Nautilus Biotechnology(NAUT) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For fiscal year 2022, operating expenses increased to $63.6 million from $50.5 million in 2021, representing a 26% increase driven by personnel costs and expenses related to operating as a public company [1] - The net loss for the full year was $57.9 million, up from $50.3 million in fiscal year 2021, marking a 15% year-over-year increase [2] - Total operating expenses for Q4 2022 were $16.3 million, which was $500,000 less than the same quarter last year, indicating a focus on controlling spending while investing in growth [33] Business Line Data and Key Metrics Changes - Research and development expenses in Q4 2022 were $9.6 million compared to $9.9 million in the prior year, while general and administrative expenses were $6.7 million, down from $6.9 million [34] - The company anticipates overall operating expenses to grow by approximately 40% from 2022 levels in 2023, while managing spending tightly to preserve investment capabilities [3] Market Data and Key Metrics Changes - The company ended the year with approximately $314 million in cash, cash equivalents, and investments, representing a trailing 12-month cash burn of approximately $48.5 million, with expectations for the cash runway to extend well into 2025 [5] Company Strategy and Development Direction - The company aims to revolutionize proteomics and positively impact health and lives globally, with a focus on commercial expansion leading up to a platform launch in mid-2024 [8][4] - The Nautilus First Access Challenge was announced to inspire researchers and unlock creativity in exploring biological insights, indicating a commitment to engaging the scientific community [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage resources effectively amid challenging financial conditions, with a focus on maximizing runway and balancing investments for scientific progress [32] - The management team believes that the product being developed has a strong value proposition and a wide competitive moat, with no significant competitive advancements observed in the proteomics space [96][97] Other Important Information - The company nearly doubled its patent portfolio to over 40 pending patent families filed in the U.S. and abroad, with a total of 11 granted U.S. patents [30] - The company is focused on building a commercial team closer to the launch date, reflecting a cautious approach to scaling operations in the current economic environment [76] Q&A Session Summary Question: Has the company's appetite for M&A changed recently? - Management indicated that while the M&A environment has picked up, there are no near-term plans for M&A, focusing instead on leveraging the balance sheet for platform development [42][55] Question: What advancements should be expected in the near term? - Management highlighted the importance of scientific conferences and continued data sharing with the scientific community as key indicators of progress towards the commercial launch [43][44] Question: What feedback has been received from the scientific community? - Positive feedback was noted regarding the platform's sensitivity, scale, and potential to complement existing mass spectrometry methods, with researchers expressing excitement about the capabilities [45][46] Question: What are the key features the clinical market will look for? - The management believes that the transition from single biomarker assays to broader protein panels will occur naturally, driven by the need for comprehensive analysis in clinical settings [98][99]