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November 08, 2021

Invitae Reports $114.4 Million in Revenue Driven by 296,000 in Billable Volume in Third Quarter of 2021

-- Q3 2021 revenue increases more than 66% on volume growth of 89% from Q3 2020 --
-- Full-year 2021 revenue expected to grow 60-70%, or between $450-$475 million --
-- Hosting conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time --

SAN FRANCISCO, Nov. 8, 2021 /PRNewswire/ -- Invitae (NYSE: NVTA), a leading medical genetics company, today announced financial and operating results for the third quarter ended September 30, 2021.

"Year-over-year growth continued at a fast pace in the third quarter as volumes remained strong across the platform," said Sean George, Ph.D., co-founder and CEO of Invitae. "In particular, progress in the oncology group is reflected in current volumes and preparations for high-value, high-margin product introductions over the coming year, supported by multiple ongoing studies. We saw continued progress in our data and platform services, underscored by the integration of Medneon and the Ciitizen technology platform that bolster our ability to collect, house and deliver benefits from patient data collected on their behalf. We look forward to continued robust volume growth in the coming periods as we introduce new testing capabilities and increase access to our lifelong testing and data platform."

Third Quarter 2021 Financial Results

  • Generated revenue of $114.4 million in the quarter, a more than 66% increase compared to $68.7 million in the same period in 2020.
  • Reported billable volume of 296,000 in the quarter, approximately 89% increase compared to 157,000 in the same period in 2020.
  • Reported average cost per billable unit of $296 in the quarter compared to $297 average cost per billable unit in the same period in 2020. Non-GAAP average cost per unit was $249 in the quarter.
  • Achieved gross profit for the third quarter of 2021 of $26.7 million, compared to $22.1 million in the same period in 2020. Non-GAAP gross profit was $40.7 million in the third quarter.

Total operating expense, which excludes cost of revenue, for the third quarter of 2021 was $220.0 million compared to $102.9 million in the same period in 2020. Non-GAAP operating expenses for the quarter was $201.8 million.

Net loss for the third quarter of 2021 was $198.2 million, or a $0.91 net loss per share, compared to a net loss of $102.9 million, or a $0.78 net loss per share, in the third quarter of 2020. Non-GAAP net loss for the quarter was $175.9 million, or a $0.81 non-GAAP net loss per share.

At September 30, 2021, cash, cash equivalents, restricted cash and marketable securities totaled $1.25 billion as compared with $1.54 billion as of June 30, 2021. Net increase in cash, cash equivalents and restricted cash for the quarter was $186.1 million. Cash burn was $286.0 million for the quarter. Cash burn for the quarter would have been $148.1 million excluding the cash paid for acquisitions, primarily related to the cash paid to acquire Medneon and Ciitizen.

Corporate and Scientific Highlights

  • Acquired patient-centric consumer health tech company Ciitizen to enhance Invitae's platform by providing patients an easy-to-use, centralized hub for their genomic and clinical information, which together comprise a powerful dataset with the potential to drive research and improve healthcare decision-making.
  • Announced new data from the TRACERx lung cancer research collaboration. The data further validate the value of liquid biopsy as a less invasive and more comprehensive approach to guiding personalized cancer treatment. The data underscore previous findings from the TRACERx cohort that monitoring for cancer circulating tumor DNA (ctDNA) based minimal residual disease (MRD) detected relapse of non-small cell lung cancer (NSCLC) up to three years earlier than standard of care imaging surveillance in some instances.
  • Presented research demonstrating that genetic findings informed clinical management changes that led to improved seizure control and outcomes in the majority of epilepsy patients with actionable findings. The findings were presented in September at the National Society of Genetic Counselors 40th Annual Conference.

Outlook and Guidance
The company has adjusted its 2021 annual revenue guidance to $450 million - $475 million, or year-over-year revenue growth of between 60% and 70%. The change in revenue outlook was primarily due to greater than expected seasonal impact in Q3. 

