Personalis, Inc. (PSNL): history, ownership, mission, how it works & makes money

A Brief History of Personalis, Inc.

Company Overview

Personalis, Inc. is a biotechnology company focused on genomics and advanced sequencing technologies, particularly in oncology. As of September 30, 2024, the company had total assets of $239.9 million and total liabilities of $73.1 million.

Financial Performance

In the third quarter of 2024, Personalis reported total revenue of $25.7 million, representing a 41% increase compared to $18.2 million in the same quarter of 2023. For the first nine months of 2024, total revenue was $67.8 million, up from $53.8 million in the prior year, marking a 26% increase.

Funding and Investment

From inception through September 30, 2024, Personalis raised approximately $279.8 million through follow-on equity offerings, $144.0 million from its IPO, and additional financing from various sources, including a recent $35 million from Tempus AI, Inc..

Key Business Segments

Personalis generates revenue from four main segments: Pharma tests and services, Enterprise sales, Population sequencing, and Other genomic tests. In Q3 2024, revenue from Pharma tests was $15.7 million, a 96% increase year-over-year, while Enterprise sales decreased by 33%.

Operational Changes and Challenges

In 2023, Personalis underwent significant workforce reductions to streamline operations, resulting in lower operating expenses. As of September 30, 2024, the company reported a net loss of $64.9 million, improved from $81.7 million in the same period of 2023.

Stock Performance and Equity

The weighted-average shares outstanding for Q3 2024 were approximately 61.1 million, reflecting an increase from 48.7 million in Q3 2023. The company issued 4,760,588 shares under its ATM program during Q3 2024, generating $27.2 million in proceeds.

Conclusion of Financial Overview

As of September 30, 2024, Personalis continues to adapt to market demands with a focus on expanding its genomic services while addressing financial sustainability through strategic funding and operational efficiencies.

A Who Owns Personalis, Inc. (PSNL)

Major Shareholders

As of 2024, Personalis, Inc. has notable ownership by key institutional investors and insiders. The largest shareholders include:

Insider Transactions

Insider transactions have been significant, especially concerning the warrants exercised by Tempus:

• Tempus exercised warrants for 9,218,800 shares at an average price of $2.00 per share, raising approximately $18.4 million.
• In August 2024, Tempus purchased an additional 3,500,000 shares at a price of $5.07 per share, generating approximately $17.7 million in cash.

Stock Performance and Market Capitalization

As of the end of September 2024, Personalis, Inc. reported a market capitalization of approximately $166.8 million, with a stock price fluctuating around $2.50 to $5.07 in recent months.

Recent Financing Activities

Personalis engaged in various financing activities throughout 2024, including:

• Raised approximately $35 million in net financing proceeds from Tempus AI, Inc.
• Generated an additional $27.2 million from selling common stock under the At-The-Market (ATM) program at a weighted-average price of $5.84 per share.

Ownership Trends

The ownership structure of Personalis has been influenced by strategic partnerships and financial maneuvers, primarily with Tempus, which has emerged as a significant stakeholder. This partnership has been pivotal in bolstering the company's financial health and expanding its operational capabilities.

Conclusion on Ownership Structure

The ownership of Personalis, Inc. reflects a mix of institutional and insider holdings, with Tempus AI, Inc. playing a crucial role in the company's strategic direction and financial stability. The evolving ownership landscape is indicative of the company's efforts to enhance its market position in the biotechnology sector.

Personalis, Inc. (PSNL) Mission Statement

As of 2024, Personalis, Inc. focuses on delivering advanced genomic sequencing and analytics tailored for oncology. The company's mission centers around improving patient outcomes through personalized medicine by leveraging its extensive capabilities in next-generation sequencing (NGS). Personalis aims to enable precision medicine in oncology by providing comprehensive genomic insights that support tailored treatment options for patients.

Company Overview

Personalis, Inc. operates primarily in the field of genomics, specializing in DNA sequencing and analysis. The company has developed proprietary technologies that enhance the accuracy and efficiency of cancer genomics. With the capacity to sequence over 350 trillion bases of DNA weekly, Personalis has positioned itself as a leader in the oncology genomics space.

Financial Performance

In the third quarter of 2024, Personalis reported total revenue of $25.7 million, representing a 41% increase from $18.2 million in the same quarter of 2023. The revenue growth was primarily driven by a 96% increase in pharma tests and services, totaling $15.7 million compared to $8.0 million in the prior year. However, revenue from enterprise sales decreased by 33%, amounting to $5.3 million, down from $7.8 million.

Capital and Investment

As of September 30, 2024, Personalis reported cash and cash equivalents of $75.8 million and short-term investments of $67.9 million. The company raised approximately $35 million in net financing proceeds from Tempus AI, Inc., which included $18.4 million from the exercise of common stock warrants and $16.6 million from the purchase of common stock. Additionally, $27.2 million was raised through its At-The-Market (ATM) program at an average price of $5.84 per share.

