Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quantum-Si Inc (QSI, Financial) reported a gross profit of $354,000 and a gross margin of 57% for Q2 2024.
- The company has successfully launched its Platinum system, marking the first full quarter of sales.
- Quantum-Si Inc (QSI) has added key senior sales leadership roles in both the United States and Western Europe to expand its commercial reach.
- The company has released its Version 3 sequencing kit, which significantly improves output and reduces costs compared to previous versions.
- Quantum-Si Inc (QSI) has a robust innovation pipeline, with plans to release two new products by the end of the year.
Negative Points
- Revenue for Q2 2024 was $622,000, which may be considered modest for some investors.
- GAAP total operating expenses for Q2 2024 were $26.8 million, showing only a slight decrease from $27.0 million in Q2 2023.
- Net loss for Q2 2024 was $23.1 million, indicating ongoing financial challenges.
- The capital spending environment remains cautious, leading to longer sales cycles.
- The company is still in the early stages of commercialization, which may result in variable gross margins in the near term.
Q & A Highlights
Highlights of Quantum-Si Inc (QSI) Q2 2024 Earnings Call
Q: Can you discuss the pushes and pulls on the second half of the year and what gives you confidence in the sales projections?
A: Jeffry Keyes, Chief Financial Officer, explained that the first half of the year was in line with expectations, and the company is scaling its team, which should enhance performance. However, capital sales cycles have been slower than historical averages. The expectation is for a modest step-up in Q3 and further acceleration in Q4.
Q: How much time do new sales personnel need to settle in and convert leads into sales?
A: Jeffrey Hawkins, President and CEO, stated that it generally takes three to four months for new hires to be fully trained and start converting leads into sales. In less developed territories, this could extend to five or six months.
Q: Can you triangulate the impact of scientific presentations and new kit launches on sales?
A: Jeffrey Hawkins noted that while it's challenging to triangulate directly, the data presented at scientific meetings helps generate interest and leads. The new kits are designed to improve the range of applications and performance, which should drive utilization and sales.
Q: What are the key financial metrics for Q2 2024?
A: Jeffry Keyes reported that revenue for Q2 2024 was $622,000, with a gross profit of $354,000 and a gross margin of 57%. Total operating expenses were $26.8 million, and the net loss was $23.1 million. The company reiterated its 2024 revenue guidance of $3.7 million to $4.2 million.
Q: What are the company's corporate priorities for 2024?
A: Jeffrey Hawkins outlined three priorities: accelerating commercial adoption, delivering on the innovation roadmap, and preserving financial strength. The company is focused on expanding its sales team, launching new products, and maintaining fiscal discipline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
