Strong Revenue Growth of 35% Year-over-Year
Driven by 117% Growth from Biopharma Business
Raises 2024 Full Year Revenue Guidance
Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics
for precision oncology, today reported financial results for the
second quarter ended June 30, 2024, and provided recent business
accomplishments.
Recent Business Accomplishments
- Highlighted clinical performance of NeXT Personal® at the
American Society of Clinical Oncology (ASCO) meeting in May
- Compelling breast cancer detection results were presented by
Dr. Isaac Garcia-Murillas (Institute of Cancer Research, London)
and Prof. Nicolas Turner (Royal Marsden NHS Foundation Trust UK).
In this study, they found:
- NeXT Personal detected cancer recurrence approximately 15
months before imaging
- 100% of patients that recurred were detected with NeXT Personal
and 100% of patients that were ctDNA negative were cancer-free at
follow up time points
- A presentation by Dr. Rodrigo Toledo of the Vall d’Hebron
Institute of Oncology highlighted the importance of NeXT Personal’s
use for immunotherapy monitoring. This data showed:
- Baseline levels of ctDNA and the changes detected by NeXT
Personal predict therapy response and clinical outcomes for
late-stage cancer patients receiving immunotherapy
- NeXT Personal detected cancer progression 81 days before
imaging on average
- Delivered 561 total molecular tests in the second quarter of
2024, a 66% increase compared with the prior quarter, and commenced
NeXT Personal Dx commercialization efforts with Tempus AI, Inc.
(Tempus)
- Announced a cross-license agreement with Myriad Genetics, Inc.
covering patent estates for tumor-informed approaches to detect
minimal residual disease (MRD)
- Successfully settled the IP lawsuit with Foresight Diagnostics,
Inc. (Foresight) with Foresight agreeing to license Personalis’ MRD
patents
Second Quarter 2024 Results Compared to Second Quarter
2023
- Reported total company revenue of $22.6 million in the second
quarter of 2024, an increase of 35% compared with $16.7 million
- Revenue from pharma testing and services of $13.2 million in
the second quarter of 2024, an increase of 117% compared with $6.1
million
- Revenue from Enterprise customers of $8.0 million in the second
quarter of 2024, an increase of 8% compared with $7.4 million
- Revenue from population sequencing for the U.S. Department of
Veterans Affairs Million Veterans Program of $1.3 million in the
second quarter of 2024, a decrease of 57% compared with $3.0
million
- Other Income of $3.0 million in the second quarter of 2024,
which consists of a non-cash gain of $3.0 million related to
fair-value accounting for the outstanding warrants issued to
Tempus
- Net loss of $12.8 million in the second quarter of 2024, a
decrease of 47% compared with $24.0 million
- Cash, cash equivalents, and short-term investments of $87.0
million as of June 30, 2024
“The revenue growth depicts growing customer confidence in both
our technology and platform. Importantly, the growth in our
clinical testing volume means that we can see the impact on patient
lives. Now that our collaborators have presented compelling NeXT
Personal clinical evidence, we expect to leverage that towards
obtaining Medicare coverage and materially increasing the number of
patients we can help,” said Chris Hall, Chief Executive Officer at
Personalis. “As we continue to execute on our Win-in-MRD strategy,
we are more confident than ever in our ability to drive broad
adoption for patient testing.”
Third Quarter and Revised Full Year 2024 Outlook
Personalis expects the following for the third quarter of
2024:
- Total company revenue in the range of $21.0 to $22.0
million
- Revenue from pharma tests, enterprise sales, and other
customers in the range of $17.0 to $18.0 million
- Revenue from population sequencing of approximately $4.0
million
Personalis expects the following for the full year of 2024:
- Total company revenue in the range of $79.0 to $81.0 million,
an increase from $76.0 to $78.0 million
- Revenue from pharma tests, enterprise sales, and all other
customers in the range of $71.0 to $73.0 million, an increase from
prior guidance of $68.0 to $70.0 million
- Revenue from population sequencing of approximately $8.0
million
- Non-GAAP net loss of approximately $75.0 million, a decrease
from our prior guidance of $77.0 million and excludes any non-cash
gain or loss from the outstanding warrants issued to Tempus
- Cash usage of approximately $60.0 million, a decrease from our
prior guidance of $62.0 million
Webcast and Conference Call Information
Personalis will host a conference call to discuss the second
quarter of 2024 financial results, as well as plans for 2024, after
market close on Wednesday, August 7, 2024, at 2:00 p.m. Pacific
Time / 5:00 p.m. Eastern Time. The conference call can be accessed
live by dialing 800-717-1738 for domestic callers or 646-307-1865
for international callers. The live webinar can be accessed at
https://investors.personalis.com. A replay of the webinar will be
available shortly after the conclusion of the call and will be
archived on the company's website.
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 minimal residual disease (MRD) and
recurrence at the earliest timepoints, enable the selection of
targeted therapies based on ultra-comprehensive genomic profiling,
and enhance biomarker strategy for drug development. Personalis is
based in Fremont, California. To learn more, visit
www.personalis.com and connect with us on LinkedIn and X
(Twitter).
