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): November 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)) |
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 |
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. ☒
Item 2.02 Results of Operations and Financial Condition.
On November 13, 2019, Personalis, Inc. issued a press release announcing its financial results for the quarter ended September 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: November 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 Third Quarter 2019 Financial Results
MENLO PARK, Calif. – November 13, 2019 – Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for cancer, today reported financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Highlights
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Record revenues of $17.2 million in the third quarter of 2019, versus $11.7 million in the third quarter of 2018, an increase of 47% |
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Received a new $38.1 million task order from the VA’s Million Veteran Program, increasing our unfulfilled orders with the VA MVP to approximately $82.5 million |
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Announced important customer and partner relationships, including agreements with Invectys, the University of New Mexico and the New Mexico Cancer Care Alliance |
“I’m very pleased that we again achieved record quarterly revenues and grew 47% over the third quarter of last year. In September, we received a new order from the VA’s Million Veteran Program, which increased our cumulative orders received to date from the VA MVP to approximately $145 million,” said John West, Chief Executive Officer. “In addition, many of our biopharmaceutical and prospective customers are actively evaluating our new platform ImmunoID NeXT™ and feedback has been resoundingly positive. We continue to anticipate ramping revenue volume of the NeXT platform increasingly throughout 2020.”
Third Quarter 2019 Financial Results
Revenues were $17.2 million in the three months ended September 30, 2019, up 47% from $11.7 million in the same period of the prior year. Third 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 third quarter, the VA MVP accounted for $12.9 million, or 75%, of revenues and the remaining $4.3 million, or 25%, was from biopharma and all other customers.
Gross margin was 32.8% for the three months ended September 30, 2019, compared with 38.5% in the same period of the prior year.
Operating expenses were $11.4 million for the three months ended September 30, 2019, compared with $6.2 million in the same period of the prior year.
Net loss was $6.9 million for the three months ended September 30, 2019 and net loss per share was $0.22 based on a weighted-average basic and diluted share count of 31.1 million, compared with a net loss of $3.6 million and a net loss per share of $1.19 on a weighted-average basic and diluted share count of 3.1 million last year.
Cash, cash equivalents, and short-term investments were $127.3 million as of September 30, 2019.
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2019 and 2020 Outlook
Personalis expects full year 2019 revenues to be in the range of $64.5 million to $65.0 million, and full year 2020 revenues to be in the range of $77.5 million to $83.5 million.
Webcast and Conference Call Information
Personalis will host a conference call to discuss the third quarter financial results after market close on Wednesday, November 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: 8749318. 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. 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 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; and our expectations regarding future performance, including 2019 and 2020 revenues. 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 quarter ended September 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.
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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
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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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Nine Months Ended |
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September 30, |
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September 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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$ |
17,153 |
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$ |
11,654 |
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$ |
47,053 |
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$ |
24,617 |
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Costs and expenses |
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Costs of revenues |
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11,524 |
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7,173 |
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31,538 |
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17,641 |
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Research and development |
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5,303 |
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3,574 |
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15,045 |
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10,023 |
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Selling, general and administrative |
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6,056 |
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2,658 |
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15,692 |
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7,575 |
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Total costs and expenses |
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22,883 |
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13,405 |
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62,275 |
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35,239 |
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Loss from operations |
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(5,730 |
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(1,751 |
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(15,222 |
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(10,622 |
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Interest income |
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756 |
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83 |
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1,040 |
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215 |
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Interest expense |
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(204 |
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(455 |
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(1,133 |
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(1,650 |
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Loss on debt extinguishment |
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(1,704 |
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(1,336 |
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(1,704 |
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(4,658 |
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Other (expense) income, net |
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(2 |
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(180 |
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(1,415 |
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389 |
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Loss before income taxes |
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(6,884 |
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(3,639 |
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(18,434 |
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(16,326 |
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Provision for income taxes |
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(1 |
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(2 |
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(5 |
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(5 |
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Net loss |
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$ |
(6,885 |
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$ |
(3,641 |
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$ |
(18,439 |
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$ |
(16,331 |
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Net loss per share, basic and diluted |
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$ |
(0.22 |
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$ |
(1.19 |
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$ |
(1.35 |
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$ |
(5.33 |
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Weighted-average shares outstanding, basic and diluted |
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31,133,683 |
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3,065,256 |
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13,613,444 |
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3,062,464 |
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SUPPLEMENTAL REVENUE INFORMATION (unaudited)
(in thousands)
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Three Months Ended September 30, |
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Nine Months Ended September 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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$ |
12,912 |
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$ |
6,520 |
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$ |
29,791 |
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$ |
12,472 |
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All other customers |
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4,241 |
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5,134 |
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17,262 |
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12,145 |
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Total |
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$ |
17,153 |
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$ |
11,654 |
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$ |
47,053 |
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$ |
24,617 |
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PERSONALIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share and per share data)
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September 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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$ |
87,013 |
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$ |
19,744 |
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Short-term investments |
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40,263 |
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— |
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Accounts receivable, net |
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4,445 |
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4,457 |
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Inventory and other deferred costs |
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4,604 |
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3,432 |
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Prepaid expenses and other current assets |
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3,973 |
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1,926 |
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Total current assets |
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140,298 |
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29,559 |
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Property and equipment, net |
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15,215 |
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11,452 |
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Operating lease right-of-use assets |
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2,154 |
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— |
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Other long-term assets |
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2,024 |
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659 |
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Total assets |
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$ |
159,691 |
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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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$ |
7,764 |
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$ |
6,565 |
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Accrued and other current liabilities |
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5,899 |
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3,392 |
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Contract liabilities |
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33,726 |
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42,897 |
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Short-term debt |
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— |
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4,996 |
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Total current liabilities |
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47,389 |
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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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Other long-term liabilities |
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910 |
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121 |
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Total liabilities |
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48,299 |
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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, $0.0001 par value — 200,000,000 shares authorized and 31,142,643 shares issued and outstanding as of September 30, 2019; 102,700,000 shares authorized and 3,085,307 shares issued and outstanding as of December 31, 2018 |
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3 |
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1 |
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Additional paid-in-capital |
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245,362 |
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9,131 |
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Accumulated other comprehensive loss |
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(29 |
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(15 |
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Accumulated deficit |
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(133,944 |
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(115,505 |
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Total stockholders’ equity (deficit) |
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111,392 |
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(106,388 |
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Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) |
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$ |
159,691 |
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$ |
41,670 |
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