Release Date: November 12, 2024

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

Positive Points

• Quanterix Corp (NASDAQ:QTRX) reported its sixth consecutive quarter of double-digit revenue growth, with a 13% increase in Q3 2024.
• The company achieved a 36% growth in its Accelerator lab and an 8% growth in its consumables business.
• Quanterix Corp (NASDAQ:QTRX) has a strong balance sheet with nearly $300 million in liquidity and reduced cash usage to $3 million in the quarter.
• The company launched 16 new products year-to-date, including novel multiplexes, with plans to launch four more by the end of the year.
• Quanterix Corp (NASDAQ:QTRX) is making significant progress in Alzheimer's disease testing, launching a multimarker assay as a lab-developed test with strong demand from clinicians.

Negative Points

• Quanterix Corp (NASDAQ:QTRX) is facing challenges with its instrument revenue, which decreased by 39% in the quarter.
• The company is undergoing a restatement of certain prior period financial statements, which may take longer to complete than expected.
• Revenue from the Asia Pacific region was down 34% in the period.
• The company reported that revenue from lucent patient testing was immaterial for the quarter.
• There is uncertainty around the reimbursement rates for single marker tests, which could impact future revenue from diagnostics.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Signs with QTRX.

Q: How would you characterize the sales in the quarter for the Accelerator Lab in terms of new versus existing customers? A: (CEO) About 70 to 80% of the sales were from recurring customers. The Accelerator Lab continues to outperform, growing 36% this quarter and making up about 30% of our business. Our strategy of combining consumables and Accelerator services has resulted in 80% recurring revenues, showcasing a unique position of strength in the market.

Q: Could you give us a sense of how diagnostics might contribute to your overall top-line growth next year? A: (CEO) The contribution from diagnostics will depend on patient utilization of therapies like Lambi and Kuma. We are focused on improving accessibility and reducing costs with blood-based markers, which should help more people access therapies. We will provide more guidance on this at the beginning of 2025.

Q: Can you explain the difference between the multimarker panel and the single marker assay, and how they fit into future diagnostic use? A: (CEO) The multimarker panel, Lucent AD Complete, includes five markers and an algorithm to provide a more definitive result, reducing the intermediate zone by threefold compared to single marker tests. This makes it more effective for diagnosing Alzheimer's. The Bty Tau assay, launched recently, is expected to be important for staging tau pathology and monitoring patients in clinical trials, with potential future diagnostic applications.

Q: How do you see the interplay between instrument and Accelerator revenue evolving given current macro dynamics? A: (CFO) There is a toggle between instrument and Accelerator revenue. While instrument sales have been challenging, the Accelerator has more than offset this decline, benefiting from strong demand in research and trials. We expect Accelerator to continue growing double digits even when instrument sales recover.

Q: What are the next steps for reimbursement of the Lucent AD Complete test, and how do you plan to scale its commercialization? A: (CEO) We are focused on clinical utility studies and ongoing trials to support reimbursement submissions in 2025. We expect a higher reimbursement rate for the multimarker test compared to single markers. Our strategy involves both direct sales and partnerships to build global testing infrastructure, ensuring broad access to the test.

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