Quantum-Si Inc Q1 FY2025 earnings call

• Accelerate Commercial Adoption: Launched the Platinum Pro system and completed first customer sales. Revenue was $842,000, an 84% increase y-o-y but below expectations. Slowdown in U.S. academic instrument purchases due to NIH funding and indirect cost caps; expects uncertainties to continue until at least fall 2025. Focus on pharma, biotech, and international markets; exited Q1 with 23 international distribution partners.
• Deliver on Innovation Roadmap: Version 4 Sequencing Kit on track for Q3 2025 launch. Library Preparation Kit version 3 expected by end of 2025. Proteus development program on track to demonstrate protein sequencing on prototype by end of 2025, aiming for H2 2026 launch. Core technology extended to ultrasensitive protein detection with sensitivity in low femtomolar range from serum.
• Preserve Financial Strength: Strong balance sheet with $232.6M in cash, cash equivalents, and marketable securities. Tracking tariff impacts, but no material near-term impact on inventory acquisition; mitigation strategies in place for long-term. Focus on mitigating NIH uncertainty by targeting non-U.S. academic segments.

In the first quarter of 2025, Quantum-Si's revenue was $842,000, which is an 84% increase over the first quarter of 2024. This revenue consisted of sales from the Platinum line of instruments, consumable kits, and related services. The gross profit was $486,000, resulting in a gross margin of 58%. The revenue contribution breakdown isn't explicitly detailed further beyond the overall revenue figure and its growth from the prior year.

• Adjusted operating expenses are expected to be $103 million or less for 2025.
• Total cash used for 2025 is expected to be $95 million or less.
• Confident in the long-term proteomics market and the technology roadmap being executed.

• NIH funding uncertainties are impacting new instrument sales in the U.S. academic market.
• Tariffs have the potential to impact inventory acquisition costs and sales channels outside the U.S., though preliminary analysis shows no material near-term impact and mitigation strategies are in place.

Q: Thanks for the questions. Given issues on the U.S. academic research side and potential tariffs on the pharma side, what gives confidence in penetrating the biopharma end market?

A: Jeff Hawkins states that policy related items haven't trickled through to change R&D priorities or funding, and biotech/pharma companies aren't seeing changes in engagement as they're solving a problem that fits their focus on efficiency and cost-effectiveness.

Q: With the Platinum Pro launch, what's the feedback been like and how does it differ from initial use?

A: Jeff Hawkins says the Platinum Pro system is locked down, not an early access. Feedback shows customers are adopting it, and application scientists are helping with utilization. Jeff Keyes mentions margin is expected to stay in the 40%-50% range going forward.

Q: On international presence with 23 partners, how many countries do they cover and tariff situation?

A: Jeff Hawkins says most partners cover multiple countries, with some covering single countries. Tariffs haven't impacted importation related costs as scientific/medical instrumentation is largely exempted historically.

Q: On U.S. market share and spending patterns, what's the breakdown and is there seasonality?

A: Jeff Hawkins says 20% of total business is in U.S. academic market, and 60% of instrument installations are outside U.S. Jeff Keyes says there's quarter-to-quarter variability in spend, especially in R&D, but full-year guidance is $103M or less for adjusted operating expenses.

Q: On Sequencing Kit versions and competitor distance, how are kits different and maintained distance?

A: Jeff Hawkins says there's no differential kit for segments; kits are phased in uniformly. Management closely monitors R&D investments to maintain market leadership distance, allocating resources to high-value programs.

Q: On academician webinars and propagation of utility, how do such conversations help?

A: Jeff Hawkins says peer-to-peer communication via webinars, user group meetings, etc., is powerful for awareness and interest, complementing direct selling activities by allowing customers to share research experiences