Webcast and Conference Call Details
Management will host a conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss financial results and recent developments. To access the conference call, please register at the link below:

https://conferencingportals.com/event/DqFqYhVe

Upon registering, each participant will be provided with call details and a conference ID.

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 Statements
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 results, including guidance for 2021, long term topline growth expectations and the drivers of future financial results; the company's beliefs regarding the momentum in its business and the drivers of that momentum; the company's expectations regarding future growth; the company's expectations regarding future product introductions and expansions; the significance and benefits of the company's recent studies and collaborations; and the impact and benefits of the company's acquisitions, partnerships and product offerings. 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 COVID-19 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 the company to obtain regulatory approval for its tests; the applicability of clinical results to actual outcomes; the company's failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; risks associated with litigation; 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 June 30, 2021. 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, (3) post-combination expense related to the acceleration of equity grants or bonus payments in connection with the company's acquisitions, (4) adjustments to the fair value of acquisition-related assets and/or liabilities, including contingent consideration 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 or debt 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)



September 30,
2021


December 31,
2020

Assets




Current assets:




Cash and cash equivalents

$

921,634



$

124,794


Marketable securities

320,465



229,186


Accounts receivable

58,431



47,722


Inventory

30,633



32,030


Prepaid expenses and other current assets

34,401



20,200


Total current assets

1,365,564



453,932


Property and equipment, net

101,000



66,102


Operating lease assets

119,194



45,109


Restricted cash

10,275



6,686


Intangible assets, net

1,168,157



981,845


Goodwill

2,283,059



1,863,623


Other assets

23,790



13,188


Total assets

$

5,071,039



$

3,430,485


Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$

35,404



$

25,203


Accrued liabilities

104,308



86,058


Operating lease obligations

12,636



8,789


Finance lease obligations

3,825



1,695


Total current liabilities

156,173



121,745


Operating lease obligations, net of current portion

120,467



48,357


Finance lease obligations, net of current portion

6,467



3,123


Debt

111,156



104,449


Convertible senior notes, net

1,462,499



283,724


Deferred tax liability

51,378



51,538


Other long-term liabilities

56,182



841,256


Total liabilities

1,964,322



1,454,192






Stockholders' equity:




Common stock

23



19


Accumulated other comprehensive income

21



1


Additional paid-in capital

4,624,397



3,337,120


Accumulated deficit

(1,517,724)



(1,360,847)


Total stockholders' equity

3,106,717



1,976,293


Total liabilities and stockholders' equity

$

5,071,039



$

3,430,485


 

INVITAE CORPORATION


Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Revenue:









Test revenue


$

111,676



$

67,326



$

322,448



$

175,503


Other revenue


2,719



1,402



11,880



3,664


Total revenue


114,395



68,728



334,328



179,167


Cost of revenue


87,741



46,643



252,563



130,017


Research and development


97,511



37,802



284,323



168,433


Selling and marketing


55,501



37,800



163,705



119,440


General and administrative


86,820



27,810



197,640



77,638


Change in fair value of contingent consideration


(19,866)



(504)



(386,836)



4,328


Loss from operations


(193,312)



(80,823)



(177,067)



(320,689)


Other income (expense), net


3,357



(15,771)



9,846



(32,499)


Interest expense


(14,069)



(6,308)



(35,869)



(17,244)


Net loss before taxes


(204,024)



(102,902)



(203,090)



(370,432)


Income tax benefit


(5,848)





(29,208)



(2,600)


Net loss


$

(198,176)



$

(102,902)



$

(173,882)



$

(367,832)


Net loss per share, basic and diluted


$

(0.91)



$

(0.78)



$

(0.85)



$

(3.08)


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


218,384



132,484



205,587



119,386


 

INVITAE CORPORATION


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Nine Months Ended September 30,


2021


2020

Cash flows from operating activities:




Net loss

$

(173,882)



$

(367,832)


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




Depreciation and amortization

56,848



22,964


Stock-based compensation

131,768



102,329


Amortization of debt discount and issuance costs

10,352



11,115


Remeasurements of liabilities associated with business combinations

(396,015)



