Quanterix(QTRX) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, were $35,813,000, an increase of 13.5$31,559,000 for the same period in 2023[22]. - Product revenue for the nine months ended September 30, 2024, was $59,251,000, up from$58,849,000 in the prior year, reflecting a growth of 0.7%[22]. - Gross profit for the three months ended September 30, 2024, was $20,153,000, compared to$19,409,000 for the same period in 2023, indicating a gross margin improvement[22]. - Net loss for the three months ended September 30, 2024, was $8,353,000, compared to a net loss of$6,716,000 for the same period in 2023, representing a 24.4% increase in losses[22]. - Total revenues increased by $11.4 million, or 13$102.3 million for the nine months ended September 30, 2024, compared to $90.8 million for the same period in 2023[68]. - The net loss for the nine months ended September 30, 2024, was$26.9 million, compared to a net loss of $19.5 million for the same period in 2023, representing a 38$29,339,000 as of September 30, 2024, from $174,422,000 as of December 31, 2023[18]. - Total assets decreased to$411,026,000 as of September 30, 2024, down from $428,567,000 as of December 31, 2023[18]. - Cash and cash equivalents at the end of the period on September 30, 2024, is$31,948,000, down from $203,863,000 at the end of September 30, 2023[38]. - Total stockholders' equity as of September 30, 2024, is$338,882,000, down from $349,958,000 as of December 31, 2023[28]. - Total financial assets amounted to$277.2 million, with cash equivalents at $13.0 million and marketable securities at$264.2 million[143]. Expenses - Research and development expenses for the nine months ended September 30, 2024, were $23,015,000, compared to$18,854,000 for the same period in 2023, reflecting a 22.9% increase[22]. - Selling, general and administrative expenses increased by $7.4 million, or 11$73.0 million for the nine months ended September 30, 2024, compared to $65.6 million for the same period in 2023[86]. - Stock-based compensation expense for the nine months ended September 30, 2024, is$15,150,000, an increase from $12,497,000 for the same period in 2023[38]. - Total stock-based compensation expense for the three months ended September 30, 2024, was$4.657 million, compared to $4.344 million for the same period in 2023, representing an increase of 7.2$39.3 million, an increase of $9.5 million, or 32$1.5 million, or 123%, to $2.8 million, mainly due to LDT-related license revenue[72]. - Revenue recognized from the UltraDx Agreement was$1.1 million for the nine months ended September 30, 2024, down from $1.4 million for the same period in 2023[107]. - Revenue from the Lilly Collaboration Agreement was$1.5 million for the three months ended September 30, 2024, compared to $4.5 million for the same period in 2023[110]. Inventory and Marketable Securities - Total inventory as of September 30, 2024, was$32.97 million, up from $26.12 million as of December 31, 2023[162]. - Purchases of marketable securities for the nine months ended September 30, 2024, totaled$270,972,000, compared to $125,200,000 for the same period in 2023[38]. - The company did not sell any marketable securities or record any realized gains or losses for the nine months ended September 30, 2024[141]. Operational Insights - The company launched Lucent Diagnostics clinical testing services in July 2023, expanding its offerings in biomarker testing[58]. - Quanterix's Simoa technology enables the detection of protein biomarkers in femtomolar concentrations, facilitating advancements in diagnostics and therapeutics[57]. - The company expects continued growth in Accelerator Laboratory services throughout 2024[70]. - The company anticipates ongoing increases in research and development expenses due to investments in new instrument and assay development[85]. - The company expects softness in instrument sales to continue throughout 2024 due to a constrained capital funding environment[69]. Compliance and Internal Controls - As of September 30, 2024, the company's disclosure controls and procedures were deemed not effective at a reasonable assurance level due to ongoing remediation efforts for material weaknesses in internal control over financial reporting[198]. - The company has engaged accounting advisory consultants to implement new software solutions for automating key manual inventory valuation processes, which began in Q2 2024[207]. - Remediation of the Property and Equipment material weakness is expected to continue through fiscal year 2024, while remediation of the Inventory Valuation material weakness is anticipated to extend into fiscal year 2025[210]. - The company has hired a Head of SOX Transformation to oversee the remediation of material weaknesses and improve internal controls[209]. Miscellaneous - The company is not currently a party to any pending or threatened litigation that would materially affect its financial condition or results of operations[202]. - The company announced an agreement to acquire Emission and is regularly assessing other potential acquisitions[124].