Personalis Reports Second Quarter 2022 Financial Results

Personalis Reports Second Quarter 2022 Financial Results




Personalis Reports Second Quarter 2022 Financial Results

MENLO PARK, Calif.–(BUSINESS WIRE)–Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for precision oncology, today reported financial results for the second quarter ended June 30, 2022.

Second Quarter and Recent Highlights

  • Reported quarterly revenue of $18.2 million in the second quarter of 2022 compared with $21.7 million in the second quarter of 2021

    • Revenue from biopharma and other customers, excluding the VA MVP (as defined below), of $14.2 million in the second quarter of 2022 compared with $8.2 million in the second quarter of 2021, a 74% increase; revenue from biopharma and other customers includes revenue of $6.8 million from Natera in the second quarter of 2022; revenue from biopharma customers excluding Natera of $7.4 million for the second quarter of 2022
    • Revenue from the U.S. Department of Veterans Affairs Million Veteran Program (VA MVP) of $4.0 million in the second quarter of 2022 compared with $13.5 million in the second quarter of 2021
  • Added another patent family to its molecular residual disease (MRD)-related IP portfolio, with priority to January 2013; the new patent describes the detection of MRD and recurrence by using whole genome sequencing of a patient’s tumor to identify variants for a personalized liquid biopsy assay
  • Appointed Lonnie Shoff to the Personalis Board of Directors effective August 2, 2022; Ms. Shoff brings extensive clinical diagnostics experience including executive roles at Thermo Fisher and Roche Diagnostics
  • Cash, cash equivalents, and short-term investments were $233.5 million as of June 30, 2022

“We are pleased with the pace of our oncology revenue growth compared with last year, as well as the continued adoption of our NeXT Platform, which is driven by the differentiation and strength of our offerings,” said John West, Chief Executive Officer of Personalis. “We are making solid progress on our strategic priorities, with the goal of becoming the leading provider of the most comprehensive and actionable cancer genomic tests. Ultimately, we aim to enable a new standard of oncology care to help patients live better and longer lives.”

Second Quarter 2022 Financial Results

  • Revenue was $18.2 million in the three months ended June 30, 2022
  • Gross margin was 23.5% in the three months ended June 30, 2022
  • Operating expenses were $32.2 million in the three months ended June 30, 2022
  • Net loss was $27.5 million in the three months ended June 30, 2022 and net loss per share was $0.60 based on a weighted-average basic and diluted share count of 45.6 million
  • Cash, cash equivalents, and short-term investments were $233.5 million as of June 30, 2022

Full Year 2022 Outlook

Personalis expects the following for the full year of 2022:

  • Total company revenue is expected to be in the range of $62.0 million to $67.0 million
  • Revenue from biopharma and all other customers, excluding the VA MVP, is expected to be in the range of $55.0 million to $60.0 million
  • Net loss is expected to be in the range of $110.0 million to $115.0 million

Webcast and Conference Call Information

Personalis will host a conference call to discuss the second quarter 2022 financial results after market close on Wednesday, August 3, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. To access the live call via telephone, please register in advance using the link here. Upon registering, each participant will receive an email confirmation with dial-in numbers and a unique personal PIN that can be used to join the call. The live webinar can be accessed at https://investors.personalis.com. A replay of the webinar will be available shortly after the conclusion of the call and will be archived on the company’s website.

About Personalis, Inc.

Personalis, Inc. is a leader in advanced cancer genomics, enabling the next generation of precision cancer therapies and diagnostics. The Personalis NeXT Platform® is designed to adapt to the complex and evolving understanding of cancer, providing its biopharmaceutical customers and clinicians with information on all of the approximately 20,000 human genes, together with the immune system, from a single sample. To enable cancer sequencing, Personalis’ Clinical Laboratory was built with a focus on clinical accuracy, quality, big data, scale, and efficiency. The laboratory is GxP-aligned as well as Clinical Laboratory Improvement Amendments of 1988-certified and College of American Pathologists-accredited. For more information, visit the Personalis website and follow Personalis on LinkedIn and Twitter.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “aim,” “continue to,” “expect,” “future,” “goal,” or “will” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements regarding the company’s full year financial guidance, the company’s business outlook and the company’s goals and aims. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Personalis’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: the timing and pace of new orders from customers, including from Natera, which accounted for 38% of the company’s total revenue in the second quarter of 2022; the launch and market adoption of new products and new product features, such as NeXT Personal; the timing of tissue, blood, and other specimen sample receipts from customers, which can materially impact revenue quarter-over-quarter and year-over-year; whether orders for the NeXT Platform and revenue from biopharmaceutical customers and Natera increase or decrease in future periods; attributes or advantages of NeXT Personal or the Personalis NeXT Platform; the expected benefits or success of Personalis’ collaborations including with Mayo Clinic and University of California, San Diego; the success of the company’s international expansion plans; the evolution of cancer therapies and market adoption of the company’s services; the ongoing COVID-19 pandemic, which may significantly impact the company’s business and operations and the business and operations of Personalis’ customers and suppliers; and legal proceedings to enforce patents, and the presumed validity or enforceability of the company’s patents or other intellectual property rights. In addition, other potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Personalis’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, filed with the Securities and Exchange Commission (SEC) on May 4, 2022, and in Personalis’ Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022, being filed with the SEC today. All information provided in this release is as of the date of this press release, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. Personalis undertakes no duty to update this information unless required by law.