42,448


Benefit from income taxes

(29,215)



(2,600)


Post-combination expense

7,870




Other

7,336



(570)


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




Accounts receivable

(8,900)



5,516


Inventory

1,397




Prepaid expenses and other current assets

(15,273)



(8,460)


Other assets

(2,915)



1,387


Accounts payable

2,581



3,118


Accrued expenses and other liabilities

24,151



5,665


Net cash used in operating activities

(383,897)



(184,920)


Cash flows from investing activities:




Purchases of marketable securities

(325,957)



(180,021)


Proceeds from sales of marketable securities



12,832


Proceeds from maturities of marketable securities

228,043



152,465


Acquisition of businesses, net of cash acquired

(239,836)



(57,576)


Purchases of property and equipment

(35,533)



(13,991)


Other

(1,300)



(2,000)


Net cash used in investing activities

(374,583)



(88,291)


Cash flows from financing activities:




Proceeds from public offerings of common stock, net

434,263



217,489


Proceeds from issuance of common stock

15,810



9,076


Proceeds from issuance of convertible senior notes, net

1,116,427




Finance lease principal payments

(2,833)



(1,543)


Other

(4,758)



3,738


Net cash provided by financing activities

1,558,909



228,760


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

800,429



(44,451)


Cash, cash equivalents and restricted cash at beginning of period

131,480



157,572


Cash, cash equivalents and restricted cash at end of period

$

931,909



$

113,121


 

Reconciliation of GAAP to Non-GAAP Cost of Revenue

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Cost of revenue


$

87,741



$

46,643



$

252,563



$

130,017


Amortization of acquired intangible assets


(13,422)



(4,708)



(34,578)



(12,138)


Acquisition-related stock-based compensation


(80)





(2,320)




Acquisition-related post-combination expense


(579)





(579)




Fair value adjustments to acquisition-related assets






(3,148)




Non-GAAP cost of revenue


$

73,660



$

41,935



$

211,938



$

117,879


 

Reconciliation of GAAP to Non-GAAP Gross Profit

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Revenue


$

114,395



$

68,728



$

334,328



$

179,167


Cost of revenue


87,741



46,643



252,563



130,017


Gross profit


26,654



22,085



81,765



49,150


Amortization of acquired intangible assets


13,422



4,708



34,578



12,138


Acquisition-related stock-based compensation


80





2,320




Acquisition-related post-combination expense


579





579




Fair value adjustments to acquisition-related assets






3,148




Non-GAAP gross profit


$

40,735



$

26,793



$

122,390



$

61,288


 

Reconciliation of GAAP to Non-GAAP Research and Development Expense

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Research and development


$

97,511



$

37,802



$

284,323



$

168,433


Amortization of acquired intangible assets


(528)



(117)



(1,588)



(350)


Acquisition-related stock-based compensation


(1,658)



171



(20,703)



(52,011)


Acquisition-related post-combination expense


(2,391)



(60)



(3,449)



(60)


Non-GAAP research and development


$

92,934



$

37,796



$

258,583



$

116,012


 

Reconciliation of GAAP to Non-GAAP Selling and Marketing Expense

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Selling and marketing


$

55,501



$

37,800



$

163,705



$

119,440


Amortization of acquired intangible assets


(1,685)



(760)



(5,062)



(2,331)


Acquisition-related stock-based compensation






(2,696)




Acquisition-related post-combination expense




(40)



(38)



(40)


Non-GAAP selling and marketing


$

53,816



$

37,000



$

155,909



$

117,069


 

Reconciliation of GAAP to Non-GAAP General and Administrative Expense

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

General and administrative


$

86,820



$

27,810



$

197,640



$

77,638


Amortization of acquired intangible assets








(10)


Acquisition-related stock-based compensation


(11)





(21,261)




Acquisition-related post-combination expense


(31,716)





(35,463)



(500)


