Quantum-Si Reports First Quarter 2024 Financial Results
Executed Full Commercial Launch of Platinum$(R)$ Instrument
Reaffirms Full Year 2024 Financial Guidance
BRANFORD, Conn.--(BUSINESS WIRE)--May 09, 2024--
Quantum-Si Incorporated (Nasdaq: QSI) ("Quantum-Si," "QSI" or the "Company"), The Protein Sequencing Company$(TM)$, today announced financial results for the first quarter ended March 31, 2024.
Press Release Highlights
-- Reported revenue of $457,000 in the first quarter of 2024
-- Commenced its full commercial launch of its Platinum(R) instrument at
the end of March 2024
-- On track to launch version 3 of its sequencing kit, which is expected
by the end of Q3 2024
-- Announced addition of Paula Dowdy to the Board of Directors
-- Announced the release of a new version of Platinum(R) Analysis
Software
-- Reaffirmed full year 2024 financial guidance
"We concluded our first quarter of 2024 with great momentum on all fronts, including initiation of the full commercial launch of Platinum. Now that we have emerged from a controlled launch, we expect to generate steady quarter-over-quarter revenue growth as we move forward for the rest of the year. In addition to initiating our full commercial launch of Platinum in the first quarter, we also secured our first government and pharma customers. While academic research will remain an attractive market segment for the company, we are excited about the momentum we are seeing in these new market segments and the potential they represent for expanding our instrument adoption and utilization in the future," said Jeff Hawkins, President and Chief Executive Officer of Quantum-Si.
Hawkins continued, "On the R&D front, we have made great progress on version 3 of our sequencing kit and we continue to expect to deliver it to the market by the end of Q3 2024. In addition to our version 3 sequencing kit, we have made steady progress on other development programs, including our library preparation kit, instrumentation roadmap and analysis software tools. Finally, we continue to enhance our Board of Directors, with the recent addition of Paula Dowdy to our Board. Her extensive global commercial experience, and specifically, her depth of knowledge in the life sciences markets in EMEA, will be very valuable as we progress with our full commercial launch of Platinum."
First Quarter 2024 Financial Results
At the end of the first quarter of 2024, the Company concluded its controlled commercial launch of its Platinum(R) instrument, recording revenue of $457,000 for the quarter. Gross profit was $269,000 and gross margin was 59%. The periodic gross margin rate is expected to be variable in the near term as the Company works through the initial stages of commercialization as well as the timing and mix of product sales between instruments and consumable kits.
Total operating expenses were $23.6 million in the first quarter of 2024, compared to $29.3 million for the same period in the prior year. Adjusted total operating expenses were $21.9 million in the first quarter of 2024, compared to $24.6 million for the same period in the prior year. Driven by the Company's 2023 initiative to enact operating changes to utilize capital in the most efficient manner while accelerating R&D innovation and delivering product enhancements to customers, the overall adjusted operating expenses included reductions in R&D and G&A spend, partially offset with increased spending for commercial operations. Overall, the Company has been able to reduce core areas of spend while accelerating R&D focus, efficiency, and delivery while still funding the Company's full commercial launch of its Platinum(R) instrument.
Net loss was $19.5 million in the first quarter of 2024, compared to a net loss of $23.6 million in the same period of the prior year. Adjusted EBITDA was negative $20.5 million in the first quarter of 2024, compared to negative $23.7 million in the same period of the prior year. A reconciliation of the non-GAAP financial measures, adjusted total operating expenses and adjusted EBITDA, is provided in a table included in this press release.
As of March 31, 2024, the Company's cash and cash equivalents and investments in marketable securities were $235.4 million.
2024 Financial Guidance
The Company reaffirms its full year 2024 financial guidance as follows:
Revenue $3.7 - $4.2 million Adjusted total operating expenses Less than $103 million Total cash usage Less than $100 million
The Company also maintains the expectation that the balance in cash and cash equivalents and investments in marketable securities of $235.4 million as of March 31, 2024 will provide a runway into 2026.
Webcast and Conference Call Information
Quantum-Si will host a conference call to discuss its first quarter 2024 financial results on Thursday, May 9, 2024, at 4:30 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by joining the live webcast in the Investors section of the Quantum-Si website under Events & Presentations. Alternatively, individuals can register here to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the event will be available for replay following the event.
About Quantum-Si Incorporated
Quantum-Si, The Protein Sequencing Company(TM), is focused on revolutionizing the growing field of proteomics. The Company's suite of technologies is powered by a first-of-its-kind semiconductor chip designed to enable next-generation single-molecule protein sequencing and digitize proteomic research in order to advance drug discovery and diagnostics beyond what has been possible with DNA sequencing. Learn more at quantum-si.com or follow us on LinkedIn or X.
Use of Non-GAAP Financial Measures
This press release presents the non-GAAP financial measures "adjusted total operating expenses" and "adjusted EBITDA." The most directly comparable measures for these non-GAAP financial measures are total operating expenses and net loss. The Company has included below adjusted total operating expenses, which presents the Company's total operating expenses after excluding goodwill impairment, stock-based compensation and restructuring costs. In addition, adjusted EBITDA further excludes interest, taxes, depreciation, amortization, dividend income, unrealized and realized gains and losses on marketable securities, changes in fair value of warrant liabilities and other income or expense.
A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company's financial condition and results of operations is included as Exhibit 99.2 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on May 9, 2024.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of the Company may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance and development and commercialization of products and services, its anticipated cash runway and its financial guidance for the full year 2024. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the inability to maintain the listing of the Company's Class A common stock on The Nasdaq Stock Market; the ability of the Company to grow and manage growth profitably and retain its key employees; the Company's ongoing leadership transitions; changes in applicable laws or regulations; the ability of the Company to raise financing in the future; the success, cost and timing of the Company's product development and commercialization activities; the commercialization and adoption of the Company's existing products and the success of any product the Company may offer in the future; the potential attributes and benefits of the Company's commercialized Platinum(R) protein sequencing instrument and kits and the Company's other products once commercialized; the Company's ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company's ability to identify, in-license or acquire additional technology; the Company's ability to maintain its existing lease, license, manufacture and supply agreements; the Company's ability to compete with other companies currently marketing or engaged in the development or commercialization of products and services that serve customers engaged in proteomic analysis, many of which have greater financial and marketing resources than the Company; the size and growth potential of the markets for the Company's products and services, and its ability to serve those markets once commercialized, either alone or in partnership with others; the Company's estimates regarding future expenses, future revenue, capital requirements and needs for additional financing; the Company's financial performance; and other risks and uncertainties described under "Risk Factors" in the Company's most recent
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