Quanterix ((QTRX)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Quanterix’s recent earnings call painted a mixed picture, showcasing resilience in certain areas such as consumables and strategic advancements, while also highlighting challenges like declining total revenue and increased expenses. The company is navigating macroeconomic pressures, which have led to a more conservative revenue outlook.
Record Consumables Revenue
Quanterix reported its highest ever quarter for consumables, with revenue reaching $18.1 million, marking a 6% increase from the previous year. This achievement underscores the company’s strength in this segment, even as other areas face challenges.
Strategic Initiatives and Product Launches
The company is making significant strides with the launch of four new immunology assays, building on the 20 new assays introduced last year. Additionally, Quanterix plans to release its next-generation platform, Simoa ONE, by the end of the year, which is expected to enhance its market position.
Akoya Biosciences Merger Synergies
The merger with Akoya Biosciences is a strategic move expected to increase Quanterix’s shareholder ownership from 70% to 84%. This merger is anticipated to significantly contribute to the company’s top-line growth and gross profit.
Operational Efficiency and Cost Savings
Quanterix announced a substantial $30 million reduction in core operating costs, with plans to scale this to $55 million in annualized savings by 2026. These measures are part of the company’s strategy to achieve positive cash flow.
Overall Revenue Decline
The earnings call revealed a 5% decline in total revenue for Q1 2025, amounting to $30.3 million. This decrease was notably impacted by a significant 36% drop in Accelerator lab revenue.
Conservative Revenue Guidance Revision
Reflecting broader macroeconomic pressures, Quanterix revised its revenue guidance for 2025 to a decline of 5% to 13%. This revision considers challenges such as reduced academic funding and pharma spending.
Increased Operating Expenses
The company’s GAAP operating expenses rose by $9.1 million due to acquisition and integration costs, resulting in an adjusted EBITDA loss of $11.3 million for the quarter.
Challenges in Academic Funding
Quanterix anticipates a 20% reduction in NIH funding levels, which is expected to impact revenues linked to U.S. academic customers, posing a challenge to future growth.
Forward-Looking Guidance
Looking ahead, Quanterix has set a revenue guidance range for 2025 between $120 million and $130 million. The company is optimistic about achieving positive cash flow by 2026, supported by strategic initiatives and a robust balance sheet exceeding $100 million. The upcoming launch of the Simoa ONE platform is expected to drive growth in the immunology and oncology markets, despite challenges such as reduced NIH funding and pharma spending.
In summary, Quanterix’s earnings call highlighted a blend of resilience and challenges. While the company is making strategic advancements and achieving record consumables revenue, it faces hurdles with declining overall revenue and increased expenses. The forward-looking guidance reflects a cautious optimism, with strategic initiatives aimed at driving future growth despite macroeconomic pressures.