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Expensify Announces Q1 2023 Results

The company had operating cash flows of $7.6 million and demonstrated strong free cash flow in Q1 of $10.2 million. The Expensify Card grew 85% compared to the same period last year, and the company continues share buybacks.

PORTLAND, Ore.–(BUSINESS WIRE)–
Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills, today released a letter to shareholders from Founder and CEO David Barrett alongside results for its quarter ended March 31, 2023.

A Message From Our Founder

When I started Expensify at the bottom of the 2008 recession, it was amongst the crashing of giants, towering redwoods buckling under the weight of their rotten unit economics. Today feels similar, in three ways.

• The first is the headlines are the same, where dotcom darlings nervously present their ability to lose money at increasing scale as a kind of perverse success. A decade of free money via zero interest rates – followed by staggering stimulus checks – has filled war chests to the brim (at the ironic cost to the same banks that served as war profiteers in the leadup). But losing money on every customer while attempting to make it up with scale wasn’t a viable strategy then, and we’re skeptical it is now. A longer runway doesn’t help if your plane fundamentally can’t fly.
• The second, more important similarity, is that our strategy then and now is the same. We believe addressable market size and unit economics are the only defensible long-term differentiation. It’s true we’ve added SDRs and outbound calling to our toolbox (and the results aren’t super noticeable yet, but are trending in promising ways). And these can help us navigate these really difficult near-term market conditions (as well as hold our own against competition increasingly willing to lose on every customer and hope nobody notices). But these tactical adjustments don’t alter the high level strategy: viral growth is the only path to a billion user ambition.
• Which brings me to the third, and most important of all similarity between 2008 and now. There has never – truly never – been more excitement within the walls of Expensify for what we’ve been quietly building throughout this nuclear winter, and are finally beginning to roll out this year. It feels like the early days of having a bold, disruptive vision, but with the resources and scale to execute faster and more decisively than we could have ever dreamed then.

Don’t get me wrong, this quarter sucked. Yes customers were up, which is great. But the average activity per customer was down, which is not great. Additionally, yes card adoption is up, which is great. But our double-whammy of interchange not being revenue – and cashback being contra-revenue – means card growth contra-intuitively harms revenue… which is not great.

Thankfully, it kind of doesn’t matter. We have over $100MM in the bank, have strong cash flow, are buying back shares, and plan to pay off debt. We’re shipping code faster than ever, with more engineers than ever, on a more amazing product than ever. When the economy comes back, all those new customers (and the old) will get active, and all will be well. More than well. Amazing. Because we have just started migrating users over to our eponymously named “New Expensify” (new.expensify.com), which is shaping up so much better than even we imagined.

I know, it’s hard to believe: a single app flexible enough to do everything from expense management to payroll, simple enough for your kid’s summer block party but powerful enough for your multinational public CFO? Built by an open source community of a thousand developers, atop a hyper scalable blockchain database, using a single codebase that works across all platforms, including desktop and mobile, without needing to install anything, and without needing permission from your IT or accounting department? It’s easy to be skeptical.

But we believe those skeptics are going to be kicking themselves. Google was the 25^th search engine after all. That means 24 before it missed the Google-scale vision – right when everyone thought the market was over, they demonstrated that it had only barely begun. That’s how we see expense management: only a rounding error of global businesses do their expenses on us or any of our competition, after all. If a billion people can chat about photos, we think a billion people can chat about money – especially since they already do, just pointlessly fragmented across a hundred niche platforms.

Expensify can never be the first expense management player. The industry was largely defined and unchanged since before we arrived. But that’s fine. We don’t need to be the first. We are trying to be the last. And I’ve never been more excited for our prospects. Stay tuned!

-david

Founder and CEO of Expensify

First Quarter 2023 Highlights

Financial:

• Revenue was $40.1 million, a decrease of 1% compared to the same period last year.

• Generated $7.6 million cash provided by operating activities and $10.2 million of free cash flow.

• Net loss was $5.9 million, compared to $7.4 million for the same period last year.

• Non-GAAP net income was $4.1 million.

• Adjusted EBITDA was $8.7 million.

• Interchange derived from the Expensify Card grew to $2.3 million, an increase of 85% compared to the same period last year.

• Uses of Q1 Free Cash Flow:
  • Continued Buybacks – $0.7 million spent via net share settlement in Q1. Plan for a further $3.0 million of near-term share repurchases in the open market starting May 10^th, 2023.

  • Reducing Debt – Plan to deploy $8.0 million to reduce the company’s debt.

Business

• Paid members – Paid members grew to 747,000, an increase of 6% from the same period last year.
• Hosted ExpensiConX to strengthen workforce – Many of the world’s top react native engineers and teams came together to discuss React Native and the future of the Expensify roadmap.
  • Expensify also hosted its partner sales and support teams to further train and increase the efficiency of their roles.

• Continued to scale contributor program – With a 322% increase in the number of jobs completed by contributors in April 2023 compared to April 2022
• Increased Sales Development Representative (“SDR”) count to 100+ SDRs – With multiple vendors in a built to scale fashion.
• Improved free trials – Increasing monthly free trials by 79% y/y when looking at March 2023 compared to March 2022. This was done through product led growth and increasing SDR efficiency.
• Scaling outsourced setup specialists – On average, annual seats closed by outsourced sales teams has doubled every month starting January 2023 compared to the previous month.
• Strengthened partner channels – Over 100+ invitees confirmed to ExpensiCon 3 from some of the world’s best accounting firms.

Financial Outlook

Expensify’s outlook statements are based on current estimates, expectations and assumptions and are not a guarantee of future performance. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. There can be no assurance that the Company will achieve the results expressed by this guidance.

We reaffirm our long term guidance provided in connection with our fourth quarter 2022 results of 25-35% revenue growth over a multi-year period, which assumes an eventual return to normalcy of the world economy.

