On March 25, 2020 Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for cancer, reported financial results for the fourth quarter and full year ended December 31, 2019 (Press release, Personalis, MAR 25, 2020, View Source [SID1234555827]).
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Fourth Quarter and Full Year 2019 Highlights
Reported record revenues of $18.2 million in the fourth quarter and $65.2 million for the full year of 2019, representing a 38% and 73% increase versus $13.2 million in the fourth quarter and $37.8 million for the full year 2018
A total of 19 different customers placed orders for NeXT during 2019, with 9 of those customers placing their orders in the fourth quarter of 2019
Launched NeXT Dx Test, a diagnostic test for biopharmaceutical customers to utilize in clinical trials
"We are encouraged by the customer adoption and ramp of new orders for our NeXT platform, with orders exceeding revenues once again this quarter," said John West, Chief Executive Officer. "With the recent uptick in orders, as well as our broadening product offerings, which now includes diagnostic capabilities and with our liquid biopsy to be launched with customers this year, we expect revenues from biopharmaceutical customers to grow increasingly through the latter half of 2020."
Fourth Quarter 2019 Financial Results
Revenues were $18.2 million in the three months ended December 31, 2019, up 38% from $13.2 million in the same period of the prior year. Fourth 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 fourth quarter, the VA MVP accounted for $13.8 million, or 76%, of revenues and the remaining $4.4 million, or 24%, was from biopharmaceutical and all other customers.
Gross margin was 36.2% for the three months ended December 31, 2019, compared with 36.7% in the same period of the prior year.
Operating expenses were $13.8 million for the three months ended December 31, 2019, compared with $8.0 million in the same period of the prior year.
Net loss was $6.6 million for the three months ended December 31, 2019 and net loss per share was $0.21 based on a weighted-average basic and diluted share count of 31.2 million, compared with a net loss of $3.6 million and a net loss per share of $1.16 on a weighted-average basic and diluted share count of 3.1 million in the same period of the prior year.
Cash, cash equivalents, and short-term investments were $128.3 million as of December 31, 2019.
Full Year 2019 Financial Results
Revenues were $65.2 million in the year ended December 31, 2019, up 73% from $37.8 million in 2018. Revenue growth was driven by an increase in volume for testing and analytical services provided to the VA MVP. In 2019, the VA MVP accounted for $43.5 million, or 67%, of revenues and the remaining $21.7 million, or 33%, was from biopharmaceutical and all other customers.
Gross margin was 33.9% for the year ended December 31, 2019, compared with 31.3% in 2018.
Operating expenses were $44.5 million for the year ended December 31, 2019, compared with $25.6 million in 2018.
Net loss was $25.1 million for the year ended December 31, 2019 and net loss per share was $1.39 based on a weighted-average basic and diluted share count of 18.0 million, compared with a net loss of $19.9 million and a net loss per share of $6.49 on a weighted-average basic and diluted share count of 3.1 million in 2018.
Outlook and COVID-19
Due to uncertainty surrounding the COVID-19 pandemic, Personalis is withdrawing previous 2020 guidance and will provide an updated outlook for 2020 during its first quarter earnings announcement and press release, to the extent practicable, based on available information at that time.
Webcast and Conference Call Information
Personalis will host a conference call to discuss the fourth quarter financial results after market close on Wednesday, March 25, 2020 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: 3623198. The live webinar can be accessed at View Source