Sera Prognostics, Inc. (SERA) Bundle
Understanding Sera Prognostics, Inc. (SERA) Revenue Streams
Understanding Sera Prognostics, Inc. Revenue Streams
As of 2024, Sera Prognostics, Inc. reports various revenue streams primarily from its diagnostic testing services. The following outlines the key components of the company's revenue analysis.
Breakdown of Primary Revenue Sources
- Revenue from Diagnostic Testing: The company generated revenue primarily from its PreTRM test, which is designed to assess the risk of preterm birth.
- Other Services: Revenue also includes ancillary services related to research and development for additional pipeline products.
Year-over-Year Revenue Growth Rate
For the nine months ended September 30, 2024, Sera Prognostics reported revenue of $53,000, a significant decrease from $265,000 in the same period of 2023. This reflects a year-over-year decline of 80%. The revenue for the three months ended September 30, 2024, was $29,000, compared to $42,000 for the same period in 2023, marking a decrease of approximately 30%.
Contribution of Different Business Segments to Overall Revenue
| Period | Revenue from Diagnostic Testing | Other Services | Total Revenue |
|---|---|---|---|
| Q3 2024 | $29,000 | $0 | $29,000 |
| Q3 2023 | $42,000 | $0 | $42,000 |
| 9M 2024 | $53,000 | $0 | $53,000 |
| 9M 2023 | $265,000 | $0 | $265,000 |
Analysis of Significant Changes in Revenue Streams
The drastic decrease in revenue can be attributed to several factors:
- Market Dynamics: Challenges in market adoption of the PreTRM test have resulted in lower than expected sales.
- Operational Changes: A strategic refocus on institutional sales has led to a temporary reduction in revenue generation as the company reallocates resources to enhance clinical data.
- Investment in R&D: Increased spending on research and development may have temporarily diverted funds from immediate revenue-generating activities.
Overall, the financial data indicates significant challenges in achieving revenue growth, necessitating strategic adjustments for future performance.
A Deep Dive into Sera Prognostics, Inc. (SERA) Profitability
A Deep Dive into Sera Prognostics, Inc.'s Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the revenue was $53,000 with a cost of revenue of $50,000, resulting in a gross profit of $3,000. This gives a gross profit margin of approximately 5.66%.
Operating Profit Margin: The total operating expenses for the same period were $27,265,000, leading to a loss from operations of $(27,212,000). Therefore, the operating profit margin stands at approximately -51.34%.
Net Profit Margin: The net loss for the nine months ended September 30, 2024, was $(24,319,000). Given the revenue of $53,000, the net profit margin is about -45,943.40%.
Trends in Profitability Over Time
Comparing the nine months ended September 30, 2024, to the same period in 2023, the revenue decreased from $265,000 to $53,000, a decline of 80%. The net loss also decreased from $(28,317,000) to $(24,319,000), representing a reduction in losses by approximately 14%.
Comparison of Profitability Ratios with Industry Averages
| Metric | Sera Prognostics, Inc. (2024) | Industry Average |
|---|---|---|
| Gross Profit Margin | 5.66% | 60% |
| Operating Profit Margin | -51.34% | 10% |
| Net Profit Margin | -45,943.40% | 5% |
Analysis of Operational Efficiency
The company’s total operating expenses for the nine months ended September 30, 2024, were $27,265,000, which is a decrease from $31,238,000 in the same period of 2023, reflecting a cost management strategy in response to declining revenues.
Research and development expenses were $11,591,000 in 2024 compared to $11,330,000 in 2023, indicating a slight increase despite overall cost-cutting measures. Selling and marketing expenses decreased from $7,045,000 in 2023 to $3,507,000 in 2024, a reduction of approximately 50%.
The general and administrative expenses showed a decrease from $12,677,000 in 2023 to $12,117,000 in 2024, suggesting an effort to streamline operations while still maintaining necessary administrative functions.
The overall operational efficiency appears to be improving, as indicated by the reduction in total operating expenses despite the challenges in revenue generation.
Debt vs. Equity: How Sera Prognostics, Inc. (SERA) Finances Its Growth
Debt vs. Equity: How Sera Prognostics Finances Its Growth
Overview of the Company's Debt Levels
As of September 30, 2024, the total liabilities of the company amounted to $24.35 million. This includes current liabilities of $24.18 million and long-term liabilities comprising finance lease obligations and operating lease obligations. The current liabilities include:
- Accounts payable: $1.38 million
- Accrued and other current liabilities: $2.27 million
- Finance lease obligation (current portion): $0.31 million
- Deferred revenue: $20.23 million
The company has minimal long-term debt, primarily consisting of finance leases. The finance lease obligation net of current portions is $0.003 million and the operating lease obligation net of current portions is $0.165 million.