Expensify is also providing an estimate on what stock based compensation is expected to look like for the next four fiscal quarters. Driven primarily by the pre-IPO grant of RSUs issued to all employees (which quarterly vest over 8 years with approximately 7 years remaining), stock based compensation is estimated as seen below:

Est. stock-based compensation (millions)
	Q2 2023						Q3 2023						Q4 2023						Q1 2024
	Low			High			Low			High			Low			High			Low			High
Cost of revenue, net	$	2.9		$	3.6			2.9		$	3.5		$	2.8		$	3.4		$	2.7		$	3.3
Research and development		2.5			3.1			2.5			3.0			2.4			3.0			2.3			2.9
General and administrative		2.2			2.6			2.1			2.6			2.1			2.6			2.0			2.5
Sales and marketing		1.7			2.0			1.6			2.0			1.6			1.9			1.6			1.9
Total	$	9.3		$	11.3		$	9.1		$	11.1		$	8.9		$	10.9		$	8.6		$	10.6

Availability of Information on Expensify’s Website

Investors and others should note that Expensify routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Expensify Investor Relations website at https://ir.expensify.com. While not all of the information that the Company posts to its Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Expensify to review the information that it shares on its Investor Relations website.

Conference Call

Expensify will host a video call to discuss the financial results and business highlights at 2:00 p.m. Pacific Time today. An investor presentation and the video call information is available on Expensify’s Investor Relations website at https://ir.expensify.com. A replay of the call will be available on the site for three months.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we provide certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and free cash flow.

We believe our non-GAAP financial measures are useful in evaluating our business, measuring our performance, identifying trends affecting our business, formulating business plans and making strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled metrics or measures presented by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP is at the end of this press release.

Adjusted EBITDA. We define adjusted EBITDA as net income from operations excluding provision for income taxes, interest and other expenses, net, depreciation and amortization and stock based compensation.

Non-GAAP net income. We define non-GAAP net income as net income from operations in accordance with US GAAP excluding stock-based compensation. Through the fourth quarter of 2021, non-GAAP net income also excluded bonus costs related to our IPO, which we consider to be the discretionary cash bonuses paid to our employees during 2021. These IPO-related bonus costs impacted the second, third and fourth fiscal quarters of 2021 but did not impact any subsequent quarters.

Free cash flow. We define Free cash flow as net cash (used in) provided by operating activities excluding changes in settlement assets and settlement liabilities, which represent funds held for customers and customer funds in transit, respectively, reduced by the purchases of property and equipment and software development costs.

The tables at the end of the Condensed Consolidated Financial Statements provide reconciliations to the most directly comparable GAAP financial measure to each of these non-GAAP financial measures.

Forward-Looking Statements

Forward-looking statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management and expected market growth, product developments and their potential impact, our ability to meet our long-term guidance, the amount and timing of any share repurchases, our stock-based compensation estimates and the timing of when we expect the economy to return to normalcy and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “ambition,” “objective,” “seeks,” “outlook,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the impact on inflation on us and our members; our borrowing costs have and may continue to increase as a result of increases in interest rates; our expectations regarding our financial performance and future operating performance; our ability to attract and retain members, expand usage of our platform, sell subscriptions to our platform and convert individuals and organizations into paying customers; the timing and success of new features, integrations, capabilities and enhancements by us, or by competitors to their products, or any other changes in the competitive landscape of our market; the amount and timing of operating expenses and capital expenditures that we may incur to maintain and expand our business and operations to remain competitive; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to make required payments under and to comply with the various requirements of our current and future indebtedness; our cash flows, the prevailing stock prices, general economic and market conditions and other considerations that could affect the specific timing, price and size of repurchases under our stock repurchase program or our ability to fund any stock repurchases; the war in Ukraine and escalating geopolitical tensions as a result of Russia’s invasion of Ukraine; our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates; the increased expenses associated with being a public company; the size of our addressable markets, market share and market trends; anticipated trends, developments and challenges in our industry, business and the highly competitive markets in which we operate; our expectations regarding our income tax liabilities and the adequacy of our reserves; our ability to effectively manage our growth and expand our infrastructure and maintain our corporate culture; our ability to identify, recruit and retain skilled personnel, including key members of senior management; the safety, affordability and convenience of our platform and our offerings; our ability to successfully defend litigation brought against us; our ability to successfully identify, manage and integrate any existing and potential acquisitions of businesses, talent, technologies or intellectual property; general economic conditions in either domestic or international markets; our protections against security breaches, technical difficulties, or interruptions to our platform; our ability to maintain, protect and enhance our intellectual property; and other risks discussed in our filings with the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

About Expensify

Expensify is a payments superapp that helps individuals and businesses around the world simplify the way they manage money. More than 12 million people use Expensify’s free features, which include corporate cards, expense tracking, next-day reimbursement, invoicing, bill pay, and travel booking in one app. All free. Whether you own a small business, manage a team, or close the books for your clients, Expensify makes it easy so you have more time to focus on what really matters.

Expensify, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands, except share and per share data)
	As of March 31,				As of December 31,
	2023				2022
Assets
Cash and cash equivalents	$	111,232			$	103,787
Accounts receivable, net		15,705				16,448
Settlement assets, net		38,490				35,838
Prepaid expenses		7,411				8,825
Other current assets		21,282				22,217
Total current assets		194,120				187,115
Capitalized software, net		7,581				6,881
Property and equipment, net		14,021				14,492
Lease right-of-use assets		512				745
Deferred tax assets, net		374				344
Other assets		658				664
Total assets	$	217,266			$	210,241
Liabilities and stockholders’ equity
Accounts payable	$	2,003			$	1,059
Accrued expenses and other liabilities		10,770				9,070
Borrowings under line of credit		15,000				15,000
Current portion of long-term debt, net of original issue discount and debt issuance costs		550				551
Lease liabilities, current		443				800
Settlement liabilities		33,144				33,882
Total current liabilities		61,910				60,362
Lease liabilities, non-current		95				—
Other liabilities		1,268				1,204
Long-term debt, net of original issue discount and debt issuance costs		51,297				51,434
Total liabilities		114,570				113,000
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.0001; 10,000,000 shares of preferred stock authorized as of March 31, 2023 and December 31, 2022; no shares of preferred stock issued and outstanding as of March 31, 2023 and December 31, 2022		—				—
Common stock, par value $0.0001; 1,000,000,000 shares of Class A common stock authorized as of March 31, 2023 and December 31, 2022; 68,496,251 and 68,238,245 shares of Class A common stock issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; 24,996,826 and 24,997,561 shares of LT10 common stock authorized as of March 31, 2023 and December 31, 2022, respectively; 7,335,456 and 7,336,191 shares of LT10 common stock issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; 24,999,020 shares of LT50 common stock authorized as of March 31, 2023 and December 31, 2022; 6,974,821 and 6,854,931 shares of LT50 common stock issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		7				7
Additional paid-in capital		206,207				194,807
Accumulated deficit		(103,518	)			(97,573	)
Total stockholders’ equity		102,696				97,241
Total liabilities and stockholders’ equity	$	217,266			$	210,241

