less than $100 million.

Runway

• Existing cash and investments provide runway into 2026.

Material risks and uncertainties that could cause actual results to differ from forward-looking statements, as detailed in the press release and Securities and Exchange Commission filings.

Q: About commercial launch progress since end of March A: The full launch started at the end of March, and it's in the early innings. New sales reps and distribution partners were trained in Q1. Q2 is expected to be a modest step up from Q1, with the back half of 2024 accelerating.

Q: Penetration of government and pharma segments A: Government accounts refer to government-run labs. Penetration is similar to pharma/biotech, with a longer sales cycle but first customers secured.

Q: Feedback from Human Proteome Conference A: Feedback has been positive, and conferences help generate leads and interest.

Q: Product kit versions A: Version 2 was a significant improvement in output and reproducibility. Version 3 is a meaningful increase in performance, unlocking new capabilities.

Q: Platinum analysis software and monetizing data A: The software addresses data analysis bottlenecks in proteomics. Future includes improving core tools and purpose-built workflows; potential for monetizing data over time.