Personalis Reports Preliminary Fourth Quarter and Full Year 2023 Revenue and Cash Balance
- Preliminary total company revenue for the fourth quarter of 2023 increased by 18% to $19.7 million compared with the fourth quarter of 2022
- Preliminary cash, cash equivalents, and short-term investments are estimated to be $114.0 million as of December 31, 2023, expected to last through the first quarter of 2026
- The company reduced annual expenses by approximately $35 million in 2023
- Preliminary total company revenue for the full year of 2023 increased by 13% to $73.5 million compared with the full year of 2022
- Cash usage is expected to be approximately $54 million in the full year of 2023, reduced from $119 million in 2022
- None.
Insights
Personalis, Inc.'s reported increase in preliminary revenue for both the fourth quarter and full year of 2023 suggests a positive growth trajectory, which is particularly notable in the precision oncology sector. The 18% year-over-year growth in the fourth quarter and 13% for the full year indicate a robust demand for the company's genomics services, which can be attributed to the growing emphasis on personalized medicine. The specific mention of a $35 million annual reduction in expenses due to cost-cutting measures indicates a strategic shift towards operational efficiency. This could potentially improve profit margins and provide a more sustainable financial structure, provided that the reduction in expenses does not adversely affect the company's growth prospects.
Investors may find the decrease in revenue from Natera in the fourth quarter concerning, as it may signal volatility in enterprise customer revenue streams. However, the overall increase in annual revenue from enterprise customers could mitigate these concerns. The estimated cash balance and runway through the first quarter of 2026 demonstrate prudent cash management, which is critical for investor confidence, especially in biotech companies where cash flow is often negative due to high research and development costs.
The genomics market is rapidly evolving and Personalis, Inc.'s focus on precision oncology positions it within a niche yet expanding segment. The launch of the NeXT Personal Dx ultrasensitive MRD product and the presentation of clinical evidence for early-stage lung cancer detection highlight the company's commitment to innovation and its potential to capture more market share. Collaborations and strategic partnerships, such as with Tempus, are essential for commercialization and scaling in this industry and they suggest an aggressive go-to-market strategy that could further enhance the company's market position.
Furthermore, the emphasis on obtaining reimbursement for its products is a critical step for market penetration and long-term viability. As insurance providers and healthcare systems increasingly adopt precision medicine, Personalis' efforts in this area could lead to higher adoption rates and increased revenue streams.
The Million Veteran’s Program (VA MVP) collaboration is a testament to Personalis, Inc.'s involvement in significant research initiatives, which not only contributes to revenue but also to the company's reputation as a leader in genomics research. Continued investment in clinical evidence and product development, such as the NeXT Personal Dx product, is essential for maintaining a competitive edge in the precision oncology field. The company's ability to provide valuable insights for early-stage lung cancer detection could have a profound impact on patient outcomes and healthcare costs, which in turn may influence the long-term success of the company.
The financial health of Personalis, reflected in their cash reserves and cost-reduction measures, indicates a strategic approach to sustaining long-term research and development efforts. This is crucial for the advancement of personalized medicine and for maintaining investor interest in a sector where the timeline from research to commercialization can be extensive.
Preliminary Fourth Quarter Revenue and Cash Balance
-
Preliminary total company revenue is estimated to be
$19.7 million 18% compared with$16.7 million
-
Preliminary revenue from pharma tests, enterprise sales, and other customers is estimated to be
$18.7 million $15.8 million $7.1 million $8.2 million
-
Preliminary revenue from the Veteran’s Administration Million Veteran’s Program (VA MVP) is estimated to be
$1.0 million $0.9 million
-
Preliminary cash, cash equivalents, and short-term investments is estimated to be
$114.0 million $35 million
Preliminary Full Year 2023 Revenue and Cash Usage
-
Preliminary total company revenue is estimated to be
$73.5 million 13% compared with$65.0 million
-
Preliminary revenue from pharma tests, enterprise sales, and other customers is estimated to be
$64.1 million $56.6 million $31.7 million $26.6 million
-
Preliminary revenue from the VA MVP is estimated to be
$9.4 million $8.4 million
-
Cash usage is expected to be approximately
$54 million $119 million
“Our strong fourth quarter performance caps off a remarkable year where we delivered on our commitments to investors,” stated Chris Hall, President and CEO of Personalis. “To touch on a few highlights, over this past year we launched our NeXT Personal Dx ultrasensitive MRD product, deepened clinical evidence to support obtaining reimbursement, presented unprecedented clinical evidence for early-stage lung cancer detection at medical conferences, expanded our relationships with research collaborators, and forged a new strategic commercial partnership with Tempus to commercialize and ramp our MRD product, all while reducing our annualized expenses by
The above information is preliminary and subject to Personalis’ normal quarter and year-end accounting procedures and external audit by the company's independent registered public accounting firm. In addition, these preliminary unaudited results are not a comprehensive statement of the company’s financial results for the year ended December 31, 2023, should not be viewed as a substitute for full, audited financial statements prepared in accordance with generally accepted accounting principles, and are not necessarily indicative of the company’s results for any future period.
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 MRD and recurrence at the earliest timepoints, enable selection of targeted therapies based on ultra-comprehensive genomic profiling, and enhance biomarker strategy for drug development. Personalis is based in
Personalis 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’ preliminary and estimated revenue for the fourth quarter and full year of 2023 and cash position at December 31, 2023, Personalis’ expected cash usage for the full year of 2023, 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 with Tempus. 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 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’ Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (SEC) on February 23, 2023, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on November 7, 2023. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240105868708/en/
Investors:
Caroline Corner
investors@personalis.com
415-202-5678
Media Contact:
pr@personalis.com
Source: Personalis, Inc.
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