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August 04, 2020

Invitae Reports $46.2 Million in Revenue Driven by More Than 120,000 Samples Accessioned in the Second Quarter of 2020

-- Introduced expanded services and support for transition to telehealth across customer types --
-- Added 16 new biopharma partnerships, bringing the total number of partnership programs to more than 105 --
-- Hosting conference call and webcast today at 4:30pm Eastern/1:30pm Pacific --

SAN FRANCISCO, Aug. 4, 2020 /PRNewswire/ -- Invitae Corporation (NYSE: NVTA), a leading medical genetics company, today announced financial and operating results for the second quarter ended June 30, 2020.

"While we experienced significant disruptions in the healthcare system due to the pandemic, we quickly established a solid recovery during the quarter. Our results highlight the strength of our operations and the benefits of our diversified menu, investments in telehealth capabilities and longstanding customer relationships, all of which position us to adapt and meet the changing needs of our customers," said Sean George, Ph.D., co-founder and chief executive officer of Invitae. "We exited the quarter with a strong footing and increasing momentum. We remain confident in our ability to continue to deliver on our mission to bring genetic information into mainstream medicine."

Second Quarter 2020 Financial Results

  • Accessioned more than 120,000 samples in the second quarter of 2020 compared to 111,000 samples in the second quarter of 2019. Billable volume exceeded 113,000 in the second quarter of 2020
  • Generated revenue of $46.2 million in the second quarter of 2020 compared to $53.5 million in revenue in the second quarter of 2019
  • Reported average cost per sample of $358 in the second quarter of 2020 compared to $252 average cost per sample in the second quarter of 2019. Non-GAAP average cost per sample was $318 in the second quarter of 2020
  • Achieved gross profit of $3.2 million in the second quarter of 2020 compared to $25.5 million of gross profit in the second quarter of 2019. Non-GAAP gross profit was $8.0 million in the second quarter of 2020

Total operating expense, excluding cost of revenue, for the second quarter of 2020 was $145.3 million. Non-GAAP operating expense was $105.7 million in the second quarter of 2020.

Net loss for the second quarter of 2020 was $166.4 million, or $1.29 net loss per share, compared to a net loss of $48.7 million in the second quarter of 2019, or $0.54 net loss per share. Non-GAAP net loss was $99.2 million, or $0.77 non-GAAP net loss per share, in the second quarter of 2020.

At June 30, 2020, cash, cash equivalents, restricted cash and marketable securities totaled $428.5 million. Net increase in cash, cash equivalents and restricted cash for the quarter was $78.0 million. Cash burn, including various acquisition-related expenses, was $89.2 million for the quarter and $63.8 million when excluding the $25.4 million cash paid to acquire YouScript and Genelex.

Early in the quarter, in response to impacts of the pandemic, the company took actions to significantly scale back operational expenditures. The result of these changes is expected to decrease the discretionary spend in cost of revenue and operating expense beginning in the third quarter.

"We continue to see a solid recovery in volume, improvement in our operating leverage and ability to improve revenue generation. As a result, we are well positioned with sufficient capital to execute our strategy in the coming years," continued Dr. George. "We have added or will be adding important capabilities to our platform through the acquisitions we announced this quarter and our ongoing product development efforts. With our mission clearly in focus, we can continue to navigate these unprecedented times."

Corporate and Scientific Highlights

  • Introduced expanded services and support for transition to telehealth across customer types
    • Launched new capabilities for Gia, the advanced clinical chatbot that became part of Invitae through the acquisition and rapid integration of Clear Genetics. New workflows added to Gia support obstetrician/gynecologists, oncologists, genetic counselors and other clinicians who order genetic testing
    • Increased support for the use of at-home testing using saliva kits, which do not require an in-person clinician visit
    • Provided professional education and support for clinicians transitioning to telehealth
  • Acquired YouScript and Genelex to bring best-in-class pharmacogenetic testing and robust, integrated clinical decision support to Invitae
  • Further expanded international footprint, including the introduction of consumer-initiated telehealth genetic testing services in Canada for carrier testing in early pregnancy and cancer and cardiovascular risk testing
  • Presented research that, combined with new recommendations from a large, multidisciplinary consensus conference published in the Journal of Clinical Oncology, underscores the utility of increased access to genetic testing for men with prostate cancer across all stages of life
  • Added 16 new biopharma partnerships, bringing the total number of partnership programs to more than 105, including nine new pharma partners in Invitae's Detect programs providing no-charge genetic testing for conditions in which testing is underutilized and can improve diagnosis and treatment
  • Entered into a definitive agreement under which Invitae will combine with ArcherDX, Inc.
  • Closed on a public offering with net proceeds of approximately $173.0 million and raised $44.5 million of net proceeds under the company's ATM
  • In July, added non-invasive prenatal screening (NIPS) based on whole genome sequencing (WGS) to the Invitae platform, providing patients with easier access to affordable genetic testing in early pregnancy to realize cost reductions, improve the company's ability to scale services and pave the way for additional services based on WGS technology
  • Partnered with a major health system to integrate clinical decision support software for use of pharmacogenetics in patient care

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. To register for the conference call and webcast, please use one of the methods below. Upon registering, each participant will be provided with call details and a registrant ID.

