Personalis Reports Third Quarter 2023 Financial Results

  • Increased third quarter revenue 23% to $18.2 million and increased full year guidance
  • Presented data supporting NeXT Personal’s market leading sensitivity for cancer recurrence detection

FREMONT, Calif.--(BUSINESS WIRE)-- Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for precision oncology, today reported financial results for the third quarter ended September 30, 2023 and provided recent business highlights.

Third Quarter and Recent Highlights

  • Achieved third quarter revenue of $18.2 million, representing an increase of 23% over the same period of the prior year
  • Presented compelling clinical data from the collaboration with the TRACERx consortium for lung cancer:
    • Higher sensitivity, up to 4x higher, than other liquid biopsy tests analyzed by TRACERx
    • Identified lung cancer 6-11 months ahead of standard imaging and significantly ahead of other tests
    • Ability to determine low and high recurrence risk which could lead to improved therapy decisions
  • NeXT Personal® launched to robust demand as a clinical laboratory-developed test (“LDT”) for use by oncologists

“We continue to evolve Personalis into a clinical testing leader — launching NeXT Personal for patient testing, presenting compelling data in early-stage lung cancer, and deepening our set of collaborators in breast cancer all while delivering exceptional Q3 revenue growth of 23% year over year,” said Chris Hall, President and CEO of Personalis. “We continue to focus on driving towards Medicare coverage for NeXT Personal.”

Third Quarter Financial Highlights

  • Reported total company revenue of $18.2 million for the third quarter of 2023, a 23% increase compared with $14.9 million for the third quarter of 2022
    • Revenue from pharma tests, enterprise sales, and other customers of $15.8 million in the third quarter of 2023, representing a 7% increase compared with $14.9 million in the third quarter of 2022; revenue from enterprise customers includes revenue from Natera of $7.8 million in the third quarter of 2023, compared with $7.4 million from Natera in the third quarter of 2022
    • Revenue from population sequencing for the VA MVP of $2.4 million in the third quarter of 2023, compared with zero in the third quarter of 2022 due to the backlog being fulfilled after the second quarter of 2022 and a deferred task order that was received after the second quarter of 2022
  • Cash, cash equivalents, and short-term investments of $120.7 million as of September 30, 2023
  • Net loss of $29.1 million, and net loss per share of $0.60 based on a weighted-average basic and diluted share count of 48.7 million in the third quarter of 2023; the net loss included a one-time non-cash impairment charge of $5.6 million for the Menlo Park facility upon completion of the move to the new Fremont facility

Fourth Quarter and Full Year 2023 Outlook

Personalis expects the following for the fourth quarter of 2023:

  • Total company revenue between $19 to $20 million
  • Revenue from pharma tests, enterprise sales, and other customers between $18.5 to $19.5 million
  • Revenue from population sequencing of approximately $0.5 million

Personalis expects the following for the full year of 2023:

  • Total company revenue between $73 to $74 million; an increase from the prior estimate of $70 to $72 million
  • Revenue from pharma tests, enterprise sales, and all other customers between $64 to $65 million, and revenue from population sequencing of approximately $9 million
  • Net loss of approximately $103 million reduced from $113 million in 2022 due to realization of headcount reduction savings, partially offset by investments in clinical evidence generation and non-cash impairment expense for the vacated Menlo Park facility
  • Cash usage less than $70 million, reduced from $119 million in 2022

Webcast and Conference Call Information

Personalis will host a conference call to discuss the third quarter financial results after market close on Tuesday, November 7, 2023 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The conference call can be accessed live by dialing 844-826-3035 for domestic callers or 412-317-5195 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 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).

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 generally be identified by terms such as “aim,” “continue to,” “expect,” “future,” “goal,” or “will” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements regarding Personalis’ ability to become a clinical testing leader, the company’s fourth quarter and full year financial guidance, expected revenue growth, cash runway, the company’s business outlook, and the company’s goals and aims. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Personalis’ 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: our ability to replicate the clinical data results of the collaboration with TRACERx in other cancer indications; continued demand for NeXT Personal as a LDT; the timing and pace of new orders from customers, including from Natera, which accounted for 43% of the company’s total revenue in the third quarter, and the VA MVP; the launch and market adoption of new products and new 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 revenue from biopharmaceutical customers and Natera increase or decrease in future periods; ability to demonstrate attributes or advantages of NeXT Personal or the Personalis NeXT Platform; the evolution of cancer therapies and market adoption of the company’s services; risks associated with health epidemics or pandemics; unstable market, economic and geo-political conditions, which may significantly impact the company’s business and operations and the business and operations of Personalis’ customers and suppliers; and the outcome of legal proceedings to enforce patents, and the presumed validity or enforceability of the company’s patents or other intellectual property rights. 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’ Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, filed with the SEC on August 8, 2023, and in Personalis’ Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, 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
September 30,

