Quantum-Si Reports Third Quarter 2024 Financial Results

QSI 11.12.2024

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Date of Upcoming Event:2024-09-30
Name of Upcoming Event:Human Proteome Organization World Congress 2024
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    Sales Pipeline is Accelerating and New Kits Remain on Track for Q4 Launch

    BRANFORD, Conn.--(BUSINESS WIRE)--Nov. 12, 2024--Quantum-Si Incorporated(Nasdaq: QSI) (“Quantum-Si,” “QSI” or the “Company”), The Protein Sequencing CompanyTM, today announced financial results for the third quarter endedSeptember 30, 2024.

    Press Release Highlights

    • Reported revenue of$787,000for the third quarter of 2024
    • Announced that Liberate Bio has integrated Platinum®Next-Generation Sequencing into their platform for developing novel gene therapies with improved targeting capabilities
    • Announced appointments of industry veteranTodd Bennettas Chief Commercial Officer (“CCO”),John Vieceli, Ph.D. as Chief Product Officer andLindsay Thompsonas Chief Human Resources Officer
    • Highlighted Platinum-based advances in proteomic analysis presented atHuman Proteome Organization World Congress2024 in Dresden,Germany
    • Highlighted a manuscript from researchers at theUniversity of Virginiapublished on BioRxiv highlighting Platinum’s capability to discriminate peptide variants at single amino acid resolution
    • New library preparation kit and barcoding kit remain on track for launch before year end
    • Highlighted the Company’s upcoming Investor Day onWednesday, November 20, 2024, beginning at10:00 a.m. ET

    “We are pleased to see continued adoption of Platinum across multiple market segments, including academic research, pharma/biotech and most recently, adoption by our first customer from the contract research organization market. Under the leadership of our new CCO, there has been clear improvement in commercial execution and the overall acceleration of our sales pipeline,” saidJeff Hawkins, President and Chief Executive Officer ofQuantum-Si. “Even with this acceleration, we, like others in the tools space, have observed some lengthening of the sales cycle in the third quarter, making it likely that we will not achieve our full year guided revenue range of$3.7 millionto$4.2 million. We have clear strategies in place that we believe will allow us to get as close to the guidance range as possible and despite the potential short fall, we remain very confident in the long-term commercial opportunity for Platinum and the growth of the proteomics market in general. We are excited for the future and believe that we will continue to deliver solid quarter over quarter growth as we move forward.”

    Hawkins continued, “In addition, we continue to execute on our innovation roadmap and are on track to deliver two new kits by end of the year, which we believe will continue to drive broader market adoption. We are looking forward to revealing more details on our exciting technology roadmap and expanding commercial opportunities at our upcoming Investor Day on November 20th.”

    Third Quarter 2024 Financial Results

    For the third quarter of 2024, the Company recorded revenue of$787,000. Gross profit was$367,000and gross margin was 47%. For the nine months endedSeptember 30, 2024, the Company recorded revenue of$1.9 million, gross profit of$990,000, and gross margin of 53%. 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$28.5 millionin the third quarter of 2024, compared to$27.3 millionfor the same period in the prior year, and$78.9 millionfor the nine months endedSeptember 30, 2024, compared to$83.6 millionfor the same period in the prior year. Adjusted total operating expenses were$26.0 millionin the third quarter of 2024 compared to$23.9 millionfor the same period in the prior year, and adjusted total operating expenses for the nine months endedSeptember 30, 2024were$72.3 millioncompared to$72.6 millionfor the same period in the prior year. The Company has successfully reduced overall adjusted operating expenses on a year to date basis while funding the ramp up in commercialization efforts. This reduction was driven by the Company’s 2023 R&D realignment initiative to streamline and focus R&D efforts on delivering product enhancements to customers. 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®instrument.

    Net loss was$25.3 millionin the third quarter of 2024, compared to a net loss of$24.7 millionin the same period of the prior year, and a net loss of$67.9 millionfor the nine months endedSeptember 30, 2024, compared to a net loss of$73.9 millionfor the same period in the prior year. Adjusted EBITDA was negative$24.5 millionin the third quarter of 2024, compared to negative$22.6 millionin the same period of the prior year, and negative$67.7 millionfor the nine months endedSeptember 30, 2024, compared to negative$69.2 millionfor the same period in 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 ofSeptember 30, 2024, the Company’s cash and cash equivalents and investments in marketable securities were$196.3 million.