Debt-to-Equity Ratio and Comparison to Industry Standards
The debt-to-equity ratio as of September 30, 2024, is calculated as follows:
Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity
Using the figures from the financial statements:
Debt-to-Equity Ratio = $24.35 million / $54.65 million = 0.445
This ratio indicates a conservative approach to debt management, particularly when compared to the industry average of approximately 0.75 for similar biotechnology firms. This suggests that the company is less leveraged than its peers.
Recent Debt Issuances, Credit Ratings, or Refinancing Activity
There have been no significant new debt issuances or refinancing activities reported in the latest financial period. The company maintains a stable credit profile with no outstanding credit ratings provided in the recent reports. The focus has been on managing existing liabilities and equity financing.
How the Company Balances Between Debt Financing and Equity Funding
The company primarily finances its operations through equity funding, evidenced by an increase in additional paid-in capital, which reached $325.57 million as of September 30, 2024. The total stockholders' equity has decreased from $70.16 million at the end of 2023 to $54.65 million due to accumulated losses.
Equity financing has included proceeds from the exercise of stock options totaling $2.65 million in the nine months ending September 30, 2024. The company has also filed a universal shelf registration statement to raise up to $100 million through equity and debt securities, reflecting its strategy to ensure sufficient liquidity for ongoing operations.
| Financial Metric | Amount (in millions) |
|---|---|
| Total Liabilities | $24.35 |
| Total Stockholders' Equity | $54.65 |
| Debt-to-Equity Ratio | 0.445 |
| Additional Paid-in Capital | $325.57 |
| Proceeds from Stock Options | $2.65 |
Assessing Sera Prognostics, Inc. (SERA) Liquidity
Assessing Sera Prognostics, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
| Current Assets | Current Liabilities | Current Ratio |
|---|---|---|
| $74,300,000 | $24,182,000 | 3.07 |
Quick Ratio: The quick ratio, which excludes inventory from current assets, is:
| Quick Assets | Current Liabilities | Quick Ratio |
|---|---|---|
| $74,300,000 | $24,182,000 | 3.07 |
Working Capital Trends: The working capital as of September 30, 2024, is:
| Working Capital (Current Assets - Current Liabilities) |
|---|
| $50,118,000 |
Cash Flow Statements Overview:
| Cash Flow Type | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) |
|---|---|---|
| Operating Activities | $(7,929,000) | $(20,423,000) |
| Investing Activities | $4,358,000 | $64,000 |
| Financing Activities | $2,375,000 | $136,000 |
Potential Liquidity Concerns or Strengths:
- As of September 30, 2024, the company maintained cash, cash equivalents, and available-for-sale securities totaling $74,300,000.
- The accumulated deficit stood at $271,215,000.
- The company has incurred net losses of $24,319,000 for the nine months ended September 30, 2024.
- The net cash used in operating activities decreased significantly compared to the prior year.
- The company is likely to continue incurring operating losses and negative cash flows for the foreseeable future.
Is Sera Prognostics, Inc. (SERA) Overvalued or Undervalued?
Valuation Analysis
As of September 30, 2024, the company reported a net loss of $24.3 million for the nine months ended, compared to a net loss of $28.3 million for the same period in 2023 .
Price-to-Earnings (P/E) Ratio
The company has not reported earnings, which means the P/E ratio is currently not applicable. The net loss per share for the three months ended September 30, 2024, was $0.24 .
Price-to-Book (P/B) Ratio
The book value per share as of September 30, 2024, is calculated as follows:
- Total Stockholders' Equity: $54.7 million
- Weighted Average Shares Outstanding: 33.7 million
- Book Value per Share: $1.62 (calculated as $54.7 million / 33.7 million shares)
The current stock price (as of the latest available data) is required to determine the P/B ratio, which is not specified in the provided data.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As of September 30, 2024, the company reported total liabilities of $24.4 million and total stockholders' equity of $54.7 million, leading to an enterprise value that requires the latest market capitalization to calculate EV/EBITDA, which is currently not available .
Stock Price Trends
Over the past 12 months, the stock price has fluctuated significantly, reflecting broader market trends and company performance. Specific stock price data is required for a detailed analysis, which is not provided in the available data.
Dividend Yield and Payout Ratios
The company does not currently pay dividends, and thus, the dividend yield is 0%. There are no payout ratios available as no dividends have been issued .
Analyst Consensus on Stock Valuation
Analyst consensus ratings are not disclosed in the provided data. Additional market research or analyst reports would be necessary to provide insights on whether the stock is rated as a buy, hold, or sell.
| Valuation Metric | Value |
|---|---|
| Net Loss (9 months ended Sept 30, 2024) | $24.3 million |
| Net Loss per Share (Q3 2024) | $0.24 |
| Book Value per Share | $1.62 |
| Total Liabilities | $24.4 million |
| Total Stockholders' Equity | $54.7 million |
| Dividend Yield | 0% |
Further financial analysis would require additional market data, particularly regarding stock prices and analyst ratings.
