Nautilus Biotechnology Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Nautilus Biotechnology (NASDAQ: NAUT) reported its Q2 2024 financial results, showcasing progress in its single-molecule proteome analysis platform development. Operating expenses increased 9% to $20.8 million, primarily due to headcount growth. The company reported a net loss of $18.0 million, up from $15.8 million in the same period last year. As of June 30, 2024, Nautilus maintained a strong financial position with $232.9 million in cash, cash equivalents, and investments. CEO Sujal Patel emphasized the company's pioneering approach to overcome limitations in traditional protein analysis methods, focusing on both targeted proteoform analysis and broadscale discovery in proteomics.

Positive

• Strong cash position of $232.9 million as of June 30, 2024
• Continued progress in core development goals for platform components
• Potential to overcome limitations of traditional protein analysis methods

Negative

• Increased net loss of $18.0 million compared to $15.8 million in Q2 2023
• Operating expenses rose 9% to $20.8 million year-over-year
• No revenue reported, indicating pre-commercial stage

Insights

Financial Analyst

Nautilus Biotechnology's Q2 2024 financial results reveal a company in the development phase, with increasing operating expenses and net losses. The operating expenses rose by 9% to $20.8 million, primarily due to increased headcount for product development. This investment in human capital suggests a strategic focus on accelerating their proteome analysis platform's progress.

The net loss widened to $18.0 million, up from $15.8 million in the same quarter last year. While increasing losses can be concerning, it's not uncommon for biotech companies in the R&D phase. The critical factor here is the company's ability to fund these losses, which brings us to the most positive aspect of the report.

Nautilus maintains a strong cash position of $232.9 million in cash, cash equivalents and investments. This substantial war chest provides a significant runway for the company to continue its development efforts without immediate financial pressure. At the current burn rate, this could potentially fund operations for several years, giving Nautilus ample time to advance its technology towards commercialization.

However, investors should note that the company is still pre-revenue and the path to profitability remains unclear. The success of Nautilus will largely depend on the scientific progress of its proteome analysis platform and its ability to translate this into commercial products. While the CEO's comments suggest confidence in their approach, concrete milestones and timelines for product development would provide more clarity for investors.

Biotech Research Analyst

Nautilus Biotechnology's focus on single-molecule proteome analysis positions it at the forefront of a potentially transformative field in biological science. The company's approach aims to overcome limitations of traditional protein analysis methods, which could be a game-changer if successful.

The emphasis on both targeted proteoform analysis and broadscale discovery is particularly intriguing. Proteoforms - different molecular forms of proteins - are important for understanding protein function and disease mechanisms. By enabling more comprehensive proteoform analysis, Nautilus could potentially unlock new avenues for drug discovery and personalized medicine.

However, it's important to note that the proteomics field is highly competitive, with several established players and emerging technologies. Nautilus will need to demonstrate clear advantages over existing methods to gain market traction. The lack of specific details on technological progress or competitive differentiation in this report is a limitation for assessing the company's prospects.

The increased investment in headcount for product development is a positive sign, suggesting the company is progressing towards its goals. However, without concrete milestones or timelines, it's challenging to gauge how close Nautilus is to bringing its platform to market. Investors should look for more specific updates on technological progress, potential collaborations, or early-stage validations in future communications.

Overall, while the potential of Nautilus's technology is significant, the company is still in the high-risk, pre-revenue phase typical of early-stage biotech firms. The success of its ambitious goals could revolutionize proteomics, but investors should be prepared for a potentially long development timeline and the inherent uncertainties of cutting-edge scientific research.

SEATTLE, July 30, 2024 (GLOBE NEWSWIRE) -- Nautilus Biotechnology, Inc. (NASDAQ: NAUT; or “Nautilus”), a company pioneering a single-molecule proteome analysis platform, today reported financial results for the second quarter ended June 30, 2024.

“In Q2, we saw continued progress against core development goals for each of the components of our platform,” said Sujal Patel, CEO of Nautilus. “We believe we are pioneering a fundamentally new approach that holds the potential to overcome the limitations of traditional and peptide-based protein analysis methods and to unlock the value of the proteome – both in targeted proteoform analysis and broadscale discovery – something we continue to view as one of the most significant untapped opportunities in biological science.”

Second Quarter 2024 Financial Results

Operating expenses were $20.8 million for the second quarter of 2024, a $1.8 million or 9% increase from $19.0 million for the corresponding prior year period. The increase in operating expenses was driven primarily by an increase in headcount to support ongoing development of our products.

Net loss was $18.0 million for the second quarter of 2024, as compared to a net loss of $15.8 million for the corresponding prior year period.

Cash, cash equivalents, and investments were $232.9 million as of June 30, 2024.

Webcast and Conference Call Information

Nautilus will host a conference call to discuss the second quarter 2024 financial results, business developments and outlook before market open on Tuesday, July 30, 2024, 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.