Online registration: http://www.directeventreg.com/registration/event/5882896

Phone registration: (888) 869-1189 or (706) 643-5902

The live webcast of the call and slide deck may be accessed here or by visiting the investors section of the company's website at ir.invitae.com. A replay of the webcast and conference call 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 leading medical genetics company whose mission is to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people. Invitae's goal is to aggregate the world's genetic tests into a single service with higher quality, faster turnaround time, and lower prices. For more information, visit the company's website at invitae.com.

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 belief that it is well-positioned to adapt and meet the changing needs of its customers; the company's belief regarding the momentum of its business and ability to continue to deliver on its mission to bring genetic information into mainstream medicine; the impact of the COVID-19 pandemic on the company's business, and the measures it has taken or may take in the future with respect thereto; the impact of the company's acquisitions, including its proposed merger with ArcherDX, as well as its partnerships and product offerings; and the company's beliefs regarding the growth of its business, its position and impact on the genetic testing industry, its success in executing on its mission and strategy, and the benefits of genetic testing. 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 impact of the COVID-19 pandemic on the company, and the effectiveness of the efforts it has taken or may take in the future in response thereto; the company's ability to continue to grow its business, including internationally; 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 ability of Invitae and ArcherDX to obtain the approval of Invitae's and ArcherDX's stockholders, and to satisfy the other conditions to the closing of the acquisition and related financing transactions on a timely basis or at all; the occurrence of events that may give rise to a right of one or both of Invitae and ArcherDX to terminate the merger agreement; 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 Quarterly  Report on Form 10-Q for the quarter ended March 31, 2020. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.

Non-GAAP Financial Measures
To supplement Invitae's consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), the company is providing several non-GAAP measures, including non-GAAP gross profit, non-GAAP cost of revenue, non-GAAP operating expense, including non-GAAP research and development, non-GAAP selling and marketing, non-GAAP general and administrative and non-GAAP other income (expense), net, as well as non-GAAP net loss and non-GAAP net loss per share and non-GAAP cash burn. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. Management believes these non-GAAP financial measures are useful to investors in evaluating the company's ongoing operating results and trends.

Management is excluding from some or all of its non-GAAP operating results (1) amortization of acquired intangible assets, (2) acquisition-related stock-based compensation related to inducement grants, (3) post-combination expense related to the acceleration of equity grants or bonus payments in connection with the company's business combinations, (4) adjustments to the fair value of our acquisition-related liabilities and (5)  acquisition-related income tax benefits.  These non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on the reported financial results. Management accounts for this limitation by analyzing results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in the company's public disclosures.

Cash burn excludes (1) changes in marketable securities, (2) cash received from equity financings and (3) cash received from exercises of warrants. Management believes cash burn is a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business. A limitation of using this non-GAAP measure is that cash burn does not represent the total change in cash, cash equivalents, and restricted cash for the period because it excludes cash provided by or used for other operating, investing or financing activities. Management accounts for this limitation by providing information about the company's operating, investing and financing activities in the statements of cash flows in the consolidated financial statements in the company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting net cash provided by (used in) operating, investing and financing activities as well as the net increase or decrease in cash, cash equivalents and restricted cash in its reconciliation of cash burn.

In addition, other companies, including companies in the same industry, may not use the same non-GAAP measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP measures as comparative measures. Because of these limitations, the company's non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the non-GAAP reconciliations provided in the tables below.

 

INVITAE CORPORATION


Consolidated Balance Sheets

(in thousands)

(unaudited)



June 30,
2020


December 31,
2019

Assets




Current assets:




Cash and cash equivalents

$

168,203



$

151,389


Marketable securities

253,933



240,436


Accounts receivable

27,905



32,541


Prepaid expenses and other current assets

21,081



18,032


Total current assets

471,122



442,398


Property and equipment, net

43,381



37,747


Operating lease assets

38,239



36,640


Restricted cash

6,343



6,183


Intangible assets, net

192,644



125,175


Goodwill

211,225



126,777


Other assets

6,921



6,681


Total assets

$

969,875



$

781,601


Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$

20,091



$

10,321


Accrued liabilities

99,490



64,814


Operating lease obligations

6,339



4,870


Finance lease obligations

977



1,855


Total current liabilities

126,897



81,860


Operating lease obligations, net of current portion

42,134



42,191


Finance lease obligations, net of current portion

879



1,155


Convertible senior notes, net

276,092



268,755


Deferred tax liability

10,250




Other long-term liabilities

49,428



8,000


Total liabilities

505,680



401,961






Stockholders' equity:




Common stock

13



10


Accumulated other comprehensive income (loss)

572



(9)


Additional paid-in capital

1,487,217



1,138,316


Accumulated deficit

(1,023,607)



(758,677)


Total stockholders' equity

464,195



379,640


Total liabilities and stockholders' equity

$

969,875



$

781,601



 

 

INVITAE CORPORATION


Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Revenue:









Test revenue


$

45,099



$

52,302



$

108,177



$

91,921


Other revenue


1,092



1,173



2,262



2,107


Total revenue


46,191



53,475



110,439



94,028


Cost of revenue


42,952



28,006



83,374



49,260


Research and development


74,963



25,302



130,631



43,296


Selling and marketing


39,520



30,779



81,640



54,972


General and administrative


30,838



21,274



54,660



34,593


Loss from operations


(142,082)



(51,886)



(239,866)



(88,093)


Other income (expense), net


(21,436)



1,381



(16,728)



2,019


Interest expense


(5,485)



(2,121)



(10,936)



(4,229)


Net loss before taxes


(169,003)



(52,626)



(267,530)



(90,303)


Income tax benefit


(2,600)



(3,950)



(2,600)



(3,950)


Net loss


$

(166,403)



$

(48,676)



$

(264,930)



$

(86,353)


Net loss per share, basic and diluted


$

(1.29)



$

(0.54)



$

(2.35)



$

(1.01)


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


129,023



90,863



112,765



85,148


 

 

INVITAE CORPORATION


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Six Months Ended June 30,


2020


2019

Cash flows from operating activities:




Net loss

$

(264,930)



$

(86,353)


Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

14,500



6,725


Stock-based compensation

81,124



19,540


Amortization of debt discount and issuance costs

7,337




Amortization of premium on marketable securities




Impairment losses




Loss on disposal of assets




Loss on sales of available-for-sale securities




Remeasurements of liabilities associated with business combinations

26,749



(286)


Benefit from income taxes

(2,600)



(3,950)


Debt extinguishment costs




Other

(536)



1,182


Changes in operating assets and liabilities, net of businesses acquired:




Accounts receivable

4,939



3,153


Prepaid expenses and other current assets

(3,049)



(3,825)


Other assets

942



2,410


Accounts payable

9,185



(3,954)


Accrued expenses and other liabilities

3,585



4,267


Net cash used in operating activities

(122,754)



(61,091)


Cash flows from investing activities:




Purchases of marketable securities

(115,350)



(20,781)


Proceeds from sales of marketable securities

12,532




Proceeds from maturities of marketable securities

89,965



34,000


Acquisition of businesses, net of cash acquired

(57,576)



3,193


Purchases of property and equipment

(10,854)



(8,824)


Other

(1,334)




Net cash provided by (used in) investing activities

(82,617)



7,588


Cash flows from financing activities:




Proceeds from public offerings of common stock, net

217,489



184,490


Proceeds from issuance of common stock, net

6,760



5,123


Finance lease principal payments

(1,154)



(1,031)


Other

(750)




Net cash provided by financing activities

222,345



188,582


Net increase in cash, cash equivalents and restricted cash

16,974



135,079


Cash, cash equivalents and restricted cash at beginning of period

157,572



118,164


Cash, cash equivalents and restricted cash at end of period

$

174,546



$

253,243


 

 

INVITAE CORPORATION


Reconciliation of GAAP to Non-GAAP Cost of Revenue

(in thousands)

(unaudited)





Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Cost of revenue


$

42,952



$

28,006



$

83,374



$

49,260


Amortization of acquired intangible assets


(4,757)



(689)



(7,430)



(985)


Non-GAAP cost of revenue


$

38,195



$

27,317



$

75,944



$

48,275


 

Reconciliation of GAAP to Non-GAAP Gross Profit

(in thousands)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Revenue


$

46,191



$

53,475



$

110,439



$

94,028


Cost of revenue


42,952



28,006



83,374



49,260


Gross profit


3,239



25,469



27,065



44,768


Amortization of acquired intangible assets - cost
of revenue


4,757



689



7,430



985


Non-GAAP gross profit


$

7,996



$

26,158



$

34,495



$

45,753


 

Reconciliation of GAAP to Non-GAAP Research and Development Expense

(in thousands)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Research and development


$

74,963



$

25,302



$

130,631



$

43,296


Amortization of acquired intangible assets


(117)