Expensify, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except share and per share data)
	Three months ended March 31,
	2023				2022
Revenue	$	40,101			$	40,370
Cost of revenue, net (1)		15,775				14,133
Gross margin		24,326				26,237
Operating expenses:
Research and development (1)		5,418				3,701
General and administrative (1)		12,429				14,006
Sales and marketing (1)		9,183				13,372
Total operating expenses		27,030				31,079
Loss from operations		(2,704	)			(4,842	)
Interest and other expenses, net		(1,416	)			(902	)
Loss before income taxes		(4,120	)			(5,744	)
Provision for income taxes		(1,825	)			(1,632	)
Net loss	$	(5,945	)		$	(7,376	)
Net loss per share:
Basic and diluted	$	(0.07	)		$	(0.09	)
Weighted average shares of common stock used to compute net loss per share:
Basic and diluted		81,768,429				80,147,208
Includes stock-based compensation expense as follows:

	Three months ended March 31,
	2023			2022
Cost of revenue, net	$	3,306		$	4,908
Research and development		2,206			2,708
General and administrative		2,644			4,975
Sales and marketing		1,848			2,076
Total stock-based compensation expense	$	10,004		$	14,667

Expensify, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
	Three Months Ended March 31,
	2023				2022
Cash flows from operating activities:
Net loss	$	(5,945	)		$	(7,376	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		1,413				1,167
Reduction of operating lease right-of-use assets		181				185
Loss on impairment, receivables and sale or disposal of equipment		146				231
Stock-based compensation expense		10,004				14,667
Amortization of original issue discount and debt issuance costs		11				10
Deferred tax assets		(30	)			—
Changes in assets and liabilities:
Accounts receivable, net		707				(482	)
Settlement assets, net		(2,683	)			(5,689	)
Prepaid expenses		1,414				377
Related party loan receivable		406				(224	)
Other current assets		—				14
Other assets		8				80
Accounts payable		944				(2,316	)
Accrued expenses and other liabilities		1,947				(2,635	)
Operating lease liabilities		(206	)			(6	)
Settlement liabilities		(738	)			12,433
Other liabilities		63				787
Net cash provided by operating activities		7,642				11,223
Cash flows from investing activities:
Purchases of property and equipment		(28	)			(179	)
Software development costs		(870	)			(494	)
Net cash used in investing activities		(898	)			(673	)
Cash flows from financing activities:
Principal payments of finance leases		(201	)			(197	)
Principal payments of term loan		(150	)			(146	)
Vesting of early exercised stock options		—				295
Issuance of restricted stock units		—				18
Repurchases of early exercised stock options		(7	)			(4	)
Proceeds from common stock purchased under Matching Plan		1,099				—
Proceeds from issuance of common stock on exercise of stock options		66				252
Payments for employee taxes withheld from stock-based awards		(666	)			—
Net cash provided by financing activities		141				218
Net increase in cash and cash equivalents and restricted cash		6,885				10,768
Cash and cash equivalents and restricted cash, beginning of period		147,710				125,315
Cash and cash equivalents and restricted cash, end of period	$	154,595			$	136,083
Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,409			$	267
Cash paid for income taxes	$	351			$	284
Noncash investing and financing items:
Stock-based compensation capitalized as software development costs	$	657			$	287
Right-of-use assets acquired through operating leases	$	145			$	—
Reconciliation of cash and cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets
Cash and cash equivalents	$	111,232			$	101,101
Restricted cash included in other current assets		19,013				9,973
Restricted cash included in other assets		—				46
Restricted cash included in settlement assets, net		24,350				24,963
Total cash, cash equivalents and restricted cash	$	154,595			$	136,083

Expensify, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Adjusted EBITDA and Adjusted EBITDA Margin
	Three Months Ended March 31,
	2023				2022
Net loss	$	(5,945	)		$	(7,376	)
Add:
Provision for income taxes		1,825				1,632
Interest and other expenses, net		1,416				902
Depreciation and amortization		1,413				1,167
Stock-based compensation		10,004				14,667
Adjusted EBITDA	$	8,713			$	10,992

Non-GAAP Net Income and Non-GAAP Net Income Margin
	Three Months Ended March 31,
	2023				2022
Net loss	$	(5,945	)		$	(7,376	)
Add:
Stock-based compensation		10,004				14,667
Non-GAAP net income	$	4,059			$	7,291

Adjusted Operating Cash Flow and Free Cash Flow
	Three Months Ended March 31,
	2023				2022
Net cash provided by operating activities	$	7,642			$	11,223
(Increase) decrease in changes in assets and liabilities:
Settlement assets		(2,683	)			(5,689	)
Settlement liabilities		(738	)			12,433
Adjusted operating cash flow	$	11,063			$	4,479
Less:
Purchases of property and equipment		(28	)			(179	)
Software development costs		(870	)			(494	)
Free cash flow	$	10,165			$	3,806

 

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Investor Relations Contact

Nick Tooker

[email protected]

Press Contact

James Dean

[email protected]

KEYWORDS: Oregon United States North America

INDUSTRY KEYWORDS: Professional Services Apps/Applications Technology Software Finance Fintech Digital Cash Management/Digital Assets

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Conference Call to Begin Today at 5:00 p.m. (ET)

Coupang Announces Results for First Quarter 2023

Net Revenues of $5.8 billion, up 20% YoY on an FX-neutral basis

Record Gross Profit of $1.4 billion, up 36% YoY

Net Income of $91 million, an increase of $300 million YoY

Positive Free Cash Flow of $451 million and Operating Cash Flow of $1.1 billion for trailing twelve months

SEATTLE & SEOUL, South Korea–(BUSINESS WIRE)–
Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2023.

Q1 2023 Key Financial and Operational Highlights

Consolidated Highlights:

• Net revenues were $5.8 billion, up 13% YoY on a reported basis, or 20% YoY on an FX-neutral basis.

• Gross profit increased 36% YoY to $1.4 billion.

• Gross profit margin was 24.5%, an improvement of over 400 bps YoY.

• Net income was $91 million, an improvement of $300 million over last year.

• Adjusted EBITDA was $241 million with a margin of 4.2%, an improvement of nearly 600 bps over last year.