 

Nine Months Ended
September 30,

 

2023

 

2022

 

2023

 

2022

Revenue

$

18,247

   

$

14,858

   

$

53,806

   

$

48,325

 

Costs and expenses

                     

Cost of revenue

 

14,766

     

12,379

     

40,803

     

37,287

 

Research and development

 

16,738

     

14,957

     

51,163

     

48,343

 

Selling, general and administrative

 

11,971

     

14,781

     

38,202

     

46,141

 

Lease impairment

 

5,565

     

     

5,565

     

 

Restructuring and other charges

 

     

     

4,037

     

 

Total costs and expenses

 

49,040

     

42,117

     

139,770

     

131,771

 

Loss from operations

 

(30,793

)

   

(27,259

)

   

(85,964

)

   

(83,446

)

Interest income

 

1,706

     

743

     

4,424

     

1,236

 

Interest expense

 

(15

)

   

(45

)

   

(101

)

   

(154

)

Other income, net

 

32

     

80

     

7

     

149

 

Loss before income taxes

 

(29,070

)

   

(26,481

)

   

(81,634

)

   

(82,215

)

Provision for income taxes

 

28

     

11

     

78

     

32

 

Net loss

$

(29,098

)

 

$

(26,492

)

 

$

(81,712

)

 

$

(82,247

)

Net loss per share, basic and diluted

$

(0.60

)

 

$

(0.58

)

 

$

(1.71

)

 

$

(1.81

)

Weighted-average shares outstanding, basic and diluted

 

48,694,324

     

45,921,411

     

47,701,369

     

45,518,334

 

PERSONALIS, INC.

 

SUPPLEMENTAL REVENUE INFORMATION (unaudited)

 

(in thousands)

 
                                 
   

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

   

2023

 

2022

 

2023

 

2022

Pharma tests and services

 

$

7,997

   

$

7,333

   

$

20,413

   

$

22,152

 

Enterprise sales

   

7,812

     

7,383

     

24,656

     

18,390

 

Population sequencing

   

2,400

     

     

8,405

     

7,556

 

Other

   

38

     

142

     

332

     

227

 

Total revenue

 

$

18,247

   

$

14,858

   

$

53,806

   

$

48,325

 

PERSONALIS, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

 

(in thousands, except share and per share data)

 
                 
   

September 30, 2023

 

December 31, 2022

Assets

               

Current assets

               

Cash and cash equivalents

 

$

72,192

   

$

89,128

 

Short-term investments

   

48,471

     

78,530

 

Accounts receivable, net

   

13,666

     

16,642

 

Inventory and other deferred costs

   

8,225

     

8,591

 

Prepaid expenses and other current assets

   

5,661

     

6,808

 

Total current assets

   

148,215

     

199,699

 

Property and equipment, net

   

56,751

     

61,935

 

Operating lease right-of-use assets

   

18,167

     

26,480

 

Other long-term assets

   

3,503

     

4,586

 

Total assets

 

$

226,636

   

$

292,700

 

Liabilities and Stockholders’ Equity

               

Current liabilities

               

Accounts payable

 

$

8,963

   

$

12,854

 

Accrued and other current liabilities

   

19,821

     

19,013

 

Contract liabilities

   

3,694

     

1,264

 

Total current liabilities

   

32,478

     

33,131

 

Long-term operating lease liabilities

   

39,166

     

41,041

 

Other long-term liabilities

   

3,786

     

389

 

Total liabilities

   

75,430

     

74,561

 

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; 49,013,483 and 46,707,084 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

   

5

     

5

 

Additional paid-in capital

   

593,625

     

579,456

 

Accumulated other comprehensive loss

   

(302

)

   

(912

)

Accumulated deficit

   

(442,122

)

   

(360,410

)

Total stockholders’ equity

   

151,206

     

218,139

 

Total liabilities and stockholders’ equity

 

$

226,636

   

$

292,700

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231107500327/en/

Contacts

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

Media:
pr@personalis.com

Source: Personalis, Inc.

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