• Total Revenue: $34.4 million, an increase of 11% year-over-year.
• Accelerator Lab Revenue: $10.1 million, an increase of 35%.
• Consumable Revenue: $17.4 million, an increase of 7%.
• Instrument Revenue: $2.5 million, a decrease of 29%.
• Non-GAAP Gross Margin: 52.3%.
• GAAP Gross Margin: 58.3%.
• GAAP Operating Expenses: $33.2 million, an increase of $4.5 million year-over-year.
• Non-GAAP Operating Expenses: $31.1 million, an increase of $4 million year-over-year.
• Cash and Liquidity: $299.5 million in cash, cash equivalents, marketable securities, and restricted cash.
• Cash Usage: Net outflow of $5.1 million for the quarter.
• Updated Full-Year 2024 Revenue Outlook: $134 million to $138 million, representing 11% growth at the midpoint.
• Revenue Growth by Region: North America up 15%, Europe up 25%, Asia Pacific down 36%.

• Warning! GuruFocus has detected 3 Warning Signs with QTRX.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Quanterix Corp (NASDAQ:QTRX) reported a total revenue of $34.4 million for Q2 2024, marking an 11% increase year-over-year.
• The Accelerator lab revenue grew by 35%, indicating strong demand for Simoa sensitivity without the need for capital expenditure.
• The company maintains a strong balance sheet with nearly $300 million in liquidity, supporting ongoing investments in growth.
• Quanterix Corp (NASDAQ:QTRX) has commercialized three new assays this quarter, with plans to complete 20 by the end of the year, enhancing their leadership in neurology.
• The company has established new partnerships with major healthcare systems and labs, including Mount Sinai and UCSF, to expand Alzheimer's diagnostics.

Negative Points

• Instrument revenue decreased by 29%, reflecting a challenging capital budget environment.
• The Asia Pacific region, particularly China, saw a 36% decline in business, highlighting regional market challenges.
• Non-GAAP gross margin decreased by approximately 410 basis points compared to the previous year, due to investments in operations and quality framework.
• The company anticipates higher cash usage at the upper end of their previous guidance due to lower revenue impacts.
• Revenue from patient testing under the loosened platform was immaterial for the quarter, indicating slower-than-expected uptake.

Q & A Highlights

Q: Given the capital equipment weakness over the past year, have you considered any potential reagent rental or financing options for instruments to drive pull-through? A: Yes, we have considered reagent rental programs, especially for customers with large consumable demand. Our accelerator program is a good offset for those without CapEx, allowing them to send samples to us.

Q: With the FDA approval of Lilly's Kisumla, can you discuss your relationship with Lilly and any feedback on using blood-based biomarkers to drive therapeutic uptake? A: We are excited about the collaboration with Lilly on CertuitAD, which has resulted in a high accuracy test with a low indeterminate zone. This test evaluates patients as candidates for therapy, and we will continue to support and expand access.

Q: What feedback have you received on the multi-marker approach to Alzheimer's disease testing, and do you expect it to be used predominantly over the standalone p-Tau 217 assay? A: The feedback has been positive, and we believe the future of blood-based testing will be multi-marker. Our multi-marker test reduces the intermediate zone while maintaining high accuracy, providing more certainty for symptomatic patients.

Q: How quickly can large healthcare systems ramp up testing, and will they perform testing internally or send samples to you? A: Many partners have the capability to perform testing themselves, but they can also send samples to us if their capacity is exceeded. This flexibility is a unique aspect of the Quanterix Simoa offering.

Q: With the FDA approval of Denenemab, have you noticed an uptick in interest in your diagnostic portfolio, and are we nearing an inflection point for Alzheimer's drugs? A: The drug ramp has been slower than anticipated, but with two FDA-approved therapies, we expect improvement. Blood-based testing will be key for first-line tests, and we are building infrastructure to support this growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.