Quantum-Si Reports Fourth Quarter and Full Year 2023 Financial Results

Quantum-Si Reports Fourth Quarter and Full Year 2023 Financial Results




Quantum-Si Reports Fourth Quarter and Full Year 2023 Financial Results

Finalizing Commercial Readiness for Expected Full Commercial Launch by the End of Q1 2024

Releases Full Year 2024 Financial Guidance

BRANFORD, Conn.–(BUSINESS WIRE)–Quantum-Si Incorporated (Nasdaq: QSI) (“Quantum-Si,” “QSI” or the “Company”), The Protein Sequencing CompanyTM, today announced financial results for the fourth quarter and full year ended December 31, 2023.


Press Release Highlights

  • Recorded revenue of $400,000 in the fourth quarter of 2023 as the Company continued its previously communicated controlled commercial launch of its Platinum® instrument
  • Finalizing commercial readiness for expected full commercial launch by the end of Q1 2024
  • Launched version 2 of its sequencing kit in early February 2024 and has begun shipping to customers
  • Announced the Company’s third international distribution partner, TOMY Digital Biology Co. Ltd., based in Japan
  • Announced the planned release of a version 3 of its sequencing kit by the end of Q3 2024
  • Provides full year 2024 financial guidance

“We made great progress in the fourth quarter of 2023 and are seeing the early results of that work now, including the launch of our version 2 sequencing kit in early February 2024, significant progress on scaling up our commercial resources, and the addition of our third distributor to our international network”, said Jeff Hawkins, President and Chief Executive Officer of Quantum-Si. “We are pleased with our ability to launch the version 2 sequencing kit well within the previously provided timeline. We are excited about the acceleration we are seeing in our R&D pipeline and believe we are in a strong position to deliver a steady cadence of product enhancements and new capabilities to the market in 2024 and beyond. A version 3 of our sequencing kit is under development now and we expect to deliver it to the market by the end of Q3 2024. We are also making solid progress across library prep and instrument development programs that we believe will fuel the future growth of the Company for years to come.”

Hawkins continued, “With all the progress that we have made over the last year, coupled with finalizing our commercialization readiness, I am pleased to announce that we expect to commence our full commercial launch of our Platinum® instrument by the end of Q1 2024. We have also released full year 2024 financial guidance.”

Fourth Quarter 2023 and Full Year 2023 Financial Results

During the fourth quarter of 2023, the Company continued its controlled commercial launch of its Platinum instrument, recording revenue of $400,000. Gross profit was $178,000 and gross margin was 45%. For the full year ended December 31, 2023, the Company recorded revenue of $1.1 million, gross profit of $488,000, and gross margin of 45%. The periodic gross margin rate is expected to be variable in the near term as the Company works through the initial stages of commercialization as well as the timing and mix of product sales between instruments and consumable kits.

Total operating expenses were $28.1 million in the fourth quarter of 2023, compared to $38.8 million for the same period in the prior year, and $111.7 million for the full year ended December 31, 2023, compared to $123.8 million for the same period in the prior year. Adjusted total operating expenses were $26.3 million in the fourth quarter of 2023, compared to $25.3 million for the same period in the prior year, and adjusted total operating expenses for the full year ended December 31, 2023, were $98.9 million compared to $103.2 million for the same period in the prior year. Overall adjusted operating expenses for 2023 compared to 2022 have decreased as the Company focused on deploying capital in an efficient manner to R&D projects while still building commercial capabilities.

Net loss was $22.0 million in the fourth quarter of 2023, compared to a net loss of $33.1 million in the same period of the prior year, and a net loss of $96.0 million for the full year ended December 31, 2023, compared to a net loss of $132.4 million for the same period in the prior year. Adjusted EBITDA was negative $25.1 million in the fourth quarter of 2023, compared to negative $24.5 million in the same period of the prior year, and negative $94.3 million for the full year ended December 31, 2023, compared to negative $100.6 million for the same period in the prior year. A reconciliation of the non-GAAP financial measures, adjusted total operating expenses and adjusted EBITDA, is provided in a table included in this press release.

As of December 31, 2023, the Company’s cash and cash equivalents and investments in marketable securities were $257.7 million.

