Personalis Reports Fourth Quarter and Full Year 2023 Financial Results
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Insights
The reported financial results from Personalis, Inc. indicate a notable 18% increase in Q4 revenue year-over-year, with a full-year revenue growth of 13%. This demonstrates the company's ability to expand its revenue streams despite the challenging economic environment. The strategic partnerships with Tempus AI, Inc., Myriad Genetics and ClearNote Health signify a forward-looking approach to co-commercialize and distribute advanced genomic products, potentially increasing market share in the precision oncology sector.
However, the company's net loss has decreased from the previous year, suggesting some level of cost control and efficiency improvements. The reduced cash usage year-over-year also reflects a more sustainable financial trajectory. Investors should consider the implications of the ongoing investments in clinical evidence generation and the potential impact of non-reimbursed clinical tests on future financial performance.
The final Medicare coverage determination for the NeXT Dx® test is a critical milestone for Personalis, as it opens up a significant market of over 66 million Medicare beneficiaries. This could lead to increased adoption and utilization of the test, potentially driving future revenue growth. The focus on cancer types where their test provides the most value aligns with the current trend in precision medicine to tailor treatments based on individual genetic profiles.
Moreover, the partnerships to market ImmunoID NeXT® and the expansion into epigenomic platform distribution indicate a broadening of the company's biomarker discovery offerings. These moves could enhance Personalis' reputation as a comprehensive provider in the precision oncology space, which may be pivotal for long-term sustainability and growth within the biopharmaceutical industry.
Personalis' emphasis on a Win-in-MRD strategy and a partner-centric approach to commercialization suggests a strategic pivot to leverage external expertise and resources. This could be a response to the increasingly competitive nature of the precision oncology market. By focusing on robust clinical evidence and top Key Opinion Leaders (KOLs), the company is likely aiming to strengthen its market position and credibility among healthcare providers and payers.
The forecast for the first quarter and full year of 2024 indicates a cautious but positive outlook, with expected revenue ranges slightly below the full year of 2023. Stakeholders should monitor the company's ability to meet these projections and the effectiveness of the cost-saving measures, such as headcount reductions, in improving the bottom line.
Recent Business Highlights
- Obtained final Medicare coverage determination for its NeXT Dx® comprehensive tumor genomic profiling test, providing access for the 66 million Medicare and Medicare Advantage beneficiaries
- Entered into a strategic partnership with Tempus AI, Inc. (formerly known as Tempus Labs) to co-commercialize NeXT Personal® Dx in tumor-informed MRD testing for lung and breast cancers, and for immunotherapy monitoring
- Partnered with Myriad Genetics to market Personalis’ ImmunoID NeXT® ultra-comprehensive biomarker discovery offering to Myriad’s pharmaceutical partners
- Established a partnership with ClearNote Health to expand Personalis’ pharmaceutical service offerings by distributing ClearNote’s epigenomic platform
- Amended agreement with Natera to extend minimum volume commitment through the end of 2024
“We ended 2023 with strong execution as we delivered on many commitments that include launching NeXT Personal Dx (LDT) with an early access program, establishing commercial partnerships with Tempus, Myriad, and Moderna, and presenting compelling early-stage lung cancer clinical MRD data with TRACERx for NeXT Personal,” said Chris Hall, Chief Executive Officer. “Our efforts in 2024 continue to be focused on executing our Win-in-MRD strategy for NeXT Personal. This effort has four key pillars: focusing on cancer types where our test provides the most value, generating robust clinical evidence with top KOLs to submit for Medicare coverage, leveraging our early success with biopharma customers to accelerate adoption, and utilizing a partner-centric strategy to accelerate commercialization in a capital-efficient manner.”
