Quanterix Corp. Q4 FY2024 earnings call

• Quanterix delivered seventh consecutive quarter of double-digit revenue growth driven by demand for Simoa sensitivity.
• Achieved $35.2M revenue in Q4 with 11% growth, driven by 22% growth in Accelerator lab and $2.7M partner-enabled revenue for Alzheimer's.
• Non-GAAP gross margin in Q4 was 57.7%, up 300 basis points year-over-year.
• Over past two years, generated 14% revenue CAGR, increased recurring revenues from 65% to 80%, and expanded margins from 35% to over 54%.
• Launched 20 new assays in 2024, including 13 in neurology and multiplex panels for immunology-related disorders.
• Proposed acquisition of Akoya Biosciences to expand addressable market, achieve synergies ($40M operating synergies run rate by 2026), and accelerate scale and profitability.
• Focused on building Alzheimer's diagnostic testing infrastructure, adding 12 partners in 2024 and launching LucentAD Complete, with plans to submit to FDA under breakthrough designation in 2025.

In the fourth quarter of 2024, Quanterix achieved revenue of $35.2 million, up 11% year-over-year. The Accelerator lab grew 22% during the quarter. Consumable revenue was $17.4 million, flat year-over-year as customers transitioned to Advantage PLUS assays. Instrument revenue was $3.1 million, down 7% but up 29% sequentially. Other sales, including $2.7 million of partner-enabled revenue for Alzheimer's disease diagnostics, totaled $6 million. For the full year 2024, revenue was $137.4 million, up 12%. The Accelerator business grew 37% to $38 million, consumable revenue increased 8% to $69.3 million, instrument revenue was $10.5 million (down 33%), and other revenue was $19.7 million (up 32%). Revenue stratification showed a 54-46 split between pharma and academia, with North America leading growth at 17%, Europe at 11%, and Asia-Pacific down 6%.

• 2025 revenue expected in range of $140M to $146M (2%-6% growth), excluding Lucent Diagnostics testing.
• Q1 revenue expected down 10%-15% due to US academic market headwind (20%-25% of revenues tied to US academic customers) and slower start to Accelerator lab in first half.
• GAAP gross margin expected 59%-63%, non-GAAP gross margin 53%-57%.
• Cash usage from operations expected $35M-$45M, including $30M investment in diagnostics and Simoa ONE.
• Expect RUO cash flow breakeven in $170M-$190M revenue range by 2027-2028, but Akoya acquisition expedites to 2026.

• Market volatility affecting investor sentiment.
• Uncertainty in academic funding and paralysis in academic market decision-making impacting revenue.
• Potential delays in diagnostics partner validations and contract signings affecting revenue from Alzheimer's testing infrastructure.
• Risks associated with integrating Akoya Biosciences, though synergies are expected to mitigate some risks.

Q: Matt Sykes asked about the steep Q1 guide and delay in large pharma projects in Accelerator lab.

A: Masoud Toloue said Accelerator had strong performance, some projects were timing issues, and pipeline diversity remains good with high confidence in Accelerator's continued delivery.

Q: Kyle Mikson asked about merger reaction and Simoa ONE.

A: Masoud Toloue said the deal is value-creating, and Simoa ONE is expected to launch end-2025, expanding addressable market in immunology. Vandana Sriram confirmed diagnostics enablement revenue was $6M in 2024 with steady cadence.

Q: Puneet Souda asked about guide and Akoya valuation.

A: Masoud Toloue said Quanterix has grown double digits in tough capital environment, and the Akoya deal is value-creating with expanded TAM, synergies, and faster path to profitability.

Q: Dan Brennan asked about Akoya closing and valuation.

A: Masoud Toloue said closing planned in Q2, and the deal is a long-term value creator with focus on recurring revenues and cost synergies.

Q: Sung Ji Nam asked about Simoa ONE adoption and ex-US growth.

A: Masoud Toloue said Simoa ONE is for new markets like immunology, not replacement cycle. Vandana Sriram said ex-US growth expected low double-digit to high single-digit, impacted by US academic market headwind.