QTRX Earning Date, Transcript Summary & Report

Earnings Surprise Report: Quanterix Corporation beats earnings expectations with reported EPS of $-0.42, exceeding expectations of $-0.69.

Strong Q1 Performance: First quarter results exceeded expectations, highlighting the resilience of the instruments and consumables business.

Q1 Revenue Overview: Revenue for the first quarter was $30.3 million, with consumables revenue at $18.1 million, up 6% year-over-year.

Margin Improvement and Cash Efficiency: Adjusted gross margin was approximately 50%, and adjusted cash usage improved by over 50% compared to last year.

Merger Impact on Revenue: The pending merger with Akoya Biosciences is expected to contribute significantly to top line and gross profit, with increased shareholder ownership in the combined company.

Immunology Assays Expansion: Launched four new immunology assays in Q1, building on 20 new assays from the previous year, leading to the highest consumables revenue quarter.

Simoa ONE Platform Release: Simoa ONE platform is on track for release by year-end, expected to deliver up to 10x the sensitivity of existing systems.

Alzheimer's Blood Test Collaboration: Expanded collaboration with ARUP Laboratories to offer the pTau217 blood test for Alzheimer’s disease, enhancing the infrastructure for non-invasive Alzheimer’s testing.

Cost Reduction Strategy: Announced a $30 million core operating cost reduction, scaling to $55 million annualized savings by 2026, driven by operational efficiencies and synergies from the Akoya acquisition.

Positive Cash Flow Projection: Expect to achieve positive cash flow by 2026 with a balance sheet exceeding $100 million.

Q1 Revenue Decline: Revenue for Q1 2025 was $30.3 million, a decline of 5% compared to the prior year, indicating a downward trend in overall sales.

Revenue Decline Challenges: Accelerator lab revenue decreased by 36%, driven by a decline in large multimillion-dollar projects from pharma customers, highlighting challenges in securing significant contracts.

Revenue Guidance Revision: The company revised its revenue guidance for 2025 to a range of $120 million to $130 million, representing a decline of 5% to 13%, which is a more pessimistic outlook than previously anticipated.

EBITDA Loss Increase: The adjusted EBITDA loss increased to $11.3 million in Q1 2025, compared to a loss of $8.1 million in the same quarter last year, indicating worsening financial performance.

Gross Margin Decline: The gross margin is expected to decrease by 300 basis points from prior guidance, primarily due to reduced revenue in the high-margin Accelerator business and the impact of tariffs on incoming materials.

NIH Funding Reduction Impact: The company anticipates a significant reduction in NIH funding levels, estimating an additional 20% reduction, which adds pressure to revenue expectations.

Customer Mix and Challenges: The customer mix for Q1 was approximately 50/50 between pharma and academia, but the company is facing conservatism among biopharma and biotech customers, leading to project delays and smaller ticket sizes.