February 25, 2021

Personalis Reports Fourth Quarter and Full Year 2020 Financial Results

MENLO PARK, Calif.--(BUSINESS WIRE)--Feb. 25, 2021--Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for population sequencing and cancer, today reported financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter Highlights

  • Record quarterly revenue of $20.2 million in the fourth quarter of 2020 compared with $18.2 million in the fourth quarter of 2019, an 11% increase
  • Record quarterly revenue of $7.6 million from biopharma and all other customers, excluding VA MVP, in the fourth quarter of 2020 compared with $4.4 million in the fourth quarter of 2019, a 73% increase
  • A total of 45 customers have placed orders for NeXT as of December 31, 2020, with 6 of those customers placing their first orders in the fourth quarter of 2020
  • Achieved milestone of completing more than 100,000 whole human genomes sequenced under the VA MVP contract
  • Launched new neoantigen prediction capabilities (called SHERPA™ and NEOPS™) in the fourth quarter of 2020

“I’m proud to say that we were able to report record revenue once again this quarter and achieved our first $20 million revenue quarter, despite the impact from the COVID-19 pandemic. Biopharma revenue was strong and was a record high as some customers pushed to complete projects before the end of the year,” said John West, Chief Executive Officer. “Recently, we announced a partnership with Natera that further validates our NeXT platform as a best-in-class tissue-sequencing front end, capable of detecting mutations in cancer that conventional exomes often miss. It also complements our whole exome liquid biopsy offering that we launched in August 2020 and NeXT Personal, our Minimal Residual Disease (MRD) offering that we expect to launch in 2021, providing Personalis with access to three distinct areas in the rapidly growing cancer monitoring market.”

Fourth Quarter 2020 Financial Results

Revenues were $20.2 million in the three months ended December 31, 2020, up 11% from $18.2 million in the same period of the prior year.

Gross margin was 30.1% in the three months ended December 31, 2020, compared with 36.2% in the same period of the prior year.

Operating expenses were $19.4 million in the three months ended December 31, 2020, compared with $13.8 million in the same period of the prior year.

Net loss was $13.3 million in the three months ended December 31, 2020 and net loss per share was $0.34 based on a weighted-average basic and diluted share count of 39.0 million, compared with a net loss of $6.6 million and a net loss per share of $0.21 on a weighted-average basic and diluted share count of 31.2 million in the same period of the prior year.

Cash, cash equivalents, and short-term investments were $203.3 million as of December 31, 2020.

Full Year 2020 Financial Results

Revenues were $78.6 million for the year ended December 31, 2020, up 21% from $65.2 million in 2019.

Gross margin was 25.6% for the year ended December 31, 2020, compared with 33.9% in 2019.

Operating expenses were $62.3 million for the year ended December 31, 2020, compared with $44.5 million in 2019.

Net loss was $41.3 million for the year ended December 31, 2020 and net loss per share was $1.20 based on a weighted-average basic and diluted share count of 34.4 million, compared with a net loss of $25.1 million and a net loss per share of $1.39 on a weighted-average basic and diluted share count of 18.0 million in 2019.

First Quarter 2021 Outlook

Personalis expects the following for the first quarter of 2021:

  • Total Company revenues are expected to be approximately $20.3 million
  • Revenues from biopharma and all other customers, excluding VA MVP, are expected to be in the range of $5.6 million to $7.0 million
  • Net Loss is expected to be in the range of $14.0 million to $15.0 million

Webcast and Conference Call Information

Personalis will host a conference call to discuss the fourth quarter and full year 2020 financial results after market close on Thursday, February 25, 2021 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone by dialing (866) 220-8061 for U.S. callers or (470) 495-9168 for international callers, using the conference ID: 5065084. The live webinar can be accessed at https://investors.personalis.com.

About Personalis, Inc. 

Personalis, Inc. is a leader in population sequencing and cancer genomics, with a focus on data, scale, efficiency and quality. Personalis operates one of the largest sequencing operations globally and is currently the sole sequencing provider to the VA MVP. In oncology, Personalis is 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 Platform® 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 or blood sample. 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 an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “estimate,” “expect,” “preliminary,” “should,” “target,” “will,” or “would” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements regarding the company’s expectations for revenues and net loss for the first quarter of 2021. 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, including from the U.S. Department of Veterans Affairs Million Veteran Program, which was the company’s largest customer in 2018, 2019, and 2020; the launch of new products and product features, such as NeXT Personal; the timing of tissue, blood, and other specimen sample receipts from customers, which can materially impact revenue quarter over quarter and year over year; whether orders for the NeXT Platform and revenues from biopharmaceutical customers increase in future periods; the success of Personalis’ collaborations and the Natera partnership; the success of the company’s international expansion plans; the evolution of cancer therapies and market adoption of the company’s services; the company’s expectations regarding future performance; and the ongoing COVID-19 pandemic, which may significantly impact the company’s business and operations and the business and operations of our customers and suppliers. 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 period ended December 31, 2020 that will be filed after this earnings release, and risk factors included within the registration statement on Form S-3 filed December 30, 2020, and prospectus supplement filed on January 27, 2021. 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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

