Invitae Reports More than 160% Annual Revenue Growth Driven by Nearly 140% Annual Growth in Volume in Second Quarter 2018

Published: Aug 07, 2018

 

-- Raising annual revenue guidance amid strong quarter performance --
-- Q2 2018 gross profit of $16.9M up from $3.8M in Q2 2017 --
-- Management hosting conference call and webcast today at 4:30pm Eastern/1:30pm Pacific --

SAN FRANCISCO, Aug. 7, 2018 /PRNewswire/ -- Invitae Corporation (NYSE: NVTA), one of the fastest growing genetics companies, today announced financial and operating results for the second quarter ended June 30, 2018. Based on progress in the quarter, Invitae is raising its revenue guidance from more than $130 million to between $135 and $140 million in 2018.

"The combination of our broad and affordable diagnostic, reproductive health and proactive testing capabilities enables Invitae to answer genetic-related healthcare questions across all stages of life and opens up opportunity for growth as we bring genetics into mainstream medicine," said Sean George, co-founder and chief executive officer of Invitae. "Amidst the rapid growth in both volume and revenue, Invitae is emerging as a leader in the world of genetics. Given our progress, we're increasing our annual revenue guidance."

Second Quarter 2018 Results

  • Accessioned more than 73,000 samples in the second quarter of 2018, a 14% sequential increase over the first quarter of 2018 and a 139% increase over the 30,500 samples in the second quarter of 2017.
  • Generated revenue of $37.3 million in the second quarter of 2018, a 35% sequential increase over the first quarter of 2018 and a 161% increase over the second quarter of 2017 revenue of $14.3 million.
  • Maintained the average cost per sample at $280 in the second quarter of 2018, flat from prior quarter, and a 19% reduction from a $345 average cost per sample in the second quarter of 2017.
  • Achieved positive gross profit of $16.9 million in the second quarter of 2018 compared to a gross profit of $9.6 million in the first quarter of 2018, and $3.8 million gross profit in the second quarter of 2017.

Total operating expenses for the second quarter of 2018, excluding cost of goods sold, were $46.9 million compared to $31.9 million in the second quarter of 2017. For the second quarter of 2018, Invitae reported a net loss of $31.7 million, or a $0.47 loss per share, compared to a net loss of $28.6 million in the second quarter of 2017, or a $0.66 loss per share.

Cash used in operating activities for the quarter was $26.5 million, compared to $35.1 million in the first quarter of 2018. At June 30, 2018, cash, cash equivalents, restricted cash and marketable securities totaled $91.4 million which includes $53.5 million in net proceeds from an equity offering that closed in April. The company also has access to $20 million in additional debt, bringing total available capital at the quarter close to more than $110 million.

Corporate Highlights

  • Expanded the company's reproductive health offering with the launch of genetic carrier screening, a comprehensive test designed to provide affordable, accessible information on genetic changes that pose a risk for parents of having a child with an inherited genetic disorder
  • Made significant progress on the integration and restructuring of the 2017 acquisitions, including the transfer of our Cambridge reproductive health technology to our San Francisco laboratory
  • Continued growing our biopharma and patient advocacy network, launching seven biopharma partnership programs in the second quarter, including our SMA Identified program with Biogen to provide genetic testing to patients suspected of having or clinically diagnosed with SMA
  • Began receiving payment from Medicare for deletion and duplication analysis (CPT code 81433)

Scientific Highlights

  • Published findings in the journal Genetics in Medicine from the largest analysis to date of genetic testing to identify deletions and duplications involving single genes using next-generation sequencing (NGS) techniques. The study found that these changes are present in a substantial number of patients and suggests that laboratory methods with high sensitivity to copy number variants (CNVs) should be a routine component of genetic testing
  • Highlighted data at the American Society of Breast Surgeons (ASBS) showing that women who did not meet breast cancer genetic testing criteria had cancer-associated mutations just as often as women who met the criteria
  • Presented findings at the American College of Medical Genetics (ACMG) annual meeting, indicating proactive genetic health screening reveals medically significant findings for a substantial portion of individuals tested, supporting the importance of proactive, clinical-grade testing in the absence of personal or family history of genetic disease.

Webcast and Conference Call Details

Management will host a conference call and webcast today at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss financial results and recent developments. The dial-in numbers for the conference call are (866) 393-4306 for domestic callers and (734) 385-2616 for international callers, and the reservation number for both is 3497996. Following prepared remarks, management will respond to questions from investors and analysts, subject to time limitations.

The live webcast of the call may be accessed by visiting the investors section of the company's website at ir.invitae.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the company's website.

