Quantum-Si Inc Q2 FY2024 earnings call

Board Update

• Welcomed Chuck Kummeth to the Board of Directors, an industry veteran with over 35 years of Life Sciences leadership experience.

Accelerate Commercial Adoption

• Q2 was the first full quarter of Platinum sales since exiting controlled launch. Extending direct commercial team and distribution partner network. Participated in scientific conferences to showcase Platinum and generate leads. Customer base includes academic research labs with traction in large pharma and biotech. Capital spending cautious but Platinum offers value at $85,000 price point.

Deliver on Innovation Roadmap

• Released Version 3 sequencing kit with expanded amino acid coverage and increased sequencing output per sample. Updated Platinum Analysis Software with expanded AI database for better accuracy. Continuing R&D enhancements across instrumentation, chemistry, and software.

Preserve Financial Strength

• Reduced overall operating expenses, with R&D spend down year-over-year. Year-to-date total operating expenses decreased by over 10%, showing progress on capital efficiency.

In the second quarter of 2024, revenue was $622,000, consisting of revenue from Platinum instrument, consumable kits, and related services. Gross profit was $354,000, and gross margin was 57%. GAAP total operating expenses for the second quarter were $26.8 million compared to $27.0 million in Q2 of 2023, while adjusted operating expenses were $24.4 million for the second quarter of 2024 compared to $24.0 million for Q2 of 2023. Net loss for the second quarter of 2024 was $23.1 million compared to $25.6 million in Q2 of 2023, a decrease of $2.5 million or about 10%. Adjusted EBITDA for the second quarter of 2024 was negative $22.6 million as compared to negative $22.9 million in the second quarter of 2023.

Reiterated 2024 outlook: revenue range between $3.7 million and $4.2 million, adjusted operating expenses of less than $103 million, net cash usage less than $100 million. Existing cash and cash equivalents and investments in marketable securities will provide runway into 2026.

Capital spending remains cautious, sales cycles are longer than historical averages in many cases. Macro market factors may impact adoption.

Q: Talking about scientific presentations and data and new kit, triangulate leads or anything seen?

A: Data from customers on proteoforms, PTMs, barcoding is area of interest. Data needs to be generated, presented at meetings, converted into manuscripts. Kits are improved based on market feedback and performance to lift applications and sample types customers can work with. Library prep lifts number of applications and sample types, barcoding kit is application-specific developed based on customer needs.