80



(233)



(233)


Acquisition-related stock-based compensation


(33,383)



(2,586)



(52,182)



(2,586)


Non-GAAP research and development


$

41,463



$

22,796



$

78,216



$

40,477


 

Reconciliation of GAAP to Non-GAAP Selling and Marketing Expense

(in thousands)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Selling and marketing


$

39,520



$

30,779



$

81,640



$

54,972


Amortization of acquired intangible assets


(786)



(675)



(1,571)



(1,349)


Non-GAAP selling and marketing


$

38,734



$

30,104



$

80,069



$

53,623


 

INVITAE CORPORATION


Reconciliation of GAAP to Non-GAAP General and Administrative Expense

(in thousands)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

General and administrative


$

30,838



$

21,274



$

54,660



$

34,593


Amortization of acquired intangible assets




(29)



(10)



(57)


Acquisition-related post-combination expense


(500)



(3,212)



(500)



(3,212)


Fair value adjustments to acquisition-related liabilities


(4,832)





(4,832)




Non-GAAP general and administrative


$

25,506



$

18,033



$

49,318



$

31,324


 

Reconciliation of Operating Expense to Non-GAAP Operating Expense

(in thousands, except per share data)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Research and development


$

74,963



$

25,302



$

130,631



$

43,296


Selling and marketing


39,520



30,779



81,640



54,972


General and administrative


30,838



21,274



54,660



34,593


Operating expense


145,321



77,355



266,931



132,861


Amortization of acquired intangible assets


(903)



(624)



(1,814)



(1,639)


Acquisition-related stock-based compensation


(33,383)



(2,586)



(52,182)



(2,586)


Acquisition-related post-combination expense


(500)



(3,212)



(500)



(3,212)


Fair value adjustments to acquisition-related
liabilities


(4,832)





(4,832)




Non-GAAP operating expense


$

105,703



$

70,933



$

207,603



$

125,424


 

Reconciliation of Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net

(in thousands, except per share data)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Other income (expense), net


$

(21,436)



$

1,381



$

(16,728)



$

2,019


Fair value adjustments to acquisition-related
liabilities


25,392





21,729




Non-GAAP other income (expense), net


$

3,956



$

1,381



$

5,001



$

2,019


 

Reconciliation of Net Loss to Non-GAAP Net Loss Per Share

(in thousands, except per share data)

(unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019

Net loss


$

(166,403)



$

(48,676)



$

(264,930)



$

(86,353)


Amortization of acquired intangible assets


5,660



1,313



9,244



2,624


Acquisition-related stock-based compensation


33,383



2,586



52,182



2,586


Acquisition-related post-combination expense


500



3,212



500



3,212


Fair value adjustments to acquisition-related
liabilities


30,224





26,561




Acquisition-related income tax benefit


(2,600)



(3,950)



(2,600)



(3,950)


Non-GAAP net loss


$

(99,236)



$

(45,515)



$

(179,043)



$

(81,881)











Non-GAAP net loss per share, basic and diluted


$

(0.77)



$

(0.50)



$

(1.59)



$

(0.96)


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


129,023



90,863



112,765



85,148


 

INVITAE CORPORATION


Reconciliation of Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash to Cash
Burn

(in thousands)

(unaudited)



Three Months Ended
March 31, 2020


Three Months Ended
June 30, 2020


Six Months Ended
June 30, 2020




Net cash used in operating activities

$

(62,361)



$

(60,393)




(122,754)


Net cash provided by (used in) investing activities

801



(83,418)




(82,617)


Net cash provided by financing activities

551



221,794




222,345


Net increase (decrease) in cash, cash equivalents and
restricted cash

(61,009)



77,983




16,974









Adjustments:







Purchases of investments



115,350




115,350


Sales of investments

(12,532)






(12,532)


Maturities of investments

(24,965)



(65,000)




(89,965)


Proceeds from public offering of common stock, net
of issuance costs



(217,489)




(217,489)


Proceeds from exercises of warrants

(27)



(35)




(62)


Cash burn

$

(98,533)



$

(89,191)




(187,724)









• Cash burn for the three months ended March 31, 2020 includes $32.3 million of cash paid in connection with the
acquisition of Diploid and cash burn for the three months ended June 30, 2020 includes $25.4 million of cash paid in
connection with the acquisitions of Genelex and YouScript. The change in marketable securities for the six months
ended June 30, 2020 includes unrealized gains of $0.6 million.

 

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

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/invitae-reports-46-2-million-in-revenue-driven-by-more-than-120-000-samples-accessioned-in-the-second-quarter-of-2020--301106028.html

SOURCE Invitae Corporation

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Email: ir@invitae.com