2024 Financial Guidance

For the full year 2024, the Company provided the following financial guidance:

Revenue $3.7 – $4.2 million
Adjusted total operating expenses Less than $103 million
Total cash usage Less than $100 million

The Company also maintains the expectation that the balance in cash and cash equivalents and investments in marketable securities of $257.7 million as of December 31, 2023 will provide a runway into 2026.

Webcast and Conference Call Information

Quantum-Si will host a conference call to discuss its fourth quarter and full year 2023 financial results on Thursday, February 29, 2024, at 4:30 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by joining the live webcast in the Investors section of the Quantum-Si website under Events & Presentations. Alternatively, individuals can register online to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the event will be available for replay following the event.

About Quantum-Si Incorporated

Quantum-Si, The Protein Sequencing Company™, is focused on revolutionizing the growing field of proteomics. The Company’s suite of technologies is powered by a first-of-its-kind semiconductor chip designed to enable next-generation single-molecule protein sequencing and digitize proteomic research in order to advance drug discovery and diagnostics beyond what has been possible with DNA sequencing. Learn more at quantum-si.com or follow us on LinkedIn or X.

Use of Non-GAAP Financial Measures

This press release presents the non-GAAP financial measures “adjusted total operating expenses” and “adjusted EBITDA.” The most directly comparable measures for these non-GAAP financial measures are total operating expenses and net loss. The Company has included below adjusted total operating expenses, which presents the Company’s total operating expenses after excluding goodwill impairment, stock-based compensation and restructuring costs. In addition, adjusted EBITDA further excludes interest, taxes, depreciation, amortization, dividend income, unrealized and realized gains and losses on marketable securities, changes in fair value of warrant liabilities and other income or expense.

A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations is included as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of the Company may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance and development and commercialization of products and services, its anticipated cash runway and its financial guidance for the full year 2024. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the inability to maintain the listing of the Company’s Class A common stock on The Nasdaq Stock Market; the ability of the Company to grow and manage growth profitably and retain its key employees; the Company’s ongoing leadership transitions; changes in applicable laws or regulations; the ability of the Company to raise financing in the future; the success, cost and timing of the Company’s product development and commercialization activities; the commercialization and adoption of the Company’s existing products and the success of any product the Company may offer in the future; the potential attributes and benefits of the Company’s commercialized Platinum™ protein sequencing instrument and kits and the Company’s other products once commercialized; the Company’s ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company’s ability to identify, in-license or acquire additional technology; the Company’s ability to maintain its existing lease, license, manufacture and supply agreements; the Company’s ability to compete with other companies currently marketing or engaged in the development or commercialization of products and services that serve customers engaged in proteomic analysis, many of which have greater financial and marketing resources than the Company; the size and growth potential of the markets for the Company’s products and services, and its ability to serve those markets once commercialized, either alone or in partnership with others; the Company’s estimates regarding future expenses, future revenue, capital requirements and needs for additional financing; the Company’s financial performance; and other risks and uncertainties described under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, and in the Company’s other filings with the SEC. The Company cautions that the foregoing list of factors is not exclusive. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

QUANTUM-SI INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts)

(Unaudited)

 

Three months ended December 31,

Years ended December 31,

2023

2022

2023

2022

Revenue
Product

$

377

$

$

1,031

$

Service

23

51

Total revenue

400

1,082

 
Cost of revenue

222

594

 
Gross profit

178

488

Operating expenses:
Research and development

16,437

18,157

67,025

72,062

Selling, general and administrative

11,624

11,203

44,634

42,296

Goodwill impairment

9,483

9,483

Total operating expenses

28,061

38,843

111,659

123,841

Loss from operations

(27,883)

(38,843)

(111,171)

(123,841)

Dividend income

2,262

2,013

9,536

5,301

Gain (loss) on marketable securities, net

3,774

2,180

5,587

(20,603)

Change in fair value of warrant liabilities

(197)

1,122

(278)

6,243

Other (expense) income, net

(4)

388

366

458

Loss before provision for income taxes

(22,048)

(33,140)

(95,960)

(132,442)

Provision for income taxes

Net loss and comprehensive loss

$

(22,048)

$

(33,140)

$

(95,960)

$

(132,442)

 
Net loss per common share attributable to common stockholders, basic and diluted

$

(0.16)

$

(0.24)

$

(0.68)

