BRANFORD, Conn. — (BUSINESS WIRE) — November 9, 2023 — Quantum-Si Incorporated (Nasdaq: QSI) (“Quantum-Si,” “QSI” or the “Company”), The Protein Sequencing CompanyTM, today announced financial results for the third quarter ended September 30, 2023.
Third Quarter Highlights
- Recorded revenue of $223,000 in the third quarter of 2023 as the Company continued its previously communicated controlled commercial launch of its Platinum instrument
- Completed a strategic review of research and development (“R&D”) programs and organizational design; resulting changes will focus development on rapid delivery of capabilities and applications with the highest customer demand
- First customer data presented in an October webinar titled “Next-generation protein sequencing platform: Advances in protein identification and characterization”
- Further strengthened the Board of Directors with the addition of independent director Amir Jafri
- Scaling commercial activities to support a full commercial launch in early 2024
“During the third quarter we completed our previously communicated strategic review of R&D and made some necessary changes. These changes have positioned us well to focus our R&D efforts on delivering the product improvements and enhancements that our customers are seeking,” said Jeff Hawkins, President and Chief Executive Officer. “I would like to emphasize that the changes we made, while resulting in lower expenses, are not expected to negatively impact R&D output. We believe that our new organizational structure and focused set of R&D initiatives will lead to greater R&D effectiveness and result in the accelerated delivery of new capabilities and applications to our customers in 2024 and beyond. Though the initial signs of our realignment are very encouraging, we are still evolving in our new operating structure. As we had planned, we expect to continue to operate in our controlled commercial launch status until early 2024, at which point we anticipate transitioning to a full commercial launch.”
Third Quarter 2023 Financial Results
During the third quarter of 2023, the Company continued its controlled commercial launch of its Platinum instrument, recording revenue of $223,000. Gross profit was $108,000 and gross margin was 48%. For the nine months ended September 30, 2023, the Company recorded revenue of $682,000, gross profit of $310,000, 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 $27.3 million in the third quarter of 2023, compared to $27.7 million for the same period in the prior year, and $83.6 million for the nine months ended September 30, 2023, compared to $85.0 million for the same period in the prior year. Adjusted total operating expenses were $23.9 million in the third quarter of 2023, compared to $23.6 million for the same period in the prior year, and adjusted total operating expenses for the nine months ended September 30, 2023, was $72.6 million compared to $77.9 million for the same period in the prior year.
Net loss was $24.7 million in the third quarter of 2023, compared to a net loss of $31.7 million in the same period of the prior year, and a net loss of $73.9 million for the nine months ended September 30, 2023, compared to a net loss of $99.3 million for the same period in the prior year. Adjusted EBITDA was negative $22.6 million in the third quarter of 2023, compared to negative $22.9 million in the same period of the prior year, and negative $69.2 million for the nine months ended September 30, 2023, compared to negative $76.1 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 September 30, 2023, cash and cash equivalents and investments in marketable securities were $274.6 million.
2023 Financial Outlook
- The Company expects its full year 2023 adjusted total operating expenses to be approximately $100 million compared to $103.2 million for 2022
- The Company maintains the expectation that the balance in cash and cash equivalents and investments in marketable securities of $274.6 million as of September 30, 2023 will provide a runway into 2026
Webcast and Conference Call Information
Quantum-Si will host a conference call to discuss its third quarter 2023 financial results on Thursday, November 9, 2023, 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 CompanyTM, 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 www.quantum-si.com.
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 November 9, 2023.
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 and its anticipated cash runway. 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 impact of COVID-19 on the Company's business; the inability to maintain the listing of the Company's Class A common stock on The Nasdaq Stock Market; the ability to recognize the benefits of business combination, which may be affected by, among other things, competition and 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 <