Fourth Quarter Results
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Reported total company revenue of
$19.7 million $16.7 million 18% increase
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Revenue from pharma tests, enterprise, and other customers of
$18.7 million $15.8 million $7.1 million $8.2 million
-
Revenue from population sequencing for the
U.S. Department of Veterans Affairs Million Veterans Program (VA MVP) of$1.0 million $0.9 million
-
Other expense of
$4.1 million $0.1 million $4.0 million
-
Net loss of
$26.6 million $0.54 $31.1 million $0.67
-
Cash, cash equivalents, and short-term investments of
$114.2 million
Full Year 2023 Financial Results
-
Revenue of
$73.5 million $65.0 million 13% increase
-
Revenue from pharma tests, enterprise, and other customers of
$64.1 million $56.6 million $31.7 million $26.6 million
-
Revenue from population sequencing for the
U.S. Department of Veterans Affairs Million Veterans Program (VA MVP) of$9.4 million $8.4 million
-
Other expense of
$4.1 million $0.1 million $4.0 million
-
Net loss of
$108.3 million $2.25 $113.3 million $2.48
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Cash usage of
$53.5 million $119.4 million
First Quarter and Full Year 2024 Outlook
Personalis expects the following for the first quarter of 2024:
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Total company revenue to be in the range of
$18.0 $19.0 million -
Revenue from pharma tests, enterprise sales, and other customers to be in the range of
$16.0 $17.0 million -
Revenue from population sequencing of approximately
$2.0 million
Personalis expects the following for the full year of 2024:
-
Total company revenue in the range of
$73.0 $75.0 million -
Revenue from pharma tests, enterprise sales, and all other customers in the range of
$65.0 $67.0 million -
Revenue from population sequencing of approximately
$8.0 million -
Net loss of approximately
$80.0 million $108.3 million -
Cash usage of approximately
$62.0 million $3.0 million
Webcast and Conference Call Information
Personalis will host a conference call to discuss the fourth quarter and full year 2023 financial results, as well as plans for 2024, after market close on Wednesday, February 28, 2024, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The conference call can be accessed live by dialing 877-451-6152 for domestic callers or 201-389-0879 for international callers. 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.
At Personalis, we are transforming the active management of cancer through breakthrough personalized testing. We aim to drive a new paradigm for cancer management, guiding care from biopsy through the life of the patient. Our highly sensitive assays combine tumor-and-normal profiling with proprietary algorithms to deliver advanced insights even as cancer evolves over time. Our products are designed to detect minimal residual disease (MRD) and recurrence at the earliest timepoints, enable the selection of targeted therapies based on ultra-comprehensive genomic profiling, and enhance biomarker strategy for drug development. Personalis is based in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as “anticipate,” “estimate,” “expect,” “if,” “may,” “future,” “will” or similar expressions. These statements include statements relating to: Personalis’ first quarter and full year 2024 outlook for revenue, net loss, and cash usage, the attributes, advantages or clinical validity of the NeXT Personal Dx test, Personalis’ use of clinical evidence to support obtaining reimbursement, and the expected benefits of Personalis’ collaboration and partnership agreements with Tempus, Myriad and ClearNote. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from any anticipated results or expectations expressed or implied by such statements, including the risks, uncertainties and other factors that relate to the timing and pace of new orders from customers, including from Natera and the VA MVP; the timing of tissue, blood, and other specimen sample receipts from customers, which can materially impact revenue quarter-over-quarter and year-over-year; Personalis’ ability to demonstrate attributes, advantages or clinical validity of the NeXT Personal Dx test, Personalis’ ability to obtain reimbursement, Personalis’ achievement of milestones set forth in the collaboration and co-commercialization agreement with Tempus, the success of Tempus’ sales and marketing efforts, the expected benefits or success of Personalis’ relationships with research collaborators and key opinion leaders, and the adoption and use of the NeXT Personal Dx test by oncologists. These and other potential risks and uncertainties that could cause actual results to differ materially from the results predicted in these forward-looking statements are described 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 quarter ended September 30, 2023, filed with the SEC on November 7, 2023, and in its Annual Report on Form 10-K for the year ended December 31, 2023, being filed with the Securities and Exchange Commission (SEC) on February 28, 2024. 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. |
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
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(in thousands, except share and per share data) |
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Three Months Ended December 31, |
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Year Ended December 31, |
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2023 |