Key Risks Facing Sera Prognostics, Inc. (SERA)
Key Risks Facing Sera Prognostics, Inc.
Overview of Internal and External Risks
The company faces several risks that could impact its financial health, including:
- Industry Competition: The biotechnology and diagnostics industry is highly competitive. As of September 30, 2024, the company has incurred an accumulated deficit of $271.2 million and has yet to achieve significant revenue from product sales, primarily the PreTRM test.
- Regulatory Changes: The company must comply with stringent regulations from agencies such as the FDA, which can affect product development timelines and market entry.
- Market Conditions: The demand for its products can be influenced by economic conditions and healthcare spending, which may fluctuate.
Operational, Financial, and Strategic Risks
Recent earnings reports highlight several operational and financial risks:
- Operating Losses: The company reported a net loss of $24.3 million for the nine months ended September 30, 2024, compared to $28.3 million for the same period in 2023.
- Cash Flow Issues: Net cash used in operating activities was $7.9 million for the nine months ended September 30, 2024, indicating ongoing cash flow challenges.
- Dependence on Single Product Revenue: The company currently relies heavily on the PreTRM test for revenue, with total revenue of only $53,000 for the nine months ended September 30, 2024.
Mitigation Strategies
The company has initiated several strategies to mitigate these risks:
- Cost Reduction: The company has implemented measures to reduce annual operating expenses, which were $27.3 million for the nine months ended September 30, 2024, down from $31.2 million in the same period of 2023.
- Funding Initiatives: A universal shelf registration statement filed in August 2024 allows the company to raise up to $100 million through various securities offerings, providing a potential capital buffer.
- Focus on Market Adoption: The company is refocusing its commercial strategy to enhance institutional sales based on clinical data from ongoing studies.
| Risk Type | Description | Impact | Mitigation Strategy |
|---|---|---|---|
| Operational Risk | Dependence on a single product (PreTRM test) | Limited revenue generation | Diversifying product pipeline and enhancing marketing efforts |
| Financial Risk | Ongoing operating losses | Negative cash flow | Cost reduction strategies and seeking additional capital |
| Regulatory Risk | Compliance with FDA regulations | Delays in product development | Investing in regulatory expertise and compliance measures |
Overall, the company is navigating a complex landscape of risks that require ongoing management and strategic adjustments to ensure financial stability and growth.
Future Growth Prospects for Sera Prognostics, Inc. (SERA)
Future Growth Prospects for Sera Prognostics, Inc.
Analysis of Key Growth Drivers
The company is focused on expanding its market presence through product innovations, particularly the PreTRM test. The PreTRM test is designed to assess the risk of preterm birth and has potential applications in various healthcare settings.
Future Revenue Growth Projections and Earnings Estimates
As of September 30, 2024, the company reported a revenue of $53,000 for the nine months ended, down from $265,000 in the same period of 2023. The net loss for the same period was $24.3 million, compared to $28.3 million in 2023. Future revenue growth is anticipated to stem from increased adoption of the PreTRM test and the introduction of additional pipeline products.
Strategic Initiatives or Partnerships
The company has initiated efforts to secure contracts with private and governmental payers, which is critical for revenue generation. They are leveraging data from recent studies, including the AVERT PRETERM TRIAL, to support these initiatives.
Competitive Advantages
One significant competitive advantage is the proprietary proteomics and bioinformatics platform, which allows the company to develop highly accurate predictive tests. Additionally, the large and growing dataset of pregnancy-related biomarkers enhances their ability to innovate.
| Financial Metric | 2024 (9 Months Ended) | 2023 (9 Months Ended) |
|---|---|---|
| Revenue | $53,000 | $265,000 |
| Net Loss | $24.3 million | $28.3 million |
| Operating Expenses | $27.3 million | $31.2 million |
| Cash and Cash Equivalents | $2.68 million | $3.88 million |
| Marketable Securities | $47.07 million | $45.20 million |
Innovative Product Developments
Plans include the introduction of additional blood-based biomarker tests and predictive analytic products that address specific conditions of pregnancy. This strategy aims to enhance market penetration and improve patient outcomes.
Market Expansion Strategies
The company is actively pursuing opportunities in both domestic and international markets, focusing on establishing sales and marketing capabilities to support the commercialization of its products.
Conclusion on Growth Potential
The company’s growth potential is multifaceted, driven by innovative product development, strategic partnerships, and a focus on increasing market adoption of existing tests. However, achieving significant revenue will require continued efforts in commercialization and securing payer contracts.
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Updated on 16 Nov 2024
Resources:
- Sera Prognostics, Inc. (SERA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sera Prognostics, Inc. (SERA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sera Prognostics, Inc. (SERA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.