Quanterix Corp. Q3 FY2024 earnings call

Key Points

• Quanterix achieved a sixth consecutive quarter of double-digit revenue growth, with revenues at $35.7 million, up 13%.
• Accelerator lab grew 36%, consumables business 8%, driving overall revenue growth.
• Preliminary non-GAAP margin for the third quarter was 53%, reflecting disciplined operational improvements.
• Strategic priorities include maintaining leadership in neurology, achieving ubiquity of Simoa in labs, and building global Alzheimer's disease testing infrastructure.
• Launched 16 new products year-to-date, with plans to launch 4 more by year-end. For Alzheimer's, LucentAD Complete multi-marker assay showed reduced intermediate region and high accuracy.
• Mount Sinai deployed multiple blood-based biomarkers using Quanterix's assays, and partner UltraDx received Chinese IVD clinical registration for Alzheimer's testing.

Quanterix reported revenues of $35.7 million for the third quarter, a 13% increase year-over-year. The Accelerator lab segment saw 36% growth, contributing $10.5 million. Consumables business grew 8%, generating $17.3 million in revenue. Other sales, including licensed revenue, totaled $5.5 million. In terms of revenue contribution, the Accelerator lab accounted for approximately 30% of total revenue, consumables around 48%, and other sales ~15%.

Guidance

• Reaffirmed full-year 2024 revenue guidance of $134 million to $138 million, representing 11% midpoint growth.
• GAAP gross margin guidance remains 57% to 61%, and non-GAAP gross margin guidance is 51% to 55%.
• Cash burn assumption for the year remains approximately $30 million.

Risks

• Potential underestimation of the scope and impact of financial restatement.
• Uncertainties around effectiveness of internal control over financial reporting.
• Risk that restated financial statements may take longer to complete than expected.

Q: How would you characterize the sales in the Accelerator Lab quarter in terms of new versus existing customers? And how is the utilization from Alzheimer's diagnostic health system partnerships trending?

A: Masoud Toloue stated about 70-80% of recurring customers in Accelerator were returning, and while LucentAD testing was immaterial, there's good interest from partners with revenue from diagnostics enablement partners at $2.7 million. Vandana Sriram added on enablement revenue ebbing and flowing but seeing good interest.

Q: Could you give a sense of how diagnostics revenue could contribute to overall top line growth next year?

A: Masoud Toloue said it's tied to therapy ramp, with diagnostics revenue related to anti-amyloid and anti-Tau trials, and they'll comment early 2025 on diagnostic testing related to therapy.

Q: How to scale LucentAD Complete, and what are proof points for success in diagnostics next year?

A: Masoud Toloue said strategy is both building own team and using partners, with focus on global infrastructure. Proof points include reimbursement for multi-marker test being larger than single marker, clinical trial completion in 2024, and data for LCD and ADLT submission in 2025, along with therapy ramp and market demand.