$

(0.95)

Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted

141,575

139,849

141,300

139,255

 

QUANTUM-SI INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value amounts)

(Unaudited)

 

December 31,

December 31,

2023

2022

Assets
Current assets:
Cash and cash equivalents

$

133,860

 

$

84,319

 

Marketable securities

 

123,876

 

 

266,990

 

Accounts receivable, net of allowance of $0 and $0, respectively

 

368

 

 

 

Inventory, net

 

3,945

 

 

 

Prepaid expenses and other current assets

 

4,261

 

 

6,873

 

Total current assets

 

266,310

 

 

358,182

 

Property and equipment, net

 

16,275

 

 

16,849

 

Internally developed software

 

532

 

 

 

Operating lease right-of-use assets

 

14,438

 

 

15,757

 

Other assets

 

695

 

 

697

 

Total assets

$

298,250

 

$

391,485

 

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable

$

1,766

 

$

3,903

 

Accrued expenses and other current liabilities

 

8,277

 

 

10,434

 

Current portion of operating lease liabilities

 

1,566

 

 

1,369

 

Total current liabilities

 

11,609

 

 

15,706

 

Warrant liabilities

 

1,274

 

 

996

 

Operating lease liabilities

 

13,737

 

 

16,077

 

Other long-term liabilities

 

11

 

 

 

Total liabilities

 

26,631

 

 

32,779

 

 
Stockholders’ equity
Class A Common stock, $0.0001 par value; 600,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 121,832,417 and 120,006,757 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively.

 

12

 

 

12

 

Class B Common stock, $0.0001 par value; 27,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 19,937,500 shares issued and outstanding as of December 31, 2023 and December 31, 2022.

 

2

 

 

2

 

Additional paid-in capital

 

767,239

 

 

758,366

 

Accumulated deficit

 

(495,634

)

 

(399,674

)

Total stockholders’ equity

 

271,619

 

 

358,706

 

Total liabilities and stockholders’ equity

$

298,250

 

$

391,485

 

 

QUANTUM-SI INCORPORATED

RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands)

(Unaudited)

 

Three months ended December 31,

Years ended December 31,

2023

2022

2023

2022

Net loss

$

(22,048

)

$

(33,140

)

$

(95,960

)

$

(132,442

)

Adjustments to reconcile to EBITDA:
Dividend income

 

(2,262

)

 

(2,013

)

 

(9,536

)

 

(5,301

)

Depreciation and amortization

 

1,093

 

 

795

 

 

4,156

 

 

2,584

 

EBITDA

 

(23,217

)

 

(34,358

)

 

(101,340

)

 

(135,159

)

Adjustments to reconcile to Adjusted EBITDA:
Goodwill impairment

 

 

 

9,483

 

 

 

 

9,483

 

(Gain) loss on marketable securities, net

 

(3,774

)

 

(2,180

)

 

(5,587

)

 

20,603

 

Change in fair value of warrant liabilities

 

197

 

 

(1,122

)

 

278

 

 

(6,243

)

Other expense (income), net

 

4

 

 

(388

)

 

(366

)

 

(458

)

Stock-based compensation

 

1,339

 

 

4,107

 

 

8,253

 

 

11,206

 

Restructuring costs

 

373

 

 

 

 

4,504

 

 

 

Adjusted EBITDA

$

(25,078

)

$

(24,458

)

$

(94,258

)

$

(100,568

)

 
 
 

Three months ended December 31,

Years ended December 31,

2023

2022

2023

2022

Total operating expenses

$

28,061

 

$

38,843

 

$

111,659

 

$

123,841

 

Adjustments to reconcile to Adjusted total operating expenses:
Stock-based compensation

 

(1,339

)

 

(4,107

)

 

(8,253

)

 

(11,206

)

Restructuring costs

 

(373

)

 

 

 

(4,504

)

 

 

Goodwill impairment

 

 

 

(9,483

)

 

 

 

(9,483

)

Adjusted total operating expenses

$

26,349

 

$

25,253

 

$

98,902

 

$

103,152

 

 

Contacts

Investor Contact
Jeff Keyes, Chief Financial Officer

ir@quantum-si.com

Media Contact
Katherine Atkinson, SVP, Commercial Marketing

media@quantum-si.com