Non-GAAP Financial Measure
To supplement our financial guidance presented in accordance
with GAAP, we are presenting expected non-GAAP net loss for the
full year ending December 31, 2024, which excludes income and
expense from the outstanding warrants issued to Tempus from GAAP
net loss. We are excluding income and expense attributable to the
fair value of the outstanding warrants issued to Tempus because
they are non-cash financial measures that require remeasurement of
the fair value, derived from the then-current trading price of our
Common Stock, as of each reporting date, and consequently there is
substantial uncertainty associated with forecasting the fair value
of the Tempus warrants at the future measurement dates. For this
reason, we have not provided a reconciliation of our
forward-looking non-GAAP net loss to GAAP net loss (the most
directly comparable GAAP financial measure), in reliance on the
“unreasonable efforts” exception set forth in the applicable
regulations.
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’ third quarter and full year 2024 outlook
for revenue, non-GAAP net loss, and cash usage, the attributes,
advantages or clinical validity of the NeXT Personal Dx test, broad
adoption of the NeXT Personal Dx test for patient testing and the
benefits to patients from use of the same, and Personalis’
obtaining Medicare coverage. 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 U.S. Department of Veterans Affairs
Million Veterans Program; 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, the rate of adoption of the NeXT
Personal Dx test, Personalis’ ability to obtain Medicare coverage
and reimbursement, Personalis’ achievement of milestones set forth
in the collaboration and co-commercialization agreement with
Tempus, the success of Personalis’ clinical sales team and Tempus’
sales and marketing efforts, the expected benefits or success of
Personalis’ relationships with research collaborators, the impact
of Personalis’ abstract presentations at the American Society of
Clinical Oncology medical conference in May, 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, 2023, filed with the
Securities and Exchange Commission (SEC) on February 28, 2024, as
updated by Personalis’ Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024, filed with the SEC on May 8, 2024,
and Quarterly Report on Form 10-Q for the quarter ended June 30,
2024, being filed with the SEC today. 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.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except share and
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
22,580
$
16,699
$
42,105
$
35,559
Costs and expenses
Cost of revenue
14,543
11,907
28,575
26,037
Research and development
12,957
17,852
25,728
34,425
Selling, general and administrative
11,973
12,134
23,575
26,231
Restructuring and other charges
—
152
—
4,037
Total costs and expenses
39,473
42,045
77,878
90,730
Loss from operations
(16,893
)
(25,346
)
(35,773
)
(55,171
)
Interest income
1,136
1,465
2,495
2,718
Interest expense
(9
)
(39
)
(18
)
(86
)
Other income (expense), net
2,968
1
7,537
(25
)
Loss before income taxes
(12,798
)
(23,919
)
(25,759
)
(52,564
)
Provision for income taxes
4
36
11
50
Net loss
$
(12,802
)
$
(23,955
)
$
(25,770
)
$
(52,614
)
Net loss per share, basic and diluted
$
(0.24
)
$
(0.50
)
$
(0.50
)
$
(1.11
)
Weighted-average shares outstanding, basic
and diluted
52,394,678
47,669,513
51,536,632
47,204,891
PERSONALIS, INC.
SUPPLEMENTAL REVENUE
INFORMATION (unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Pharma tests and services
$
13,197
$
6,083
$
23,009
$
12,416
Enterprise sales
7,958
7,386
15,930
16,844
Population sequencing
1,280
3,000
2,780
6,005
Other
145
230
386
294
Total revenue
$
22,580
$
16,699
$
42,105
$
35,559
PERSONALIS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (unaudited)
(in thousands, except share and
per share data)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
47,747
$
56,984
Short-term investments
39,225
57,195
Accounts receivable, net
12,921
17,730
Inventory and other deferred costs
9,164
10,474
Prepaid expenses and other current
assets
4,046
4,361
Total current assets
113,103
146,744
Property and equipment, net
52,662
57,366
Operating lease right-of-use assets
17,166
17,852
Other long-term assets
2,571
3,137
Total assets
$
185,502
$
225,099
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable
$
9,936
$
14,920
Accrued and other current liabilities
19,248
23,941
Contract liabilities
4,174
3,288
Short-term warrant liability
775
5,085
Total current liabilities
34,133
47,234
Long-term operating lease liabilities
36,524
38,321
Long-term warrant liability
1,513
4,942
Other long-term liabilities
1,060
5,161
Total liabilities
73,230
95,658
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; 53,052,847 and 50,480,694 shares
issued and outstanding, respectively
5
5
Additional paid-in capital
606,863
598,364
Accumulated other comprehensive loss
(120
)
(222
)
Accumulated deficit
(494,476
)
(468,706
)
Total stockholders’ equity
112,272
129,441
Total liabilities and stockholders’
equity
$
185,502
$
225,099
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807799344/en/
Investor Relations Contact: Caroline Corner
investors@personalis.com 646-277-1279
Media: pr@personalis.com
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