Company: BLLN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0000950123-25-006095
Chunk: 123

Company: BillionToOne, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 123
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-over-year in the six months ended June 30, 2025.

Our revenue is the function of two inputs: the number of tests ordered and the ASP that we can achieve through reimbursement. There is
a flywheel effect between these two factors. The more tests that we process, the easier it becomes for us to contract with insurance companies and become an in-network provider. This increases our ASP for our
tests, as the denial rate of our tests significantly decreases once we become an in-network provider. As we become an in-network provider, it becomes easier for our
sales representatives to convince ordering providers to use our tests. We believe the in-network status results in a better patient and provider experience, with fewer requirements for prior authorization and
lower patient payment responsibilities. The impact of this flywheel can be seen in the results of concurrent increases of ASP and test volumes, which enable us to grow our revenue at a rapid rate. For example, for the six months ended June 30,
2025 compared to the six months

90

ended June 30, 2024, our test volumes have grown year-over-year while ASPs have grown year-over-year, the combined effect of which was a
year-over-year growth in our clinical revenue.

We believe that the combined effect of ASP increases, COGS decreases, and improved operational efficiency has been the main driver in
decreases in our net losses. Our net losses decreased from $82.7 million in the year ended December 31, 2023 to $41.6 million in the year ended December 31, 2024, despite our heavy investments in the growth of our sales force,
new product launches, and clinical studies.

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Since increasing test volume drives each of these factors, either directly or indirectly, we believe that our net loss margin can continue to improve for at least the next twelve months, as long as we can continue to drive increased test volumes. However, such improvement will require continuous investments in sales force, further innovation, and new product launches, necessitating a balance between reaching profitability and investing for growth. While we are nearing operating profitability and positive cashflow, we will continue to optimize for long-term growth over short-term increases in profitability. The market for our products is large and expanding. We have only partially penetrated the NIPT market, and in oncology, we have only just begun. We believe the superiority of our products, combined with our investments in our sales force, marketing infrastructure, enhancements to existing tests, increases in our ASP