PERSONALIS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

18,240

 

 

$

21,670

 

 

$

33,467

 

 

$

42,551

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

13,959

 

 

 

13,502

 

 

 

24,908

 

 

 

26,956

 

Research and development

 

 

16,288

 

 

 

11,687

 

 

 

33,386

 

 

 

21,183

 

Selling, general and administrative

 

 

15,874

 

 

 

11,428

 

 

 

31,360

 

 

 

21,849

 

Total costs and expenses

 

 

46,121

 

 

 

36,617

 

 

 

89,654

 

 

 

69,988

 

Loss from operations

 

 

(27,881

)

 

 

(14,947

)

 

 

(56,187

)

 

 

(27,437

)

Interest income

 

 

349

 

 

 

103

 

 

 

493

 

 

 

198

 

Interest expense

 

 

(50

)

 

 

(65

)

 

 

(109

)

 

 

(65

)

Other income (expense), net

 

 

50

 

 

 

(36

)

 

 

69

 

 

 

(48

)

Loss before income taxes

 

 

(27,532

)

 

 

(14,945

)

 

 

(55,734

)

 

 

(27,352

)

Provision for income taxes

 

 

14

 

 

 

8

 

 

 

21

 

 

 

5

 

Net loss

 

$

(27,546

)

 

$

(14,953

)

 

$

(55,755

)

 

$

(27,357

)

Net loss per share, basic and diluted

 

$

(0.60

)

 

$

(0.34

)

 

$

(1.23

)

 

$

(0.63

)

Weighted-average shares outstanding, basic and diluted

 

 

45,637,838

 

 

 

43,960,794

 

 

 

45,316,795

 

 

 

43,113,195

 

PERSONALIS, INC.

SUPPLEMENTAL REVENUE INFORMATION (unaudited)

(in thousands)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

VA MVP

 

$

4,055

 

 

$

13,507

 

 

$

7,556

 

 

$

26,717

 

All other customers

 

 

14,185

 

 

 

8,163

 

 

 

25,911

 

 

 

15,834

 

Total revenue

 

$

18,240

 

 

$

21,670

 

 

$

33,467

 

 

$

42,551

 

PERSONALIS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share and per share data)

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

86,731

 

 

$

105,585

 

Short-term investments

 

 

146,759

 

 

 

181,479

 

Accounts receivable, net

 

 

12,877

 

 

 

18,468

 

Inventory and other deferred costs

 

 

7,885

 

 

 

5,610

 

Prepaid expenses and other current assets

 

 

5,788

 

 

 

7,089

 

Total current assets

 

 

260,040

 

 

 

318,231

 

Property and equipment, net

 

 

47,585

 

 

 

19,650

 

Operating lease right-of-use assets

 

 

45,915

 

 

 

53,822

 

Other long-term assets

 

 

4,439

 

 

 

4,825

 

Total assets

 

$

357,979

 

 

$

396,528

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

21,395

 

 

$

9,221

 

Accrued and other current liabilities

 

 

19,755

 

 

 

18,110

 

Contract liabilities

 

 

356

 

 

 

3,982

 

Total current liabilities

 

 

41,506

 

 

 

31,313

 

Long-term operating lease liabilities

 

 

51,836

 

 

 

52,797

 

Other long-term liabilities

 

 

5

 

 

 

2,117

 

Total liabilities

 

 

93,347

 

 

 

86,227

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value — 10,000,000 shares authorized; none issued

 

 

 

 

 

 

Common stock, $0.0001 par value — 200,000,000 shares authorized; 45,891,458 and 44,904,512 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

 

5

 

 

 

4

 

Additional paid-in capital

 

 

568,741

 

 

 

557,558

 

Accumulated other comprehensive loss

 

 

(1,264

)

 

 

(166

)

Accumulated deficit

 

 

(302,850

)

 

 

(247,095

)

Total stockholders’ equity

 

 

264,632

 

 

 

310,301

 

Total liabilities and stockholders’ equity

 

$

357,979

 

 

$

396,528

 

 

Contacts

Investor Relations Contact:

Caroline Corner

investors@personalis.com
415-202-5678

Media Contact:

Jennifer Temple

pr@personalis.com
www.personalis.com
650-752-1300