• Operating Cash flow for trailing twelve months was positive $1.1 billion, an increase of $1.4 billion YoY.

• Achieved milestone of positive free cash flow of $451 million for trailing twelve months, an increase of $1.5 billion YoY.

• Active customers exceeded 19 million, up 5% both YoY and QoQ.

Segment Highlights:

• Product Commerce segment net revenues was $5.7 billion, up 15% YoY on a reported basis, or 21% on an FX-neutral basis.

• Product Commerce segment adjusted EBITDA was positive $288 million, up $285 million YoY.

• Product Commerce segment adjusted EBITDA margin was 5.1%, up over 500 bps YoY.

• Developing Offerings segment (including Coupang Eats, International, Play and Fintech) adjusted EBITDA was negative $47 million, an improvement of $46 million over last year.

“We have an opportunity to transform the lives of our customers in the coming years,” said Bom Kim, Founder and CEO of Coupang. “The overwhelming majority of the retail market is still offline, where prices are high and selection limited. According to one study, Korean consumers have access to less than 10% of the retail space per capita available to their US counterparts. We’ve made unmatched investments to offer customers something much better: vast selection, low prices, and exceptional service. And now any merchant can capture the growth of our end-to-end network through Fulfillment and Logistics by Coupang, or Rocket Growth, where units sold are up nearly 90% year over year. This program will expand selection on Rocket dramatically for customers. We’ve been delighted by the response from merchants and customers alike and are excited about the growth ahead. We’ve also started rolling out new Coupang Eats benefits to all WOW members. These benefits will generate more savings for customers and make WOW even harder to resist. Our goal is to keep expanding membership benefits to make WOW the best deal on the planet.”

“2022 was a year of significant milestones, and we begin 2023 with another major achievement. In Q1, we generated positive free cash flow of $451M on a trailing twelve-month basis,” added Coupang’s CFO, Gaurav Anand. “This milestone again demonstrates the power of our accelerating flywheel and the commitment of our teams to deliver our goals. Thanks to our sustained focus on operational excellence, we’ve now achieved a level of financial strength that positions us well for the future.”

First Quarter 2023 Results

Consolidated Financial Summary

	Three Months Ended March 31,
(in thousands, except net revenues per Active Customer)	2023				2022				% Change
Total net revenues	$	5,800,530			$	5,116,686			13	%
Total net revenues growth, constant currency(1)									20	%
Active Customers		19,010				18,112			5	%
Total net revenues per Active Customer	$	305			$	283			8	%
Total net revenues per Active Customer, constant currency(1)	$	323							14	%
Gross profit(2)	$	1,419,927			$	1,043,406			36	%
Net income (loss)	$	90,855			$	(209,294	)		NM(3)
Adjusted EBITDA(1)	$	240,919			$	(90,872	)		NM(3)
Net cash provided by (used in) operating activities	$	501,303			$	(54,939	)		NM(3)
Free cash flow(1)	$	406,746			$	(289,600	)		NM(3)

Segment Information

	Three Months Ended March 31,
(in thousands)	2023				2022				% Change
Product Commerce
Net revenues	$	5,658,349			$	4,936,053			15	%
Net revenues growth, constant currency(1)									21	%
Segment adjusted EBITDA	$	288,370			$	2,877			NM(3)
Developing Offerings
Net revenues	$	142,181			$	180,633			(21	)%
Net revenues growth, constant currency(1)									(17	)%
Segment adjusted EBITDA	$	(47,451	)		$	(93,749	)		(49	)%

_________
(1)		Total net revenues growth, constant currency, total net revenues per Active Customer, constant currency, and adjusted EBITDA are non-GAAP financial measures as defined by the Securities and Exchange Commission (the “SEC”). See the “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” sections herein for more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
(2)		Gross profit is calculated as total net revenues minus cost of sales.
(3)		Non-meaningful

Webcast and Conference Call

Coupang, Inc. will host a conference call to discuss first quarter results on May 9, 2023 at 5:30 PM Eastern Daylight Time (May 10, 2023 at 6:30 AM Korea Standard Time). A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable U.S. GAAP measures, as well as our first quarter earnings presentation, are also available on that site.

About Coupang

Coupang is one of the largest e-Commerce retailers in Asia, with a mission to revolutionize the everyday lives of its customers and create a world where people wonder, “How did we ever live without Coupang?” Coupang offers a variety of services, including same-day and next-morning delivery of general merchandise and groceries, delivery of prepared foods through Coupang Eats, and video streaming through Coupang Play. Coupang is headquartered in the United States, with operations and support services performed in markets including South Korea, Taiwan, Singapore, and China.

FORWARD-LOOKING STATEMENTS

This earnings release or related management commentary may contain statements that may be deemed to be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Act”), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws.

We have based the forward-looking statements contained in this report on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. Actual results and outcomes could differ materially for a variety of reasons, including, among others: the continued growth of the retail market and the increased acceptance of online transactions by potential customers, competition in our industry, managing our growth and expansion into new markets and offerings, our financial performance, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, other legal and regulatory developments, and the impact of the global economy including inflation and foreign currency exchange rates. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent filings. All forward-looking statements in this earnings release or related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.aboutcoupang.com), our filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with investors and the general public about our company, our products, and other issues. It is possible that the information that we make available on our website may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.

COUPANG, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended March 31,
(in thousands, except per share amounts)	2023				2022
Net retail sales	$	5,204,800			$	4,556,107
Net other revenue		595,730				560,579
Total net revenues		5,800,530				5,116,686
Cost of sales		4,380,603				4,073,280
Operating, general and administrative		1,313,152				1,249,111
Total operating cost and expenses		5,693,755				5,322,391
Operating income (loss)		106,775				(205,705	)
Interest income		31,861				3,534
Interest expense		(8,278	)			(7,368	)
Other (expense) income, net		(6,539	)			490
Income (loss) before income taxes		123,819				(209,049	)
Income tax expense		32,964				245
Net income (loss)		90,855				(209,294	)
Net income (loss) attributable to Class A and Class B common stockholders per share:
Basic and diluted	$	0.05			$	(0.12	)
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:
Basic		1,774,843				1,756,739
Diluted		1,794,453				1,756,739