             

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Revenues

 

$

20,176

 

 

$

18,154

 

 

$

78,648

 

 

$

65,207

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenues

 

 

14,106

 

 

 

11,589

 

 

 

58,534

 

 

 

43,127

 

Research and development

 

 

8,520

 

 

 

7,373

 

 

 

28,568

 

 

 

22,418

 

Selling, general and administrative

 

 

10,920

 

 

 

6,388

 

 

 

33,692

 

 

 

22,080

 

Total costs and expenses

 

 

33,546

 

 

 

25,350

 

 

 

120,794

 

 

 

87,625

 

Loss from operations

 

 

(13,370

)

 

 

(7,196

)

 

 

(42,146

)

 

 

(22,418

)

Interest income

 

 

76

 

 

 

580

 

 

 

949

 

 

 

1,620

 

Interest expense

 

 

 

 

 

 

 

 

(2

)

 

 

(1,133

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

(1,704

)

Other (expense) income, net

 

 

(29

)

 

 

(25

)

 

 

(24

)

 

 

(1,440

)

Loss before income taxes

 

 

(13,323

)

 

 

(6,641

)

 

 

(41,223

)

 

 

(25,075

)

Provision for income taxes

 

 

(18

)

 

 

(4

)

 

 

(57

)

 

 

(9

)

Net loss

 

$

(13,341

)

 

$

(6,645

)

 

$

(41,280

)

 

$

(25,084

)

Net loss per share, basic and diluted

 

$

(0.34

)

 

$

(0.21

)

 

$

(1.20

)

 

$

(1.39

)

Weighted-average shares outstanding, basic and diluted

 

 

38,962,860

 

 

 

31,205,546

 

 

 

34,374,903

 

 

 

18,011,470

 
                                 

PERSONALIS, INC.

SUPPLEMENTAL REVENUE INFORMATION

(in thousands)

             

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

VA MVP

 

$

12,556

 

 

$

13,754

 

 

$

56,154

 

 

$

43,545

 

All other customers

 

 

7,620

 

 

 

4,400

 

 

 

22,494

 

 

 

21,662

 

Total

 

$

20,176

 

 

$

18,154

 

 

$

78,648

 

 

$

65,207

 
                                 

PERSONALIS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

             

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

68,525

 

 

$

55,046

 

Short-term investments

 

 

134,765

 

 

 

73,243

 

Accounts receivable, net

 

 

6,349

 

 

 

3,300

 

Inventory and other deferred costs

 

 

5,639

 

 

 

4,606

 

Prepaid expenses and other current assets

 

 

5,441

 

 

 

3,383

 

Total current assets

 

 

220,719

 

 

 

139,578

 

Property and equipment, net

 

 

11,834

 

 

 

14,106

 

Operating lease right-of-use assets

 

 

10,271

 

 

 

1,845

 

Other long-term assets

 

 

2,018

 

 

 

1,762

 

Total assets

 

$

244,842

 

 

$

157,291

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

8,301

 

 

$

7,337

 

Accrued and other current liabilities

 

 

11,301

 

 

 

6,648

 

Contract liabilities

 

 

21,034

 

 

 

35,977

 

Total current liabilities

 

 

40,636

 

 

 

49,962

 

Long-term operating lease liabilities

 

 

8,541

 

 

 

639

 

Other long-term liabilities

 

 

720

 

 

 

 

Total liabilities

 

 

49,897

 

 

 

50,601

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value — 10,000,000 shares authorized; none issued

 

 

 

 

 

 

Common stock, $0.0001 par value — 200,000,000 shares authorized; 39,105,548 and 31,243,029 shares issued and outstanding at December 31, 2020 and 2019, respectively

 

 

4

 

 

 

3

 

Additional paid-in capital

 

 

376,788

 

 

 

247,282

 

Accumulated other comprehensive income (loss)

 

 

22

 

 

 

(6

)

Accumulated deficit

 

 

(181,869

)

 

 

(140,589

)

Total stockholders’ equity

 

 

194,945

 

 

 

106,690

 

Total liabilities and stockholders’ equity

 

$

244,842

 

 

$

157,291

 

 

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.