Quantum-Si incorporated (NASDAQ:QSI) Q2 2023 Earnings Call Transcript

Page 4 of 4

Jeff Hawkins : Yes. I wouldn’t say it’s a specific sample type as much as it is just this combination of sample type and the way they’re preparing the sample, how many proteins are they looking for at once, how pure is that sample versus how impure that sample. It really wasn’t about a specific sample type that was challenging.

Swayampakula Ramakanth : Okay. And then in terms of the software upgrade that you released, if I heard it correctly, it was in July. So do you think that upgrade was able to handle the issues at hand? And how have the customers responded to that upgrade to date?

Jeff Hawkins : Yes. Good question. So you are correct. We released that software version in July. And I would say the key attribute that customers were looking for were some additional visualizations at the amino acid level of the data they were generating with the technology. So the initial version showed paratopes of peptides, how peptides are indicated in to a given protein. And really what this new software did was really enhance the UI of that, the ability to visualize it, giving amino acid level data and information, sort of in aggregate, things that allowed our customers to really understand the data they were generating really at both the amino acid, the peptide and the protein level. So again, we rolled that out in July.

The feedback from users has been very positive. They’re very happy with those changes and with sort of the overall improvement the user interface. And as we get more feedback, we’ll continue to make enhancements to that software. But I think the big sort of transformation of our software that needed to take place to customers on the analysis side, is this change we made in July, and it will be somewhat more incremental moving forward.

Swayampakula Ramakanth : Okay. And then just my last question. This is on the sales cycle lengthening that you stated. Is this more of — because at this point, most of your customers are from academic labs. Is it more academicians waiting for the fourth quarter to ensure that the use of all the research dollars associated with the grant? Or is this more than that? Is this some really accounting and other people getting involved in it?

Jeff Hawkins : Yes. Okay, we’re not hearing that there’s a scenario where our instrument is being held up because there’s some pending grant that hasn’t been approved. Really, what we’re commenting on in the prepared remarks is, given Grace and [indiscernible] and other members of the commercial team sort of experience with an instrument at $70,000, we would expect if that enters the procurement cycle out of a customer, it’s going to take some period of time to get through that process. And what we’re seeing is we’ve gotten through the sales cycle with the customer, the sort of the technical buyer that purchase order goes into the procurement process, and that process is just moving a little bit slower. It’s not moving through that process of internal approvals and more of the procurement and accounting or financial side as fast as we had been seeing.

So again, no reason to believe at this stage that those instruments that are in that cycle won’t ultimately be approved and will come through. It’s just moving at a slower pace than sort of we saw in Q1 and sort of a slower pace than we would expect given our collective experience selling capital equipment in the life science space.

Operator: I show no further questions at this time. I would now like to turn the call back to Juan for closing remarks.

Juan Avendano : Thank you all for your participation today. We look forward to updating you on our progress in the next quarterly earnings call. Have a good day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

Follow Quantum-Si Inc

Page 4 of 4