March 25, 2020

Personalis Reports Fourth Quarter and Full Year 2019 Financial Results

MENLO PARK, Calif.--(BUSINESS WIRE)--Mar. 25, 2020--Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for cancer, today reported financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter and Full Year 2019 Highlights

  • Reported record revenues of $18.2 million in the fourth quarter and $65.2 million for the full year of 2019, representing a 38% and 73% increase versus $13.2 million in the fourth quarter and $37.8 million for the full year 2018
  • A total of 19 different customers placed orders for NeXT during 2019, with 9 of those customers placing their orders in the fourth quarter of 2019
  • Launched NeXT Dx Test, a diagnostic test for biopharmaceutical customers to utilize in clinical trials

“We are encouraged by the customer adoption and ramp of new orders for our NeXT platform, with orders exceeding revenues once again this quarter,” said John West, Chief Executive Officer. “With the recent uptick in orders, as well as our broadening product offerings, which now includes diagnostic capabilities and with our liquid biopsy to be launched with customers this year, we expect revenues from biopharmaceutical customers to grow increasingly through the latter half of 2020.”

Fourth Quarter 2019 Financial Results

Revenues were $18.2 million in the three months ended December 31, 2019, up 38% from $13.2 million in the same period of the prior year. Fourth quarter revenue growth was driven by an increase in volume for testing and analytical services provided to the U.S. Department of Veterans Affairs Million Veteran Program (VA MVP). In the fourth quarter, the VA MVP accounted for $13.8 million, or 76%, of revenues and the remaining $4.4 million, or 24%, was from biopharmaceutical and all other customers.

Gross margin was 36.2% for the three months ended December 31, 2019, compared with 36.7% in the same period of the prior year.

Operating expenses were $13.8 million for the three months ended December 31, 2019, compared with $8.0 million in the same period of the prior year.

Net loss was $6.6 million for the three months ended December 31, 2019 and net loss per share was $0.21 based on a weighted-average basic and diluted share count of 31.2 million, compared with a net loss of $3.6 million and a net loss per share of $1.16 on a weighted-average basic and diluted share count of 3.1 million in the same period of the prior year.

Cash, cash equivalents, and short-term investments were $128.3 million as of December 31, 2019.

Full Year 2019 Financial Results

Revenues were $65.2 million in the year ended December 31, 2019, up 73% from $37.8 million in 2018. Revenue growth was driven by an increase in volume for testing and analytical services provided to the VA MVP. In 2019, the VA MVP accounted for $43.5 million, or 67%, of revenues and the remaining $21.7 million, or 33%, was from biopharmaceutical and all other customers.

Gross margin was 33.9% for the year ended December 31, 2019, compared with 31.3% in 2018.

Operating expenses were $44.5 million for the year ended December 31, 2019, compared with $25.6 million in 2018.

Net loss was $25.1 million for the year ended December 31, 2019 and net loss per share was $1.39 based on a weighted-average basic and diluted share count of 18.0 million, compared with a net loss of $19.9 million and a net loss per share of $6.49 on a weighted-average basic and diluted share count of 3.1 million in 2018.

Outlook and COVID-19

Due to uncertainty surrounding the COVID-19 pandemic, Personalis is withdrawing previous 2020 guidance and will provide an updated outlook for 2020 during its first quarter earnings announcement and press release, to the extent practicable, based on available information at that time.

Webcast and Conference Call Information

Personalis will host a conference call to discuss the fourth quarter financial results after market close on Wednesday, March 25, 2020 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone (866) 220-8061 for U.S. callers or (470) 495-9168 for international callers, using conference ID: 3623198. The live webinar can be accessed at https://investors.personalis.com.

About Personalis, Inc.

Personalis, Inc. is a growing cancer genomics company transforming the development of next-generation therapies by providing more comprehensive molecular data about each patient’s cancer and immune response. The Personalis ImmunoID NeXT PlatformTM is designed to adapt to the complex and evolving understanding of cancer, providing its biopharmaceutical customers with information on all of the approximately 20,000 human genes, together with the immune system, from a single tissue sample. Personalis also provides genomic information to the VA Million Veterans Program as part of their goal to sequence over a million veteran genomes. The Personalis Clinical Laboratory is GxP aligned as well as CLIA’88-certified and CAP-accredited. For more information, please visit www.personalis.com and follow Personalis on Twitter (@PersonalisInc).

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 as an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our 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; whether orders for the NeXT platform and revenues from biopharmaceutical customers will increase; the timing of tissue sample receipts from customers, which can materially impact revenue quarter over quarter and year over year; the evolution of cancer therapies and market adoption of our services; our expectations regarding future performance, including 2020 revenues; and the COVID-19 pandemic, which may significantly impact our business and operations, the business and operations of our customers, our ability to access capital and the value of our common stock. 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 our Annual Report on Form 10-K for the year ended December 31, 2019, that will be filed following this earnings release. 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. We undertake no duty to update this information unless required by law.