Operating Expenses

For the third quarter of 2024, Personalis reported total costs and expenses of $40.1 million, a decrease from $49.0 million in Q3 2023. The cost of revenue increased to $17.0 million, up from $14.8 million, while research and development expenses dropped significantly by 30% to $11.7 million compared to $16.7 million in Q3 2023.

Stock Performance

As of September 30, 2024, Personalis had a weighted average of 61,051,350 shares outstanding. The net loss for the third quarter was reported at $39.1 million, or $0.64 per share, compared to a net loss of $29.1 million, or $0.60 per share in Q3 2023.

Strategic Goals

Looking ahead, Personalis is focused on expanding its genomic capabilities and enhancing its product offerings in personalized medicine. The company continues to invest in technology and infrastructure to support its growth strategy in the oncology sector.

How Personalis, Inc. (PSNL) Works

Business Model

Personalis, Inc. operates primarily in the field of cancer genomics, providing advanced sequencing and analytics services. The company generates revenue from four main customer groups:

• Pharma tests and services
• Enterprise sales
• Population sequencing
• Other genomic tests and analytics

Financial Performance

As of the third quarter of 2024, Personalis reported total revenue of $25.7 million, a 41% increase compared to $18.2 million in the same quarter of 2023. The revenue breakdown is as follows:

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Costs and Expenses

For the third quarter of 2024, total costs and expenses amounted to $40.1 million, down from $49.0 million in Q3 2023, representing an 18% decrease. The cost breakdown is as follows:

Net Loss

For the third quarter of 2024, Personalis reported a net loss of $39.1 million compared to a net loss of $29.1 million for the same period in 2023. The net loss per share was $0.64, up from $0.60 in the previous year.

Cash and Liquidity

As of September 30, 2024, Personalis had cash and cash equivalents of $75.8 million along with short-term investments amounting to $67.9 million, totaling $143.7 million in available liquidity. The company reported working capital of $133.9 million, up from $99.5 million at the end of 2023.

Recent Financing Activities

In 2024, Personalis raised approximately $35.0 million through equity financing with Tempus AI, Inc., including the exercise of common stock warrants and the sale of common stock. Additionally, the company raised $27.2 million from its At-The-Market (ATM) sales program.

Stockholder Equity

As of September 30, 2024, total stockholders' equity stood at $166.8 million, an increase from $129.4 million at the end of the previous year. The company’s weighted-average shares outstanding for the third quarter of 2024 were 61,051,350 shares.

Key Highlights

• Increased capacity for sequencing with over 350 trillion bases of DNA processed weekly.
• Sequenced more than 475,000 human samples to date.
• Delivered 945 total molecular tests in Q3 2024, a 68% increase from the prior quarter.

Conclusion

Personalis, Inc. continues to focus on expanding its genomic testing capabilities and developing its market presence through strategic partnerships and operational efficiencies.

How Personalis, Inc. (PSNL) Makes Money

Revenue Streams

Personalis, Inc. generates its revenue primarily from four key segments: Pharma tests and services, enterprise sales, population sequencing, and other genomic tests and analytics. The breakdown of revenue by customer type for the third quarter of 2024 is as follows:

Pharma Tests and Services

The most significant source of revenue comes from pharma tests and services, which includes sales of testing services and analytics to pharmaceutical companies in support of drug development programs. In Q3 2024, revenue from this segment increased by 96% year-over-year, reaching $15.7 million. This surge was primarily driven by increased clinical trial patient enrollments from a major customer, which accounted for approximately 33% of total revenue.

Enterprise Sales

Enterprise sales, which include tumor profiling and diagnostic tests sold directly to businesses, saw a revenue decrease of 33% in Q3 2024, totaling $5.3 million. This decline was attributed to a drop in the number of samples processed for Natera, one of the primary customers.

Population Sequencing

Revenue from population sequencing, derived from contracts with the VA MVP, increased by 85% to $4.4 million in Q3 2024. The increase was due to a higher number of processed samples following the fulfillment of the VA MVP's annual task order.

Other Revenue

The 'Other' category includes genomic tests and analytics sold to universities and non-profits, contributing $316,000 in Q3 2024, up from $38,000 in Q3 2023.

Financial Performance Overview

In the first nine months of 2024, Personalis reported total revenue of $67.8 million, up 26% from $53.8 million in the same period of 2023. The revenue growth was primarily driven by the pharma tests and services segment.

Cost Structure

Costs associated with revenue for the third quarter of 2024 totaled $16.96 million, marking a 15% increase from $14.77 million in Q3 2023. This increase reflects higher direct material costs due to increased revenue levels.

Funding and Financial Health

As of September 30, 2024, Personalis had cash and cash equivalents of $75.8 million and short-term investments of $67.9 million. The company raised approximately $35 million from Tempus AI, Inc. and an additional $27.2 million through its At-The-Market (ATM) program.

Despite the revenue growth, Personalis reported a net loss of $39.09 million for Q3 2024, compared to a net loss of $29.1 million in Q3 2023.

Updated on 16 Nov 2024

Resources:

1. Personalis, Inc. (PSNL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Personalis, Inc. (PSNL)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Personalis, Inc. (PSNL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.