UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 13, 2019
Personalis, Inc.
(Exact name of Registrant as Specified in Its Charter)
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Delaware |
001-38943 |
27-5411038 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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1330 O’Brien Drive Menlo Park, California 94025 |
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94025 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
(650) 752-1300
Registrant’s Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Common Stock, $0.0001 par value per share |
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PSNL |
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The Nasdaq Global Market |
Item 2.02 Results of Operations and Financial Condition.
On August 13, 2019, Personalis, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2019. The full text of the press release is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Exhibit Number |
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Description |
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99.1 |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Date: August 13, 2019 |
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Personalis, Inc. |
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By: |
/s/ Aaron Tachibana |
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Aaron Tachibana |
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Chief Financial Officer |
Exhibit 99.1
Personalis Reports Second Quarter 2019 Financial Results
MENLO PARK, Calif. – August 13, 2019 – Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for cancer, today reported financial results for the second quarter ended June 30, 2019.
Second Quarter 2019 Highlights
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Record revenues of $15.8 million in the second quarter of 2019, versus $8.8 million in the second quarter of 2018, an increase of 80% |
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In June, completed initial public offering of 9.1 million shares, raising $140.0 million in net proceeds, after deducting underwriting discounts, and fees and other expenses |
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Announced several important customer and partner relationships including agreements with the Parker Institute for Cancer Immunotherapy and RAPT Therapeutics |
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Initial customer pilots of ImmunoID NeXT™, the company’s universal cancer immunogenomics platform |
“The Personalis team has made solid progress over the last few months. With our raising of $140 million and very encouraging traction with our Million Veteran Program and biopharmaceutical customers, I believe we are well-positioned for continued growth ahead,” said John West, Chief Executive Officer. “With the proceeds from our offering, we are driving the build out of our commercial infrastructure and accelerating our new product programs to capitalize on the approximately $5 billion total addressable market for comprehensive tissue and liquid biopsy testing, and investing in our operational capabilities and infrastructure so we can scale quickly in response to customer demands.”
Second Quarter 2019 Financial Results
Revenues were $15.8 million in the three months ended June 30, 2019, up 80% from $8.8 million in the same period of the prior year. Second quarter revenue growth was driven by an increase in volume for testing and analytical services provided to pharmaceutical, biotech, the U.S. Department of Veterans Affairs “Million Veteran Program” (“VA-MVP”), universities, and research laboratory customers. The VA-MVP accounted for 54% of our revenues in the three months ended June 30, 2019, and the remaining 46% was primarily from pharmaceutical and biotech customers.
Gross margin for the three months ended June 30, 2019 was 37.3% and increased 10.1% from 27.2% in the same period of the prior year.
Operating expenses totaled $10.0 million for the three months ended June 30, 2019, compared with $6.1 million for the same period of the prior year.
Net loss for the three months ended June 30, 2019 was $5.9 million and net loss per share was $0.89 based on a weighted-average basic and diluted share count of 6.6 million, compared with a net loss of $7.3 million and a net loss per share of $2.39 on a weighted-average basic and diluted share count of 3.1 million last year.
1
Cash and cash equivalents were $163.3 million as of June 30, 2019. Personalis received net proceeds of $140.0 million in its initial public offering, net of underwriting discounts, fees and expenses payable by the company, and issued 9.1 million shares of common stock.
2019 Outlook
Personalis expects full year 2019 revenues to be in the range of $60 million to $62 million, representing 59% to 64% growth over full year 2018.
Webcast and Conference Call Information
Personalis will host a conference call to discuss the second quarter financial results after market close on Tuesday, August 13, 2019 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: 5981178. 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 company’s 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 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 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 of tissue sample receipts from customers, which can materially impact revenue quarter over quarter; the evolution of cancer therapies and market adoption of our services; estimates of our total addressable market; our ability to compete effectively with existing competitors and new market entrants; our ability to scale our infrastructure; and expectations regarding our relationship with the VA-MVP. 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 prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 20, 2019 and in our Quarterly Report on Form 10-Q for the
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quarter ended June 30, 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.
