A slide in revenue, a deepening net loss, and dispiriting guidance were the stimuli behind the monster drop in Quanterix (QTRX -1.11%) stock on Tuesday. After the biotech reported its second-quarter results following market hours Monday -- and announced a high-level departure within its ranks -- investors traded the shares aggressively, with the stock losing over half its value.
The quarter saw Quanterix earn $23.5 million in total revenue, for a year-over-year decline of more than 7%. Meanwhile, the company's net loss deepened considerably, landing at more than $24.9 million ($0.67 per share) from the year-ago deficit of almost $11.9 million.
As deep as it was, Quanterix's net loss was broadly in line with analyst expectations. But revenue was around 20% below the average estimate, according to Zack's.
Quanterix's money product at the moment is Simoa Technology, which allows users to measure crucial biomarkers. In its earnings release, the biotech said that the slide in revenue was due to some degree to "a reduction in consumable revenue as the Company addressed assay-quality challenges and process-improvement initiatives."
Separately, Quanterix announced that the executive chairman of the board and former CEO E. Kevin Hrusovsky was leaving his position. He has been replaced by Martin Madaus, previously the lead independent director of the board. No reasons for Hrusovsky's exit were provided.
Top-line growth apparently isn't in the cards for Quanterix. In the earnings release, the company said it expects full-year 2022 revenue to be flat over last year. It added that it believes it will return to double-digit improvements in sales by 2024 as the benefits of its restructuring and realignment are fully realized, and for revenue "to accelerate at a faster pace once new growth categories are unlocked."