COUPANG, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except par value)	March 31, 2023				December 31, 2022
Assets
Cash and cash equivalents	$	3,792,211			$	3,509,334
Restricted cash		330,188				176,316
Accounts receivable, net		126,892				184,463
Inventories		1,667,156				1,656,851
Prepaids and other current assets		198,235				303,166
Total current assets		6,114,682				5,830,130
Long-term restricted cash		1,536				1,624
Property and equipment, net		1,811,174				1,819,945
Operating lease right-of-use assets		1,341,091				1,405,248
Long-term lease deposits and other		441,822				455,956
Total assets	$	9,710,305			$	9,512,903
Liabilities and stockholders’ equity
Accounts payable	$	3,684,956			$	3,622,332
Accrued expenses		247,098				298,869
Deferred revenue		93,263				92,361
Short-term borrowings		223,446				175,403
Current portion of long-term debt		149,034				128,936
Current portion of long-term operating lease obligations		319,426				325,924
Other current liabilities		456,907				418,681
Total current liabilities		5,174,130				5,062,506
Long-term debt		522,817				537,880
Long-term operating lease obligations		1,178,124				1,233,680
Defined severance benefits and other		275,204				264,924
Total liabilities		7,150,275				7,098,990
Contingencies
Stockholders’ equity
Class A common stock, $0.0001 par value, 10,000,000 shares authorized, 1,602,488 and 1,597,804 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; Class B common stock, $0.0001 par value, 250,000 shares authorized, 174,803 shares issued and outstanding as of March 31, 2023 and December 31, 2022		178				177
Additional paid-in capital		8,227,469				8,154,076
Accumulated other comprehensive (loss) income		(15,913	)			2,219
Accumulated deficit		(5,651,704	)			(5,742,559	)
Total stockholders’ equity		2,560,030				2,413,913
Total liabilities and stockholders’ equity	$	9,710,305			$	9,512,903

COUPANG, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	Three Months Ended March 31,
(in thousands)	2023				2022
Operating activities
Net income (loss)	$	90,855			$	(209,294	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		64,245				59,240
Provision for severance benefits		38,691				44,482
Equity-based compensation		69,899				55,593
Non-cash operating lease expense		83,514				77,223
Other		28,716				16,514
Change in operating assets and liabilities:
Accounts receivable, net		55,691				266
Inventories		(60,966	)			6,863
Other assets		59,658				(66,512	)
Accounts payable		162,166				28,044
Accrued expenses		(46,905	)			(49,981	)
Other liabilities		(44,261	)			(17,377	)
Net cash provided by (used in) operating activities		501,303				(54,939	)
Investing activities
Purchases of property and equipment		(95,221	)			(238,906	)
Proceeds from sale of property and equipment		664				4,245
Other investing activities		11,825				(14,367	)
Net cash used in investing activities		(82,732	)			(249,028	)
Financing activities
Proceeds from issuance of common stock, equity-based compensation plan		3,495				8,183
Proceeds from short-term borrowings and long-term debt		31,952				343,975
Repayment of short-term borrowings and long-term debt		(842	)			(152,029	)
Net short-term borrowings and other financing activities		43,514				(1,547	)
Net cash provided by financing activities		78,119				198,582
Effect of exchange rate changes on cash and cash equivalents, and restricted cash		(60,029	)			(27,404	)
Net increase (decrease) in cash and cash equivalents, and restricted cash		436,661				(132,789	)
Cash and cash equivalents, and restricted cash, as of beginning of period		3,687,274				3,810,347
Cash and cash equivalents, and restricted cash, as of end of period	$	4,123,935			$	3,677,558

Supplemental Financial Information

Cash Flow and Share Information

(in thousands)	March 31, 2023				March 31, 2022
Purchases of land and buildings – QTD	$	(27,325	)		$	(22,929	)
Purchases of equipment – QTD		(67,896	)			(215,977	)
Total purchases of property and equipment – QTD	$	(95,221	)		$	(238,906	)
Outstanding common stock		1,777,291				1,761,058
Outstanding equity-based awards		55,540				50,644
Outstanding common stock and equity-based awards		1,832,831				1,811,702

Key Business Metrics and Non-GAAP Financial Measures

We review the key business and financial metrics discussed below. We use these measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Key Business Metrics

Active Customers

As of the last date of each reported period, we determine our number of Active Customers by counting the total number of individual customers who have ordered at least once directly from our apps or websites during the relevant period. A customer is anyone who has created an account on our apps or websites, identified by a unique email address. The change in Active Customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the period. We view the number of Active Customers as a key indicator of our potential for growth in total net revenues, the reach of our network, the awareness of our brand, and the engagement of our customers.

Total Net Revenues per Active Customer

Total net revenues per Active Customer is the total net revenues generated in a period divided by the total number of Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of Active Customers who are shopping on our apps or websites. We therefore view total net revenues per Active Customer as a key indicator of engagement and retention of our customers and our success in increasing the share of wallet.

	Three Months Ended March 31,
(in thousands, except net revenues per Active Customer)	2023				2022				% Change
Active Customers		19,010				18,112			5	%
Total net revenues per Active Customer	$	305			$	283			8	%
Total net revenues per Active Customer, constant currency (YoY)	$	323							14	%

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance. These non-GAAP financial measures may be different than similarly titled measures used by other companies.

Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with U.S. GAAP. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These measures should only be used to evaluate our results of operations in conjunction with the corresponding U.S. GAAP measures.