Contacts:
Investor Relations Contact:
Caroline Corner
investors@personalis.com
415-202-5678
Media Contact:
Jennifer Havlek
pr@personalis.com
www.personalis.com
650-752-1300
3
PERSONALIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except share and per share data)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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Revenues |
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$ |
15,825 |
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$ |
8,799 |
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$ |
29,900 |
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$ |
12,963 |
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Costs and expenses |
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Costs of revenues |
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9,923 |
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6,403 |
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20,014 |
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10,468 |
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Research and development |
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4,497 |
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3,500 |
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9,742 |
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6,449 |
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Selling, general and administrative |
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5,466 |
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2,604 |
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9,636 |
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4,917 |
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Total costs and expenses |
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19,886 |
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12,507 |
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39,392 |
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21,834 |
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Loss from operations |
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(4,061 |
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(3,708 |
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(9,492 |
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(8,871 |
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Interest income |
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200 |
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71 |
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284 |
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132 |
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Interest expense |
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(745 |
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(573 |
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(929 |
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(1,195 |
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Loss on debt extinguishment |
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— |
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(3,322 |
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— |
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(3,322 |
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Other (expense) income, net |
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(1,261 |
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218 |
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(1,413 |
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569 |
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Loss before income taxes |
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(5,867 |
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(7,314 |
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(11,550 |
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(12,687 |
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Provision for income taxes |
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(2 |
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(1 |
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(4 |
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(3 |
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Net loss |
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$ |
(5,869 |
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$ |
(7,315 |
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$ |
(11,554 |
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$ |
(12,690 |
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Net loss per share, basic and diluted |
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$ |
(0.89 |
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$ |
(2.39 |
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$ |
(2.38 |
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$ |
(4.15 |
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Weighted-average shares outstanding, basic and diluted |
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6,597,007 |
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3,063,126 |
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4,853,325 |
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3,061,069 |
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4
SUPPLEMENTAL REVENUE INFORMATION (unaudited)
(in thousands)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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VA MVP |
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$ |
8,536 |
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$ |
3,976 |
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$ |
16,879 |
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$ |
5,952 |
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All other customers |
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7,289 |
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4,823 |
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13,021 |
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7,011 |
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Total |
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$ |
15,825 |
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$ |
8,799 |
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$ |
29,900 |
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$ |
12,963 |
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5
PERSONALIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share and per share data)
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June 30, |
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December 31, |
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2019 |
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2018 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
163,269 |
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$ |
19,744 |
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Accounts receivable |
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7,465 |
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4,457 |
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Inventory and other deferred costs |
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3,538 |
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3,432 |
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Prepaid expenses and other current assets |
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1,897 |
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1,926 |
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Total current assets |
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176,169 |
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29,559 |
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Property and equipment, net |
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13,409 |
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11,452 |
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Operating lease right-of-use assets |
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1,320 |
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— |
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Other long-term assets |
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947 |
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659 |
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Total assets |
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$ |
191,845 |
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$ |
41,670 |
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Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit) |
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Current liabilities |
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Accounts payable |
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$ |
8,781 |
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$ |
6,565 |
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Accrued and other current liabilities |
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4,676 |
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3,392 |
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Contract liabilities |
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41,866 |
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42,897 |
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Short-term debt |
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1,020 |
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4,996 |
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Total current liabilities |
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56,343 |
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57,850 |
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Redeemable convertible preferred stock warrant liability |
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— |
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683 |
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Long-term debt |
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18,016 |
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— |
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Other long-term liabilities |
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468 |
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121 |
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Total liabilities |
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74,827 |
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58,654 |
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Commitments and Contingencies |
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Redeemable convertible preferred stock |
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— |
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89,404 |
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Stockholders’ equity (deficit) |
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Common stock, $0.0001 par value — 200,000,000 shares authorized and 31,121,605 shares issued and outstanding as of June 30, 2019; 102,700,000 shares authorized and 3,085,307 shares issued and outstanding as of December 31, 2018 |
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3 |
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1 |
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Additional paid-in-capital |
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244,089 |
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9,131 |
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Accumulated other comprehensive loss |
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(15 |
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(15 |
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Accumulated deficit |
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(127,059 |
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(115,505 |
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Total stockholders’ equity (deficit) |
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117,018 |
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(106,388 |
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Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) |
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$ |
191,845 |
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$ |
41,670 |
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