Nautilus Biotechnology Reports Fourth Quarter and Fiscal Year 2023 Financial Results
Nautilus Biotechnology, Inc. reported financial results for Q4 and FY 2023, showing progress in developing a single molecule proteome analysis platform. The company's CEO highlighted accomplishments and financial discipline, with operating expenses increasing by 20% to $76.2 million and a net loss of $63.7 million. Cash reserves stood at $264.1 million, with plans for a 25% expense growth in FY 2024 and a platform launch in 2025.
Negative
Operating expenses increased by 20% to $76.2 million in FY 2023.
Net loss was $63.7 million for the year ended December 31, 2023.
Cash reserves were $264.1 million as of December 31, 2023.
The company expects a 25% growth in operating expenses for FY 2024.
The platform launch is planned for 2025.
The reported increase in operating expenses for Nautilus Biotechnology, primarily due to an increased headcount, suggests an aggressive investment in product development. The 20% year-over-year growth in expenses is a significant figure and indicates a strategic decision to accelerate the development of their proteome analysis platform. This could be seen as a positive move for long-term growth, but it also raises concerns about the sustainability of such spending without corresponding revenue growth.
The company's net loss widening by approximately 10% compared to the previous year is another critical point. Investors typically scrutinize the trajectory of net losses for growth-stage companies, as it can indicate the efficiency of burn rate relative to milestones achieved. However, with a substantial cash reserve of over $260 million, the company appears to have a solid runway extending into the second half of 2026. This financial cushion provides them with a buffer to continue their operations and product development without the immediate need for additional capital raising, which is reassuring for stakeholders.
The planned launch of Nautilus's proteome analysis platform in 2025 represents a potential inflection point for the company and the broader biotechnology sector. The 'first-in-the-world' nature of the platform could position Nautilus as a pioneer in the space, potentially capturing a significant market share. However, the market's reception of new biotech platforms is contingent on their proven utility, reliability and cost-effectiveness compared to existing solutions.
Moreover, the company's strategic focus on marrying innovations across consumables, instruments and software is indicative of a holistic approach to market entry. This suggests that Nautilus is not just innovating on the scientific front but is also keenly aware of the ecosystem required to support the adoption of its technology. The anticipation of the platform's launch could create speculative interest among investors, but the actual impact on the stock will depend on successful execution and market penetration.
Single molecule proteome analysis is an emerging field with the potential to revolutionize biological research and diagnostics by providing detailed protein expression profiles. Nautilus's focus on this technology indicates their commitment to capturing a niche yet rapidly growing segment of the biotechnology market. The success of such a platform will hinge on its ability to deliver on its promise of significant breakthroughs in biological research.
As Nautilus moves towards the launch of their platform, the company's ability to manage the integration of consumables, instruments and software will be crucial. These components must not only work seamlessly but also surpass the performance and cost-effectiveness of current proteomics technologies. If Nautilus can achieve this, it could lead to widespread adoption in both academic and commercial research settings, potentially creating a new standard in proteomics.
02/28/2024 - 08:00 AM
SEATTLE, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Nautilus Biotechnology, Inc. (NASDAQ: NAUT; or “Nautilus”), a company pioneering a single molecule proteome analysis platform, today reported financial results for the fourth quarter and fiscal year ended December 31, 2023.
“2023 was a year of significant accomplishment and foundational progress for Nautilus; progress that will continue to build our momentum as we move through 2024 and into the planned launch of our proteome analysis platform”, said Sujal Patel, CEO of Nautilus. “We are building a groundbreaking, ‘first-in-the-world’ platform designed to unlock significant breakthroughs in biological research. Doing so requires that a number of meaningful innovations across each element of our platform - consumables, instrument, and software - weave together seamlessly. We continue to refine each of these platform elements and look forward to getting the collective work of our team into the hands of researchers where it can do so much good. I’m particularly pleased that we’ve been able to drive such meaningful scientific progress while maintaining exceptional fiscal discipline and preserving our balance sheet.”