Non-GAAP Measure	Definition	How We Use The Measure
Adjusted EBITDA	• Net income (loss), excluding the effects of: – depreciation and amortization, – interest expense, – interest income, – other income (expense), net, – income tax expense (benefit), – equity-based compensation, – impairments, and – other items not reflective of our ongoing operations.	• Provides information to management to evaluate and assess our performance and allocate internal resources. • We believe Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by investors and other interested parties in evaluating companies in the e-commerce industry for period-to-period comparisons as they remove the impact of certain items that are not representative of our ongoing business, such as material non-cash items and certain variable charges.
Adjusted EBITDA Margin	• Adjusted EBITDA as a percentage of total net revenues.
Constant Currency Revenue	• Constant currency information compares results between periods as if exchange rates had remained constant. • We define constant currency revenue as total revenue excluding the effect of foreign exchange rate movements, and use it to determine the constant currency revenue growth on a comparative basis. • Constant currency revenue is calculated by translating current period revenues using the prior period exchange rate.	• The effect of currency exchange rates on our business is an important factor in understanding period-to-period comparisons. Our financial reporting currency is the U.S. dollar (“USD”) and changes in foreign exchange rates can significantly affect our reported results and consolidated trends. For example, our business generates sales predominantly in Korean Won (“KRW”), which are favorably affected as the USD weakens relative to the KRW, and unfavorably affected as the USD strengthens relative to the KRW. • We use constant currency revenue and constant currency revenue growth for financial and operational decision-making and as a means to evaluate comparisons between periods. We believe the presentation of our results on a constant currency basis in addition to U.S. GAAP results helps improve the ability to understand our performance because they exclude the effects of foreign currency volatility that are not indicative of our actual results of operations.
Constant Currency Revenue Growth	• Constant currency revenue growth (as a percentage) is calculated by determining the increase in current period revenue over prior period revenue, where current period foreign currency revenue is translated using prior period exchange rates.
Free Cash Flow	• Cash flow from operations Less: purchases of property and equipment, Plus: proceeds from sale of property and equipment.	• Provides information to management and investors about the amount of cash generated from our ongoing operations that, after purchases and sales of property and equipment, can be used for strategic initiatives, including investing in our business and strengthening our balance sheet, including paying down debt, and paying dividends to stockholders.
Segment Gross Profit	• Gross profit for a period attributable to each respective reportable segment.	• We believe segment gross profit and segment gross profit margin are frequently used by investors and other interested parties in evaluating companies in the e-commerce industry for period-to-period comparisons. However, other companies may calculate segment gross profit and segment gross profit margin in a manner different from ours and therefore they may not be directly comparable to similar terms used by other companies.
Segment Gross Profit Margin	• Segment gross profit as a percentage of segment net revenues.

Reconciliations of Non-GAAP Measures

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Coupang’s results computed in accordance with GAAP.

The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted:

Constant Currency Revenue and Constant Currency Revenue Growth (YoY)

	Three Months Ended March 31,																		Year over Year Growth
	2023									2022
(in thousands)	As Reported			Exchange Rate Effect			Constant Currency Basis			As Reported			Exchange Rate Effect			Constant Currency Basis			As Reported		Constant Currency Basis
Consolidated
Net retail sales	$	5,204,800		$	305,087		$	5,509,887		$	4,556,107		$	371,752		$	4,927,859		14	%	21	%
Net other revenue		595,730			34,920			630,650			560,579			45,740			606,319		6	%	12	%
Total net revenues	$	5,800,530		$	340,007		$	6,140,537		$	5,116,686		$	417,492		$	5,534,178		13	%	20	%
Net Revenues by Segment
Product Commerce	$	5,658,349		$	331,673		$	5,990,022		$	4,936,053		$	402,753		$	5,338,806		15	%	21	%
Developing Offerings		142,181			8,334			150,515			180,633			14,739			195,372		(21	)%	(17	)%
Total net revenues	$	5,800,530		$	340,007		$	6,140,537		$	5,116,686		$	417,492		$	5,534,178		13	%	20	%

Free Cash Flow (QTD)

	Three Months Ended March 31,
(in thousands)	2023				2022
Net cash provided by (used in) operating activities	$	501,303			$	(54,939	)
Adjustments:
Purchases of land and buildings		(27,325	)			(22,929	)
Purchases of equipment		(67,896	)			(215,977	)
Total purchases of property and equipment		(95,221	)			(238,906	)
Proceeds from sale of property and equipment		664				4,245
Total adjustments	$	(94,557	)		$	(234,661	)
Free cash flow	$	406,746			$	(289,600	)
Net cash used in investing activities	$	(82,732	)		$	(249,028	)
Net cash provided by financing activities	$	78,119			$	198,582

Free Cash Flow (TTM)

	Trailing Twelve Months Ended
(in thousands)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Net cash provided by (used in) operating activities	$	1,121,681		$	565,439		$	(217,783	)	$	(331,313	)	$	(282,168	)
Adjustments:
Purchases of land and buildings		(230,983	)		(226,587	)		(243,609	)		(134,391	)		(180,313	)
Purchases of equipment		(449,594	)		(597,675	)		(627,574	)		(643,450	)		(585,425	)
Total purchases of property and equipment		(680,577	)		(824,262	)		(871,183	)		(777,841	)		(765,738	)
Proceeds from sale of property and equipment		9,601			13,182			11,504			9,549			6,079
Total adjustments	$	(670,976	)	$	(811,080	)	$	(859,679	)	$	(768,292	)	$	(759,659	)
Free cash flow	$	450,705		$	(245,641	)	$	(1,077,462	)	$	(1,099,605	)	$	(1,041,827	)
Net cash used in investing activities	$	(681,958	)	$	(848,254	)	$	(887,166	)	$	(799,642	)	$	(774,071	)
Net cash provided by financing activities	$	126,889		$	247,352		$	131,148		$	101,160		$	269,748

Adjusted EBITDA and Adjusted EBITDA Margin

	Three Months Ended
(in thousands)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Total net revenues	$	5,800,530		$	5,326,774		$	5,101,334		$	5,037,821		$	5,116,686
Net income (loss)		90,855			102,064			90,679			(75,491	)		(209,294	)
Net income (loss) margin		1.6	%		1.9	%		1.8	%		(1.5	)%		(4.1	)%
Adjustments:
Depreciation and amortization		64,245			56,902			54,424			60,399			59,240
Interest expense		8,278			7,173			6,485			6,143			7,368
Interest income		(31,861	)		(26,497	)		(15,403	)		(7,364	)		(3,534	)
Income tax expense (benefit)		32,964			(8,531	)		6,883			340			245
Other expense (income), net		6,539			9,200			(11,224	)		9,229			(490	)
Equity-based compensation		69,899			70,682			63,075			72,916			55,593
Adjusted EBITDA	$	240,919		$	210,993		$	194,919		$	66,172		$	(90,872	)
Adjusted EBITDA margin		4.2	%		4.0	%		3.8	%		1.3	%		(1.8	)%

Segment Gross Profit and Segment Gross Profit Margin

	Three Months Ended March 31,
(in thousands)	2023				2022
Gross profit	$	1,419,927			$	1,043,406
Segment gross profit and gross profit margin:
Product Commerce		1,398,409				1,065,420
Gross profit margin		24.7	%			21.6	%
Developing Offerings		21,518				(22,014	)
Gross profit margin		15.1	%			(12.2	)%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005861/en/

Investor Contact:

Coupang IR

[email protected]

Media Contact:

Coupang PR

[email protected]

KEYWORDS: Washington South Korea United States North America Asia Pacific

INDUSTRY KEYWORDS: Internet Online Retail Electronic Commerce Retail Technology

MEDIA:

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Broadmark Realty Capital Declares Monthly Dividend for May 2023

– Final Dividend Assuming Completion of Merger with Ready Capital –

SEATTLE–(BUSINESS WIRE)–Broadmark Realty Capital Inc. (NYSE: BRMK) (“Broadmark” or the “Company”), a specialty real estate finance company, announced today that its Board of Directors has declared a cash dividend of $0.035 per share of common stock for May 2023. The dividend will be payable on May 30, 2023 to stockholders of record as of May 24, 2023. The dividend will be the final cash dividend paid by the Company assuming the completion of the pending merger with Ready Capital Corporation (NYSE: RC) by June 1, 2023, as currently anticipated. There can be no assurance that the merger will be completed on the terms described or at all.

