Quanterix Corporation Common Stock Canaccord Genuity's 46th Annual Growth Conference

Hi, welcome to the Canaccord Genuity Growth Conference. I'm Kyle Mikson, I cover life science tools and diagnostics for Canaccord. Please welcome me to this fireside chat with Quanterix. Here with us today, Quanterix offers a highly sensitive platform based on digital ELISA for, I guess the target on neurology and oncology, and we'll talk a little more today. From the company, we have CEO Everett Cunningham. Thanks, Everett, for joining us today.

Appreciate it. Thanks for having me.

Appreciate it. All right, so starting with the performance in the second quarter.

You guys announced your earnings, I think it was a few days ago, Monday. What were some key drivers of performance during the quarter and any, I guess revelations or changes that arose from the update?

Yeah, thanks for that question, and we had our earnings call on Monday morning, so it's kind of fresh. Let me talk about the things that we feel good about at Quanterix. We had our earnings call. We talked about what drove our top line and bottom line. First of all, we did our acquisition of Akoya. We announced it a year ago, a year under our belt, and the synergies that we acquired or that we drove from that acquisition, $85 million of revenue synergies over the last year. We completed that in Q2, along with our ERP integration. So just the discipline around our spending, hitting those synergy targets, I commend the entire company.

With regards to our top line, Mike Miller, who is in the audience, and I, our Chief Technology Officer and Product Officer, we did and just exhausted ourselves with scouring our different regions, talking to customers. What they tell us in terms of what we offer on the spatial side and our legacy Simoa side is just differentiating from a technology standpoint and validated by our customers and how they use our technologies from instruments, consumables, our clinical trials business. What we offer there has been very, very positive. Some green shoots that we have seen quarter-over-quarter are Accelerator clinical trials bookings were up quarter-over-quarter. We feel really, really good about that.

We have added some things on the commercial side to give us a little bit more scale and drive more net new business in terms of lead generation reps, and also added some investments on the marketing side. We are challenged in a couple places, right? The U.S. academic and government market. Listen, there are funding constraints. We are not just saying that due to our research, but talking directly to customers. That has been a headwind for us. Our commercial execution. We are very forthright and transparent around, we need more out of our commercial organization to start driving some sequential growth. We have done what I would say the right focus, the right transforming, and the right adding of resources on the commercial side so we can get that sequential growth.

Okay. All right, awesome. Maybe just on that note, the mix of the company's revenue, the combined company now with Akoya. Biopharma is pretty material. It could be near half or it could be definitely over a quarter of the business.

Maybe you talked about the A&G, the academic and government challenges, but how is the biopharma side a little bit pressured as well?

Yeah. Our biopharma side, what we are seeing is we are doing the same amount of clinical trials, biopharma deals. Those deals are just smaller deals. And the feedback we get from our customers are, again, they might be constrained a little bit from a funding standpoint, but this is mostly on us. And where I feel optimistic about our clinical trials business is if you go back a year ago, we did not have solely dedicated resources on the clinical trial side. We have added back a team that will be solely dedicated to clinical trials. And you talk about a quick transformation. Looking at Mike Miller ran that business 2 years ago, solely ran that clinical trials business. We have people that are currently at our company that have experience, have pharma relationships. What we are doing is we are just deploying them the right way. Now they will be dedicated.

It is about a team of about 7-10 people moving forward that they will drive our bigger deals with key pharma customers.

If the total dollars or dollars per project are lower, where do you think that the money is going, I guess? Is it to other competitors or just to other AI stuff or something? I do not know. Yeah.

Listen, everybody has spending choices. Again, in doing our research, what we feel is we have our opportunity to compete for those deals. Some of those deals are going to our competitors, and some of those deals we are just missing out and we are not there at the right time, having the right conversations with the right people. We have also done a good job. I give credit to our operations team on that side. We know which companies are doing neurological clinical trials. We got to be at the right time at the right place. With that dedicated team, I am confident we are going to start to see that pick up.

Yeah. I will say I think Quanterix did have a head start or a nice lead in neuro. What do you think it is from others and other vendors in this space that your competitors, again, that maybe makes their platform or portfolio a little bit more attractive or maybe makes a biopharma company open to testing it out, at least?