Fiscal Year 2023 Financial Results
Operating expenses were $76.2 million for the year ended December 31, 2023, a $12.5 million or 20% increase from $63.6 million for the year ended December 31, 2022. The increase in operating expenses was driven primarily by an increase in headcount to support ongoing development of our products.
Net loss was $63.7 million for the year ended December 31, 2023, as compared to a net loss of $57.9 million for the corresponding prior year period.
Cash, cash equivalents, and investments were $264.1 million as of December 31, 2023.
Fiscal Year 2024 Outlook
We expect full year operating expense to grow by approximately 25% relative to 2023 We expect that cash and cash equivalents and investments of $264.1 million as of December 31, 2023 to provide a runway into the second half of 2026 We expect to launch our platform, instruments, consumables, and software in 2025. W ebcast and Conference Call Information
Nautilus will host a conference call to discuss the fourth quarter and fiscal year 2023 financial results, business developments and outlook before market open on Wednesday, February 28, 2024 at 5:30 AM Pacific Time / 8:30 AM Eastern Time. Live audio of the webcast will be available on the “Investors” section of the company website at: www.nautilus.bio .
About Nautilus Biotechnology, Inc.
With its corporate headquarters in Seattle, Washington and its research and development headquarters in San Carlos, California, Nautilus is a development stage life sciences company working to create a platform technology for quantifying and unlocking the complexity of the proteome. Nautilus’ mission is to transform the field of proteomics by democratizing access to the proteome and enabling fundamental advancements across human health and medicine. To learn more about Nautilus, visit www.nautilus.bio.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements in this press release include, but are not limited to, statements regarding Nautilus’ expectations regarding the company’s business operations, financial performance and results of operations; expectations with respect to any revenue timing or projections, expectations with respect to the timing of the launch of Nautilus’ product platform and full commercial availability, the functionality and performance of Nautilus’ product platform, its potential impact on providing proteome access, pharmaceutical development and drug discovery, expanding research horizons, and enabling scientific explorations and discovery, and the present and future capabilities and limitations of emerging proteomics technologies. These statements are based on numerous assumptions concerning the development of Nautilus’ products, target markets, and other current and emerging proteomics technologies, and involve substantial risks, uncertainties and other factors that may cause actual results to be materially different from the information expressed or implied by these forward-looking statements. Risks and uncertainties that could materially affect the accuracy of Nautilus’ assumptions and its ability to achieve the forward-looking statements set forth in this press release include (without limitation) the following: Nautilus’ product platform is not yet commercially available and remains subject to significant scientific and technical development, which is inherently challenging and difficult to predict, particularly with respect to highly novel and complex products such as those being developed by Nautilus. Even if our development efforts are successful, our product platform will require substantial validation of its functionality and utility in life science research. In the course of Nautilus’ scientific and technical development and associated product validation and commercialization, we may experience material delays as a result of unanticipated events. We cannot provide any guarantee or assurance with respect to the outcome of our development, collaboration, and commercialization initiatives or with respect to their associated timelines. For a more detailed description of additional risks and uncertainties facing Nautilus and its development efforts, investors should refer to the information under the caption “Risk Factors” in our Annual Report on Form 10-K to be filed for the year ended December 31, 2023 and our other filings with the SEC. The forward-looking statements in this press release are as of the date of this press release. Except as otherwise required by applicable law, Nautilus disclaims any duty to update any forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
Disclosure Information
Nautilus uses filings with the Securities and Exchange Commission, its website (www.nautilus.bio), press releases, public conference calls, public webcasts, and its social media accounts as means of disclosing material non-public information and for complying with Regulation FD. Therefore, Nautilus encourages investors, the media, and others interested in Nautilus to review the information it makes public in these locations, as such information could be deemed to be material information.
