Quanterix Corporation · NASDAQ:QTRX
Quanterix — Q4 2019 Earnings Presentation
30 slides from Quanterix's earnings presentation, Mar 9, 2020
Slide 1: Q4 & FY 2019 Earnings Call
Q4 & FY 2019 Earnings Call Kevin Hrusovsky March 9, 2020
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend" and similar expressions (as wel
Slide 3: Today's Agenda
Today’s Agenda I. Strategic and Financial Progress – Kevin Hrusovsky – Chairman, CEO i. Q4 & FY 2019 Highlights ii. Vision and Strategy – Executional / Aspirational value creation iii. 2020 Goals and Growth Catalysts II. Financial Report – Amol Chaubal – CFO III. Q&A Q4 & FY 2019 Earnings Call | Mar
Slide 4: Scientific Research & Excellence in Execution driving Performance
Scientific Research & Excellence in Execution driving Performance PUBLICATIONS* MARKERS* Revenue $m * Cumulative 322 Q1 Q2 Q3 Q4 Other +51% 677 % Growth Oncology 36 Compelling Revenue growth & GM Neurology Launched HD-X and SP-X 159 259 56.7 Full Year Consumables growth +87% Raised ~$120m gr
Slide 5: Q4 & FY 2019 Growth Led by Consumables and Instruments
Q4 & FY 2019 Growth Led by Consumables and Instruments Growth Mix% % Q4 2019 Q4 2018 YoY $m Revenue Q4 2018 Q4 2019 (GAAP) Revenue ($million) Growth 3.6 30% 29% Instruments 4.6 US GAAP $15.9 $10.9 +46% Consumables 3.9 74% 43% 6.8 Lab. & 3.4 Gross Margin (%) Other Services 4.3 26% 27% Adjusted* 47.3%
Slide 6: Excellence in Execution driving Performance that consistently exceeds expectations
Excellence in Execution driving Performance that consistently exceeds expectations ACCELERATOR INSTRUMENTS INSTRUMENTS CONSUMABLES GROSS MARGIN Trials & Revenue Placements Revenue & Growth Revenue & Utilization Adjusted* Annual Revenue (excl. Study Revenue**) * Non-GAAP Item: Reconciliation for thes
Slide 7: FY 2019 Growth Stratification & Mix
FY 2019 Growth Stratification & Mix 13% 3% 28% 26% 31% Geography 50% Diseases Mix 51% Customer 49% 37% 66% 45% Growth Growth Growth Growth NA +52% Neurology +121% Instruments 55% Pharma/Biotech CRO +57% 97% Oncology +43% Consumables 86% Europe +104% Academia +87% Services 33% Asia +93% Q4 & FY 2019
Slide 8: Convergence of Technology and Healthcare
Convergence of Technology and Healthcare Late : Invasive Digital Biomarkers Revolution Early : Non-Invasive Q4 & FY 2019 Earnings Call | March 9, 2020 | 8
Slide 9: Life's Molecular Variables
Life’s Molecular Variables Environmental Factors Protein Detection Importance Abundance 100,000+ proteins Diet Infections Lack of Exercise Stress Sleep Deprivation Concussions RNA Radiation Lifestyle Drugs 20,000 genes Pollution Relevance to Poor Diet SMOKER Health Diabetes Cancer Q4 & FY 2019 Earni
Slide 10: Evolution of Immunoassay
Evolution of Immunoassay Simoa enables quantitative digital proteomics 1970-’00 RSU IVD (nanogram / ml) 1300 205 Proteins Proteins 2000-’14 LoD (picogram / ml) Comparison1 Sensitivity Increase +3,000X Assay 2014+ (femtogram / ml) 1000x More sensitive RSU IVD 10,500 1000 Proteins Proteins Concentrati
Slide 11: Simoa Sees Health to Disease Continuum
