Personalis Reports Fourth Quarter and Full Year 2021 Financial Results

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

Fourth Quarter and Recent Highlights

• Reported quarterly revenue of $20.7 million in the fourth quarter of 2021 compared with $20.2 million in the fourth quarter of 2020, a 3% increase
  • Revenue from biopharma and other customers, excluding the VA MVP (as defined below), of $15.4 million in the fourth quarter of 2021 compared with $7.6 million in the fourth quarter of 2020, a 102% increase and a record quarter; revenue from biopharma and other customers includes revenue from Natera at $5.8 million in the fourth quarter of 2021; revenue from biopharma customers excluding Natera at $9.6 million for the fourth quarter of 2021, a 26% increase compared with the fourth quarter of 2020
  • Revenue from the U.S. Department of Veterans Affairs Million Veterans Program (VA MVP) of $5.3 million in the fourth quarter of 2021 compared with $12.6 million in the fourth quarter of 2020, a decrease of 58%
• Launched tumor-informed liquid biopsy assay, NeXT Personal^TM in December 2021; NeXT Personal is designed to deliver industry leading molecular residual disease (MRD) sensitivity down to approximately 1 part-per-million, which is expected to enable earlier detection across a broader set of cancers with low mutational burden and low-shedding cancers
• Received first customer order for NeXT Personal in the first quarter of 2022 from a top global pharmaceutical company
• Announced a collaboration with the Moores Cancer Center at UC San Diego Health, a National Cancer Institute-designated Comprehensive Cancer Center, to support clinical diagnostic testing in patients with advanced solid tumors and hematological malignancies
• Added Olivia Bloom to the Personalis Board of Directors and Audit Committee effective March 1, 2022; Ms. Bloom is a certified public accountant and currently serves as Executive Vice President and Chief Financial Officer of Geron Corporation
• Cash, cash equivalents, and short-term investments were $287.1 million as of December 31, 2021

Full Year 2021 Highlights

• Reported annual revenue of $85.5 million for the full year of 2021 compared with $78.6 million for the full year of 2020, a 9% increase
  • Revenue from biopharma and other customers of $39.8 million for the full year of 2021 compared with $22.5 million for the full year of 2020, a 77% increase; revenue from biopharma and other customers includes revenue from Natera of $8.6 million for the full year of 2021; revenue from biopharma customers excluding Natera of $31.2 million for the full year of 2021, a 39% increase
  • Revenue from the VA MVP of $45.7 million for the full year of 2021 compared with $56.2 million for the full year of 2020, a decrease of 19%; VA MVP unfulfilled orders were approximately $7.6 million at December 31, 2021 and remaining unfulfilled orders are expected to be recognized as revenue from the first quarter through the third quarter of 2022, depending upon sample receipt volume and timing from the VA MVP

“I’m pleased to report that revenue for our oncology business exceeded $15 million in the fourth quarter of 2021 and was nearly $40 million for the full year 2021 and grew 77% over 2020, reflecting consistent execution on our growth initiatives. Customer orders were once again significantly above revenue for both the fourth quarter and full year of 2021. Accordingly, we expect our oncology revenue to grow by more than 50% in 2022 over 2021,” said John West, Chief Executive Officer of Personalis. “In addition, we recently received our first customer order for NeXT Personal, our MRD liquid biopsy offering, from a large global pharmaceutical company. We expect NeXT Personal to be an important growth driver for both biopharma and diagnostic test revenue.”

Fourth Quarter 2021 Financial Results

• Revenue was $20.7 million in the three months ended December 31, 2021
• Gross margin was 38.7% in the three months ended December 31, 2021
• Operating expenses were $28.2 million in the three months ended December 31, 2021
• Net loss was $20.2 million in the three months ended December 31, 2021 and net loss per share was $0.45 based on a weighted-average basic and diluted share count of 44.8 million
• Cash, cash equivalents, and short-term investments were $287.1 million as of December 31, 2021

Full Year 2021 Financial Results

• Revenue was $85.5 million for the year ended December 31, 2021
• Gross margin was 37.0% for the year ended December 31, 2021
• Operating expenses were $97.0 million for the year ended December 31, 2021
• Net loss was $65.2 million for the year ended December 31, 2021 and net loss per share was $1.49 based on a weighted-average basic and diluted share count of 43.9 million

Full Year 2022 Outlook

Personalis expects the following for the full year of 2022:

• Total company revenue is expected to be approximately $67.0 million
• Revenue from biopharma and all other customers, excluding the VA MVP, is expected to be approximately $60.0 million, an increase of 51% compared with 2021
• Net loss is expected to be in the range of $110.0 million to $115.0 million

Webcast and Conference Call Information

Personalis will host a conference call to discuss the fourth quarter and full year 2021 financial results after market close on Thursday, February 24, 2022 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 [phone] for U.S. callers or [phone] for international callers, using the conference ID: 6877026. The live webinar can be accessed at https://investors.personalis.com.

