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May 09, 2018

Invitae Reports 169% Revenue Growth Driven by 150% Growth in Volume in First Quarter 2018

-- Raising annual volume and revenue guidance --
-- Q1 2018 gross profit of $9.6M up from $1.0M in Q1 2017 --
-- Management hosting conference call and webcast today at 4:30pm Eastern/1:30pm Pacific --

SAN FRANCISCO, May 9, 2018 /PRNewswire/ -- Invitae Corporation (NYSE: NVTA), one of the fastest growing genetics companies, today announced financial and operating results for the first quarter ended March 31, 2018. Based on the growing momentum in test volume and substantial revenue growth, the company is increasing its volume guidance from accessioning 250,000 samples to accessioning more than 275,000 samples in 2018. Additionally, the company is raising its revenue guidance from at least $120 million to more than $130 million in 2018.

Guidance

"Given the investments we've made in content and customer experience, we are now poised to become the leading provider of genetic information, as well as the partner of choice for therapeutics companies and others in the broader healthcare continuum," said Sean George, co-founder and chief executive officer of Invitae. "With the resources, team and capital we have today, we have demonstrated the capability to disrupt the genetic information landscape, and we now plan to drive operating and financial leverage across the business and meaningfully reduce our cash burn by 40 to 50% as we exit 2018."

First Quarter 2018 Results

  • Accessioned more than 64,000 samples in the first quarter of 2018, a 22% sequential increase over the fourth quarter of 2017 and a 150% increase over the 26,000 samples in the first quarter of 2017.
  • Generated revenue of $27.7 million in the first quarter of 2018, a 9% sequential increase over the fourth quarter of 2017 and a 169% increase over the first quarter of 2017 revenue of $10.3 million.
  • Reduced the average cost per sample to less than $280 in the first quarter of 2018, representing a 13% sequential reduction from the fourth quarter of 2017 and a 22% reduction from a $360 average cost per sample in the first quarter of 2017.
  • Achieved positive gross profit of $9.6 million in the first quarter of 2018 compared to a positive gross profit of $8.3 million in the fourth quarter of 2017, and $1.0 million gross profit in the first quarter of 2017.

Total operating expenses for the first quarter of 2018, excluding cost of goods sold, were $46.1 million compared to $28.3 million in the first quarter of 2017. For the first quarter of 2018, Invitae reported a net loss of $36.1 million, or a $0.66 loss per share, compared to a net loss of $26.9 million in the first quarter of 2017, or a $0.64 loss per share.

Cash used in operating activities in the three months ended March 31, 2018 was $32.9 million, compared to $22.0 million in the same period in 2017. At March 31, 2018, cash, cash equivalents, restricted cash and marketable securities totaled $60.6 million. Subsequent to the quarter's close, Invitae raised $53.5 million in net proceeds from an equity offering and has access to $20 million additional debt, bringing total available capital to more than $130 million.

Recent Highlights

  • Made significant progress integrating recent acquisitions.
    • Trained and deployed combined and expanded sales team to effectively deliver comprehensive test menu.
    • Invested in lab build-out to transfer reproductive health technology to San Francisco to support continued volume growth.
    • Integrated billing operations onto single platform.
  • Expanded biopharma partnerships to more than 20 in Invitae's network, connecting patients and clinicians to treatments, clinical trials, support and advocacy groups, and research programs.
    • A new program with Biogen to offer genetic testing at no-charge to patients suspected of having or clinically diagnosed with spinal muscular atrophy (SMA), a rare, progressive, genetic, neuromuscular disease.
    • An expanded partnership with Sarepta Therapeutics, Inc. to assist clinicians in identifying Duchenne muscular dystrophy (DMD) patients eligible for Sarepta's clinical trials.
    • New collaborations with five leading rare and ultra-rare disease advocacy groups, now part of the Invitae network.
      • No Stomach For Cancer launched the Global Gastric Cancer Registry, a program that enables patients, advocates, clinicians and researchers to share and access secure data on stomach cancers.
      • The Bow Foundation initiated a patient network for individuals with GNAO1 disorders, an ultra-rare pediatric genetic disorder causing developmental delays and neurological symptoms.
      • The National Tay Sachs & Allied Diseases Association (NTSAD) started a program to gather data on the GM2 Gangliosidoses, such as Tay Sachs disease and Sandhoff disease, rare neurodegenerative lysosomal disorders.
      • The RASopathies Network launched a network aimed at gathering information across a number of rare genetic conditions associated with genetic variants in the Ras-MAPK pathway that cause developmental delays, heart defects and neurologic problems.
      • The Spastic Paraplegia Foundation created a network for families impacted by Hereditary Spastic Paraplegia or Primary Lateral Sclerosis, a group of rare primary upper motor neuron disorders that cause progressive spasticity (stiffness) and weakness of the leg and hip muscles.
  • Presented data at the American College of Medical Genetics (ACMG) annual meeting showing proactive genetic health screening reveals medically significant findings for a substantial portion of patients. Additionally, secondary findings identified through genetic testing provide a substantial yield of actionable risk factors for disease.
  • Announced a collaboration with KEW, Inc. to develop comprehensive genomic profiling solutions to combine the benefit of germline and somatic information for the treatment of cancer.