About Broadmark Realty Capital

Broadmark is a specialty real estate finance company, providing financing solutions generally in the $5 to $75 million range per transaction. The company provides smart, reliable, rapid solutions across the entire debt capital stack, including senior, subordinate, and participation investments with fixed and floating rate structures available. Broadmark invests in a variety of new construction and existing properties across all asset classes throughout the United States, including hotel, industrial, medical, mixed-use, office, retail, self-storage, warehouse, multifamily, senior living, student housing, condos, larger scaled single-family, townhome, and multiplex. It has the competitive advantage of being an internally managed balance sheet lender, and the company’s proactive approach delivers dedicated in-house underwriting, asset management, loan servicing, and draw administration.

Forward Looking Statements

Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may”, “should”, “would”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “seem”, “seek”, “continue”, “future”, “will”, “expect”, “outlook” or other similar words, phrases or expressions. These statements are based on the current expectations and are not predictions of actual performance. In addition, actual results are subject to other risks and uncertainties that relate more broadly to the Company’s overall business, including those more fully described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and the Company undertakes no obligation to update or revise any forward-looking statements except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005908/en/

Investor Relations

[email protected]

206-623-7782

KEYWORDS: Washington United States North America

INDUSTRY KEYWORDS: Professional Services Other Construction & Property Residential Building & Real Estate Commercial Building & Real Estate Finance Construction & Property

MEDIA:

Posted on May 9, 2023 4:09 pm

Quanterix Releases Operating Results for First Quarter 2023

Quanterix Releases Operating Results for First Quarter 2023

BILLERICA, Mass.–(BUSINESS WIRE)–Quanterix Corporation (NASDAQ: QTRX), a company fueling scientific discovery through ultrasensitive biomarker detection, today announced financial results for the three months ended March 31, 2023.

“Our corporate transformation initiated in August 2022 to maximize Quanterix’s full potential is on track. We remain confident that we have taken the right steps to build a strong foundation in preparation for future growth,” said Masoud Toloue, President and Chief Executive Officer of Quanterix. “This progress takes on added importance with the FDA’s recent decision to approve tofersen for the treatment of superoxide dismutase 1 amyotrophic lateral sclerosis, in large part based on strong surrogate neurofilament light chain biomarker data. This decision adds significant momentum to the use of biomarkers for predicting disease severity and clinical benefit in neurodegenerative diseases, and we believe Quanterix will continue to be at the forefront of these developments.”

First Quarter 2023 Financial Highlights

• Q1 total revenue was $28.5 million versus prior year Q1 of $29.6 million, a decrease of 4% driven by a decline in instrument revenue. Q1 total revenue increased 10% from Q4 2022 driven by increased consumable revenue.

• Gross margin, a key success indicator of the strategic realignment, saw strong quarter over quarter improvement. Q1 2023 GAAP gross margin was 59.5% versus Q1 2022 GAAP gross margin of 49.3% and Q4 2022 GAAP gross margin of 48.8%. Q1 2023 non-GAAP gross margin was 53.1% versus Q1 2022 non-GAAP gross margin of 43.2% and Q4 2022 non-GAAP gross margin of 41.3%.

• Q1 net loss was $6.1 million versus prior year Q1 of $18.2 million, a decrease of 66%.

• Cash burn for Q1 was $9.1 million, leaving us with $329.4 million of unrestricted cash as of March 31, 2023.

For additional information on the non-GAAP financial measures included in this press release, please see “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

2023 Business Highlights

• In January 2023, the Company expanded its lab developed test (LDT) menu with the launch of an NfL LDT, which can be used as an aid in the evaluation of individuals for possible neurodegenerative conditions or other causes of neuronal or central nervous system damage. Quanterix’s Simoa NfL is the most widely published NfL test with hundreds of research papers, demonstrating its validity for assessing neuronal damage, and Simoa NfL has become widely adopted in therapeutic clinical trial designs. We believe the recent FDA approval of tofersen, which relied on neurofilament light chain biomarker data, also validates the importance of this test.

• The Company participated in the 2023 Alzheimer’s Disease/Parkinson’s Disease conference in Gothenburg, Sweden. Simoa-based biomarkers were highlighted in more than 11 panel discussions and over 30 poster presentations.

• Published discoveries enabled through Quanterix’s Simoa technology continue to illustrate industry reliance on the Company’s ultra-sensitive technology for breakthrough discovery in research and clinical applications. The technology was highlighted in more than 140 new publications in the first quarter 2023, bringing total Simoa-specific inclusions to over 2,200 as of March 31, 2023.

Full Year Business Outlook

Quanterix has made a modest increase to its guidance for the full year 2023. The Company expects revenues to be in the range of $104 to $111 million. The Company expects GAAP gross margin percentage to be in the high 40s and non-GAAP gross margin percentage to be in the mid 40s. Expected cash burn for 2023 is unchanged, and the Company expects an approximately 10% improvement compared to 2022.

Conference Call

In conjunction with this announcement, Quanterix Corporation will host a conference call on May 9, 2023, at 4:30 p.m. Eastern Time. Individuals interested in listening to the conference call may do so by pre-registering here and obtaining a dial-in number and passcode.

A live webcast will also be available at: https://edge.media-server.com/mmc/p/n9hbuqvf. You may also access the live webcast by visiting the News & Events page within the Investors section of the Quanterix website at www.quanterix.com. The webcast will be available on the Company’s website for one year following completion of the call.

