Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quantum-Si Inc (QSI, Financial) is making progress in accelerating the commercial adoption of its platinum technology, positioning itself as a leader in the growing proteomic market.
- The company has filled most open sales territories and appointed Todd Bennett as Chief Commercial Officer, enhancing sales force execution and pipeline acceleration.
- Quantum-Si Inc (QSI) is on track to launch new versions of its library preparation and barcoding kits, which are expected to improve sample preparation time and increase compatibility with a broader range of proteins.
- The company received the Frost and Sullivan technology innovation leadership award, recognizing its pioneering technology and commitment to advancing proteomic research.
- Quantum-Si Inc (QSI) has a strong cash position with $196.3 million in cash and equivalents, providing financial runway into the second half of 2026.
Negative Points
- Third-quarter revenue of $787,000 was below expectations due to delayed customer purchases, impacting the company's ability to meet its full-year revenue guidance.
- The sales cycle has lengthened, with some customers opting to delay instrument purchases, affecting revenue realization.
- Gross margin variability is expected to continue due to the initial stages of commercialization and inventory adjustments.
- Operating expenses increased year-over-year, with a net loss of $25.3 million for the third quarter, reflecting the ramp-up of commercial operations.
- The company acknowledges that it is unlikely to achieve its full-year revenue guidance, despite expecting a sequential increase in Q4 revenue.
Q & A Highlights
Q: Can you talk about why the visibility wasn't quite there in the third quarter and why you're confident in achieving the million-dollar quarterly revenue guidance?
A: Jeffrey Hawkins, President and CEO, explained that the revenue shortfall was due to a few sales being delayed, which significantly impacted expectations given the high value of each sale. For Q4, they are assessing headwinds and tailwinds and are optimistic about reaching close to their guidance, with confidence in surpassing $1 million in quarterly revenue.
Q: What are some of the bottlenecks preventing higher sales volumes, and what could improve the technology further?
A: Jeffrey Hawkins noted that there isn't a single bottleneck but a mix of factors, including the need for more evidence and publications. Additionally, the sales team is relatively new and still ramping up. The focus is on increasing the scale of activity and training sales professionals to work on more opportunities.
Q: Have the sales to date for the platinum instrument been driven by direct sales or distribution partners?
A: Jeffrey Hawkins stated that sales have been a mix of both direct sales in the U.S. and key Western European markets, as well as through expanding distribution networks. Early distribution partners have also started placing and selling instruments.
Q: Can you share feedback on the version three kits launched a few months ago?
A: Jeffrey Hawkins reported a smooth transition to the version three kits, with customers seeing improved performance, better output, and consistent reproducibility. These enhancements have opened up more applications and facilitated smoother research progress.
Q: What are your thoughts on the clinical potential of protein sequencing and its penetration into the biopharma world?
A: Jeffrey Hawkins mentioned ongoing adoption in biotech and large pharma, with the first contract manufacturer adopting the product. While these opportunities take time to materialize, they are optimistic about the product's potential in these segments. The intersection with clinical programs or diagnostics is still in the future, with more details to be shared at the Investor Day.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
