Quanterix ((QTRX)) has held its Q4 earnings call. Read on for the main highlights of the call.
Quanterix’s Latest Earnings Call: A Balanced Outlook Amid Growth and Challenges
Quanterix’s recent earnings call revealed a balanced sentiment, highlighting both robust growth and notable challenges. The company demonstrated strong revenue and margin growth, driven by strategic investments and expansion efforts. However, it faces headwinds in the academic market and specific regional declines, indicating concerns about near-term market volatility.
Seventh Consecutive Quarter of Double-Digit Revenue Growth
Quanterix reported its seventh consecutive quarter of double-digit revenue growth, achieving a total revenue of $35.2 million, which marks an 11% increase year-over-year. This consistent growth underscores the company’s strong market position and effective business strategies.
Strong Performance in Accelerator Lab
The Accelerator lab showed impressive performance with a 22% revenue growth in the quarter. This was driven by capacity expansion and a strong demand for clinical trials and custom assay development, highlighting the lab’s critical role in Quanterix’s growth strategy.
Non-GAAP Gross Margin Improvement
Quanterix saw a significant improvement in its non-GAAP gross margin, which increased by 300 basis points to 57.7% in the fourth quarter. This improvement was attributed to higher pricing and enhanced operating efficiency, reflecting the company’s focus on profitability.
Significant Expansion in Recurring Revenues
The company reported a substantial increase in recurring revenues, which grew from 65% to 80% over two years. This expansion contributed to a revenue compound annual growth rate (CAGR) of 14%, emphasizing the stability and predictability of Quanterix’s revenue streams.
Acquisition of Akoya Biosciences
Quanterix announced its planned acquisition of Akoya Biosciences, which is expected to significantly expand its research addressable market from $1 billion to $5 billion, and diagnostics total addressable market (TAM) from $10 billion to $15 billion. This acquisition is a strategic move to enhance Quanterix’s market reach and capabilities.
Decline in Instrument Revenue
Despite a 29% sequential increase, instrument revenue was down 7% year-over-year. This decline is attributed to market challenges, indicating areas where Quanterix needs to focus on improving performance.
Challenges in the Asia-Pacific Region
The Asia-Pacific region experienced a revenue decline of 6% for the full year, contrasting with growth in North America and Europe. This regional challenge highlights the need for strategic adjustments to address market-specific issues.
Impact of Academic Market Volatility
Quanterix anticipates a 10% decline in revenues related to US academic customers by 2025, representing a year-over-year headwind of approximately 250 basis points. This volatility in the academic market poses a significant challenge for the company.
First Quarter Revenue Decline Expected
The company expects a revenue decline of 10% to 15% for the first quarter of 2025, impacted by the US academic market and timing of Accelerator projects. This forecast indicates potential short-term challenges that Quanterix needs to navigate.
Forward-Looking Guidance
Looking ahead, Quanterix provided guidance for 2025, with expected revenue ranging between $140 million and $146 million. The company anticipates a GAAP gross margin between 59% and 63%, and a non-GAAP gross margin between 53% and 57%. Additionally, Quanterix plans to invest approximately $30 million in diagnostics and the Simoa ONE platform, which is expected to launch at the end of 2025. The merger agreement with Akoya Biosciences aims to expand their addressable market and achieve $40 million in operating synergies by 2026.
In conclusion, Quanterix’s earnings call presented a mixed outlook, with strong growth indicators balanced by challenges in specific markets. The company’s strategic initiatives, including the acquisition of Akoya Biosciences, position it for future expansion, despite near-term market volatility. Investors will be keen to see how Quanterix navigates these challenges while capitalizing on growth opportunities.