About Invitae

Invitae Corporation (NYSE: NVTA) is a genetics company whose mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. Invitae's goal is to aggregate most of the world's genetic tests into a single service with higher quality, faster turnaround time and lower prices.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's future financial performance and estimated guidance for 2018; the company's belief that its product mix opens up opportunities for growth; and that it is emerging as a leader in genetics. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the company's history of losses; the company's ability to compete; the company's failure to manage growth effectively; the company's need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the company's failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; the company's ability to use rapidly changing genetic data to interpret test results accurately and consistently; security breaches, loss of data and other disruptions; laws and regulations applicable to the company's business; and the other risks set forth in the company's filings with the Securities and Exchange Commission, including the risks set forth in the company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.

 

                                                                                      Invitae Corporation

                                                                        Condensed Consolidated Statements of Operations

                                                                       (In thousands, except share and per share amounts)


                                       Three Months Ended            Six Months Ended

                                            June 30,                     June 30,
                                            --------                   --------

                                                     2018             2017                                                2018         2017
                                                     ----             ----                                                ----         ----

                                           (Unaudited)               (Unaudited)

    Revenue:

    Test revenue                                             $36,350                                             $13,592           $63,403       $23,287

    Other revenue                                                956                                                 744             1,574         1,387
                                                                 ---                                                 ---             -----         -----

    Total revenue                                             37,306                                              14,336            64,977        24,674

    Costs and operating expenses:

    Cost of test revenue                                      20,447                                              10,490            38,523        19,819

    Research and development                                  15,784                                              11,339            31,150        21,362

    Selling and marketing                                     18,707                                              12,520            37,631        24,092

    General and administrative                                12,436                                               8,062            24,216        14,813
                                                              ------                                               -----            ------        ------

    Total costs and operating expenses                        67,374                                              42,411           131,520        80,086
                                                              ------                                              ------           -------        ------

    Loss from operations                                    (30,068)                                           (28,075)         (66,543)     (55,412)

    Other income (expense), net                                  188                                                 151             1,835         (540)

    Interest expense                                         (1,791)                                            (1,067)          (3,083)      (1,389)
                                                              ------                                              ------            ------        ------

    Net loss before taxes                                   (31,671)                                           (28,991)         (67,791)     (57,341)

    Income tax benefit                                             -                                              (434)                -      (1,856)
                                                                 ---                                               ----               ---       ------

    Net loss                                               $(31,671)                                          $(28,557)        $(67,791)    $(55,485)
                                                            ========                                            ========          ========      ========

    Net loss per share, basic and
     diluted                                                 $(0.47)                                            $(0.66)          $(1.12)      $(1.30)

    Shares used in computing net loss
     per share, basic and diluted                         67,806,606                                          43,226,569        60,775,077    42,808,175

 

                                                          Invitae Corporation

                                                 Condensed Consolidated Balance Sheets

                                                            (In thousands)


                                          June 30,                                     December 31,

                                                2018                                            2017
                                                ----                                            ----

                                         (Unaudited)

    Assets

    Current assets:

    Cash and cash equivalents                                             $48,568                       $12,053

    Marketable securities                                                  36,576                        52,607

    Accounts receivable                                                    25,058                        10,422

    Prepaid expenses and other current
     assets                                                                12,311                        11,599
                                                                           ------                        ------

    Total current assets                                                  122,513                        86,681

    Property and equipment, net                                            28,816                        30,341

    Restricted cash                                                         5,307                         5,406

    Marketable securities, non-current                                        900                         5,983

    Intangible assets, net                                                 32,994                        35,516

    Goodwill                                                               47,217                        46,575

    Other assets                                                            1,329                           576
                                                                            -----                           ---

    Total assets                                                         $239,076                      $211,078
                                                                         ========                      ========

    Liabilities and stockholders' equity

    Current liabilities:

    Accounts payable                                                       $5,200                        $8,606

    Accrued liabilities                                                    22,566                        22,742

    Capital lease obligation, current
     portion                                                                1,829                         2,039

    Debt, current portion                                                   3,061                             -
                                                                            -----                           ---

    Total current liabilities                                              32,656                        33,387

    Capital lease obligation, net of
     current portion                                                        2,413                         3,373

    Debt, net of current portion                                           55,575                        39,084

    Other long-term liabilities                                             9,785                        13,440
                                                                            -----                        ------

    Total liabilities                                                     100,429                        89,284
                                                                          -------                        ------

    Stockholders' equity:

    Common stock                                                                6                             5

    Accumulated other comprehensive loss                                    (109)                        (171)

    Additional paid-in capital                                            593,898                       520,558

    Accumulated deficit                                                 (455,148)                    (398,598)
                                                                         --------                      --------

    Total stockholders' equity                                            138,647                       121,794
                                                                          -------                       -------

    Total liabilities and stockholders'
     equity                                                              $239,076                      $211,078
                                                                         ========                      ========

The condensed, consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date included in the company's Annual Report on Form 10-K for the year ended December 31, 2017.

Contact:
Laura D'Angelo
ir@invitae.com
(628) 213-3369

 

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SOURCE Invitae Corporation

Company Codes: NYSE:NVTA

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