Nautilus Biotechnology Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Nautilus Biotechnology, Inc. (NASDAQ: NAUT) reported its Q2 2022 financial results, showing total operating expenses of $15.5 million, a decrease from Q1 2022. The company anticipates launching its proteome analysis platform by mid-2024, with early access revenue expected in early 2024. Although operating expenses increased 45% year-over-year, driven by a rise in headcount, cash reserves totaled $334.9 million as of June 30, 2022, extending the cash runway into 2025. The CEO expressed confidence in the company’s strategic direction amidst macroeconomic challenges.

Positive

• Guidance for launch of proteome analysis platform by mid-2024.
• Early access revenue expected to begin in early 2024.
• Cash reserves of $334.9 million extend runway into 2025.

Negative

• Operating expenses increased 45% year-over-year to $15.5 million.
• Net loss of $14.7 million in Q2 2022, up from $10.7 million in Q2 2021.

SEATTLE, Aug. 02, 2022 (GLOBE NEWSWIRE) -- Nautilus Biotechnology, Inc. (NASDAQ: NAUT; or “Nautilus”), a company pioneering a single molecule proteome analysis, today reported financial results for the second quarter ended June 30, 2022.

Recent Highlights

• Reported total operating expenses for the second quarter of 2022 of $15.5 million, down sequentially from $16.0 million in the first quarter of 2022 and from $16.8 million in the fourth quarter of 2021.
• Announced the hiring of industry veterans Eric Spence and Ken Kuhn as VP of Instrument Engineering and VP of Reagent and Process Development, respectively, to strengthen Nautilus’ development efforts.
• Provided guidance that anticipates the launch of the Nautilus proteome analysis platform - instruments and reagents - by mid-2024 with meaningful early access engagements and associated revenue to begin at the start of 2024.
  

“We continued to see solid progress against our development goals in the second quarter of 2022 and remain confident in our overarching strategy,” said Sujal Patel, CEO of Nautilus. “In light of current macroeconomic conditions, we are financially managing the business in a way that gives us the maximum opportunity to build, launch, and commercialize our platform, and anticipate our cash runway extending well into 2025. We remain singularly focused on driving our scientific and development efforts forward in the most efficient, most predictable ways possible. By making the choice to focus intently on development at this time, we believe we are positioning ourselves to maximize our impact on the marketplace and on biological science.”

Second Quarter 2022 Financial Results

Operating expenses were $15.5 million for the second quarter of 2022, a 45% increase from $10.7 million for the three months ended June 30, 2021. The increase in operating expenses was driven primarily by an increase in headcount to support ongoing development of our products as well as the costs associated with being a public company.

Net loss was $14.7 million for the second quarter of 2022, as compared to a net loss of $10.7 million for the corresponding prior year period.

Cash, cash equivalents, and investments were $334.9 million as of June 30, 2022.

Webcast and Conference Call Information

Nautilus will host a conference call to discuss the second quarter 2022 financial results, business developments and outlook before market open on Tuesday, August 2, 2022 at 5:30 AM Pacific Time / 8:30 AM Eastern Time. Live audio of the webcast will be available on the “Investors” section of the company website at: www.nautilus.bio.

About Nautilus Biotechnology, Inc.

Based in Seattle, Washington, Nautilus is a development stage life sciences company creating a platform technology for quantifying and unlocking the complexity of the proteome. Nautilus’ mission is to transform the field of proteomics by democratizing access to the proteome and enabling fundamental advancements across human health and medicine. To learn more about Nautilus, visit www.nautilus.bio

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements in this press release include, but are not limited to, statements regarding Nautilus’ expectations regarding the company’s business operations, financial performance and results of operations; expectations with respect to any revenue timing or projections, expectations with respect to the timing of the launch of Nautilus’product platform, the functionality and performance of Nautilus’ product platform, its potential impact on providing proteome access, pharmaceutical development and drug discovery, expanding research horizons, and enabling scientific explorations and discovery, and the present and future capabilities and limitations of emerging proteomics technologies. These statements are based on numerous assumptions concerning the development of Nautilus’ products, target markets, and other current and emerging proteomics technologies, and involve substantial risks, uncertainties and other factors that may cause actual results to be materially different from the information expressed or implied by these forward-looking statements. Risks and uncertainties that could materially affect the accuracy of Nautilus’ assumptions and its ability to achieve the forward-looking statements set forth in this press release include (without limitation) the following: Nautilus’ product platform is not yet commercially available and remains subject to significant scientific and technical development, which is inherently challenging and difficult to predict, particularly with respect to highly novel and complex products such as those being developed by Nautilus. Even if our development efforts are successful, our product platform will require substantial validation of its functionality and utility in life science research. In the course of Nautilus’ scientific and technical development and associated product validation and commercialization, we may experience material delays as a result of unanticipated events. We cannot provide any guarantee or assurance with respect to the outcome of our development, collaboration, and commercialization initiatives or with respect to their associated timelines. For a more detailed description of additional risks and uncertainties facing Nautilus and its development efforts, investors should refer to the information under the caption “Risk Factors” in our Annual Report on Form 10-K as well as in our Quarterly Report on Form 10-Q to be filed for the quarter ended June 30, 2022 and our other filings with the SEC. The forward-looking statements in this press release are as of the date of this press release. Except as otherwise required by applicable law, Nautilus disclaims any duty to update any forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Disclosure Information

Nautilus uses filings with the Securities and Exchange Commission, its website (www.nautilus.bio), press releases, public conference calls, public webcasts, and its social media accounts as means of disclosing material non-public information and for complying with Regulation FD. Therefore, Nautilus encourages investors, the media, and others interested in Nautilus to review the information it makes public in these locations, as such information could be deemed to be material information.

