QSI announced a first-quarter revenue of $842 million, falling short of the market expectation of $962.3K. Despite this, the company has made significant strides, including the launch of Platinum Pro and the completion of training for Avantor, its North American channel partner. The CEO, Jeff Hawkins, highlighted robust growth in international markets, expanding their network to 23 partners. However, challenges persist in the U.S., mainly due to issues with NIH funding and tariff uncertainties.
QSI, nevertheless, sees promising opportunities in the pharmaceutical and biotech sectors, bolstered by the accessibility of their advanced proteomics technology, Platinum Pro. The company's R&D team is progressing well, with the version 4 Sequencing Kit scheduled for a Q3 2025 release. Plans are underway to achieve successful protein sequencing on a prototype Proteus system by the end of 2025. Additionally, development has begun on a version 3 Library Preparation Kit, targeted for launch by the year's end. QSI remains optimistic about long-term prospects in the proteomics field, supported by a strategic technology roadmap.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Quantum-Si Inc (QSI, Financial) is $3.38 with a high estimate of $5.50 and a low estimate of $1.00. The average target implies an upside of 128.60% from the current price of $1.48. More detailed estimate data can be found on the Quantum-Si Inc (QSI) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Quantum-Si Inc's (QSI, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
QSI Key Business Developments
Release Date: March 03, 2025
- Q4 2024 Revenue: $1.2 million.
- Full-Year 2024 Revenue: $3.1 million.
- Q4 2024 Gross Profit: $610,000.
- Q4 2024 Gross Margin: 51%.
- Full-Year 2024 Gross Profit: $1.6 million.
- Full-Year 2024 Gross Margin: 52%.
- Q4 2024 GAAP Operating Expenses: $31.3 million.
- Q4 2024 Adjusted Operating Expenses: $26.7 million.
- Full-Year 2024 GAAP Operating Expenses: $110.2 million.
- Full-Year 2024 R&D Expenses: $59.6 million.
- Full-Year 2024 SG&A Expenses: $50.5 million.
- Q4 2024 Dividend and Interest Income: $2.2 million.
- Full-Year 2024 Dividend and Interest Income: $11.4 million.
- Cash and Cash Equivalents (Dec 31, 2024): $209.6 million.
- Capital Raise (January 2025): $50 million.
- Expected Cash Runway: Into the second half of 2027.
- Q1 2025 Revenue Guidance: At least $900,000.
- 2025 Adjusted Operating Expenses Guidance: $103 million or less.
- 2025 Estimated Cash Use: $95 million or less.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quantum-Si Inc (QSI, Financial) achieved a significant milestone by selling its 50th platinum instrument in the fourth quarter of 2024.
- The company reported a 183% increase in annual revenue year-over-year, with total revenues of $3.1 million for 2024.
- Quantum-Si Inc (QSI) successfully diversified its customer base to include academic, biotech, pharma, government, and contract research organizations.
- The company expanded its international distribution channel to 18 partners, enhancing its global market reach.
- Quantum-Si Inc (QSI) formed a world-class scientific advisory board to support the expansion of next-generation protein sequencing technology.
Negative Points
- The sales cycle for Quantum-Si Inc (QSI)'s instruments is longer than historically seen in the market, potentially impacting revenue timing.
- There is uncertainty regarding NIH funding, which could affect the academic research market in the United States.
- Gross margin variability is expected to continue due to commercialization efforts and inventory adjustments.
- The company faces challenges in penetrating certain untapped markets, requiring strategic initiatives for further market penetration.
- Quantum-Si Inc (QSI) is still in the early stages of international commercialization, which may delay revenue realization from these regions.