Financial Highlights

Quanterix Corporation
Condensed Consolidated Statements of Operations
(Unaudited and in thousands, except share and per share data)
	Three Months Ended March 31,
	2023			2022
Product revenue	$	19,287		$	20,656
Service and other revenue		8,579			8,810
Collaboration revenue		368			86
Grant revenue		222			—
Total revenue		28,456			29,552
Costs of goods sold:
Cost of product revenue		7,033			10,746
Cost of service and other revenue		4,497			4,247
Total costs of goods sold and services		11,530			14,993
Gross profit		16,926			14,559
Gross margin		59.5%			49.3%
Operating expenses:
Research and development		4,720			7,034
Selling, general and administrative		20,883			25,712
Other lease costs		776			—
Restructuring		(33)			—
Total operating expenses		26,346			32,746
Loss from operations		(9,420)			(18,187)
Interest income (expense), net		3,449			52
Other income (expense), net		8			(217)
Loss before income taxes		(5,963)			(18,352)
Income tax (expense) benefit		(140)			199
Net loss	$	(6,103)		$	(18,153)
Net loss per share, basic and diluted	$	(0.16)		$	(0.49)
Weighted-average common shares outstanding, basic and diluted		37,326,559			36,850,894

Quanterix Corporation
Condensed Consolidated Balance Sheets
(Unaudited and in thousands)
	March 31, 2023			December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	329,354		$	338,740
Accounts receivable, net		22,546			19,017
Inventory		17,070			16,786
Prepaid expenses and other current assets		7,002			6,860
Total current assets		375,972			381,403
Restricted cash		2,920			2,597
Property and equipment, net		19,056			20,162
Intangible assets, net		7,129			7,516
Right-of-use assets		20,891			21,223
Other non-current assets		1,345			1,298
Total assets	$	427,313		$	434,199
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,585		$	3,836
Accrued compensation and benefits		4,880			10,658
Other accrued expenses		4,624			4,747
Deferred revenue		10,682			8,644
Short-term lease liabilities		3,875			2,687
Other current liabilities		291			386
Total current liabilities		26,937			30,958
Deferred revenue, net of current portion		1,419			1,415
Long-term lease liabilities		40,409			41,417
Other non-current liabilities		1,216			1,469
Total liabilities		69,981			75,259
Total stockholders’ equity		357,332			358,940
Total liabilities and stockholders’ equity	$	427,313		$	434,199

Use of Non-GAAP Financial Measures

To supplement its financial statements presented on a GAAP basis, the Company presents non-GAAP gross profit and non-GAAP gross margin, which are calculated by including shipping and handling costs for product sales within cost of goods sold instead of within selling, general and administrative expenses. Management uses these non-GAAP measures to evaluate the Company’s operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends between the Company’s business and its competitors. Management believes that presentation of non-GAAP gross margin provides useful information to investors in assessing the Company’s operating performance within its industry and in order to allow comparability to the presentation of other companies in its industry where shipping and handling costs are included in cost of goods sold for products. Management also uses non-GAAP gross margin as a factor in assessing the Company’s progress against the strategic business realignment plan. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these pro-forma measures to their most directly comparable GAAP financial measures set forth below.

Reconciliation of GAAP to Non-GAAP Financial Measures

Quanterix Corporation
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(Unaudited and in thousands, except percentages)
	Three Months Ended,						Three Months Ended,
	March 31, 2023			March 31, 2022			March 31, 2023			December 31, 2022
GAAP gross profit	$	16,926		$	14,559		$	16,926		$	12,592
Shipping and handling costs (1)		(1,829)			(1,781)			(1,829)			(1,926)
Non-GAAP gross profit	$	15,097		$	12,778		$	15,097		$	10,666
GAAP Revenue		28,456			29,552			28,456			25,824
GAAP Gross margin (GAAP gross profit as % of revenue)		59.5%			49.3%			59.5%			48.8%
Non-GAAP gross margin (non-GAAP gross profit as % of revenue)		53.1%			43.2%			53.1%			41.3%
GAAP total operating expenses	$	26,346		$	32,746		$	26,346		$	34,547
Shipping and handling costs (1)		(1,829)			(1,781)			(1,829)			(1,926)
Non-GAAP total operating costs	$	24,517		$	30,965		$	24,517		$	32,621
GAAP loss from operations	$	(9,420)		$	(18,187)		$	(9,420)		$	(21,955)
Non-GAAP loss from operations	$	(9,420)		$	(18,187)		$	(9,420)		$	(21,955)

(1) Shipping and handling costs, which include freight and other activities costs associated with product shipments, net of charges passed on to the customer, are captured within operating expenses in our consolidated statements of operations. During the three months ended March 31, 2023 and 2022, we incurred $1.8 million and $1.8 million, respectively, of shipping and handling costs recorded within operating expenses. During the three months ended December 31, 2022, we incurred $1.9 million of shipping and handling costs within operating expenses.

About Quanterix

From discovery to diagnostics, Quanterix’s ultrasensitive biomarker detection is driving breakthroughs only made possible through its unparalleled sensitivity and flexibility. The Company’s Simoa ^® technology has delivered the gold standard for earlier biomarker detection in blood, serum or plasma, with the ability to quantify proteins that are far lower than the Level of Quantification (LoQ). Its industry-leading precision instruments, digital immunoassay technology and CLIA-certified Accelerator laboratory have supported research that advances disease understanding and management in neurology, oncology, immunology, cardiology and infectious disease. Quanterix has been a trusted partner of the scientific community for nearly two decades, powering research^{published in more than 2,200 peer-reviewed journals. Find additional information about the Billerica, Massachusetts-based company at https://www.quanterix.com or follow us on Twitter and LinkedIn.}

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements about Quanterix’ financial performance, including anticipated progress associated with Quanterix’ strategic business alignment plan, and are subject to a number of risks, uncertainties and assumptions. Forward-looking statements in this news release are based on Quanterix’ expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Factors that may cause Quanterix’ actual results to differ from those expressed or implied in the forward-looking statements in this press release include, but are not limited to, those described in “Part I, Item 1A, “Risk Factors” in Quanterix’ Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 6, 2023. Except as required by law, Quanterix assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005886/en/

Media:

PAN Communications

Maya Nimnicht

510-334-6273

[email protected]

Investor Relations:

Amy Achorn

(978) 488-1854

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Biometrics Health Technology Research Science Biotechnology

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