Media Contact
Thermal for Nautilus Biotechnology
Kaustuva Das
press@nautilus.bio

Investor Contact
investorrelations@nautilus.bio

Nautilus Biotechnology, Inc.
Condensed Consolidated Balance Sheets
As of June 30, 2022 and December 31, 2021 (Unaudited)

(in thousands)	June 30,  2022				December 31,  2021
Assets
Current assets:
Cash and cash equivalents	$	210,354			$	185,619
Short-term investments		88,984				160,110
Prepaid expenses and other current assets		4,108				3,493
Total current assets		303,446				349,222
Property and equipment, net		3,402				2,483
Operating lease right-of-use assets		28,304				29,377
Long-term investments		35,558				16,371
Other long term assets		997				997
Total assets	$	371,707			$	398,450
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,429			$	1,723
Accrued expenses and other liabilities		3,108				3,119
Current portion of operating lease liability		1,562				970
Total current liabilities		6,099				5,812
Operating lease liability, net of current portion		28,050				29,062
Total liabilities		34,149				34,874
Stockholders’ equity:
Preferred stock		—				—
Common stock		12				12
Additional paid-in capital		449,406				444,388
Accumulated other comprehensive loss		(768	)			(184	)
Accumulated deficit		(111,092	)			(80,640	)
Total stockholders’ equity		337,558				363,576
Total liabilities and stockholders’ equity	$	371,707			$	398,450

Nautilus Biotechnology, Inc. 
Condensed Consolidated Statements of Operations 
Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands, except share and per share amounts)	2022				2021				2022				2021
Operating expenses
Research and development	$	8,856			$	6,380			$	18,514			$	11,215
General and administrative		6,616				4,317				12,980				7,899
Total operating expenses		15,472				10,697				31,494				19,114
Other income (expense), net		783				(16	)			1,042				(8	)
Net loss	$	(14,689	)		$	(10,713	)		$	(30,452	)		$	(19,122	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.12	)		$	(0.19	)		$	(0.24	)		$	(0.43	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted(1)		124,494,036				55,070,480				124,456,518				44,096,149

(1)  The weighted-average number of shares of Common Stock outstanding prior to the Business Combination have been retroactively restated to reflect the exchange ratio of approximately 3.6281 established in the Business Combination.

Nautilus Biotechnology, Inc.
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2022 and 2021 (Unaudited)

	Six Months Ended June 30,
(in thousands)	2022				2021
Cash flows from operating activities
Net loss	$	(30,452	)		$	(19,122	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation		562				479
Stock-based compensation		4,677				3,156
Amortization of premiums on securities, net		(147	)			213
Amortization of operating lease right-of-use assets		1,073				760
Changes in operating assets and liabilities:
Prepaid expenses and other assets		(503	)			(331	)
Accounts payable		(643	)			725
Accrued expenses and other liabilities		(11	)			410
Operating lease liability		(420	)			(835	)
Net cash used in operating activities		(25,864	)			(14,545	)
Cash flows from investing activities
Proceeds from maturities of securities		105,575				40,000
Purchases of securities		(54,185	)			(100,035	)
Purchases of property and equipment		(1,132	)			(1,013	)
Net cash provided by (used in) investing activities		50,258				(61,048	)
Cash flows from financing activities
Proceeds from exercise of stock options		188				46
Proceeds from issuance of common stock under employee stock purchase plan		153				—
Net proceeds from reverse recapitalization and PIPE financing		—				335,409
Payments of offering costs		—				(8,082	)
Net cash provided by financing activities		341				327,373
Net increase in cash, cash equivalents and restricted cash		24,735				251,780
Cash, cash equivalents and restricted cash at beginning of period		186,461				37,219
Cash, cash equivalents and restricted cash at end of period	$	211,196			$	288,999

FAQ

What were Nautilus' Q2 2022 financial results?

Total operating expenses were $15.5 million, with a net loss of $14.7 million.

When does Nautilus plan to launch its proteome analysis platform?

The launch is anticipated by mid-2024.

How much cash does Nautilus have as of June 30, 2022?

Nautilus reported cash, cash equivalents, and investments of $334.9 million.

What is the expected timeline for early access to Nautilus' products?

Early access and associated revenue are expected to begin at the start of 2024.