Simoa® Sees Health to Disease Continuum sickness begins symptoms 155 Current Biopsy, publications detection Spinal tap limit and other invasive procedures 363 publications New Blood, detection Saliva, limit Urine Current detection New limit detection limit Q4 & FY 2019 Earnings Call | March 9, 2020
Slide 12: Compelling and Rare Investment Thesis
Compelling and Rare Investment Thesis Digital Proteomics Disruption EXECUTION ASPIRATION Low Risk Research High Value Diagnostics & Health Screens Short to Mid-term: 2 – 3x Mid to Long-term: 10 – 15x “High Probability” Drug Development “Liquid MRi” for Brain & “Liquid Biopsy” for Cancer Adoption p
Slide 13: Capture Major Market Opportunity through our Disruptive Technology
Capture Major Market Opportunity through our Disruptive Technology EXECUTION ASPIRATION $1B - $4B: Research $40B+ Diagnostics Market Growth ~10% p.a. Oncology Other Luminex (55% Share) Immunoassay MSD (17%) HD-X Diagnostics Others (28%) (Inflammation, etc.) & Neuro $12bn Disruptive SP-X SR-X Diagnos
Slide 14: Quanterix Product Offerings
Quanterix Product Offerings Instruments Assay kits Services Bead based Planar HD-X SR-X SP-X Plate Bead Accelerator List Price: $200k List Price: $75k List Price: $75k 300+ assays Contract research 258 Installed 118 Installed 13 Installed (202 HD-1s, 56 HD-Xs) Homebrew kits Custom assay development
Slide 15: Sensitivity Enables New Science
Sensitivity Enables New Science Innovation Roadmap Investment Sensitivity (pg/ml) -- Illustrative 10 Sensitivity Enables… 1 Assay Sensitivity (pg/ml) Early detection 0.1 Smaller samples 0.01 Dilution for accuracy 0.001 0.0001 Multiplex – Specificity 0.00001 Future proofing 2015 2016 2017 2
Slide 16: Addressing a Significant Unmet Need in Drug Development
Addressing a Significant Unmet Need in Drug Development DRUG PERFORMANCE PROBABILITY OF DRUG APPROVAL VALIDATION OF SIMOA IMPACT TOXICITY 300% Instruments at Projects at CROs Quanterix 101 Adverse drug events are a substantial cause of Death in USA increase if biomarkers are used EFFICACY Hematology
Slide 17: FDA Supporting Biomarkers for Drug Development
FDA Supporting Biomarkers for Drug Development 1 Issued guidance to use biomarkers for drug approvals Neuro health is national Priority: 2 - veteran PTSD Drug makers - opioid addiction discouraged by lack of Rapid adoption - rapid AD ramp returns and subjective - mental issues cognitive endpoints -
Slide 18: Blue Chip Customers
Blue Chip Customers 2019 2018 2017 2016 2015 2014 Research Institutions Biopharma CROs & Other Q4 & FY 2019 Earnings Call | March 9, 2020 | 18
Slide 19: Our Disruption could be used to unlock Three Potential Large Clinical Diagnostic Opportunities
Our Disruption could be used to unlock Three Potential Large Clinical Diagnostic Opportunities Neurology Key Clinical Dx Unlocking potential for early diagnosis and monitoring of Platform Attributes neurological disease Low sample input requirements Liquid Biopsy Enhancing and disrupting Industr
Slide 20: Nf-L Rapidly Expanding as Best In Class Neuro Biomarker
Nf-L Rapidly Expanding as Best In Class Neuro Biomarker PEER-REVIEWED PUBLICATIONS ON Nf-L 160 Simoa Nf-L Nf-L PUBLICATIONS NFL PUBLICATIONS Key meeting Abstracts and presentations 60 25 2015 140 Our Focus 50 2016 20 2017 40 PubMed Citations 120 2018 30 42 MS Nf-L 15 134 Nf-L 49 clinical trials clin
