Quantum-Si incorporated (NASDAQ:QSI) Q3 2023 Earnings Call Transcript

And I think that’s what’s transpiring. So the funnel continues to be over weighted to academic, but we are seeing more traction, and we’re getting sort of further into the funnel and the process with some of the pharma, biotechs and government sort of account. So excited to see those types of customers progressing. Obviously those types of customers can be very helpful in terms of your pull through and such. So, excited about that trend as we look out to 2024.

Kyle Mikson: Okay. And then has anyone in the current installed base like a non-beta user of that figure like most of these handful of the placements out there in the field are probably with those initial early access program users. And then with the funnel, I mean, that can be many potential placements over time. How many like new to QSI or new to proteomics possibly customers does that represent?

Jeff Hawkins: So our current installed base is almost all our new to QSI, they were not necessarily part of the early access program. So the vast majority of those placements we’ve made throughout the year, Kyle, are net new to us. In terms of not having been a part of the early access program.

Kyle Mikson: Yeah, yeah. Okay. That’s great. That’s great. Let me just ask another one. Last before I wrap off on the pipeline and possibly the kits and everything. So you talked about how Carbon is going to be, I guess, discontinued or not going to be commercialized anymore and your explanation makes sense. I know it was touched on last quarter as well. And it sounds like that was kind of in the cards, I guess. So it’s not super surprising. As you look forward, though, I mean, what type of hardware updates or improvements do you sort of envision for Quantum-Si, like, could there be a new box anytime soon? Is that necessary maybe to get, I feel like in proteomics that are some of these attributes and features that have to be kind of pretty robust, and that does require a legitimate hardware type upgrade rather than just reagents.

But that’s one side of the question. The other is the Version 2 kits and then we’ll hear more about those. Is that mainly around like increasing density of the chips? Or is this completely new just chemistry based or something like that?

Jeff Hawkins: Sure. Yeah, let’s take the two questions. So in terms of hardware versus kits, I would say that there’s the existing Platinum Instrument and the existing 2M Chip have a lot of headroom in terms of their capabilities and performance. The majority of what we need to do right now to unlock that is around a combination of the library prep, the sequencing, reagent kit and even somewhat the surface chemistry of the chip that can influence things like loading. So, you know, a lot of the focus is there, we certainly are working through our plans as it relates to what new types of hardware we might want to introduce over the coming years, we haven’t really set a firm date on what the next platform would be. But we do see opportunities to continue to sort of grow the hardware portfolio to address other attributes that Platform doesn’t necessarily address today.

In terms of the Version 2 kit. Kyle, the way I would think about it is, we are touching upon improvements, sort of across the set of kits that we sell to a customer, everything from enhancements to the library prep, kit and protocol enhancements to the sequencing reagents, including the addition of a new recognizer for glutamic acid or E. And just for your reference, right, that’s the third most abundant amino acid in the proteome. And then just overall increasing through some improvements, the surface chemistry, the sort of the amount of reads the amount of output, we’re getting per run on the current chip. So you know, we expect to have more quantitative data to share when we get to the launch in the first quarter of next year, but, early data here internally in development really market improvement over the current version of the chemistry and also seeing a lot lower sort of sample input requirement with the new library prep, sort of kit and protocol, which should help us really with that compatibility with the various sample prep kits and sample types.