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2022 |
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2023 |
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|
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2022 |
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Revenue |
|
$ |
19,675 |
|
|
$ |
16,722 |
|
|
$ |
73,481 |
|
|
$ |
65,047 |
|
Costs and expenses |
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|
|
|
|
|
|
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Cost of revenue |
|
|
14,470 |
|
|
|
14,410 |
|
|
|
55,273 |
|
|
|
51,697 |
|
Research and development |
|
|
13,613 |
|
|
|
16,569 |
|
|
|
64,776 |
|
|
|
64,912 |
|
Selling, general and administrative |
|
|
11,524 |
|
|
|
17,828 |
|
|
|
49,726 |
|
|
|
63,969 |
|
Lease impairment |
|
|
— |
|
|
|
— |
|
|
|
5,565 |
|
|
|
— |
|
Restructuring and other charges |
|
|
4,040 |
|
|
|
— |
|
|
|
8,077 |
|
|
|
— |
|
Total costs and expenses |
|
|
43,647 |
|
|
|
48,807 |
|
|
|
183,417 |
|
|
|
180,578 |
|
Loss from operations |
|
|
(23,972 |
) |
|
|
(32,085 |
) |
|
|
(109,936 |
) |
|
|
(115,531 |
) |
Interest income |
|
|
1,477 |
|
|
|
1,160 |
|
|
|
5,901 |
|
|
|
2,396 |
|
Interest expense |
|
|
(9 |
) |
|
|
(47 |
) |
|
|
(110 |
) |
|
|
(201 |
) |
Other income (expense), net |
|
|
(4,075 |
) |
|
|
(88 |
) |
|
|
(4,068 |
) |
|
|
61 |
|
Loss before income taxes |
|
|
(26,579 |
) |
|
|
(31,060 |
) |
|
|
(108,213 |
) |
|
|
(113,275 |
) |
Provision for income taxes |
|
|
5 |
|
|
|
8 |
|
|
|
83 |
|
|
|
40 |
|
Net loss |
|
$ |
(26,584 |
) |
|
$ |
(31,068 |
) |
|
$ |
(108,296 |
) |
|
$ |
(113,315 |
) |
Net loss per share, basic and diluted |
|
$ |
(0.54 |
) |
|
$ |
(0.67 |
) |
|
$ |
(2.25 |
) |
|
$ |
(2.48 |
) |
Weighted-average shares outstanding, basic and diluted |
|
|
49,596,698 |
|
|
|
46,264,217 |
|
|
|
48,175,201 |
|
|
|
45,704,805 |
|
PERSONALIS, INC. |
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SUPPLEMENTAL REVENUE INFORMATION (unaudited) |
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(in thousands) |
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Three Months Ended December 31, |
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Year Ended December 31, |
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2023 |
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2022 |
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|
2023 |
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|
2022 |
Pharma tests and services |
|
$ |
11,491 |
|
$ |
7,400 |
|
$ |
31,904 |
|
$ |
29,552 |
Enterprise sales |
|
|
7,073 |
|
|
8,251 |
|
|
31,729 |
|
|
26,641 |
Population sequencing |
|
|
1,007 |
|
|
887 |
|
|
9,412 |
|
|
8,443 |
Other |
|
|
104 |
|
|
184 |
|
|
436 |
|
|
411 |
Total revenue |
|
$ |
19,675 |
|
$ |
16,722 |
|
$ |
73,481 |
|
$ |
65,047 |
PERSONALIS, INC. |
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CONSOLIDATED BALANCE SHEETS (unaudited) |
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(in thousands, except share and per share data) |
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December 31, 2023 |
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December 31, 2022 |
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Assets |
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Current assets |
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|
|
|
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Cash and cash equivalents |
|
$ |
56,984 |
|
|
$ |
89,128 |
|
Short-term investments |
|
|
57,195 |
|
|
|
78,530 |
|
Accounts receivable, net |
|
|
17,730 |
|
|
|
16,642 |
|
Inventory and other deferred costs |
|
|
10,474 |
|
|
|
8,591 |
|
Prepaid expenses and other current assets |
|
|
4,361 |
|
|
|
6,808 |
|
Total current assets |
|
|
146,744 |
|
|
|
199,699 |
|
Property and equipment, net |
|
|
57,366 |
|
|
|
61,935 |
|
Operating lease right-of-use assets |
|
|
17,852 |
|
|
|
26,480 |
|
Other long-term assets |
|
|
3,137 |
|
|
|
4,586 |
|
Total assets |
|
$ |
225,099 |
|
|
$ |
292,700 |
|
Liabilities and Stockholders’ Equity |
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|
|
|
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Current liabilities |
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|
|
|
||||
Accounts payable |
|
$ |
14,920 |
|
|
$ |
12,854 |
|
Accrued and other current liabilities |
|
|
23,941 |
|
|
|
19,013 |
|
Contract liabilities |
|
|
3,288 |
|
|
|
1,264 |
|
Short-term warrant liability |
|
|
5,085 |
|
|
|
— |
|
Total current liabilities |
|
|
47,234 |
|
|
|
33,131 |
|
Long-term operating lease liabilities |
|
|
38,321 |
|
|
|
41,041 |
|
Long-term warrant liability |
|
|
4,942 |
|
|
|
— |
|
Other long-term liabilities |
|
|
5,161 |
|
|
|
389 |
|
Total liabilities |
|
|
95,658 |
|
|
|
74,561 |
|
Commitments and contingencies |
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|
|
|
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Stockholders’ equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
|
598,364 |
|
|
|
579,456 |
|
Accumulated other comprehensive loss |
|
|
(222 |
) |
|
|
(912 |
) |
Accumulated deficit |
|
|
(468,706 |
) |
|
|
(360,410 |
) |
Total stockholders’ equity |
|
|
129,441 |
|
|
|
218,139 |
|
Total liabilities and stockholders’ equity |
|
$ |
225,099 |
|
|
$ |
292,700 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228727285/en/
Investor Relations Contact:
Caroline Corner
investors@personalis.com
415-202-5678
Media:
pr@personalis.com
Source: Personalis, Inc.
FAQ
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