PERSONALIS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

             

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2019

 

2018

 

2019

 

2018

 

 

(unaudited)

 

 

 

 

 

 

 

 

Revenues

 

$

18,154

 

 

$

13,157

 

 

$

65,207

 

 

$

37,774

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenues

 

 

11,589

 

 

 

8,328

 

 

 

43,127

 

 

 

25,969

 

Research and development

 

 

7,373

 

 

 

4,281

 

 

 

22,418

 

 

 

14,304

 

Selling, general and administrative

 

 

6,388

 

 

 

3,696

 

 

 

22,080

 

 

 

11,271

 

Total costs and expenses

 

 

25,350

 

 

 

16,305

 

 

 

87,625

 

 

 

51,544

 

Loss from operations

 

 

(7,196

)

 

 

(3,148

)

 

 

(22,418

)

 

 

(13,770

)

Interest income

 

 

580

 

 

 

78

 

 

 

1,620

 

 

 

293

 

Interest expense

 

 

 

 

 

(244

)

 

 

(1,133

)

 

 

(1,894

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

(1,704

)

 

 

(4,658

)

Other (expense) income, net

 

 

(25

)

 

 

(239

)

 

 

(1,440

)

 

 

150

 

Loss before income taxes

 

 

(6,641

)

 

 

(3,553

)

 

 

(25,075

)

 

 

(19,879

)

Provision for income taxes

 

 

(4

)

 

 

(2

)

 

 

(9

)

 

 

(7

)

Net loss

 

$

(6,645

)

 

$

(3,555

)

 

$

(25,084

)

 

$

(19,886

)

Net loss per share, basic and diluted

 

$

(0.21

)

 

$

(1.16

)

 

$

(1.39

)

 

$

(6.49

)

Weighted-average shares outstanding, basic and diluted

   

31,205,546

     

3,066,365

     

18,011,470

     

3,063,157

 

PERSONALIS, INC.

SUPPLEMENTAL REVENUE INFORMATION

(in thousands)

             

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2019

 

2018

 

2019

 

2018

 

 

(unaudited)

 

 

 

 

 

 

 

 

VA MVP

 

$

13,754

 

 

$

6,129

 

 

$

43,545

 

 

$

18,601

 

All other customers

 

 

4,400

 

 

 

7,028

 

 

 

21,662

 

 

 

19,173

 

Total

 

$

18,154

 

 

$

13,157

 

 

$

65,207

 

 

$

37,774

 

PERSONALIS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2019

 

2018

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,046

 

 

$

19,744

 

Short-term investments

 

 

73,243

 

 

 

 

Accounts receivable, net

 

 

3,300

 

 

 

4,457

 

Inventory and other deferred costs

 

 

4,606

 

 

 

3,432

 

Prepaid expenses and other current assets

 

 

3,383

 

 

 

1,926

 

Total current assets

 

 

139,578

 

 

 

29,559

 

Property and equipment, net

 

 

14,106

 

 

 

11,452

 

Operating lease right-of-use assets

 

 

1,845

 

 

 

 

Other long-term assets

 

 

1,762

 

 

 

659

 

Total assets

 

$

157,291

 

 

$

41,670

 

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

7,337

 

 

$

6,565

 

Accrued and other current liabilities

 

 

6,648

 

 

 

3,392

 

Contract liabilities

 

 

35,977

 

 

 

42,897

 

Short-term debt

 

 

 

 

 

4,996

 

Total current liabilities

 

 

49,962

 

 

 

57,850

 

Redeemable convertible preferred stock warrant liability

 

 

 

 

 

683

 

Other long-term liabilities

 

 

639

 

 

 

121

 

Total liabilities

 

 

50,601

 

 

 

58,654

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Redeemable convertible preferred stock

 

 

 

 

 

89,404

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value — 200,000,000 shares authorized and 31,243,029 shares issued and outstanding as of December 31, 2019; 102,700,000 shares authorized and 3,085,307 shares issued and outstanding as of December 31, 2018

 

 

3

 

 

 

1

 

Additional paid-in capital

 

 

247,282

 

 

 

9,131

 

Accumulated other comprehensive loss

 

 

(6

)

 

 

(15

)

Accumulated deficit

 

 

(140,589

)

 

 

(115,505

)

Total stockholders’ equity (deficit)

 

 

106,690

 

 

 

(106,388

)

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

 

$

157,291

 

 

$

41,670

 

 

Investor Relations Contact:
Caroline Corner
investors@personalis.com
415-202-5678

Media Contact:
Jennifer Havlek
pr@personalis.com
www.personalis.com
650-752-1300

Source: Personalis, Inc.