Webinar 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 9158119. 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, including with respect to volume and revenue; the company's belief that it is poised to become the leading provider of genetic information and partner of choice; that the company has demonstrated the capability to disrupt the genetic information landscape with its resources, team and capital; and that the company will begin to see operating and financial leverage across the business and reduced cash burn by the end of 2018. 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 Annual Report on Form 10-K for the year ended December 31, 2017. 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



March 31,



2018


2017



(Unaudited)

Revenue:







Test revenue


$

27,053


$

9,695

Other revenue



618



643

Total revenue



27,671



10,338

Costs and operating expenses:







Cost of test revenue



18,076



9,329

Research and development



15,366



10,023

Selling and marketing



18,924



11,572

General and administrative



11,780



6,751

Total costs and operating expenses



64,146



37,675

Loss from operations



(36,475)



(27,337)

Other income (expense), net



1,647



(691)

Interest expense



(1,292)



(322)

Net loss before taxes



(36,120)



(28,350)

Income tax benefit





(1,422)

Net loss


$

(36,120)


$

(26,928)

Net loss per share, basic and diluted


$

(0.66)


$

(0.64)

Shares used in computing net loss per share, basic and diluted



54,381,751



42,318,136

 

Invitae Corporation

Condensed Consolidated Balance Sheets

(In thousands)




March 31,


December 31,



2018


2017



(Unaudited)




Assets







Current assets:







Cash and cash equivalents


$

18,443


$

12,053

Marketable securities



36,526



52,607

Accounts receivable



21,490



10,422

Prepaid expenses and other current assets



12,756



11,599

Total current assets



89,215



86,681

Property and equipment, net



30,307



30,341

Restricted cash



5,406



5,406

Marketable securities, non-current



225



5,983

Intangible assets, net



34,264



35,516

Goodwill



46,972



46,575

Other assets



1,999



576

Total assets


$

208,388


$

211,078

Liabilities and stockholders' equity







Current liabilities:







Accounts payable


$

7,109


$

8,606

Accrued liabilities



26,257



22,742

Capital lease obligation, current portion



1,879



2,039

Total current liabilities



35,245



33,387

Capital lease obligation, net of current portion



2,895



3,373

Debt



58,554



39,084

Other long-term liabilities



9,734



13,440

Total liabilities



106,428



89,284

Stockholders' equity:







Common stock



5



5

Accumulated other comprehensive loss



(160)



(171)

Additional paid-in capital



525,592



520,558

Accumulated deficit



(423,477)



(398,598)

Total stockholders' equity



101,960



121,794

Total liabilities and stockholders' equity


$

208,388


$

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

 

Gross profit

Network effect

Invitae's (NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people.  www.invitae.com (PRNewsFoto/Invitae Corporation)

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/invitae-reports-169-revenue-growth-driven-by-150-growth-in-volume-in-first-quarter-2018-300645814.html

SOURCE Invitae Corporation

NYSE: NVTA 13.24 +0.34 +2.64% Volume: 1,013,432 20 minute delay November 16, 2018

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1400 16th St.
San Francisco, CA, 94103
Email: ir@invitae.com