    Financial Guidance

    The Company provided updated full year 2024 financial guidance for adjusted operating expenses and cash usage as follows:

    Adjusted total operating expenses

    Approximately$100 million

    Total cash usage

    Approximately$92 million

    The Company also updated its expectation that the balance in cash and cash equivalents and investments in marketable securities of$196.3 millionas ofSeptember 30, 2024will provide a runway into the second half of 2026.

    Webcast and Conference Call Information

    Quantum-Siwill host a conference call to discuss its third quarter 2024 financial results onTuesday, November 12, 2024, at8:00 a.m. Eastern Time. Individuals interested in listening to the conference call may do so by joining the live webcast in the Investors section of theQuantum-Siwebsite under Events & Presentations. Alternatively, individuals can registerhereto 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.

    Investor Day

    The Company will host an Investor Day onWednesday, November 20thbeginning at10:00 a.m. ET. To access the event, a liveaudio webcastwill be available on the Investors section of the Company’s website.

    AboutQuantum-Si Incorporated

    Quantum-Si, The Protein Sequencing CompanyTM, is focused on revolutionizing the growing field of proteomics. The Company’s Platinum®instrument enables Next-Generation Protein SequencingTM that advances proteomic research, drug discovery, and diagnostics beyond what has been possible with existing proteomic tools. Learn more atquantum-si.comor follow us onLinkedInorX.

    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 theSecurities and Exchange Commission(the “SEC”) onNovember 12, 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 onThe 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®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 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in the Company’s other filings with theSEC. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

    QUANTUM-SI INCORPORATED

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (in thousands, except share and par value amounts)

    (unaudited)

    September 30,2024

    December 31,2023

    Assets

    Current assets:

    Cash and cash equivalents

    $

    42,268

    $

    133,860

    Marketable securities

    154,076

    123,876

    Accounts receivable, net of allowance of$0and$0, respectively

    1,022

    368

    Inventory

    4,091

    3,945

    Prepaid expenses and other current assets

    4,371

    4,261

    Total current assets

    205,828

    266,310

    Property and equipment, net

    16,254

    16,275

    Internally developed software, net

    —

    532

    Operating lease right-of-use assets

    13,677

    14,438

    Other assets

    695

    695

    Total assets

    $

    236,454

    $

    298,250

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

    $

    2,153

    $

    1,766

    Accrued payroll and payroll-related costs

    4,603

    4,943

    Accrued contracted services

    2,133

    1,519

    Accrued expenses and other current liabilities

    2,839

    1,815

    Current portion of operating lease liabilities

    3,614

    1,566

    Total current liabilities

    15,342

    11,609

    Warrant liabilities

    357

    1,274

    Operating lease liabilities

    10,211

    13,737

    Other long-term liabilities

    24

    11

    Total liabilities

    25,934

    26,631

    Stockholders’ equity

    Class A Common stock,$0.0001par value; 600,000,000 shares authorized as ofSeptember 30, 2024andDecember 31, 2023; 122,775,352 and 121,832,417 shares issued and outstanding as ofSeptember 30, 2024andDecember 31, 2023, respectively

    12

    12

    ClassB Commonstock,$0.0001par value; 27,000,000 shares authorized as ofSeptember 30, 2024andDecember 31, 2023; 19,937,500 shares issued and outstanding as ofSeptember 30, 2024andDecember 31, 2023

    2

    2

    Additional paid-in capital

    773,873

    767,239

    Accumulated other comprehensive loss

    153

    -

    Accumulated deficit

    (563,520

    )

    (495,634

    )

    Total stockholders’ equity

    210,520

    271,619

    Total liabilities and stockholders’ equity

    $

    236,454

    $

    298,250

    QUANTUM-SI INCORPORATED

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

    (in thousands, except per share amounts)

    (unaudited)

    Three months endedSeptember 30,

    Nine months endedSeptember 30,

    2024

    2023

    2024

    2023

    Revenue:

    Product

    $

    764

    $

    216

    $

    1,776

    $

    654

    Service

    23

    7

    90

    28

    Total revenue

    787

    223

    1,866

    682

    Cost of revenue

    420

    115

    876

    372

    Gross profit

    367

    108

    990

    310

    Operating expenses:

