Sera Prognostics (SERA) Q2 2024 earnings summary

Executive summary

• Achieved publication of positive AVERT PRETERM TRIAL results and conditional New York State approval for a new whole blood collection method, supporting future revenue growth and nationwide rollout.

• Focused on building clinical evidence, regulatory approvals, and awareness to drive adoption and payer coverage for PreTRM test, with ongoing pivotal studies including the PRIME study.

• Implemented targeted physician and patient education campaigns, expanded digital marketing, and cost-effective multi-channel outreach to increase test accessibility and awareness.

• Preparing for a significant inflection in test volumes and revenue in 2025, with infrastructure and operational investments underway.

• Continued net losses and negative cash flows, with a focus on cost reduction and extending cash runway into 2027.

Financial highlights

• Q2 2024 revenue was $24,000, down from $123,000 in Q2 2023; six-month revenue was $24,000, down from $223,000 year-over-year.

• Total operating expenses for Q2 2024 were $9.3 million, a 20% decrease year-over-year; six-month operating expenses were $18.4 million, down from $23.0 million.

• Net loss for Q2 2024 was $8.3 million, or $(0.25) per share, down 21% from $10.5 million in Q2 2023; six-month net loss was $16.4 million, improved from $21.1 million.

• Research and development expenses increased 19% to $4.4 million, while SG&A expenses decreased 38% to $4.9 million.

• Cash, cash equivalents, and marketable securities totaled $80.9 million as of June 30, 2024.

Outlook and guidance

• Anticipates a step change in revenue trajectory in 2025 and beyond, driven by pivotal study publications and expanded market awareness.

• Cash runway expected to last well into 2027, with no near-term need to raise capital.

• Budgeted cash operating expenses for 2024 are around $26 million, with current burn rate below this level.

• Preparing for commercial expansion by investing in key account management, medical science liaisons, and revenue cycle operations.

• Management expects continued operating losses and negative cash flows as commercialization and development activities continue.