About Personalis, Inc.

Personalis, Inc. is a leader in advanced cancer genomics for enabling the next generation of precision cancer therapies and diagnostics. The Personalis NeXT Platform® is designed to adapt to the complex and evolving understanding of cancer, providing its biopharmaceutical customers and clinicians with information on all of the approximately 20,000 human genes, together with the immune system, from a single sample. To enable high-end cancer genomic profiling, the Personalis Clinical Laboratory was built with a focus on clinical accuracy, quality, big data, scale, and efficiency. The laboratory is GxP aligned as well as CLIA’88-certified and CAP-accredited. For more information, please visit the Personalis website and follow Personalis on LinkedIn and 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,” “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 financial results for the fourth quarter and full year of 2021, and business outlook for the full year of 2022. 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: the timing and pace of new orders from customers, including from Natera, which accounted for 10% of the company’s total revenue in 2021; 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 in future periods; attributes or advantages of NeXT Personal or the Personalis NeXT Platform; the expected benefits or success of Personalis’ collaborations including with Mayo Clinic and University of California, San Diego; 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 Personalis’ 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 Personalis’ Annual Report on Form 10-K for the period ended December 31, 2021, and risk factors included within the Prospectus Supplement filed January 3, 2022. 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,
	2021			2020			2021			2020
	(unaudited)
Revenue	$	20,682		$	20,176		$	85,494		$	78,648
Costs and expenses
Cost of revenue		12,686			14,106			53,837			58,534
Research and development		14,512			8,520			49,312			28,568
Selling, general and administrative		13,709			10,920			47,698			33,692
Total costs and expenses		40,907			33,546			150,847			120,794
Loss from operations		(20,225	)		(13,370	)		(65,353	)		(42,146	)
Interest income		81			76			367			949
Interest expense		(59	)		—			(184	)		(2	)
Other income (expense), net		1			(29	)		(42	)		(24	)
Loss before income taxes		(20,202	)		(13,323	)		(65,212	)		(41,223	)
Provision for income taxes		(3	)		18			14			57
Net loss	$	(20,199	)	$	(13,341	)	$	(65,226	)	$	(41,280	)
Net loss per share, basic and diluted	$	(0.45	)	$	(0.34	)	$	(1.49	)	$	(1.20	)
Weighted-average shares outstanding, basic and diluted		44,808,998			38,962,860			43,886,730			34,374,903

PERSONALIS, INC.
SUPPLEMENTAL REVENUE INFORMATION
(in thousands)
	Three Months Ended December 31,				Year Ended December 31,
	2021		2020		2021		2020
	(unaudited)
VA MVP	$	5,304	$	12,556	$	45,671	$	56,154
All other customers		15,378		7,620		39,823		22,494
Total	$	20,682	$	20,176	$	85,494	$	78,648

PERSONALIS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
	December 31,			December 31,
	2021			2020
Assets
Current assets
Cash and cash equivalents	$	105,585		$	68,525
Short-term investments		181,479			134,765
Accounts receivable, net		18,468			6,349
Inventory and other deferred costs		5,610			5,639
Prepaid expenses and other current assets		7,089			5,441
Total current assets		318,231			220,719
Property and equipment, net		19,650			11,834
Operating lease right-of-use assets		53,822			10,271
Other long-term assets		4,825			2,018
Total assets	$	396,528		$	244,842
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	9,221		$	8,301
Accrued and other current liabilities		18,110			11,301
Contract liabilities		3,982			21,034
Total current liabilities		31,313			40,636
Long-term operating lease liabilities		52,797			8,541
Other long-term liabilities		2,117			720
Total liabilities		86,227			49,897
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; 44,904,512 and 39,105,548 shares issued and outstanding at December 31, 2021 and 2020, respectively		4			4
Additional paid-in capital		557,558			376,788
Accumulated other comprehensive income (loss)		(166	)		22
Accumulated deficit		(247,095	)		(181,869	)
Total stockholders’ equity		310,301			194,945
Total liabilities and stockholders’ equity	$	396,528		$	244,842