    Research and development

    16,171

    16,587

    42,653

    50,588

    Selling, general and administrative

    12,284

    10,696

    36,236

    33,010

    Total operating expenses

    28,455

    27,283

    78,889

    83,598

    Loss from operations

    (28,088

    )

    (27,175

    )

    (77,899

    )

    (83,288

    )

    Dividend and interest income

    2,688

    2,572

    9,149

    7,274

    Unrealized gain on trading securities

    —

    1,953

    —

    8,302

    Realized loss on trading securities

    —

    (1,901

    )

    —

    (6,489

    )

    Change in fair value of warrant liabilities

    121

    (162

    )

    917

    (81

    )

    Other income (expense), net

    9

    (15

    )

    (10

    )

    370

    Loss before provision for income taxes

    (25,270

    )

    (24,728

    )

    (67,843

    )

    (73,912

    )

    Provision for income taxes

    (43

    )

    —

    (43

    )

    —

    Net loss

    $

    (25,313

    )

    $

    (24,728

    )

    $

    (67,886

    )

    $

    (73,912

    )

    Net loss per common share attributable to common stockholders, basic and diluted

    $

    (0.18

    )

    $

    (0.17

    )

    $

    (0.48

    )

    $

    (0.52

    )

    Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted

    142,399

    141,660

    142,039

    141,154

    Other comprehensive gain (loss):

    Net unrealized gain on marketable securities, net of tax

    $

    163

    $

    —

    $

    163

    $

    —

    Foreign currency translation adjustment

    (3

    )

    —

    (10

    )

    —

    Total other comprehensive gain, net of tax

    160

    —

    153

    —

    Comprehensive loss

    $

    (25,153

    )

    $

    (24,728

    )

    $

    (67,733

    )

    $

    (73,912

    )

    QUANTUM-SI INCORPORATED

    RECONCILIATION OFU.S.GAAP TO NON-GAAP FINANCIAL MEASURES

    (in thousands)

    (unaudited)

    Three months endedSeptember 30,

    Nine months endedSeptember 30,

    2024

    2023

    2024

    2023

    Net loss

    $

    (25,313

    )

    $

    (24,728

    )

    $

    (67,886

    )

    $

    (73,912

    )

    Adjustments to reconcile to EBITDA:

    Dividend and interest income

    (2,688

    )

    (2,572

    )

    (9,149

    )

    (7,274

    )

    Depreciation and amortization

    1,158

    1,170

    3,606

    3,063

    Income tax provision

    43

    —

    43

    —

    EBITDA

    (26,800

    )

    (26,130

    )

    (73,386

    )

    (78,123

    )

    Adjustments to reconcile to Adjusted EBITDA:

    Unrealized gain on trading securities

    —

    (1,953

    )

    —

    (8,302

    )

    Realized loss on trading securities

    —

    1,901

    —

    6,489

    Change in fair value of warrant liabilities

    (121

    )

    162

    (917

    )

    81

    Other (income) expense, net

    (9

    )

    15

    10

    (370

    )

    Stock-based compensation

    2,394

    1,141

    6,403

    6,914

    Restructuring costs

    23

    2,251

    197

    4,131

    Adjusted EBITDA

    $

    (24,513

    )

    $

    (22,613

    )

    $

    (67,693

    )

    $

    (69,180

    )

    Three months endedSeptember 30,

    Nine months endedSeptember 30,

    2024

    2023

    2024

    2023

    Total operating expenses

    $

    28,455

    $

    27,283

    $

    78,889

    $

    83,598

    Adjustments to reconcile to Adjusted total operating expenses:

    Stock-based compensation

    (2,394

    )

    (1,141

    )

    (6,403

    )

    (6,914

    )

    Restructuring costs

    (23

    )

    (2,251

    )

    (197

    )

    (4,131

    )

    Adjusted total operating expenses

    $

    26,038

    $

    23,891

    $

    72,289

    $

    72,553

    View source version onbusinesswire.com:https://www.businesswire.com/news/home/20241112920059/en/

    Investor Contact:Doug FarrellVP, Investor Relationsir@quantum-si.com

    Media Contact:Katherine AtkinsonSVP, Commercial Marketingmedia@quantum-si.com

    Source:Quantum-Si Incorporated

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