Fair value adjustments to acquisition-related liabilities


19,866



504



386,836



(4,328)


Non-GAAP general and administrative


$

74,959



$

28,314



$

527,752



$

72,800


 

Reconciliation of Operating Expense to Non-GAAP Operating Expense

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Research and development


$

97,511



$

37,802



$

284,323



$

168,433


Selling and marketing


55,501



37,800



163,705



119,440


General and administrative


86,820



27,810



197,640



77,638


Change in fair value of contingent consideration


(19,866)



(504)



(386,836)



4,328


Operating expense


219,966



102,908



258,832



369,839


Amortization of acquired intangible assets


(2,213)



(877)



(6,650)



(2,691)


Acquisition-related stock-based compensation


(1,669)



171



(44,660)



(52,011)


Acquisition-related post-combination expense


(34,107)



(100)



(38,950)



(600)


Change in fair value of contingent consideration


19,866



504



386,836



(4,328)


Non-GAAP operating expense


$

201,843



$

102,606



$

555,408



$

310,209


 

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

(in thousands)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Other income (expense), net


$

3,357



$

(15,771)



$

9,846



$

(32,499)


Fair value adjustments to acquisition-related liabilities


(3,427)



16,208



(9,179)



37,937


Non-GAAP other income (expense), net


$

(70)



$

437



$

667



$

5,438


 

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

(in thousands, except per share data)

(unaudited)




Three Months Ended

September 30,


Nine Months Ended

September 30,



2021


2020


2021


2020

Net loss


$

(198,176)



$

(102,902)



$

(173,882)



$

(367,832)


Amortization of acquired intangible assets


15,635



5,585



41,228



14,829


Acquisition-related stock-based compensation


1,749



(171)



46,980



52,011


Acquisition-related post-combination expense


34,686



100



39,529



600


Fair value adjustments to acquisition-related assets and liabilities


(23,293)



15,704



(392,867)



42,265


Acquisition-related income tax benefit


(6,520)





(30,607)



(2,600)


Non-GAAP net loss


$

(175,919)



$

(81,684)



$

(469,619)



$

(260,727)











Net loss per share, basic and diluted


$

(0.91)



$

(0.78)



$

(0.85)



$

(3.08)


Non-GAAP net loss per share, basic and diluted


$

(0.81)



$

(0.62)



$

(2.28)



$

(2.18)


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


218,384



132,484



205,587



119,386


 

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

(in thousands)

(unaudited)



Three Months Ended
March 31, 2021


Three Months Ended
June 30, 2021


Three Months Ended
September 30, 2021


Nine Months Ended
September 30, 2021



Net cash used in operating activities

$

(89,520)



$

(129,325)



(165,052)




$

(383,897)


Net cash provided by (used in) investing activities

(273,558)



(80,701)



(20,324)




(374,583)


Net cash provided by financing activities

436,091



1,123,553



(735)




1,558,909


Net increase in cash, cash equivalents and restricted cash

73,013



913,527



(186,111)




800,429











Adjustments:









Net changes in investments

249,694



(51,475)



(100,305)




97,914


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

(434,263)








(434,263)


Proceeds from issuance of convertible senior notes, net



(1,116,850)



423




(1,116,427)


Proceeds from exercises of warrants

(790)



(452)






(1,242)


Cash burn

$

(112,346)



$

(255,250)



$

(285,993)




$

(653,589)











• Cash burn for the three months ended September 30, 2021 includes $134.6 million of cash paid for acquisitions, primarily related to the cash paid to acquire Medneon and Ciitizen, and $3.3 million in acquisition-related transaction costs.

• Cash burn for the three months ended June 30, 2021 includes $120.1 million of cash paid for acquisitions, primarily related to the cash paid to acquire Genosity.

• Cash burn for the three months ended March 31, 2021 includes $17.7 million of cash paid for acquisitions, primarily related to the cash paid to acquire One Codex.


















Contact for Invitae:
ir@invitae.com
(628) 213-3369

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SOURCE Invitae Corporation

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