With its corporate headquarters in Seattle, Washington and its research and development headquarters in San Carlos, California, Nautilus is a development stage life sciences company working to create 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 development required for and the timing of the launch of Nautilus’ product platform and full commercial availability, 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, 2024 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
press@nautilus.bio

Investor Contact
investorrelations@nautilus.bio

Nautilus Biotechnology, Inc.
Condensed Consolidated Balance Sheets
As of June 30, 2024 and December 31, 2023 (Unaudited)

(in thousands, except share and per share amounts)	June 30, 2024				December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	24,885			$	19,397
Short-term investments		142,558				154,021
Prepaid expenses and other current assets		3,490				3,419
Total current assets		170,933				176,837
Property and equipment, net		4,694				4,267
Operating lease right-of-use assets		30,474				32,634
Long-term investments		65,466				90,647
Other long-term assets		1,180				1,180
Total assets	$	272,747			$	305,565
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,627			$	1,639
Accrued expenses and other liabilities		3,239				3,945
Current portion of operating lease liabilities		3,815				3,538
Total current liabilities		8,681				9,122
Operating lease liabilities, net of current portion		28,787				31,090
Total liabilities		37,468				40,212
Stockholders' equity:
Preferred stock		—				—
Common stock		13				13
Additional paid-in capital		474,791				467,834
Accumulated other comprehensive income (loss)		(546	)			(255	)
Accumulated deficit		(238,979	)			(202,239	)
Total stockholders’ equity		235,279				265,353
Total liabilities and stockholders' equity	$	272,747			$	305,565

Nautilus Biotechnology, Inc.
Condensed Consolidated Statements of Operations
Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands, except share and per share data)		2024				2023				2024				2023
Operating expenses
Research and development	$	12,436			$	11,912			$	25,366			$	22,789
General and administrative		8,353				7,104				17,030				14,287
Total operating expenses		20,789				19,016				42,396				37,076
Other income (expense)
Interest income		2,798				3,222				5,675				6,320
Other expense		(19	)			(14	)			(19	)			(17	)
Total other income	$	2,779			$	3,208			$	5,656			$	6,303
Net loss	$	(18,010	)		$	(15,808	)		$	(36,740	)		$	(30,773	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.14	)		$	(0.13	)		$	(0.29	)		$	(0.25	)
Weighted-average shares used in computing net loss    per share attributable to common stockholders, basic and diluted		125,317,650				124,603,181				125,226,552				124,601,762

Nautilus Biotechnology, Inc.
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2024 and 2023 (Unaudited)

	Six Months Ended June 30,
(in thousands)		2024				2023
Cash flows from operating activities
Net loss	$	(36,740	)		$	(30,773	)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation expense		6,393				5,958
Amortization of operating lease right-of-use assets		2,160				1,806
Depreciation		1,028				826
Amortization (accretion) of premium (discount) on securities, net		(1,453	)			(1,412	)
Changes in operating assets and liabilities:
Prepaid expenses and other assets		(71	)			(787	)
Accounts payable		(308	)			(199	)
Accrued expenses and other liabilities		(706	)			(117	)
Operating lease liabilities		(2,026	)			(1,375	)
Net cash used in operating activities		(31,723	)			(26,073	)
Cash flows from investing activities
Proceeds from maturities of securities		53,500				32,249
Purchases of securities		(15,694	)			(46,844	)
Purchases of property and equipment		(1,159	)			(1,155	)
Net cash provided by (used in) investing activities		36,647				(15,750	)
Cash flows from financing activities
Proceeds from exercise of stock options		275				7
Proceeds from issuance of common stock under employee stock purchase plan		289				92
Net cash provided by financing activities		564				99
Net increase (decrease) in cash, cash equivalents and restricted cash		5,488				(41,724	)
Cash, cash equivalents and restricted cash at beginning of period		20,399				115,477
Cash, cash equivalents and restricted cash at end of period	$	25,887			$	73,753

FAQ

What were Nautilus Biotechnology's (NAUT) Q2 2024 financial results?

Nautilus Biotechnology reported a net loss of $18.0 million and operating expenses of $20.8 million for Q2 2024. The company had $232.9 million in cash, cash equivalents, and investments as of June 30, 2024.

How did Nautilus Biotechnology's (NAUT) Q2 2024 results compare to the previous year?

Nautilus Biotechnology's net loss increased from $15.8 million in Q2 2023 to $18.0 million in Q2 2024. Operating expenses rose by 9% from $19.0 million to $20.8 million year-over-year.

What is the focus of Nautilus Biotechnology's (NAUT) research and development?

Nautilus Biotechnology is developing a single-molecule proteome analysis platform, focusing on overcoming limitations of traditional protein analysis methods in both targeted proteoform analysis and broadscale discovery in proteomics.

When is Nautilus Biotechnology's (NAUT) Q2 2024 earnings call scheduled?

Nautilus Biotechnology's Q2 2024 earnings call is scheduled for Tuesday, July 30, 2024, at 5:30 AM Pacific Time / 8:30 AM Eastern Time, before market open.