Media Contact
Investor Contact i nvestorrelations@nautilus.bio
Nautilus Biotechnology, Inc. Consolidated Balance Sheets As of December 31, 2023 and 2022 (Unaudited)
(in thousands, except share and per share amounts) December 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 19,397 $ 114,523 Short-term investments 154,021 69,948 Prepaid expenses and other current assets 3,419 2,738 Total current assets 176,837 187,209 Property and equipment, net 4,267 3,700 Operating lease right-of-use assets 32,634 28,866 Long-term investments 90,647 129,169 Other long-term assets 1,180 1,108 Total assets $ 305,565 $ 350,052 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,639 $ 1,272 Accrued expenses and other liabilities 3,945 3,528 Current portion of operating lease liability 3,538 1,991 Total current liabilities 9,122 6,791 Operating lease liability, net of current portion 31,090 28,337 Total liabilities 40,212 35,128 Stockholders’ equity: Preferred stock — — Common stock 13 12 Additional paid-in capital 467,834 455,330 Accumulated other comprehensive loss (255 ) (1,854 ) Accumulated deficit (202,239 ) (138,564 ) Total stockholders’ equity 265,353 314,924 Total liabilities and stockholders’ equity $ 305,565 $ 350,052
Nautilus Biotechnology, Inc. Consolidated Statements of Operations Three Months and Year Ended December 31, 2023 and 2022 (Unaudited)
Three Months Ended December 31, Year Ended December 31, (in thousands, except share and per share amounts) 2023 2022 2023 2022 Operating expenses: Research and development $ 12,466 $ 9,587 $ 47,251 $ 37,672 General and administrative 7,535 6,717 28,901 25,946 Total operating expenses 20,001 16,304 76,152 63,618 Other income (expense): Interest income 3,033 2,887 12,550 5,816 Other expense (56 ) 8 (73 ) (122 ) Total other income $ 2,977 $ 2,895 $ 12,477 $ 5,694 Net loss $ (17,024 ) $ (13,409 ) $ (63,675 ) $ (57,924 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.14 ) $ (0.11 ) $ (0.51 ) $ (0.46 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 124,984,918 124,789,542 124,919,144 124,589,555
Nautilus Biotechnology, Inc. Consolidated Statements of Cash Flows Year Ended December 31, 2023 and 2022 (Unaudited)
Year Ended December 31, (in thousands) 2023 2022 Cash flows from operating activities Net loss $ (63,675 ) $ (57,924 ) Adjustments to reconcile net loss to net cash used in operating activities Stock-based compensation 12,137 10,380 Amortization of operating lease right-of-use assets 3,856 2,199 Depreciation 1,849 1,217 Amortization (accretion) of premiums (discount) on securities, net (2,659 ) (890 ) Changes in operating assets and liabilities: Prepaid expenses and other assets (821 ) 756 Accounts payable 393 (561 ) Accrued expenses and other liabilities 417 409 Operating lease liabilities (3,208 ) (1,392 ) Net cash used in operating activities (51,711 ) (45,806 ) Cash flows from investing activities Purchases of securities (112,892 ) (186,591 ) Purchases of property and equipment (2,442 ) (2,324 ) Proceeds from maturities of securities 71,599 163,175 Net cash used in investing activities (43,735 ) (25,740 ) Cash flows from financing activities Proceeds from exercise of stock options 104 330 Proceeds from issuance of common stock under employee stock purchase plan 264 232 Net cash provided by financing activities 368 562 Net decrease in cash, cash equivalents and restricted cash (95,078 ) (70,984 ) Cash, cash equivalents and restricted cash at beginning of period 115,477 186,461 Cash, cash equivalents and restricted cash at end of period $ 20,399 $ 115,477
What were Nautilus Biotechnology's operating expenses for FY 2023?
Operating expenses were $76.2 million for the year ended December 31, 2023, a 20% increase from the previous year.
What was Nautilus Biotechnology's net loss for FY 2023?
Nautilus Biotechnology reported a net loss of $63.7 million for the year ended December 31, 2023.
What was the cash position of Nautilus Biotechnology as of December 31, 2023?
Nautilus Biotechnology had cash, cash equivalents, and investments totaling $264.1 million as of December 31, 2023.
What is Nautilus Biotechnology's outlook for FY 2024?
Nautilus Biotechnology expects a 25% growth in operating expenses for FY 2024.
When does Nautilus Biotechnology plan to launch its platform?
Nautilus Biotechnology plans to launch its platform, instruments, consumables, and software in 2025.