Slide 21: Uman Nf-L Antibody is Unparalleled
Uman Nf-L Antibody is Unparalleled Publications (CSF & Blood) Not based on Based on Uman Nf-L Uman Nf-L 23% 494 112 77% 382 Based on Uman Nf-L 172 77% 100% 382 172 100% Publications on Blood 172 Q4 & FY 2019 Earnings Call | March 9, 2020 | 21
Slide 22: Unlocking Rich Clinical Potential of Nf-L
Unlocking Rich Clinical Potential of Nf-L Active Interventional Studies Total Clinical Studies using Nf-L Nf-L in Active Interventional Studies Study Phases & Disease Area Academic / Govt. Funded Completed, Observational Phase 4 Others Studies using NfL Pharma / Biotech Completed, Interventional Pha
Slide 23: Serum Nf-L Powering Major Drug Trials
. Serum Nf-L Powering Major Drug Trials $22B Market – 16 drugs Relapse Right Drug? Drug Trials • Phase III ASCLEPIOS I/II trials • Nf-L used as secondary endpoint, reduction after 3 months Drug Selection • Phase III OPERA I/II AND ORATORIO trials: Nf-L lowered to healthy. • Ocrevus: $1.75B sales, hi
Slide 24: Neurofilament light chain (Nf-L): From Promising Biomarker to Clinically-relevant Tool
Neurofilament light chain (Nf-L): From Promising Biomarker to Clinically-relevant Tool Multi-site analytical validation study: Large normative study ongoing 5 NA and 12 EU sites 11,000 healthy controls, >18,000 samples Evidence of Evidence neuronal of damage neuronal damage Illustrative ranges Nf-L,
Slide 25: 2020 Objectives
2020 Objectives Neurology Oncology Strategy Financials Technology 3yr Growth: 30-40% 1H’20 slower growth for Instrument/Consumables, High double digit growth faster growth for Services Oncology KOL Ecosystem IVD partnerships due to installed base 50%+ utilization 100x sensitivity increase overhaul A
Slide 26: Poised to Disrupt Healthcare and Create Significant Value
Poised to Disrupt Healthcare and Create Significant Value Execution: 2 – 3x value creation Aspirational: 10 – 15x value creation Differentiator Value Best in 1 Category-defining; Unrivaled Sensitivity / Technology Disrupt Class 2 $3B to New Methodical market penetration strategy to reward investors
Slide 27: Q4 2019 & FY 2019 Financials
Q4 2019 & FY 2019 Financials $m Q4 Revenue in $m GAAP Non-GAAP* * Q4 2018 Q4 2019 Q4 Q4 FY FY Q4 Q4 FY FY +74% 2019 2018 2019 2018 2019 2018 2019 2018 Total Revenue 15.9 10.9 56.7 37.6 15.9 10.9 56.7 36.3 +30% 6.8 +26% Growth vs. PYR 46% 51% 46% 56% 4.6 3.9 4.3 Gross Profit 6.9 5.2 26.8 17.9 7.5 5.2
Slide 28: Powering Precision Health - Summits
Powering Precision Health - Summits 2019 Spons Confirmed Spons 2018 2019 2020 Boston Speakers 18 42 Anticipating: 75 Speakers 20 Sponsors Total Attendees ~150 250+ 500 Attendees Neuro & Oncology Neuro & Onco Focus Neuro Only concurrent tracks Thursday, March 12th Webinar on Nf-L 10 Member Leadership
Slide 29: Appendix
Quanterix APPENDIX
Slide 30: Reconciliation of non-GAAP Financials
Reconciliation of non-GAAP Financials in thousands (unaudited) 2019 2018 2019 2018 Three months ended Year ended December 31 December 31 Total revenue $ 15,917 $ 10,877 $ 56,734 $ 37,632 Revenue from termination of license agreement (Note 1) — — — $ (1,342) Non-GAAP total revenue $ 15,917 $ 10,877 $