Personalis, Inc. Q1 FY2025 earnings call

• Chris Hall highlighted the achievement of over $20 million revenue and over 2,000 molecular tests delivered. - Progress in clinical usage: NeXT Personal saw a 52% QoQ increase in molecular tests delivered, with a 650% YoY growth. Feedback from physicians on MRD positive results in the ultra-sensitive range was positive. - Deepening clinical evidence and reimbursement: Focus on three indications (breast cancer, lung cancer, IO therapy monitoring) with ongoing studies and submissions for Medicare reimbursement. - Progress with biopharma customers: $13.6 million revenue from biopharma, 39% growth YoY, with two large additional customers expected to generate annual revenue in the $5 million range. - CRC indication: Presented early data with promising results, highlighting ultra-sensitivity and potential for future reimbursement.

Personalis achieved revenues of over $20 million in the first quarter. Biopharma revenue was $13.6 million, representing a 39% increase compared to the same period prior year, driving growth. The clinical diagnostic business had its highest quarterly revenue to date. Molecular tests delivered were over 2,000, with a 52% QoQ increase and a 650% YoY growth. Biopharma revenue contributed a significant portion, with the segment growing 39% year-over-year.

• Q2 2025 total company revenue expected in the range of $19.5 million to $20.5 million, with pharma tests/services and other customers $13M-$14M and population sequencing plus enterprise customers ~$6.5M. - Full year 2025 revenue guidance remains $80M-$90M, with pharma tests/services and other customers $62M-$64M, population sequencing plus enterprise customers $15M-$16M, and clinical revenue $3M-$10M. - Gross margin guidance for full year 22%-24%, net loss ~$83M, cash usage ~$75M.

• Uncertainties in reimbursement timing, which could impact revenue expectations. - Regulatory changes that might affect the submission and approval process for reimbursement. - Impact of investing in clinical test volume ahead of reimbursement, which could affect gross margin in the short term.

Q: Thomas Flaten asked about steering the commercial organization towards breast cancer patients if reimbursement comes through.

A: Aaron Tachibana responded that they've focused on breast, lung, and IO therapy monitoring, and plan to go faster with more reps when reimbursement is clear.

Q: William Bonello inquired about MRD volume growth and marketing efforts.

A: Christopher Hall and Aaron Tachibana discussed metering growth, leveraging Tempus' field force, and high retention rates of physicians.

Q: Joseph (on behalf of Mike Matson) asked about VICTORI data and ADLT status.

A: Christopher Hall and Richard Chen discussed the data's significance and the process related to ADLT status, emphasizing economic modeling based on worst-case reimbursement.